Negotiating a Financial Settlement

Negotiating a financial settlement

You are sitting in your family lawyer’s office discussing the offer made by your ex. They have offered a cash lump sum, the house and a share of their pension. To some people it will sound like a huge amount of money but to others it won’t sound enough. Why? Well, negotiating a financial settlement depends on more than just the total amount in the pot. It also depends on lifestyle, your lifestyle. This means the things that you usually do, need to do and like to do. All these contribute to your lifestyle.

How do I understand what it means to me?

Understanding what this means to you is where lifestyle financial planners come in. They can help you to understand what the offer means to you, in the context of your lifestyle. They will help you understand what your lifestyle costs. The way in which these costs change over the course of your life will depend on the things that you want to do in the future.

What does this mean? If you were a Premiership footballer, your lifestyle would be likely to be more expensive than if you were a teacher. Therefore, if I gave each of you £100, the value would be different. So if you receive an offer from your ex-spouse, probably via their lawyer, you need to understand it.

Is it a good offer?

When negotiating a financial settlement, your lawyer will advise you on the fairness of the offer in terms of the law. It is likely when you come to an agreement that neither of you will be strictly happy with the outcome. However, you need to feel that you can move forward with the division that you agree on.

In terms of moving forward, some of that may lie in rebuilding your financial position, especially if you were the greater earner. Even if not, you may need to increase your pensions of savings to allow you to live the life that you desire. A financial planner can help you to understand the amount that you need to save, invest or contribute to pensions, or a combination of all three.

If you think we can help you, please contact Tamsin either on 07975 922766 or at

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