Rebuilding Your Wealth After Divorce

Blog by Tamsin Caine for Smart Divorce

Your financial settlement on divorce might have left you feeling that you are not in the excellent financial position you once were. You might have planned to retire early. You might have wanted to travel the world. You might wish to relocate abroad, to somewhere warmer. You may now be feeling that these aspirations may no longer be possible.

Don’t worry, we can help! We often work with those who find themselves having shared their pensions, taken on a new or larger mortgage, and paying out spousal maintenance, possibly as well as child maintenance. They want to rebuild their wealth and understand how they can still fulfil their lifelong aspirations, living the life they desire.

Our work with you begins by gaining a full understanding of where you are now and where you would like to get to. We will talk about your hopes and aspirations for you and any children you have, as well as any fears you have for the future. Once we understand what the life you want to live looks like, we will gather factual information about your income, expenditure, assets and liabilities.

Using our professional financial planning knowledge and experience, we will analyse your current positions to make recommendations of steps that can be taken to help you to live the life that you desire and rebuild your wealth.

Savings Excess Income

It is vital that any surplus income that you have is utilised in the best possible way for you to help you to live your best life. We will advise you on whether to make additional pension contributions, invest in an ISA or keep the money in a savings account for short term planned purchases. Whatever the case, you want to ensure that your money is working hard and tax efficiently for you and taking steps to bring you closer to your aspirations.

Pensions and the Lifetime Allowance

You may have built up pension benefits previously up to, or even in excess of, the lifetime allowance. However, the pension share that your ex has been awarded may mean that you now have some available lifetime allowance again. Taking advice on this area is vital as there are a number of factors to consider.

Repaying your mortgage

Often we find that our clients have had to take out a new mortgage or increase their existing mortgage to buy a new home. Structuring the repayment of the mortgage should be a factor in managing your future finances. You may be able to repay large capital sums each year to repay it in just a short time, or perhaps there are better options available to you. You may also have rental properties which can help you to reach your lifestyle goals. The repayment of these mortgages, or not, and sale of these properties, or not, should form part of the decision making for your financial future.

Living your Life

Post divorce, it is easy to get embroiled in rebuilding that which you feel that you have lost. However, it is at least as important to ensure that you live your best life now, as well as working towards your aspirations, as we don’t know what the future holds for us.

If you are going through divorce or have recently been through divorce, and feel that we can help your to rebuild your wealth, please email to have a discussion with our financial planning experts.