Pensions & Divorce: The Definitive Guide
Final Step: Post-Divorce Considerations
Ensure your financial future is protected
Once your divorce is finalised it’s easy to take a step back but before you do that, it’s prudent to look at how your finances appear following such a big change.
Reviewing Your Current Investment Portfolio
You may find that your investment portfolio no longer aligns with your personal financial goals or was previously managed by your ex-partner.
We offer a comprehensive review that includes:
- Gathering information about your current investments
- Assessing your risk tolerance and capacity for financial loss
- Discussing and agreeing on an appropriate asset allocation strategy
- Evaluating whether your portfolio continues to meet your needs, and making necessary adjustments
- Providing peace of mind through careful management
Your Will and Power of Attorney
While a divorce does not automatically invalidate a will, any mention of a former spouse is typically disregarded. This could be suitable for financial matters but may not be appropriate for guardianship or care decisions involving your children.
If you drafted a temporary will during the divorce process, now is the time to update it. You may also want to create or revise your will following the divorce to reflect your new circumstances.
Additionally, this could be a good time to consider establishing a lasting power of attorney if you haven’t already done so. You may wish to consult the solicitor who handled your divorce, or, at MKC Wealth, we can recommend a private client lawyer to assist you with this.
Rebuilding Your Pension
You may have lost part of your pension benefits as a result of the divorce settlement. Now is the time to consider how to rebuild your pension savings, or perhaps to solidify your retirement plans.
Your employer’s pension scheme may offer advantageous terms, particularly if you work in the public sector.
We are here to help you explore the most tax-efficient and cost-effective strategies to achieve your retirement goals.
Life Insurance Review
After your divorce, it may be necessary to reassess your life insurance coverage. Reasons for this include:
- Ensuring your premiums remain competitive
- Verifying that your coverage levels are still appropriate for your needs
- Adjusting your coverage to protect maintenance payments in case of death or illness
Cash Flow Planning
If you had a cash flow model prepared during your divorce process, it can now be updated to reflect your post-divorce financial situation.
If you haven’t yet explored this, now may be an ideal time. Cash flow planning is a powerful tool to help you understand how your financial goals can be realised. Many clients find it beneficial for long-term planning.
Cash Flow Planning
If you had a cash flow model prepared during your divorce process, it can now be updated to reflect your post-divorce financial situation.
If you haven’t yet explored this, now may be an ideal time. Cash flow planning is a powerful tool to help you understand how your financial goals can be realised. Many clients find it beneficial for long-term planning.
What is a cash flow plan?
A cash flow plan, in its simplest form, compares your expected income to your anticipated expenses. It helps you see if your financial goals are achievable.
The plan will also look at how your investments can be utilised to meet your future objectives. Once established, “what if” scenarios can be easily modelled, allowing you to explore various strategies to reach your short, medium, and long-term goals.
How Can We Support You?
We can work alongside your private client lawyer to ensure a smooth transition from the divorce to your financial future.
