5 financial mistakes to avoid when going through a divorce

If the winter months have also brought a difficult turn in your relationship and you’re considering or have already started the process of divorce, you’re not alone. Every year, divorce rates tend to rise after the festive season and into the new year.

Divorce can be a lengthy and emotional process, and many people don’t realise how complex or costly it can be until they’re in the middle of it. To help you navigate it more confidently, here are five common financial mistakes people make during a divorce and how to avoid them.

1. Failing to be fully transparent about finances

One of the most common issues in divorce proceedings is a lack of financial transparency. If you’re found to be hiding money or withholding information about your finances, there can be serious legal and financial consequences. Being open and honest about your income, assets, and debts will make the process smoother and fairer for both parties.

2. Ignoring or underestimating pensions

Pensions are often one of the most valuable assets in a marriage, yet they’re frequently overlooked. Many couples focus on dividing the family home and forget to consider pensions until it’s too late. Make sure you understand the value of any pensions and how they can be divided, as this can have a major impact on your long-term financial security.

3. Not including a financial consent order

A financial consent order is a legal document that confirms how assets, property and any ongoing payments (like maintenance) will be divided after a divorce. Without one, your financial agreement isn’t legally binding, which means either party could make further claims in the future. It’s essential to have a consent order in place to protect both sides.

4. Not seeking legal advice for financial orders

If your financial situation is complex or involves significant assets, professional legal advice is crucial. A solicitor can ensure that any financial agreement is fair, reasonable and legally sound. This can prevent future disputes and give you peace of mind that everything has been handled properly.

5. Overlooking help with fees

Divorce can be expensive, but many people don’t realise that they might be eligible for financial support. You may qualify for help with court or legal fees, depending on your circumstances. Before you assume you have to pay everything yourself, check if you can get assistance, as it could save you a considerable amount.

To find out more about the financial aid you may be eligible for, click here.

Divorce is rarely simple, and the financial side of it can feel especially daunting. Taking the time to understand your options, seek professional advice and make informed choices can make the process much easier to manage. Avoiding these common mistakes can help you protect your financial future and allow you to move forward with confidence as you start a new chapter in your life.