Divorce rates may be falling, but the financial victims are older, wealthier couples who have more money tied up in pensions, property and investments.
Although the number of divorces is dropping, according to official figures, the over 55s are the only age group to see an increase.
Breaking up is hard to do at any age, but sensible couples can make the separation easier.
To sort out a settlement , both sides need to have a realistic view of how much they are likely to receive rather to bluster on about what they feel they deserve.
Courts will tend to split the assets of older couples straight down the middle unless special circumstances apply.
Agree the value of property and pensions
The starting point is to gather statements, certificates and other paperwork to determine how much you are worth together.
That may seem straightforward, but both sides should agree the value of their assets. This is easy for cash and shares, but not for art, antiques or property where opinion may cloud the process.
Who gets the family home is another stumbling block.
Someone must leave, but if one of the couple wants to stay they should take on any mortgage or buy out the partner moving on.
Dealing with pensions is fraught with problems.
A Qualifying Recognised Overseas Pension Scheme (QROPS) is beyond the reach of a British court, but if the saver has other assets in the UK, they could be set off against the value of the fund.
Don’t forget your debts
Besides the value of the fund, other pension considerations include the worth of any income generated and if an employer will increase the transfer value to encourage the saver to transfer the fund from a workplace scheme.
Divorce finances are about more than splitting cash and assets – couples also must settle their debts. These include mortgages, credit card balances, overdrafts and loans.
Debts in sole names are the responsibility of the individual, but both partners are responsible for those in joint names regardless of who spent the money and on what.
Lastly, don’t forget your will.
The end of the relationship is a good time to revisit the document to see if you need to think about changing your wishes.
