The expected annual income a divorcee can expect to retire on is £3800 a year less than those who have never divorced, according to new research undertaken by Prudential.
This is not a particularly striking revelation as the stress of a divorce can be considerable, and this can sometimes mean the divorcing parties focus on their immediate financial needs, and not on their long-term financial outlook.
This research is important because it highlights the need to not only address your pension upon divorce, but to also continue paying into it post-divorce; to that end, it is imperative that you are advised on this most complex of assets if you are engaged in, or contemplating divorce proceedings.
The research undertaken by Prudential also revealed that those who are divorced are more likely to retire in debt (23%) than those who have never been divorced (16%). However, it is not all doom and gloom for divorcees, and whilst if you divorce you are more likely to be in debt, the actual amount of your indebtedness (£30,500) is typically lower than your non-divorced counterpart (£36,000).
Again, this revelation is not particularly surprising, as divorce does provide the opportunity to assess, understand and re-organise all your assets, and plan their utilisation going forwards post-divorce. This usually provides the divorcee with the opportunity to take stock of their financial situation, and take steps to address and mitigate the level of any debt they may have.
If you are contemplating divorce proceedings, it is imperative that you understand the long-term financial implications, and take active steps to ensure that you future-proof your finances. The best place to start is with a specialist family solicitor; if you would like to discuss any of the issues above, or indeed any other aspect of family law, then please contact Claire Tollefson on 01892 506191 or Claire.firstname.lastname@example.org for a free, no obligation telephone call.