February 2008

DIVORCE

It is a common misconception that the wives, especially where children are involved, do well from divorce settlements and generally receive the marital home as part of the process.

If you consider that the marital home is seldom owned outright, and therefore will come with a mortgage too, it puts a different slant on things.

This can place a huge financial burden on divorced women. Even though lenders are slowly recognising this and are generally becoming more understanding, there are very few options available in these situations.

Making individual financial provision should not stop just because you are in a relationship. Being in a relationship means thinking about things as a couple, but you still need to make sure you look after number one and your children's future.

It is generally good financial planning for women to make there own pension provision and then in the event of divorce, it means that each partner has their own pension arrangements and wives are not left with the family home, kids but no money in retirement.

It should be noted that in divorce, your pension will generally be treated as an asset and is used to offset against other assets during the divorce proceedings. Your ex-husband might even be awarded a share of your pension as part of the settlement if you have been granted the family home dependant on the asset value.

The financial implications for each partner are substantial but by taking control of your future now means you will be in a much better position should you find yourself going through a divorce in the future.