How much is your spouse's pension really worth? The importance of seeking Independent Financial Advice during divorce
If you and your ex-partner have come to the decision to divorce or end a civil partnership, the first thing you might be considering is what legal advice you will need, but you might also want to think about getting financial advice from an Independent Financial Advisor (IFA).
Whilst your thoughts might naturally turn to issues such as dividing the family home, a pension is often the next biggest asset so it is important to make sure you are confident you know the value of a pension or pensions during a divorce.
Getting the right advice from the outset can help ease a stressful process, providing you with the reassurance you need that you have secured a fair settlement backed up by independent financial advice.
What is an Independent Financial Advisor (IFA)?
An IFA can help you navigate the financial aspects of your divorce, particularly where pensions are involved. For example, they can assess the value of both yours and your ex-partners’ pensions pots. This can be a complex process, particularly in the case of Final Salary pension schemes. The advice of an IFA can be invaluable in ensuring an accurate pension valuation, helping you to achieve a fair settlement.
Your IFA can also help you with some of the financial paperwork associated with your divorce, assisting in making the process as quick and cost-effective as possible.
You might find an IFA helpful in other areas of the divorce, such as dividing assets, advising on life insurance, mortgage eligibility, future budgeting and supporting you to move on post-divorce with fewer difficulties.
Things to consider when finding an IFA
- Seek out someone who is properly accredited by the Financial Conduct Authority
- You might want to consider an IFA who specialises in divorce through an organisation such as Resolution. IFAs who are accredited by Resolution will have undergone a rigorous training process to ensure that not only do they have the right technical knowledge, but also the softer negotiation skills required to help your divorce progress as smoothly as possible. You can find a Resolution accredited IFA on their website.
