Legal & General, in celebration of ‘Divorce Day” today, on the 6th of January has launched a financial health check tool to help individuals navigate the financial complexities associated with divorce. Family lawyers have reported a dramatic increase in divorce inquiries following the holiday season.
Legal & General conducted a survey that highlighted the financial challenges faced by many couples during divorce proceedings. One in six divorces were postponed over the last five years due to financial issues. 17% of separations were also delayed for monetary concerns.
Key Findings
The survey sheds new light on the financial impact divorce has:
- Income Drop: In the year after their divorce, 45% of divorcées experienced a drop in income. The average was 30%.
- Divorce Debt: 15 % of people went into debt in order to pay for their divorce.
- Financial Inequality : 41% of respondents felt their divorce settlements were not financial equitable.
- Pensions Overlooked Only 13% divorcees considered pensions when dividing assets. 23% waived all rights to the pension value of their spouse.
- Will updates neglected: 10% divorcees delay or forget to remove ex-partners from their will.
A Financial Safety Net
Legal & General’s new tool aims at empowering individuals by providing guidance on managing finances during divorce. It addresses areas that are often overlooked, including pension entitlements and financial planning for the future.
Paula Llewellyn is Chief Customer & Strategist Officer at Legal & General Retail.
Our research has shown that money is a factor to consider. People are forced to stay married longer because of finances. They also face greater struggles when they decide to go it alone.
Divorce is not only the dissolution of an agreement, but also the end of any relationship. When you’re going to divorce, careful planning is important to protect your future. If you have to delay your plans to do so, take the time to organize your finances – we created a financial health test tool to assist you.
