Financial considerations of assets and why it is important to obtain legal advice
Many people going through a divorce try to settle matters between themselves but often do not realise that certain assets are more complex and need to be considered in detail and sometimes experts reports need to be obtained so that there is more equality when deciding how to split that asset. These assets could include:
- Pensions – the Cash Equivalent Value (CEV) needs to be obtained and if it is of large values, say over £35,000, then consideration should be made to appoint a pension expert or actuary to consider how the CEV should be split to give a fair decision in the division of the other assets that are being offset or income at retirement.
- Business – consideration of business accounts are not enough as a forensic accountant may be needed to consider the true value of the asset and how this can be divided in a tax efficient way so that the business does not suffer and there is parity or fairness in considering the value of the business with the other assets of the marriage.
- Property – If second homes or holidays homes or other properties are involved then tax implications have to be considered especially capital gains tax and matters have to be resolved in a timely fashion to take advantage of the Inland Revenue regulations. Also net income from rental properties has to be considered if any of the above properties are rented in deciding maintenance payments.
Often people are completing the divorce papers by themselves and obtaining the decree absolute without considering what impact this would have on the financials and often do not have a formal agreement in place that can later be relied on if the other party comes back for more. It is important to formalise the agreement reached and obtain legal advice to ensure that you have a fair settlement and have considered all the assets and the division is appropriate in all the circumstances.
Therefore it is very important to obtain legal advice and our Smitta Modi can assist with any enquiries you may have regarding divorce and the finances of the marriage and the assets involved.
Contact Smitta Modi on 0116 2999199 or by email firstname.lastname@example.org