What is the impact of coronavirus on divorce likely to be? Why rushing into a settlement during the pandemic could damage your financial health.
One of the most common questions our family law team are being asked at the moment is, ‘If I enter into a divorce settlement now, will I lose out?’
The simple answer is that you might, according to Slee Blackwell’s divorce finance specialist solicitor, Paul Jordan.
These are unprecedented times and any decisions which could effect your long-term financial security should ideally be deferred until the full impact of Covid-19 on the property and stock markets is clearer. It is likely that the UK economy will suffer quite a serious recession for at least the next few months, if not years. This presents a dilemma for people as quite understandably couples who want to end their relationships will also wish to resolve outstanding financial matters as soon as possible.
It is always important to ensure that specialist professional advice is obtained from a property valuer, financial advisor and accountant. It is even more important to also consider whether a pension expert report should be obtained before any final conclusions are reached.
Whatever financial decisions you are thinking of making if your relationship is coming to an end you should ensure that you take the advice of an expert family law solicitor who specialises in finance work before making any decisions that could result in you achieving a financial settlement that is a poor investment for your financial future.
It’s important to remember that once a settlement is entered into it can be very difficult, if not impossible, to revisit it at a later date. It is therefore vital that you don’t rush into a settlement that you may live to regret. And while it is natural to want to seek closure, there may be sound financial reasons for allowing some breathing space to give the markets time to recover from the pandemic.