Divorce is undoubtedly a stressful time for both parties and there are many different things that need to be considered.
Katie O’Callaghan, senior associate at private client law firm Boodle Hatfield has detailed the five common financial loose ends that divorcing couples need to deal with....
1. Write a new Will
If clients don’t update their Will after divorce to take into account a new partner or children from a new relationship then they may end up facing complex legal disputes. A new spouse could lose a large part of inheritance to the children from the first marriage or the ex-spouse may no longer be able to benefit from the original Will, even if it is intended they do so.
In fact, divorce is seen as one of the main reasons for the increase in Will disputes, which have seen a 26 percent rise to 225 in 2017 from 178 in 2012.
2. Joint life insurance policies must be cancelled
If you don’t cancel a joint life insurance policy after divorce and your former spouse is named as the beneficiary, then they will still legally be entitled to the pay-out rather than a new partner.
3. Be aware you may be removed from joint financial products such leaving you without cover...