The breakdown of a relationship can be exceptionally challenging, regardless of its precise nature or longevity. This is particularly true in the case of marriage, however, where two people have entered into a significant commitment that joins every aspect of their lives in unison.
So while the national divorce rate in the UK may have fallen to its lowest level in 40 years at the end of 2015, the breakdown of a marriage remains an an emotionally challenging experience. It can also be a financially difficult time too, as couples look to organise and distribute their assets according to law.
How to Limit Losses Through a Separation
With this in mind, let’s consider some of the ways in which couples can minimise their financial losses and hardship when going through a permanent separation. These include: –
- Seek Out Expert Advice
Divorces are emotionally distressing affairs, and this makes it hard for couples to think clearly when discussing related financial issues. Such problems can also cause confusion and animosity between individuals, so is important to seek out a unique and impartial perspective when managing your combined estate.
In terms of choosing an expert service provider to partner with, you should always prioritise firms that have participated in groundbreaking family law cases and blazed a trail in terms of changing how justice is delivered. This will ensure that your divorce is completed as amicably and as quickly as possible, while it may even offer you access to a host of alternative dispute resolutions.
Above all else, this will hasten the separation process and help you to identify the best methods of minimising your loss as both a couple and individuals.
- Maintain Lines of Communication at All Times
While legal advice can offer an objective perspective that enables you to negate the impact of an emotional mind-set, the couple in question must ultimately shoulder the burden for resolving their differences. With a hostile and selfish mind-set, it is almost impossible to negotiate fairly and settle sensitive, financial disputes.
So, each individual with a couple must look to maintain open and honest lines of communication even after their separation, with the help of an independent mediator if necessary. This ensures that you are able to work through much of the hostility that is clouding your judgement, which in turn makes it far easier to limit financial losses that may occur as your separation becomes a prolonged, drawn-out battle.
- Agree to Sell All Shared Assets Where Possible
Ultimately, shared assets such as real estate can provide the biggest sticking point for couples entering a period of separation. After all, it is important for individuals to agree on how this asset is utilised and divided going forward, otherwise it is almost impossible to optimise your financial return over time. This can be difficult, however, whether there is genuine dispute over how best to leverage the asset or the couple decides to hang onto it out of misguided sentiment.
As a general rule, couples should look to take the proactive approach of selling shared assets wherever possible (depending on other factors such as market conditions and the prevailing on the economic climate). This way, high value assets such as houses can be sold and the proceeds distributed fairly, helping couples to recoup as much of their investment as possible. Without this, the house may become a losing concern if it is left idle or at the centre of a raging, endless debate about its future.