Finances from separation to divorce

Important information - the value of investments can go down as well as up so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. You cannot normally access your pension until age 55 (57 from 2028).

No matter how amicable things are, there are steps you'll need to take to prepare for your divorce or the dissolution of your civil partnership.

This includes showing exactly what you have in terms of assets and liabilities as a couple - your home, cash savings, investments and often overlooked pensions, among others.

While relying on legal advice to understand how you may be affected and what your rights are, we hope this guide on what financial topics could come up during the process will help. 

To prepare for your divorce you'll need to look at your current income and outgoings to create your projected budget as a single person.

For example, if you're looking to receive a lump sum from your ex-partner but you don't appropriately invest the money, it is likely to devalue over time. It's therefore important to know how long that amount will last you and how to make up any shortfall, if needed.

As part of your budget you could consider the following, among others
 

• Saving towards your retirement.
• Paying off any debt.
• Creating an emergency fund with enough to cover three months' worth of your normal living costs. Then if anything out of the ordinary happens, such as the boiler breaking, you'll be able to cover the extra expense.
• Taking income protection in case of long-term illness or disability.
• Setting up life insurance so that your financial responsibilities are covered in the event of your untimely death. This includes your mortgage and providing for your children and/or elderly or disabled relatives.

It's important to update your will, power of attorney and any third party agreements, as soon as you start seriously considering ending your legal partnership.

Unless you alter it, your will remains valid until your divorce is finalised and even then some details could still stand following divorce.

With third party ageements granted to providers of goods and services, your spouse can discuss, transact or obtain information without you being present.

Important information - this information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of  Fidelity's advisers or an authorised financial adviser of your choice.