Capital Protection on Divorce
According to the Office for National Statistics, divorce rates are falling, latest statistics revealed show there were 111,169 divorces in 2014, a reduction of 3.1% compared with 2013, but the question I always get asked in an initial interview surrounds the splitting of assets and the perennial who gets what question.
Many divorcing couples favour a clean break and opt for lump sum settlements rather than regular payments from their former partner.
However, handling what could be large lump sums may hold worries for people who are inexperienced in financial matters.
Many divorcees would simply place what they received on deposit, but the Financial Services Compensation Scheme usually only provides protection for deposits of up to £85,000.
Fortunately, a special Temporary High Balance Protection is available which covers deposits of up to £1 million for up to 6 months, when large sums are received, for example, from divorce settlements, an insurance pay out or inheritances.
I would always advise one of my high net worth clients to look at this option and having financial advisers working alongside our family department solicitors means we can offer this truly wrap around service and help protect our clients assets.
For advice on divorce, your assets and your financial future contact email@example.com
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Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.