5 Finance Things To Do Before You Sign Anything When Separating

Peace of Mind

Divorce is one of the most emotionally and financially challenging events a person can face. Before you sign any agreement – whether it’s a consent order, separation agreement, or financial settlement—there are key steps you should take to protect your future, your peace of mind, and your financial well-being. Here are five essential finance tasks to cover, and how professional guidance can help you feel confident you’re being treated fairly, now and later.

1. Understand All Your Assets, Liabilities, Income & Expenses

Before signing anything:

• List out all your assets and liabilities: This means property, savings, investments, pensions, debts, business interests, etc.
• Document income and ongoing expenses, both yours and those of your spouse where relevant. Sometimes hidden costs emerge later (taxes, mortgage adjustments, maintenance, insurance). And don’t forget about holidays, school trips, clothes, haircuts, etc. – all these expenses add up and people always tend to forget about them, especially during life changing events like divorce and separation.
• Get up-to-date valuations: For example, houses or businesses might have increased or decreased in value since you last looked.

Why this matters: Without full clarity, you may agree to something that looks reasonable now but turns out unfavourable in future – for example, maintenance costs, overlooked tax liabilities, depreciation of assets.

2. Understand the Long-Term Implications of Your Pension

• Pensions are often the largest asset in a divorce. Knowing how pension sharing or offsetting works, the tax impact, and what your retirement income is likely to be afterward is crucial.
• Understand your partner’s pension entitlements, but only if you will be sharing them

3. Review the Tax Consequences

• Splitting assets or transferring ownership (e.g., property) might trigger capital gains tax, stamp duty, or other charges.
• Regular income will still be taxed. If you’ll be receiving or paying maintenance, understand how that fits into your income tax bracket.
• If you own investments, how are they held, and are there tax-efficient wrappers (ISAs, trusts, etc.) that should be considered?

4. Forecast Your New Budget and Cash Flow

• Once separation is formal, living costs often change (you may have two households instead of one). Utilities, mortgage/rent, council tax, travel, childcare – all may shift significantly.
• What do you need to maintain a reasonable standard of living? What are “nice to have” vs “must have” costs?
• Build a cash flow model: current vs post-divorce. Spot any shortfalls—this gives you leverage in settlement discussions.

5. Safeguard the Unforeseen: Insurance, Will, and Safety Nets

• Ensure you have adequate life insurance, critical illness, and income protection in place. If you relied on your ex-partner for insurance or healthcare benefits, you may need to replace them.
• Review and update or make a Will and Lasting Powers of Attorney. After a divorce, legal documents still may reflect your former spouse unless changed.
• Establish an emergency fund. Even when everything seems settled, unexpected costs always pop up.

Why Working With a Financial Planner Changes the Game

All of the above are doable on your own – but in practice, it’s emotionally draining and easy to miss something that will cost you later. A certified divorce financial planner brings:

• Objectivity: You may be emotionally invested. A planner helps you make decisions based on facts, probabilities, and what you truly need long-term.
• Technical knowledge: Tax rules, pension regulation, trusts, property law – and more – can be complicated. Errors here can cost a lot more than the cost of good advice.
• Negotiation support: If you can show you’ve properly analysed your finances, you come from a position of strength during legal discussions.
• Peace of mind: Knowing you haven’t overlooked anything gives you freedom to focus on rebuilding your life rather than re-worrying over “what ifs”.

Why Goodall-Smith Wealth Management Is the Right Place to Turn

If you’re considering divorce, here’s why many clients trust Goodall-Smith Wealth Management:

• Specialist advice in divorce financial planning: Goodall-Smith Wealth Management already have a dedicated service for divorce financial planning which means they understand the legal, financial and emotional complexities involved.
• Holistic wealth management approach: It isn’t only about investments or splitting assets – it’s about helping you plan your financial life before, during, and after divorce. That means pensions, tax, cash flow, estate planning, insurance, and lifestyle goals all being considered as a cohesive whole.
• Personalised plans: Every individual and every marriage/partnership is unique. Goodall-Smith Wealth Management will take time to understand your situation – your priorities, your fears, your short- and long-term goals – and build recommendations just for you.
• Expert team and credibility: With experience and professionalism, they can help you navigate complex valuation, liaise with legal professionals, and ensure the financial parts of your divorce are handled robustly.
• Support, not just advice: Beyond the technical work, having someone to explain details, field your questions, reduce your stress, and push back on proposals that aren’t in your best interest – that support is invaluable.

Final Thoughts

Before you sign any document, make sure:

1. You know exactly what your finances look like now, and will in the future.
2. You’ve considered pensions, taxes, and cash flow.
3. You have safeguards for risk, insurance, legal documentation.
4. You’ve run through your “what ifs” and seen the numbers work.
5. You have professional guidance so that you don’t just “fight” to get through this period – but emerge in a place of financial stability and confidence.

Peace of mind may seem intangible, but in financial matters – especially divorce – it comes from clarity, thoroughness, and making informed decisions. Working with Goodall-Smith Wealth Management gives you the clarity, professionalism, and personalised attention to make sure what you sign today won’t become a regret tomorrow.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up.  You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Will writing and Powers of Attorney involve the referral to a service that is separate and distinct to those offered by St. James’s Place and along with Trusts are not regulated by the Financial Conduct Authority.

Goodall-Smith Wealth Management Limited is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website http://www.sjp.co.uk/products. The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.

SJP Approved  04/12/2025