What is Talk Money Week?
Talk Money Week is an annual campaign run by the Money and Pensions Service to encourage people to talk more openly about their finances. This year’s theme is ‘It All Counts’, which focuses on realistic and manageable actions.
Few conversations about money are harder than the ones that come with a separation. Trust may have broken down, and many people are dealing with their financial affairs on their own for the first time. At Prosperity Law, we see every day how a small, early step can make the rest of the process easier. This article looks at the conversations worth having when managing your finances during divorce, and where to start.
Why managing your finances during divorce matters
A common misunderstanding is that getting divorced also settles your finances. It does not. The final order ends the marriage, but financial claims between you can stay open for years afterwards, unless they are dealt with by a court order.
Even if you and your ex agree how to split things, that agreement is not legally binding on its own. It should be recorded in a consent order and approved by the court. A consent order can also provide for a clean break, which ends future financial claims against each other.
The conversations you have now will shape that agreement, so it is worth approaching them carefully.
Talking to your ex about money
Any fair settlement starts with financial disclosure. Both of you must give full and honest details of your income, property, savings, pensions and debts. This applies whether you negotiate through solicitors, use family mediation or go to court. An agreement reached without proper disclosure can be challenged later.
Some practical steps can help these conversations stay productive:
- Set a time. Agree when you will talk about money, rather than raising it in passing or during handovers of the children.
- Take one topic at a time. The house, pensions and day-to-day bills are easier to discuss separately.
- Put it in writing. Follow up any discussion with a short email so there is a record of what was agreed.
- Get advice before you agree. Speak to a family law solicitor about your position before committing to anything, especially where pensions or property are involved.
Pensions are often one of the largest assets in a marriage and are easily overlooked. Ask each pension provider for a Cash Equivalent Transfer Value (CETV) early on, as these can take several weeks to arrive. Pension sharing is one of the ways a court can divide them.
If talking directly is difficult, family mediation offers a structured setting with a neutral mediator. Where the mediation covers arrangements for children, you may be eligible for up to £500 per family through the government’s Family Mediation Voucher Scheme, which is funded until 31 March 2027.
Talking to your children
Children often pick up on money worries even when nothing is said. The details of your financial settlement are for the adults to resolve, and children should not be drawn into disagreements about who pays for what.
That does not mean saying nothing at all. Age-appropriate honesty can help, for example, explaining that there may be two homes and that some things may change. Agreeing between you what you will tell the children, and keeping that message consistent, can spare them a great deal of worry.
Small actions that count
Some of the most useful money conversations about finances during divorce are the ones you have with yourself. In the spirit of ‘It All Counts’, these are manageable steps you can take now.
Work out a budget. Write down what you spend each month and what you will need to run a home on your own. This will help you and your solicitor judge whether a proposed settlement works in practice.
Review joint accounts and debts. Either of you can usually withdraw from a joint account, and you can each be held responsible for the full amount of a joint debt, regardless of who ran it up. Speak to your bank about your options and keep copies of statements. If a creditor writes to you, do not set the letter aside.
Update your Will. A Will is not cancelled by divorce, but from the date of the final order, your ex-spouse is treated as if they had died for the purposes of your Will. Until then, they may still inherit under your Will, or under the rules of intestacy if you have no Will. Our article on talking to your family about your Will covers how to start that conversation.
Check your other nominations. Pension death benefit nominations and life insurance policies are not changed automatically by divorce, so review who you have named.
If one of you controlled the money
In many relationships, one person manages the finances, and that is not a problem in itself. It becomes one if you have been kept from your own money or left with no knowledge of the household’s financial position.
Under the Domestic Abuse Act 2021, economic abuse is a recognised form of domestic abuse. It can continue after separation, for example through delays in disclosure or by restricting access to funds. If this sounds familiar, tell your solicitor at the outset. There are steps that can be taken, including applying for interim maintenance or asking the court to order full disclosure, and legal aid may be available where there is evidence of domestic abuse. The charity Surviving Economic Abuse also offers free guidance and support.
When to seek legal advice
It is sensible to take legal advice before you agree to anything, even if your separation is amicable. Advice is particularly important where there is a family business, significant pensions, property owned before the marriage, or assets overseas.
A family law solicitor can explain what a fair outcome might look like in your circumstances and make sure any agreement is recorded properly. Solicitors cannot give regulated financial advice, so in some cases we will also recommend speaking to an independent financial adviser. For free, impartial guidance on money and pensions, MoneyHelper is a useful starting point.
FAQs about finances during divorce
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Not necessarily. Equal division is often the starting point, but the court looks at a range of factors, including each person’s needs, income, age and the needs of any children.
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Yes. All pensions must be included in your financial disclosure, even if you decide not to share them.
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Not automatically. Financial claims remain open until they are dealt with by a court order, ideally one that includes a clean break.
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It depends on your circumstances. Speak to your bank and take legal advice before closing or emptying any account, as how you handle joint funds can be relevant to the settlement.
How can we help?
Talking about how to manage your finances during divorce is rarely easy, but you do not have to work it all out at once. Our family law team can guide you through financial disclosure and negotiation, and help you reach a settlement that gives you a secure footing for the future.
If you would like to talk through your situation, please contact our family law team to arrange an initial appointment.
Talk Money Week is run by the Money and Pensions Service. This article is for general information only and does not constitute legal advice.
Get in touch at 0151 958 0057 or use the form below.
Daniel Jones
Daniel, Partner in our Family Law team, specialises in all aspects of Family Law, including: adoption, Child Abduction, Child Arrangements, Complex contested children matters, Divorce, Dissolution of Civil Partnership, Matrimonial Financial matters, International Children matters, International and internal Relocation of Children, Pre and Post Nuptial Agreements, Special Guardianship, and Unmarried cohabitation disputes.
Daniel has extensive experience in dealing with complex financial matters arising from divorce or the dissolution of a civil partnership, with an emphasis on matters involving business assets and assets abroad. He has undertaken numerous cases dealing with farming matters and routinely represents high-profile and high-net-worth individuals.
