How do I protect my finances during divorce?

Published 3 October 2025

Divorce does not just change your relationship status; it changes everything. Your living situation, your routines, your emotional health, and most significantly, your finances. One of the biggest questions I hear as a financial adviser is: How do I protect my money during a divorce?

The truth is, divorce can be one of the most financially vulnerable times in your life. Decisions are being made quickly, under emotional stress, and without a clear plan, you could lose out on more than you realise.

In this guide, I will show you how to protect your finances from day one. Whether you are just separating or already in the legal process, these steps will help you stay in control, minimise risk, and make decisions that support your future, not just your present.

1. Start with a clear picture of your finances

Know what you own, what you owe, and what income you have coming in. List your assets, debts, bank accounts, pensions, investments, and monthly spending. This is the foundation for everything else. And you may need to complete a form called Form E, which requires this information.

2. Secure access to financial records

Make copies of all financial documents: joint bank statements, mortgage deeds, pension plans, credit card bills, insurance policies. Store them somewhere private and safe. If things become difficult, having this information will help you.

3. Separate joint accounts early

If possible, open a new personal bank account and redirect your salary and benefits. Discuss freezing joint accounts if you are worried about spending. You need to control your cashflow from the start.

4. Track spending and create a personal budget

Once your finances are separated, build a new budget around your needs. Include rent or mortgage, bills, food, travel, childcare, legal costs, and savings. This gives you financial clarity and helps prevent surprises.

5. Protect your credit

Check your credit report for any joint loans or shared liabilities. Remove your name from anything you no longer want to be tied to. Missed payments, even by your ex, can affect your credit score.

6. Understand your legal rights and entitlements

Speak to a solicitor and a financial adviser about what you are entitled to. Do not assume the fairest thing is a 50/50 split. Pensions, businesses, and child arrangements can all impact the final settlement.

7. Do not rush big financial decisions

Selling a house, cashing in pensions, or agreeing to maintenance without advice can lead to regret. Focus on protecting what matters: stability, income, and long-term goals. Take your time and ask for help.

8. Plan for tax and future costs

Dividing assets can create tax liabilities, especially if property or shares are involved. Work with a financial planner to ensure transfers and settlements are tax-efficient and forward-looking.

9. Update wills, insurance, and beneficiaries

Once the divorce process starts, revisit your will, life insurance, and pension nominations. Ensure your financial legacy reflects your new situation. Many people forget this step and leave their ex-partner as a beneficiary by default.

10. Seek professional support

A divorce solicitor will handle the legal side, but a financial adviser ensures your money is protected, now and in the years ahead. From budgeting to pension planning and asset division, professional advice pays for itself.

Quick takeaways

• Gather and copy all financial records early

• Open your own bank account and create a new budget

• Protect your credit by separating joint liabilities

• Understand your financial rights before making decisions

• Do not overlook pensions or future costs

• Work with both legal and financial experts

• Take your time; rushed decisions cost more later

FAQs

How do I protect myself financially during a divorce?
Start by separating accounts, gathering documents, protecting your credit, and speaking to a financial adviser about budgeting, pensions, and tax implications.

When should I get financial advice during a divorce?
As early as possible. The earlier you get advice, the more options you have, and the fewer mistakes you will make.

What happens to pensions in a divorce?
Pensions can be split using sharing orders or offset against other assets. Their value can be significant, so make sure they are assessed correctly.

Can my ex still access our joint bank account?
Yes, unless it is closed or restricted. Protect yourself by opening a new account and discussing safeguards with your bank.

Do I need both a solicitor and a financial adviser?
Yes. A solicitor helps with the legal process, while a financial adviser focuses on your income, future, and financial stability.

Protecting your finances during a divorce is not just about money; it is about protecting your independence, your future lifestyle, and your peace of mind. You do not have to do this alone.

As a financial adviser with experience in divorce planning, I help people make clear, confident decisions from the very start. If you are facing separation or in the middle of the process, now is the time to take control.

Financial peace of mind might feel out of reach right now, but it is absolutely possible. All it takes is a clear plan, expert support, and the courage to begin again.

Book a no-obligation Clarity Call and let us put a plan in place that protects what matters most: your future.

Your partner in financial confidence,

Shalini Kanap

Resolution member & Treasurer of Resolution Merseyside

P.S. If you want to learn more, explore some of my other helpful reads:

• Do Financial Planners help with budgeting? Taking control of your finances

• Financial advice for women going through divorce: What you need to know

• What happens to your finances when you get divorced?

• Take control of your finances and your future: Divorce Financial Advice in Liverpool
  

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