The Financial Planning firm said the speed at which couples will now be able to divorce could lead to former couples not making proper provision for a dependent spouse and children prior to the divorce becoming finalised.
The Divorce, Dissolution and Separation Bill was passed into law in June this year and means that couples will be able to seek a 6-month no-fault divorce from Autumn 2021. It aims to avoid additional stress and animosity for the couple at the beginning of the divorce process to give them a better chance of resolving issues such as splitting assets and custody amicably.
LEBC said that introducing the divorcing couple to Financial Planning early in the divorce process is key and will become more important when the law changes next year.
Kay Ingram, director of public policy at LEBC, said: “The introduction of “quickie” divorce laws from next year means that it is even more important for divorcees and their lawyers to consider and agree the financial split prior to obtaining a decree absolute. Under the new law couples can be divorced within six months and once they are no longer legally married lose many of the tax breaks and benefits which are reserved exclusively for married and civil partner couples.
“This can include loss of dependents pension from workplace schemes and the State pension, loss of the main residence tax relief on selling or transferring the family home, ineligibility for State Bereavement benefits and a loss of the exemptions from capital gains and inheritance tax. All of these things may seem unimportant when dealing with the emotional fall out of a split but not making proper provision for a dependent spouse and children prior to divorce can lead to financial hardship for the whole family.”