The benefits of a clean break agreement on divorce, even if you have no assets

You may feel overwhelmed with the changes you are facing as you go through a divorce, and going from two incomes to one can be a struggle. If you do not own a house or have other assets, it’s tempting to cut costs and ignore seeking advice from a solicitor in relation to a financial agreement. Robert Bellhouse, family law expert at Ware & Kay explains why this could be a costly mistake.  ‘A divorce does not stop all financial obligations between spouses. I have met people that come into money years after a divorce, only to face an unexpected claim from their former spouse.  You may be on amicable terms now, but relations can sour over time, especially if one of you enters a new relationship or comes into new found wealth. You can prevent an…

How to protect your money when helping to finance a child’s diversification project

It is increasingly common for parents to give money to their children to help them buy a property or set up a new business. You may intend this purely as a gift to your child to help them with their new venture not appreciating that in the event of a separation or divorce, that gift may be “lost.”  How can you protect this money if your son or daughter subsequently divorces?  Loan or ownership: You can protect your investment in the new venture by either taking a share in the ownership or making a loan which may also then be protected by taking a charge. If you opt for ownership your advisers can ensure that you are registered as one of the co-owners in the appropriate proportion. So, for example, if you are contributing 30% of…