The consequences of a marital failure can prove a financial catastrophe for the unwary. The costs covering lawyers and estate agents alone could amount to a figure in the region of £28,000, according to Norwich Union.

Despite that, the number of divorces has trebled over the past half-century and is continuing to rise. The most recent figures from the Office for National Statistics reveal that there were 313,600 marriages and 167,100 divorces in the UK during 2004, up from 305,900 marriages and 154,600 divorces in 2000.

Filing for divorce is easier than ever, with a host of websites offering relevant documents. But the fallout, particularly on the financial side, can be felt for years afterwards if the process is not managed properly from the outset.

The emotional aspects of separation can be difficult enough without having to address the minutiae of budgets, pensions, savings and investments. It is vital to dedicate time to sorting out the financial details and to take professional advice or you could end up paying a heavier than expected price for a split.

It is now not uncommon for people to plan for their divorces before and during their marriage. Wealth protection is a whole new issue that divorce lawyers have to consider.

Before potential financial settlements can be discussed, anyone considering filing for divorce needs to work out how much the divorce process itself will cost. The costs can be minimised if the couple can agree matters between themselves, but if the case is a complex, big-money case, the costs can run into hundreds of thousands of pounds.

Any action will obviously depend on the individual circumstances of the case, but there are some general themes to bear in mind. The earlier you plan for a possible divorce the better. Taken to extremes, cynics – often including those who have been married and divorced before – argue that a pre-nuptial agreement is worth considering. While pre-nuptial agreements are not binding under British law, they are increasingly being given greater priority in court, after the Miller and McFarlane cases last year, legal experts say.

Did you know?

	Filing for divorce on 6 April 2007 could mean benefiting from capital gains tax-free transfers of assets within the tax year that starts on this day
	You should not forget to obtain a final consent order, to avoid your partner possibly coming back for more
	Collect evidence of any assets that were ring-fenced during the marriage Planning in advance and working out how much the divorce process will cost is prudent
	Gather information and keep records of your partner's financial income, gains and assets
	If you tell your bank of a dispute they could freeze the account, leaving you with no access to money
	Keep records of your expenditure, to prove your standard of living
	Check whether you should be entitled to some of your partner's pension

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Article date: March 2007