Separation and divorce:
Funding the settlement
When a financial settlement has been agreed or determined by the court, it may include the payment of a cash lump sum from one spouse to the other.
It may be possible to release equity in the former family home, for example if it is being sold, but this may not be possible or may not provide sufficient funds.
It may be possible to release funds from a business in a tax efficient manner without selling the business or bringing in outside investment. This is particularly important if control of the business needs to be maintained to generate future income and maybe provide ongoing maintenance for children.
Funds may be borrowed against security of the business. Depending on age and other circumstances, it may be possible to release some of a pension fund early.
Professional advice can help find a solution that preserves financial security as far as possible but at the same time meeting obligations under the settlement.
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Where next?
Within Separation and divorce…
- The process itself
- Ancillary relief
- The tax effects of separation and divorce
- The family home
- Trusts
- Wills and inheritance tax planning
- Pensions
- Investing the settlement
General…
