Divorce as much a financial exercise as a legal one, Bentley Reid emphasises

Bentley Reid, the employee-owned wealth manager, has urged those anticipating divorce to understand that one of the real challenges is to ensure that the structure of a divorce is geared to provide security over the long term, rather than just focusing on the immediate settlement.

Divorce Day which takes place on the first working Monday of January, falls on 5 January this year.

Mike Winstanley, Director of Wealth Management at Bentley Reid, said: “Where substantial assets are involved – whether property, pensions or holdings overseas – divorce becomes as much a financial exercise as a legal one. Too often, people focus on the settlement figure alone, when the real challenge is ensuring the post-divorce structure delivers long-term security.”

Mike Winstanley highlighted some key areas for consideration:

Wealth Planning Implications

One of the most overlooked areas is the period immediately after a divorce. Income often changes, new costs appear and the level of investment risk someone is comfortable with may well shift. Having a clear post-divorce plan covering cashflow, protection and long-term investment strategy is what often shapes long-term stability.

Impact on Pensions

Pensions play a much bigger role than many people realise. For many couples, pensions are among the most valuable assets they hold (and typically are held by the husband), yet they are widely misunderstood. Ensuring they are valued correctly, divided fairly and then structured in line with an individual’s needs can have a major effect on future financial security.

Supporting the Less Experienced Partner

An important part of the process is supporting the partner who has historically been less involved in the finances. Divorce can be the first time someone has had to manage substantial assets on their own. Key is helping them build confidence together with understanding that having a sustainable long-term plan is just as important as the initial division of wealth.

During 2025, the firm noted an uptick in clients originally from the UK with international assets or residency links. The latest ONS data show that 252,000 British nationals left the UK in year ending June 2025*. The firm cautioned that multiple properties, overseas investments and cross-border tax exposure can all influence how a divorce should be structured.

Mike Winstanley commented: “When there are international considerations, coordinating the legal, tax and financial advice across jurisdictions is no longer a specialist requirement; it is increasingly the norm.

“What we see time and again is that divorce is not just the unravelling of a relationship, it is the unravelling of a financial life that has often been built across borders, currencies and tax systems. The biggest mistake people make is assuming that the settlement figure is the end of the story. In reality, it’s the starting point.

“If the structure that follows isn’t built properly; if the cashflow doesn’t work, if the pensions aren’t aligned to someone’s new life, if the cross-border issues aren’t addressed, people can unintentionally place themselves in financial jeopardy within a few years of settlement. Good planning protects the assets, of course, but it also gives people back a sense of control at a point when life can feel very uncertain. Helping someone rebuild that confidence is ultimately what matters.”