Starting points for having positive conversations with your clients about divorce.
What should you talk about when it comes to Divorce?
In this section you'll find information to help you when you’re dealing with a client that is going through this often difficult time.
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Pensions are often a couple’s biggest asset after the family home. In this section you’ll find information to help you discuss how your client could rebuild their pension after a divorce.
Inheritance Tax (IHT)
Transfers between spouses are exempt from IHT. However, after a divorce has been finalised transfers between ex-spouses are treated as Potentially Exempt Transfers and will usually be exempt from IHT if the donor survives 7 years. Although it is possible to transfer any unused percentage of the IHT nil rate band (NRB) from a deceased spouse or civil partner to the surviving spouse or civil partner, no transfer is possible where the first death occurs after the couple have divorced.Transferable nil rate band: the facts
Lasting Power of Attorney (POA)
Often you would choose your spouse to deal with your affairs when you die. In the case of divorce, if you have chosen your spouse as your sole POA the existing Lasting POA will be revoked. It’s therefore important to make sure any Lasting POA is kept up-to-date.
If joint-tenancy has been severed it won't affect any divorce settlement. The court has the authority to agree who will become the sole owner of the family home.
Insight from our experts on specific generational needs, as well as the principal life events that drive intergenerational needs, helping you open up new conversations.