According to the Office for National Statistics, divorce rates are falling. There were 111,169 divorces in 2014, a reduction of 3.1% compared with 2013.
Many divorcing couples favour a clean break and opt for lump sum settlements rather than regular payments from their former partner.
However, handling what could be large lump sums may hold worries for people who are inexperienced in financial matters. Many divorcees would simply place what they received on deposit, but the Financial Services Compensation Scheme usually only provides protection for deposits of up to £85,000.
Fortunately, a special Temporary High Balance Protection is available which covers deposits of up to £1 million for up to 6 months, when large sums are received, for example, from divorce settlements, insurance payouts or inheritances.
