WHY DIVERSIFICATION MATTERS MORE THAN EVER

We all know that to stay healthy we need to eat a balanced diet. The same goes for your investments - a mix of assets can go a long way.

This is known as diversification, and in the financial world means spreading your investments across a range of different assets (such as shares, property or cash for example).

The reason this matters is because diversifying your investments can potentially earn you higher returns, and keep your savings in line with, or above, inflation.

How does it work? Well, not all assets are impacted in the same way by the same events. The value of gold, for instance, may be impacted differently to property prices during times of financial disruption. Furthermore, companies that are in different sectors, different geographical locations or are different sizes are likely to perform in differing ways too.

Incorporating “negatively correlated investments” into your mix can also be a sensible strategy. Think of it as an ice-cream van owner who sells scarves or umbrellas for the less sunny days. This approach helps minimise the impact of market fluctuations and ensures your finances weather any changes.

However, as important as it is to diversify, it’s equally essential not to over-diversify. Having a range of investments can only reduce your risk up to a point, and holding too many means the return they could offer in the long run won’t have as significant an impact.

If you’re looking to invest your money or want to learn more about diversification, consider speaking with a professional and impartial financial adviser. With their expertise and knowledge, a financial adviser can help you make informed decisions about your investments, so you can feel confident in your financial future.

Our friendly team of independent financial advisers specialise in investments and are here to help. Call Belgrave Wincham on 01691 886554 to arrange a free 60-minute consultation.

with GHP Legal’s Alison Peters

Does the split of fi nances depend on length of marriage in a divorce?

Q: We have been married just one year, but it isn’t working out and I want the chance to meet someone else to have children with whilst I still can. The problem is that I moved into my husband’s house with him a year before we got married, and although I have paid my way since then, my friend says I won’t get a share of the house in a divorce settlement because it’s in his name. Can you explain how a settlement will work, please?

A: There are no hard and fast rules when it comes to a settlement as each case is determined on its own individual facts. However, the longer a couple are together the more likely it is that their finances have become mixed. So even if you are considering a simplified no-fault divorce, it is still advantageous to seek legal advice when it comes to sharing out the finances, and whether or not any money or property changes hands it may be extremely important for you to enter into a ‘Clean Break’ Order.

The longer a marriage has lasted, the more likely it is that the court will decide that all assets need to be equally split between the divorcing parties, irrespective of where these assets came from. If there are children involved this will again be taken into consideration.

With regard to a ‘short term’ marriage, such as yours would appear to be, the court may be more likely to move away from an equal division of the assets. Therefore, if your husband purchased the property prior to you living with him the court is unlikely to split the matrimonial pot 50/50, but that also does not necessarily mean you should walk away with nothing either.

You should make an appointment with a solicitor to discuss your options based on the facts of your case.

This question has been answered by Alison Peters, a Partner with GHP Legal. If you would like to speak to someone about this or any other legal matter, please visit our website www.ghplegal. com and use the contact us form, or call us on: Wrexham 01978 291456, Llangollen 01978 860313, Oswestry 01691 659194

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