Couples wanting to break up will often set the formal process of divorce in motion at the start of the new year.

Many divorce lawyers report a rise in enquiries in January, especially on the first Monday of the month.

However, rather than festive family arguments, the timing may be mostly down to people putting it off in December because they are too busy, or cannot face doing it in the run-up to Christmas.

Disagreements about finances are often one of the causes of divorce, and they are also a major issue that needs to be overcome when a split is formalised.

Couples can get divorced within six months of first applying even if one partner is opposed, and the process is largely online - including the serving of divorce papers by email.

But financial settlements covering assets including pensions are still dealt with in a separate and parallel process, which can continue after the divorce is final.

Experts strongly advise getting a financial settlement at the same time as a divorce, and say it can be helpful to consult a financial adviser as well as a lawyer at early stage.

Shivi Rajput, partner at Stowe Family Law, says: 'Cost-of-living pressures continue to sit at the heart of many relationship breakdowns - arguments about money, debt, and unequal financial contribution are a major trigger.'

She also cites as causes different approaches to parenting, pressures relating to extended family like care responsibilities, value differences and emotional disconnection.

Rajput says the main things that can help couples through the early stages of break-up or divorce are early legal advice, keeping children out of the conflict and clear, calm communication.

'Whether through solicitors, mediation or structured conversations, reducing emotional escalation early can make a significant difference to outcomes, both financially and emotionally.'

Rebecca Williams, divisional lead for financial planning at Rathbones, says: 'Divorce is often a time of emotional stress and financial readjustment, and I’ve seen people experience it in very different ways.

'Some delay starting the process because they’re worried about money and how their lifestyle might change, especially when children are involved. Others find the emotional strain so overwhelming that the financial side doesn’t always get the attention it needs during settlement discussions.

'And for some, divorce brings a sense of financial freedom and a chance to reset their priorities.'

A survey by Hargreaves Lansdown found that 40 per cent of people would never stay in a bad relationship for financial reasons, but the rest would at least pause for thought about the consequences.

Some 23 per cent of people said they would consider sticking it out in a relationship if they were unsure whether they could afford to live on their own, 18 per cent if they couldn't afford break-up costs, and 16 per cent if they didn't want to sell a shared property.

Concerns about debt would affect the decision of a further 14 per cent, while the complications of unwinding their lives would also deter 14 per cent of people.

Sarah Coles, head of personal finance at Hargreaves Lansdown, says: 'The days of double-digit inflation may be over, but the cumulative effect of higher inflation over this kind of period has taken a toll.

'Couples who are getting by while they are together might struggle to see how they could manage alone.'

Coles notes that 27 per cent of women said they were likely to stay in a bad relationship because they didn’t know how they could afford single life, compared with 19 per cent of men.

'Some of this comes down to the maths, because on average men are on larger incomes, and are therefore more able to stomach the "singles tax" of living alone,' she says.

'Some of this may also come down to the fact that women are still more likely to have the lion’s share of caring responsibilities, so if they have children, they couldn’t imagine being able to balance looking after the children with earning enough money to keep the wolf from the door.'

Below, we look at the important money matters that need to be dealt with in a divorce, and round up some tips from financial experts.

Personal finance

All aspects of your finances are going to change, so you will need to think about joint expenses, how you will sever them and how you will pay household bills in future.

Sarah Coles of Hargreaves says your first priority is damage limitation, so draw up an emergency budget and cut your expenses as much as possible during the first difficult months.

'People often run up debts after a split, because they’re dividing the same income between two households – while at the same time paying for what can be an expensive process,' she warns.

Coles offers the following rundown on what to do next.

- If you have a joint account, tell the bank about the split so it can arrange for you both to agree to any withdrawals, and prevent either partner running up debts.

- Arrange for a salary being paid into a joint account to be paid elsewhere.

- Set up alternative ways of paying bills, rent or the mortgage if they come out of the joint account.

- There’s no such thing as a joint credit card, so one of you will be the primary card holder and liable for spending on both cards - it's therefore sensible to block both cards.

- If you take this action, tell your ex immediately in case they are using the credit card for everyday expenses and need to find an alternative.

- Talk to your partner about how you will pay joint debts like the mortgage (see more on property below) and car finance.

Rebecca Williams of Rathbones adds: 'Life after divorce often means a very different financial reality. Understanding your day-to-day spending is crucial for negotiating a fair settlement and planning your lifestyle post-divorce.'

Valuing and dividing assets

You will need to get on top of the value of everything you own so it can be split up fairly. Typically the family home and pensions are the largest assets.

But while the property is in both names, one partner might have built up a much bigger work pension while the other was contributing more of the unpaid labour - childcare or looking after elderly parents - to the marriage.

Coles says: 'Couples often offset assets, but it’s important to appreciate the value of what you are giving up and what it will cost to replace. It may be worth speaking to a financial adviser as well as a lawyer.

'This comes at a cost, but if they set you on the right course, it can repay itself several times over in the long run.'

Property

'The family home is often the biggest asset in a divorce, and the emotional pull to keep it – especially when children are involved – can be strong,' says Williams.

'But clinging to the property doesn’t always make financial sense. Staying put could mean sacrificing other valuable assets like savings and pensions, which could undermine long-term security.

'Before making a decision, weigh up the options: sell, buy out, or co-own. And don’t overlook mortgage affordability, stamp duty (if you are buying a new home), and ongoing upkeep.'

Coles says if you’re both named on the mortgage then you’re both liable for the full amount.

'To protect your financial position you should try to maintain payments in the short term. If possible, try to agree this between you.'

But she says if your partner refuses to pay their share or you’re struggling to pay yours, you should talk to the mortgage company. They might allow you to pay interest-only for a period, or take a break while your finances are sorted out.

Pensions

There are three main options when dealing with pensions in a divorce - sharing them on a clean break basis, one partner earmarking some of the income to be paid to an ex-spouse after retirement, and offsetting their value against other assets.

We have a guide to pensions and divorce which looks at the pros and cons of each, and runs through some tips on what to do and how to avoid the worst pitfalls when dividing pensions.

Clare Moffat, pensions and tax expert at Royal London, says: 'Pensions are not just an individual pot; they are an asset like any other and should form part of any financial settlement. 

'Yet only around 11 per cent of divorces involve pension sharing, despite the fact that pensions can be worth more than the family home and provide guaranteed income for life.

'Offsetting a pension against property may seem a simpler and cheaper alternative, but it can lead to unfair outcomes because a house cannot deliver income in retirement and downsizing might not give enough money.'

Williams says: 'People often focus on the family home during a divorce, but pensions are just as important. They account for 35 per cent of household wealth, second only to property at 40 per cent. ,

'Overlooking pensions could have lasting consequences, especially later in life when there’s little time to make up shortfalls.

'And don’t forget the state pension. Women, in particular, may have gaps from career breaks, so checking your state pension record and plugging any shortfall is crucial for long-term security.”

Don't forget tax

When you divorce you can't pass assets back and forth tax-free with your partner any more. There are rules about what happens during the separation and divorce process that you should find out about to avoid a nasty capital gains tax bill.

This is Money's tax expert Heather Rogers, of Aston Accountancy, laid out the main points in a column about CGT and divorce here.

'Transfers between married couples or those in civil partnerships are normally done on a 'no gain/no loss' principle and therefore no CGT arises. However, once you are legally separated, then this rule changes,' she says.

She explains how you can still get indefinite time to transfer assets tax free, but this is not straightforward.