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Divorce

Financial settlements in a divorce

Separating Couples

Civil partnerships and Co-Habiting 

What is a Financial Settlement?

A financial settlement is essentially who gets what, when a couple separate and involves decisions about how their assets should be divided. The separating couple can be married partners, civil partners or they can be partners who have lived together. When there is a decision to separate inevitably there will be a need to look at how their assets should be shared. 

Untangling your shared finances and assets can feel daunting. But getting a satisfactory financial settlement is an important part of securing your future.

Areas to Consider

A financial settlement is a legally binding decision on how you and your partner will divide your assets and wealth. This can include:

  1. Rights to property

  2. Savings

  3. Shares

  4. Pensions

  5. Any international assets

  6. Liabilities for debts

  7. Child maintenance payments, school fees etc.

How to reach a Financial Settlement

There are a number of ways to reach a financial settlement. There is a misconception that being involved in decisions about money and finances has to be time of argument and distress. Settlements can be agreed by a couple themselves or with advice and help from a solicitor, or by a couple engaging in mediation or a collaborative process. A settlement can be formalised into a legally binding Court order without the need for anyone to set foot inside a Court building.

A one-size-fits-all approach doesn’t work when defining a financial settlement, so we will look at your finances and lifestyle and ensure you get the best outcome possible. A range of factors are taken into account when deciding the terms, including:

  1. You and your partner’s assets and finances

  2. You and your partner’s current and future needs

  3. Each of your earnings and earning capacity

  4. Whether there is any foreseeable change in your or your partner’s finances

  5. Whether you have children, and if so, their ages and needs

  6. The age of you and your partner

  7. Both parties’ health, and whether this will affect your future abilities to earn

  8. The length of your marriage – including any time spent living together before you got married.

There are occasions when it is not possible to reach agreement for a number of reasons. When this occurs an application can be made to Court to resolve any area of dispute. Just because an application has been made, does not prevent a couple from reaching agreement. However the Court can decide what should happen with the assets and make what is considered to be a reasonable order.

Our Purpose

With so much to consider, you need to have the best legal expertise on your side. We work with you to ensure you understand the process and feel comfortable with every decision. It’s important to work with experts whom you trust, and who have the knowledge and experience to secure you the best possible result; enabling informed decisions early in your case to avoid pursuing unrealistic goals and unnecessary litigation. 

The suggestions offered are tailored to your individual situation, whether you are facing challenges in finances, property matters, or with your children. 

Contact Andrew for a free consultation and understand what options you may have.  

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FAQ

How is a pension split in divorce proceedings?

Pensions are often one of the largest assets in a marriage. Pension arrangements are usually dealt with by the Court in one of three ways:

1. Pension sharing: One party is given a percentage share of their former spouse’s pension pot, which is transferred as a lump sum.

2. Pension offsetting: One party retains their pension, but in exchange gives up their claim on another asset, such as the family home.

3. Pension attachment: In this arrangement, a portion of the pension is paid regularly to the other party, similar to a maintenance payment.

Does my spouse behaviour affect how much I will receive?

Bad behaviour or conduct by your spouse will only be taken into account in very exceptional circumstances when deciding how assets should be shared after divorce. Conduct is only taken into account in circumstances where such conduct is so extreme as to be “inequitable to disregard it”.

Are our assets divided 50/50 on Divorce?

There is a general presumption that matrimonial assets will be divided equally between divorcing couples, but only where that is fair and where it meets the financial needs of each person and of any dependent children. Family court judges have a very wide discretion when deciding how to divide matrimonial assets, and every case is different.

When using this discretion, the court will assess a number of factors such as financial resources, financial needs now and in the future, standard of living during the marriage, ages of the parties and the length of the marriage, any disability, contributions made by either party, and conduct if such conduct is so inequitable to disregard.

Do I need a solicitor if we have agreed a financial settlement between ourselves?

It is always advisable to have the agreement which you have reached embodied in a financial consent order to prevent your husband or wife from changing their mind and making further financial claims against you in the future.

Can you settle financially before divorce?

A financial settlement is available at any time during the divorce proceedings, so after the divorce has been finalised or even before. In most divorce cases, a financial settlement can be agreed (and settled by a judge) at the same time as divorce proceedings. Whenever you choose to get a financial settlement, it is advised that a divorced couple seeks one before either party decides to re-marry.

What am I entitled to in a divorce settlement if all assets are in one partner’s name?

The division of assets in a divorce can be a complex area. For example, if one partner entered the marriage already owning a property, and that property was then the marital home, the other partner may have a claim to at least a portion of its value, even if they are not named on the title deeds or mortgage.

How a house is divided in divorce, or how any other assets are split, will depend on a wide variety of factors.

What do I do if I am worried my husband or wife will not provide full disclosure of their assets?

It is very important that there is a full exchange of financial disclosure. An individual may try and frustrate this and provide incomplete of misleading information. We are able to recognise the signs of non-disclosure and devise proportionate strategies to deal with this.

In some cases, either party may deliberately dissipate assets or attempt to remove them from the country. It may be necessary to get an injunction to stop such action and safeguard assets until a financial settlement can be reached.

What should I do if I find out that my husband or wife is getting rid of assets?

You should seek immediate legal advice as it is possible to apply to the court to freeze your spouse’s assets or to get things back if they have already been sold.

How long will it take to get my financial settlement?

If there is an agreement, then the court should be able to make your court order any time from the pronouncement of the Conditional Order, though it will not take effect until the Final Order. This process normally takes between 6 and 8 months from start to finish. However, if you are not in agreement, and particularly if your spouse is not willing to disclose their financial position, then it can take much longer; up to 12 to 18 months or more.

Is there a time limit on divorce settlement?

There is no time limit on a divorce settlement. It’s important, however, to be aware that once Final Order has been granted, the financial claim still remains open, so getting a financial settlement and dividing assets in divorce in the UK, as soon as possible, is advised.

Can you get a divorce without a financial settlement?

You can but it is not advised. Even if there are no assets to split, it is recommended that a financial settlement is reached to avoid problems later down the line.

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I would like to thank Andy for his thoroughly professional yet personal service, always honest and helpful with advice. I would have no hesitation in using Andy again, and recommending his services. Thank you Andy. 

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