Divorce Financial Settlement Solicitors

Divorce and Property

Your capital and property assets are likely to include the following:

• The family home (often referred to as the former matrimonial home)
• Other properties, such as buy to let investment properties and holiday homes
• Savings, shares and investments
• Businesses – such as shareholdings

What will happen to the family home is likely to be your first concern as this is often the most valuable assts.  There are options other than sale, for example we can look at offsetting this against other assets, deferring the sale to a date in the future or a buy out of the other party’s interest.

Pension Sharing

Pensions are often one of the most valuable but also the most overlooked of the assets.  Every pension has a value to it (often referred to as the cash equivalent value or CEV) and this should be obtained for every pension arrangement you have.The information is then usually referred to a pension actuary, who can provide details on how the pension should be shared or offset against other assets.

Divorce and Business Assets

In the same way as property is, business interests are taken into account as part of a couple’s matrimonial assets and should be divided fairly upon divorce or dissolution.  Your interest in the business will be valued and the level of income you generate will also be looked into before options for division or offset can be reviewed.

Family court judges are generally unwilling to disrupt the running of a business by splitting its assets if an alternative can be found. Therefore, a popular option is to allow one partner to keep the business whilst the other gets a greater share of the assets and/or spousal maintenance.

Spousal Maintenance

Spousal maintenance is paid to the lower earning spouse by the other and is paid in circumstances in which they are maximising their earning capacity but are not able to meet their reasonable needs without support from the other. The higher earning spouse must have surplus income, after meeting their day-to-day needs.

Child Maintenance

This is governed by the Child Maintenance Service (CMS formerly the CSA) and a useful tool is the calculator on the government website: https://www.gov.uk/calculate-child-maintenance

Unless the paying parent earns over the threshold, the family court will not get involved in calculating child maintenance and agreement you may reach will only last for 12 months when the CMS will take over.

Options for achieving a financial separation during divorce

Financial matters tend to be arranged in parallel to the procedural aspects of divorce and the vast majority of financial settlements are successfully negotiated via solicitors without going to court. The agreed settlement will be made legally binding by applying to court for a ‘Consent Order.’

If we cannot reach an agreement in this way, you may consider attending mediation which is a precursor to applying to the family court (though this is not always appropriate and there are exemptions) or via arbitration.

We have considerable experience helping clients come to amicable agreements, negotiating settlements which work for every member of the family, even in complex scenarios involving businesses, agricultural matters, high net worth individuals, and overseas property.

The majority of our cases are resolved by consent, but if a court application is required then we will support you and protect your interests. The court process can be beneficial in cases where there is delay as it puts in place a formal timetable, and in divorces where one party is or has demonstrated narcissistic traits.

Divorce Financial Fees

Our divorce financial settlement solicitors believe firmly in costs transparency so we will discuss the cost and fees up front and ensure that we have a pricing plan in place to suit your budget. We will discuss with you the option of fixed fee divorces and deferred fee arrangements to ensure that it remains affordable for you to instruct one of our divorce solicitors.

What am I entitled to in divorce?

The law operates on a principle of fairness when it comes to the division of money and property upon divorce or dissolution. An equal division of the capital assets between the couple is often the starting point, particularly in longer marriages where there are children.

However, in reality, one spouse is usually in a better or worse financial position than their former partner and, in these situations, a financial order where there is an unequal split may be required to meet needs and achieve fairness.

Does everything get split 50:50 in divorce?

No, it is very rare that an equal division is reached once full disclosure has taken place.  This is just the starting point.

What is a reasonable divorce settlement?

A financial order which takes into account all of the factors set out in law which include earning capacity; financial needs and resources; standard of living; ages and length of the marriage; and contributions and obligations.

Where there are substantial assets to consider, it may be worth seeking financial advice for a divorce settlement from a professional financial adviser. They can assist with issues such as setting up a new pension and any investments that need to be made.

What assets are included in a divorce settlement?

All of your assets will be considered, but it may be possible to exclude non-matrimonial assets (such as inheritance or monies that you had before you started your relationship) but that will depend on other circumstances.

Before reaching a financial agreement for divorce, you and your ex-partner owe each other a duty of “full and frank disclosure”. This means you should be totally open and honest about how much money and property you own, including: income, investments, savings, dividends, property, pensions, and any other assets or liabilities you may have.

Once you have exchanged financial disclosure, your solicitor will be able to offer divorce financial advice and give you guidance on reaching a financial settlement.

Does the length of a marriage affect the divorce settlement?

Yes, the longer you have been married the more likely it is that your settlement will be close to 50:50.

Can I divorce my spouse and keep everything?

No this is very unlikely as your spouse’s needs will need to be met.

Will a prenuptial agreement be enforceable during divorce?

A prenuptial agreement is essential if you have more at stake than your spouse. Whilst they are not cast-iron, it is very difficult for your ex-partner to get out of the terms in a prenup if they have been properly entered into and if their reasonable needs are met.

How long does a divorce financial settlement take ?

The average case takes 6-12 months, but this will depend entirely on the situation and, unfortunately, there are no guarantees over the timeline for a divorce settlement.

Can you get a divorce without a financial settlement?

It is possible to finalise your divorce or civil partnership dissolution without a financial settlement, however, this is not usually recommended. Simply ending the marriage or civil partnership does not prevent either party from making a financial claim further down the line.

Is there a time limit for financial settlements after divorce?

At present, there is no time constraint for ex-couples to pursue financial settlements after their divorce, which means that many individuals face the possibility of their former partner initiating a financial claim against them years after the marriage has ended.

To avoid any issues caused by the lack of a time limit on financial settlement after divorce, it is generally recommended to secure a Clean Break Order which cuts all financial ties between you and your former spouse.