If you are facing a divorce, you may well be concerned about your financial situation. It can be a stressful time and facing uncertainty about money can add to the difficulties.
We are setting out below some details of what you can expect from a financial settlement on divorce.
Applying to the court for a financial order
In dealing with the financial issues in a divorce, you and your spouse must disclose fully all of your assets and liabilities, to include jointly owned assets. It is important to include details of everything to reduce the risk of your spouse being able to return to court at a later to ask for a financial order to be reconsidered on the grounds of concealment of assets.
You may be able to agree upon the division of your assets without the need for court involvement. It is still advisable to have the details of the agreement put into a document and have it sealed by the court in a consent order as this will make it legally binding.
If you cannot agree upon a fair separation of your finances, then you can apply to the court for a financial order. If you ask us to act for you, we will ensure that a robust case is put forward on your behalf to achieve the best possible settlement.
The court’s considerations in making a financial order
The court’s first concern is ensuring that any children of the marriage are adequately provided for.
Beyond this, it will look at the financial situation of both parties, both now and in the future, taking into account current income, earning capacity, future earning capacity and assets.
The court will also consider how long the marriage lasted and how old the parties are as well as the standard of living they have and the financial needs and obligations that may arise for each of them in the future.
Where one party has cared for children and the home, this contribution will be taken into account.
The conduct of either party could be taken into account by the court when making a financial order if it would not be just to ignore this conduct.
The court approaches the issue of finances on the basis of a sharing of the matrimonial assets. If one party has less ability to earn income or has given up their job to raise the children of the marriage, then they may be awarded maintenance.
Financial orders the court can make
There are a number of order the court can make when deciding how to share the assets. It will aim to provide both parties with a fair settlement. This could mean that one party receives the family home, for example, a parent who is taking on most of the childcare, while another party receives more by way of a lump sum or pension entitlements.
The following orders can be made:
- Lump sum payment
- Periodical or secured periodical payments for spouse and/or child
- Transfer of property or variation of property ownership to share this between the parties
- Sale of a property
- Pension sharing
If you are facing divorce and separation, we can help you ensure you achieve the best possible financial agreement. Our family law team are skilled negotiators and we will attempt to resolve the issue without recourse to the court. If your case does need to go to court, you can be sure we will put forward a strong case on your behalf and provide robust representation.
Alternatively, you can fill in our online enquiry form and one of our team will be in touch within 24 hours.