Financial settlement
When it comes to finances on divorce, it can be difficult to know where to start. You will naturally have questions about what divorce means for you and your family.
Dealing with finances is often the most complicated and stressful part of a divorce. It can be difficult to understand how to disentangle and reorder family finances to provide for two households.
Our expert divorce financial settlement team are here to help. We pride ourselves on listening to you and understanding your priorities when it comes to financial settlement. We have a wealth of experience in dealing with a range of financial matters and guiding clients through the entire legal process.
We'll work with you to help you understand your legal position and the options available to you, whether you're dealing with businesses or pensions in divorce – or you're simply thinking about divorce.
To find out how we can help you, please get in touch with our friendly team today.
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What is a divorce financial settlement?
Divorce is the legal process of dissolving a marriage. However, it doesn't specifically resolve financial matters between you and your ex.
You will also need to agree how your finances will be divided. If you can't reach an agreement, either of you can apply to court and a judge will make the decision for you instead.
The Family Court has a lot of discretion on what is considered a 'fair' financial settlement. It will consider a range of factors, including your ages, earning capacity, dependent children, and length of marriage.
What are matrimonial assets?
It is important to understand what assets there are in the matrimonial pot and how the court may treat them. The court draws a distinction between matrimonial assets and non-matrimonial assets.
Matrimonial assets are those that you and your partner have acquired throughout your marriage or civil partnership. These include:
- Your family home
- Other property
- Businesses
- Loans
- Pensions
- Savings and investments
- Vehicles
- Furniture and appliances
Non-matrimonial assets are acquired outside of your marriage or civil partnership. Generally, this means:
- Assets acquired by just one of you before the marriage or after separation
- Assets gifted to just one of you
- Assets inherited by just one of you
For example, you may have bought a property long before you even met your ex or received an inheritance from a relative. Depending on your circumstances, non-matrimonial assets can sometimes be excluded from the financial settlement.
Dealing with non-matrimonial assets in divorce can be complicated.
Sometimes non-matrimonial assets can become entangled or mingled with other matrimonial assets and turn into matrimonial assets. For instance, you may have used your own inheritance so you could both invest in a second home.
Even if the matrimonial assets and non-matrimonial assets have been kept separate, you might find the matrimonial assets are not enough to provide for both of you. If so, non-matrimonial assets will need to be included in the financial settlement too.
Our role as divorce financial settlement lawyers is to guide you through the potential assets in your case and their legal positions. We'll also outline the options available to you when trying to settle and can introduce you to other professionals who may be able to assist. Contact us today to see how we can help you.
How does the process of financial settlements work?
The legal process is dependent on whether you and ex can agree on your finances and assets.
It's important to fully understand the other's financial position before making a settlement, and to ensure that no information is missing. This is a process called financial disclosure. During the divorce process, there is an ongoing duty on both you and your ex to provide full, frank and clear disclosure to each other.
When someone is unwilling to provide information about their position, a specialist financial divorce lawyer can explain your options. Once there has been financial disclosure, negotiations to settle can begin.
It may be necessary to instruct experts to help you reach an agreement. For example, it can sometimes be helpful to seek advice to value a property or business, or for views on the treatment of pensions. If an agreement is reached, a specialist financial divorce solicitor is required to make the agreement legally binding. If this isn't done, it's still open to either of you to make a financial application in the future. This could be many years after the divorce.
We strive to resolve family matters as amicably and constructively as possible, particularly when there are children involved. This doesn't stop us from acting robustly to protect your best interests, however. If it's necessary to enter court proceedings, we'll advise you of this and champion your position.
