Our experienced family law solicitors regularly help clients reach fair financial settlements on divorce and separation.
Whether your finances are straightforward or more complex, we can guide you through the process and help you move forward. Get in touch today to arrange a free initial consultation.
You’ve made the decision to separate and may feel overwhelmed at the issues to be addressed to enable you both to move forward. One of the main aspects to consider is your financial position further to the relationship ending.
It is important to ensure that you have a clear picture of the full financial position — yours and your partner’s. This will then enable you to consider what financial agreement is fair.
Many people think this just involves sorting out arrangements with the house. The Court, however, looks at the whole financial position to include property, savings, investments, pensions, business interests and debts.
Under the Matrimonial Causes Act 1973, the Family Court considers a range of factors when deciding how assets should be divided.
These include the income and earning capacity of each party, the financial needs and obligations you each have, the standard of living enjoyed during the marriage, the length of the marriage, and the contributions each of you has made — including looking after the home and caring for the family.
The welfare of any children is always the Court’s primary consideration.
There is no automatic 50:50 split. Each case depends on individual circumstances, which is why it is so important to seek specialist legal advice at the earliest opportunity.
A financial settlement can cover everything that forms part of the matrimonial asset pot. This typically includes the family home and any other property, savings and investments, pensions, business interests and shares, personal belongings such as vehicles, debts and liabilities, and any expected inheritance or trust fund interests.
Full and honest financial disclosure is required from both parties. This is usually provided through a document known as a Form E, which sets out your income, assets, liabilities and financial needs in detail.
If there are concerns that your partner may not fully disclose their assets, there are steps we can take to ensure that disclosure is complete including requests to banks, HM Land Registry and other third parties.
For most couples, the family home is the most significant asset. There are a number of ways it can be dealt with as part of a financial settlement.
The property may be sold and the proceeds divided. Alternatively, one party may retain the property, with the other receiving a larger share of other assets to compensate.
In some cases, the Court may make a Mesher order, which allows one party to remain in the home until a trigger event, such as the youngest child turning 18, at which point the property is sold and the proceeds divided.
A Martin order may also be considered where there are no children involved, allowing one party to remain in the home for life or until they remarry.
Our team will help you understand the options available and work with you to achieve an outcome that meets your needs and those of your family.
Pensions are a really important asset when considering income on retirement and must not be overlooked. Often when separating, couples do not realise that they can share the pension of their partner or that they will be expected to share pensions.
In a number of cases, this is important, for example, when one person has a more valuable pension than their partner, perhaps because one party doesn’t work or works part-time.
There are different types of pension schemes, and public sector pensions often have additional benefits which need to be properly valued.
The Court can make a Pension Sharing Order, which divides the pension immediately and can help form part of a clean break settlement.
In some cases, it will be important to ask a pension expert relevant questions so as to determine the options available. This will then give you a clear picture to enable you to make an informed decision.
If you or your partner own a business or have business interests, these will need to be accounted for in any financial settlement.
The Family Court prefers to preserve the business for the business owner wherever possible and compensate the other party with a higher share of the more liquid assets. However, the Court does have the power to order a sale of the business if necessary.
It is important that any business is accurately valued, with its structure, income streams and anticipated future profits properly considered.
Our family law solicitors regularly advise clients about their business interests upon divorce and can work alongside your accountant, forensic accountant or financial adviser to ensure your interests are properly protected.
Whatever outcome you reach, it is essential to formalise your agreement with a financial order approved by the Court. Without one, you may remain financially tied to your former spouse — potentially leaving you vulnerable to future claims against your income, property or inheritance, even years after your divorce.
If you and your partner have reached an agreement between you, this can be recorded in a consent order and submitted to the Court for approval. The Court will review the agreement to ensure it is fair and reasonable before making it legally binding.
A clean break order may be appropriate where both parties wish to end all financial obligations between them. Alternatively, the divorce settlement may include ongoing spousal maintenance, which are regular payments from one party to the other.
This is particularly common where one partner is not able to live a financially independent life immediately following the divorce.
We would always strongly recommend obtaining a financial order, even where you and your partner have reached an amicable agreement. It provides certainty and protects you both for the future.
At Awdry Law, we always try to resolve matters in a non-confrontational way.
Our Resolution Together service offers a one couple, one lawyer approach for couples who want to work together to reach a fair outcome with the benefit of legal advice.
We can also arrange round table meetings, where both parties and their lawyers sit down together to work through the issues and see if an agreement can be reached. This avoids the need for court proceedings and lengthy correspondence between solicitors.
Mediation is one option that can help you and your partner reach agreement without the need for court proceedings.
Mediation involves both of you meeting with a trained, neutral mediator who can help you discuss and agree the key issues — including your financial settlement and arrangements for the children.
If you do end up having to go to Court, you may need to show that you have attended a Mediation Information and Assessment Meeting (MIAM). There are some exceptions to this, such as if you are a victim of domestic abuse.
We appreciate that it is not always possible to reach agreement outside of court. If court assistance is needed, our experienced family law solicitors can provide strong, effective representation through financial remedy proceedings.
We will explain what to expect, the timescales involved and the costs. We will help you prepare your application, financial disclosure, statements and court documents, and support you at each hearing.
At Awdry Law, our focus is always to find solutions, not problems. We make all attempts to resolve matters away from the Court, but if proceedings become necessary, we have experienced advocates who will support you through that process.
We understand that costs are of paramount importance, even more so in today’s current climate. That’s why we do everything we can to help and we start by providing a free initial consultation and clear information from the outset.
The cost of a financial settlement will depend on your circumstances. An uncontested settlement, where both parties are broadly in agreement, will be significantly less expensive than one which requires court proceedings.
If you’d like advice about separation, divorce or financial settlements, our family law solicitors are here to offer a listening ear.
Our divorce financial settlement solicitors advise clients across England and Wales from our offices in Wiltshire and the South West, including Bath, Chippenham, Devizes, Marlborough, Royal Wootton Bassett, and Swindon. We can also meet via video call or speak on the telephone.
Contact one of our family law solicitors today. E: familylaw@awdry.law or make a quick enquiry via our website and we will get back to you the same day (subject to business hours).
