Divorce Financial Settlement Solicitors

+ Can we agree a financial settlement without going to court?

Many separating couples are able to reach an agreement without asking a judge to decide the outcome. Negotiations can take place directly between solicitors or alongside another form of dispute resolution, such as mediation.

Reaching an agreement outside contested court proceedings can give you more control over the eventual terms. It does not mean legal advice is unnecessary. Before accepting a proposal, you need to understand what you may be giving up, whether enough financial information has been provided and how the agreement would operate in practice.

Once terms have been agreed and the divorce has reached the appropriate stage, the agreement can usually be put before the court in the form of a consent order. The court considers the proposed arrangements before deciding whether to approve them.

+ What happens if we cannot agree on a financial settlement?

Where negotiations do not produce an agreement, either party may be able to ask the Family Court to determine the financial arrangements through financial remedy proceedings. Both sides are required to provide financial disclosure. The court can then identify what further information or evidence is needed and encourage the parties to explore settlement as the case progresses. Court proceedings do not stop negotiations. An agreement can still be reached during the process and, where appropriate, submitted to the court for approval.

+ What happens to the family home?

A settlement might involve selling the property and dividing the proceeds. In other cases, one person may remain in the home and acquire the other's interest, provided that arrangement is financially workable. There are also circumstances in which a sale may be postponed. The mortgage position needs separate attention. Agreeing between yourselves that one person is responsible for the mortgage does not, by itself, change the lender's rights under the mortgage agreement.

We can help you consider the value of the property, the mortgage, available equity and each person's housing needs as part of the wider settlement.

+ Are pensions included in a divorce settlement?

The value shown on a pension statement does not necessarily tell the whole story. Different pension schemes can provide very different benefits, and in some cases specialist pension advice or a more detailed valuation may be appropriate. One option available to the court is a pension sharing order, under which an agreed percentage of pension rights is transferred for the benefit of the other spouse. Different arrangements may be appropriate depending on the wider settlement.

We will help you understand how pensions fit alongside property, capital and income so that proposals can be considered as a whole.

+ What happens if a business is involved?

A business interest can require particular care during financial negotiations. Its value may be relevant even where only one spouse has been directly involved in running the business.

A settlement does not necessarily require a business to be sold or divided. Other assets may sometimes be used to reach an appropriate overall arrangement while allowing the business to continue operating.

Where a business forms a significant part of the family finances, we can help identify the information needed and consider how different settlement structures could affect both parties.

+ What happens to inheritance or assets owned before marriage?

Property brought into a marriage or received through inheritance can sometimes be treated differently from assets built up during the marriage, but it is not automatically excluded from consideration. How it is treated can depend on factors including the length of the marriage, how the asset has been used and whether the available matrimonial resources are sufficient to meet each person's needs.

We can advise on how the history and use of an asset may affect the arguments available in your particular circumstances.

+ Can my former spouse make a financial claim after divorce?

Potential financial claims do not necessarily disappear simply because the divorce itself has been finalised. Where the appropriate financial claims have not been brought to an end by a court order, there may still be scope for a former spouse to make a claim later.

That is one reason why even couples who have divided their finances amicably should consider whether a consent order or clean break order is appropriate. We can advise on the order needed to reflect your agreement and the claims it should address.