The breakdown of a marriage or civil partnership is difficult and there are lots of issues for separating couples to consider.
Arrangements need to be made for any children a couple may have together and agreement will have to be reached about how any properties, finances and other assets will be divided.
Money is often one of the most contentious subjects for ex-spouses to agree on, with financial matters frequently causing a sticking point even in the most amicable of break-ups.
Reaching a financial settlement and formalising an agreement by means of a financial consent order is crucial to bring to an end a couple’s financial attachment to one another.
In this blog, our experienced Family Law solicitors reveal the best way for ex-spouses to agree a financial settlement when they divorce.
Step one: Financial disclosure.
The first step for a couple working out how to separate their assets is to establish exactly what they have. This process is known as ‘financial disclosure’ and is a useful starting point for all separating couples.
Financial disclosure involves pulling together details of assets, finances and liabilities owned individually and jointly and sharing the information with the other party.
Assets and liabilities can include:
- Income.
- Money in current accounts and savings accounts.
- Property.
- Mortgages and loans.
- Any other liabilities.
- Endowments and insurance policies.
- Shares and investments.
- Cars.
- Pensions.
- Jewellery.
Step two: Reach an agreement.
Agreeing ‘who gets what’ can be easier said than done, and questions such as ‘Who keeps the family home?’, ‘What happens to a partner’s pension?’ and ‘How much maintenance can I expect?’ can all prove difficult subjects to broach.
Separating couples have various options open to them to help them reach an agreement that is considered ‘fair’ by both parties.
These include:
- Between themselves. Separating couples can reach an agreement themselves about how to split their money and other assets during a divorce. However, even if this is possible, they still need to apply for a consent order to make their agreement legally binding and prevent their ex-spouse from making any future claims.
- With the help of a solicitor. A solicitor can help negotiate and advise divorcing couples on what constitutes a ‘fair’ division of assets. At Beverley Morris & Co., our specialist divorce solicitors offer advice and guidance on all matrimonial finance matters including financial remedies, child maintenance and settlement agreements. To speak to one of our friendly family lawyers in Blackheath, call 020 8852 4433, email familylaw@beverleymorris.co.uk or click here to make an online enquiry.
- Through mediation. If couples are struggling to agree on how to split money, property and other assets on a divorce, an impartial third-party mediator can help. Mediation is quicker and easier than going to court and can result in a better outcome.
- Getting the court to decide. If couples cannot reach a consensus on how to split their finances, they can ask the court to decide for them by applying for a financial order. This is known as the ‘contested route’ to a financial settlement on divorce.
Step three: Formalise arrangements through a financial consent order.
A financial consent order is the crucial final stage in reaching a financial settlement with an ex-partner. It formalises the agreement and makes it legally binding. Without one, either party could make a financial claim or claims against the other in the future.
A solicitor will ensure that all the required paperwork is completed and submit a financial consent order in draft form to the court for approval.
If considered fair, a judge will approve and rubber stamp the financial consent order, or, if it is considered unfair, a judge can ask the couple to change it.
Even for couples who do not have any assets to divide at the time of their divorce, it is still vital for separating spouses and civil partners to end their financial commitment to one another.
This can be done by way of a clean break order which is a form of financial consent order that specifies that neither party can make a financial claim against the other going forward.
Divorce Solicitors Blackheath
At Beverley Morris & Co. Solicitors, we understand that reaching an agreement with an ex-partner over financial arrangements can be difficult.
Our experienced family law solicitors in Blackheath provide sensible and practical legal advice on a broad spectrum of matters relating to finances on divorce and civil partnership dissolution.
Our matrimonial finances services include:
- Financial arrangements during separation.
- The process of gathering information for financial disclosure.
- Assistance with the valuation of pensions, business interests, trusts and property.
- The presentation of financial disclosure.
Regardless of the complexity of your financial claim, we will work to find an achievable solution that is right for you and your family.
Where possible, our preference is to explore non-court-based options such as mediation to find an appropriate solution to your financial matter.
At the same time, we realise that this is not always an option. Our family law team has the expertise to guide you through the process of making an application to the court for a financial order, if necessary.
For more information about our finances on divorce services or to speak to one of our Family Law solicitors, call 020 8852 4433, email familylaw@beverleymorris.co.uk or click here to make an online enquiry.