During a divorce or when ending a civil partnership, agreeing how to split finances and property can be some of the most difficult – and complex – conversations people have.
Former couples may well find themselves in a dispute, requiring help from independent specialists to reach an arrangement that suits everyone.
In this article, we explain more about how financial settlements are reached, the help that might be available, and what to expect from the legal process. For more help, or to find out more about family law and any of our other services, just get in touch with Adroit.
What are divorce financial settlements?
At the end of a relationship, parties will need to agree how to divide assets such as property, pensions, savings, debts and investments. Financial agreements may also determine maintenance payments for children or living expenses.
To be legally binding, once an agreement is reached, parties should both apply to court for a consent order to formalise their arrangements.
Reaching agreement
Particularly where parties remain on friendly terms, or where finances aren’t especially complex, parties may find that they can reach agreement on financial and property matters fairly easily, saving both time and money.
For additional help, parties may choose mediation. An unbiased, professional mediator acts as a third party, encouraging open communication that gives both parties an opportunity to put their point of view forward.
Parties may also negotiate through, or with the help of, solicitors to ensure all key issues, such as financial needs and standards of living, are considered and agreed upon.
Applying to court for a financial settlement
Where parties can’t reach agreement following at least one mediation meeting, they may apply for a court order.
The court will follow guidelines set out in the Matrimonial Causes Act 1973, and its primary consideration will always be protecting the interests of any dependent children.
The court will then consider further matters, such as:
- Current, & future, financial assets
- Current, & future, financial needs
- Standard of living during the relationship
- Ages & the length of the marriage
- Physical & mental capacity of both parties
- Contributions made to the family during the relationship
- Loss of any benefits
- The parties’ conduct
How are finances & property divided by the court?
A 50/50 split is always the court’s starting point, but the judge will then consider each of the above points in order to create a fair settlement which may not be an equal division.
Of particular importance are the needs of children, and the housing needs of each party.
This article has been prepared by Adroit Legal Services and is not intended to constitute legal advice.
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