Guide to finances on divorce

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Going through a divorce can be very stressful and emotional and the financial side can cause a lot of friction in the process. Here we present some of the common financial questions around divorce and offer some advice on how to tackle them.

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Guide to finances on divorce

  1. 1. Setfords Legal GuidesFor individualsGuide to finances on divorceT: 0845 450 6135info@setfords.co.uk
  2. 2. Setfords Legal GuidesGuide to finances on divorceGoing through a divorce can be an incredibly stressful and hugely emotional time, particularly when there arechildren involved. The financial side of the situation can prove difficult to resolve and can be the most complicationpart of the precedings. There are always a number of initial questions that come to mind, and in this guide we havetried to present some answers to some of the most common.How much money will I be entitled to?There is no simple answer with regard to how much 2. The financial needs, obligations and responsibilitiesyou are entitled to after your marriage breaks down. If which each spouse has or is likely to have in thematters cannot be agreed between spouses, and the foreseeable future.need arises to settle matters in court, the aim of the 3. The standard of living enjoyed by the family beforeCourt is to achieve fairness and a key factor is often the the breakdown of the marriage.reasonable needs of each spouse. There are various 4. The ages of each spouse and the duration of thefactors which the Court will take into consideration when marriage.making a financial order, their first consideration being 5. Any physical or mental disability of each spouse.given to the welfare of any child of the family who has 6. The contributions which each spouse have madenot attained the age of 18. The Court will have regard, or is likely to make in the foreseeable future to theparticularly, to the following: welfare of the family, including any contribution by looking after the home or caring for the family.1. The income, earning capacity, property and other 7. The conduct of each spouse, if that conduct is financial resources which each spouse has or is such that it would be, in the opinion of the Court, likely to have in the foreseeable future including, inequitable to disregard. in the case of earning capacity, any increase in that 8. The value to each spouse of any benefit which one capacity which it would be, in the opinion of the spouse, because of the divorce, will lose the chance Court, reasonable to expect a person to take steps to of acquiring. acquire.What financial claims can I make?There are various financial claims that one can make the courts as they necessarily mean that one spouseagainst the other spouse. From our experience, spouses, (frequently the husband) is unable to access his share offrequently, are primarily concerned with the matrimonial the equity in the former matrimonial home until a datehome and what will happen to it once the parties in the future.divorce. There are several options available, which are asfollows: It is important to note that the Court will not simply divide the assets 50:50, rather they will have regard to1. Immediate sale of the house and the proceeds to be all the circumstances of the case (as set out above) and divided between the spouses. make an order dividing the assets as it sees fit.2. Transfer of the house into the sole name of one spouse. Either party can make a claim against the other in3. Sale of the house is postponed until a specified date respect of any matrimonial assets whether they are and the proceeds to be divided between the spouses held in sole or joint names. A spouse can make any of on the sale. the following financial claims, in addition to that set out above, by applying to the court for an Order for:The latter (3) is what is known as a ‘Mesher order.’ Thispreserves both spouses’ interest in the family home 1. Maintenance (i.e. Income Payments).but postpones the sale until a certain specified event, 2. Lump sums (i.e. capital payments).for example one may wish to sell the property once 3. Pension sharing/attachment orders.the youngest child reaches 18 or completes full time 4. Property adjustment ( i.e. a transfer of property).education. Mesher orders tend not to be attractive to T: 0845 450 6135 info@setfords.co.uk
  3. 3. Setfords Legal GuidesI do not want to go to Court, and I think my wife/husband and I will agree the financesbetween ourselves. What are my options? If you and your husband/wife are able to come to an agreement between yourselves, it is advisable to have the agreement reflected in a Consent Order (effectively an agreement made between the spouses) which will then be sealed (i.e. stamped and approved) by the Court. Ultimately, this means that once a consent order has been entered into, neither spouse can deviate from the agreement reached, save by consent or by a further order of the court. The Court will however only make this type of Order if it is satisfied that no other orders should be made and that the parties have either had independent advice or have been advised to take the same and declined to so do. T: 0845 450 6135 info@setfords.co.uk
  4. 4. Contact UsFor more information or further advice on the financial matters surrounding divorce please contact: Esha Kalra T: 01483 408 780 E: ekalra@setfords.co.ukSetfords offers fixed fees on mostconveyancing and repossession claimsand a FREE initial consultation on mostof its services .Setfords Solicitors is a full servicenational law firm providing first classlegal services to both businesses andindividuals through a network ofexperienced lawyers.Our services for businesses coverall aspect of business law, fromcommercial property, generalcorporate/commercial, litigation,employment, IP, corporate finance,funds and equity funds. Services for individuals Purchase or sale of property Wills Buy to Let Probate Co-habitation agreement Pre-nuptial agreements Powers of Attorney Employment advice Comprise Agreements Divorce advice Dispute Resolution Professional Negligence Road Traffic Accidents Medical Negligence Separation issues IHT & Trust planning Estate Planning Re-mortgaging Debt Recovery Landlord & TenantThis content of this guide is for information purposes only and does not constitute legal advice. For detailed legal advice please contact us and wewill be happy to assist. No liability can be accepted in relation to any reliance on the content of this guide. Copyright in this publication belongsto Setfords Solicitors. Extracts may not be copied without our express permission. Setfords Solicitors is a trading name of Meaby and Co SolicitorsLLP. Our registered number is OC322672. Our registered office address is 2 Camberwell Church St Camberwell Green London SE5 8QY. We areregulated by the Solicitors Regulation Authority SRA number 447880 T: 0845 450 6135 info@setfords.co.uk

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