Financial Agreement Solicitor
If you’re considering ending your marriage, we’d advise getting legal advice early to understand your options. Managing finances, living arrangements, and children can be overwhelming, but we're here to provide practical guidance, allowing you to navigate your divorce or dissolution one step at a time.
One of the most complex and lengthy parts of divorce or dissolution is making financial arrangements. This is usually because as a married couple or civil partnership, your assets are intertwined.
Although a pre-nuptial agreement is not necessarily legally binding, it can express the intentions of both parties in the event of divorce or dissolution. Without one, this process can be tricky and can cause conflict, especially if you cannot agree on how to split your finances.
How are assets divided in a divorce or dissolution?
The division of assets during a divorce or dissolution can be a complex process, especially when financial ties are closely knit or one person feels they deserve a bigger percentage of assets than the other. Getting legal help becomes crucial in these scenarios, and options include family mediation, arbitration sessions, or, as a last resort, court intervention.
While a divorce or dissolution formally ends a marriage or civil partnership, it doesn't automatically resolve the financial aspects. Your ex-spouse may still have the right to claim a share of assets, including pensions, even if acquired post-divorce. Remarrying stops you from making financial claims against your ex-spouse, but they may still have that option if they haven't remarried.
Agreements on asset division are formalised in a financial order, which is court-approved and prevents future claims. This consideration applies even if you believe there are no assets to divide. Resolving financial matters outside the court is possible, however, you still need court approval when you agree amongst yourselves, to make your agreement legally binding by way of an order, known as a "consent order."
Are you entitled to half of everything in a divorce or dissolution?
You aren’t automatically entitled to half of everything in a divorce or dissolution. To negotiate settlements or assess proposed terms, it's advised that both parties disclose their financial circumstances. While a '50/50' starting point exists for asset division, individual cases vary, considering specific circumstances and the financial needs of all parties involved.
Sorting out financial arrangements is a complex journey, and one of the major concerns is often the division of assets. There are two different types of assets which a court or family solicitor will look at, matrimonial assets and non-matrimonial assets.
Matrimonial assets include all properties and funds acquired during the marriage. The primary matrimonial assets usually include the family home and pension funds. Other assets, such as vehicles, properties, stocks, investments, and savings accounts, must also be disclosed.
Non-matrimonial assets, acquired before marriage or with non-matrimonial funds, are generally excluded unless they were actively used during the marriage or are necessary to achieve a fair settlement.
The division of assets is subjective and depends on various factors. Courts consider the financial needs and income of each party, the standard of living during the marriage, and the specific circumstances of the case. Contrary to popular belief, one spouse is not automatically entitled to half of the other's income. Asset division is not solely based on an equal sharing principle.
How is spousal maintenance calculated in the UK?
In situations where one party relies on the other or is unable to support themselves, the court may issue a maintenance order. This legal arrangement requires the higher-earning party to make regular payments to the other, commonly known as spousal maintenance.
The court considers various factors when determining the amount and duration of maintenance payments. These factors include the standard of living enjoyed before the breakdown, the age of each party, the duration of the marriage or civil partnership, and the contributions each person made to the relationship, such as caring for the home or children.
Financial Issues and Asset Protection Solicitors
In the event of a divorce or dissolution of a civil partnership, swift action is imperative to safeguard your assets and finances, particularly in less amicable situations. Financial issues can cause divorce proceedings to be prolonged, especially if assets are hidden for instance.
There are a few different ways you could protect yourself financially during such a challenging time, such as freezing or closing joint bank and credit card accounts, opening a bank account in your name, addressing mortgage or rental payments, securing rights to the marital home, conducting an inventory of assets and debts, safeguarding your pension, and updating your Will. These measures can provide financial protection during the divorce process.
What happens if my spouse tries to hide assets?
In the emotional process of divorce, reaching an agreement on the division of assets is crucial. While many couples manage this amicably through open communication, some unfortunately attempt to conceal assets like savings, cars, pensions, debts, and inheritance.
It's essential to note that any such attempts may face penalties if discovered by the court. Identifying red flags involves scrutinising the financial disclosure "Form E," looking for changes in passwords, sudden shifts in investments, or being locked out of joint business accounts.
If hidden assets are suspected, prompt communication with your solicitor is vital. They can utilise legal tools such as orders for third-party disclosure, search orders, freezing orders, avoidance of disposition orders, and the "add back" approach to uncover any concealed assets, ensuring a fair and transparent resolution.
WHY GLOVERPRIEST?
At GloverPriest, we understand that each situation is sensitive and that everyone’s circumstances are different. This is why we tailor our service to find the best outcome for your situation.
In some areas of family law, we offer an introductory consultation with an expert member of our legal team. This meeting is free and designed for you to get to know our firm and your solicitor and to discuss your case in further detail.
We believe that many clients find the initial consultation highly beneficial in helping them make informed decisions on how they wish to proceed.
CONTACT OUR DIVORCE EXPERTS AT GLOVERPRIEST
Our team of specialised family law solicitors is here to provide you with support and advice on your divorce. Start your divorce or dissolution online by completing this form. Alternatively, call one of our experts on 0121 794 5814 for further advice or use our contact form to request a callback.
