Financial matters on divorce or dissolution
Sorting out your financial arrangements on divorce or dissolution of a civil partnership can be complex but we aim to break down the process into more manageable steps.
The first step is to assess the extent of the financial resources of both parties. We identify all available assets - including property, investments, inheritances, trust assets, share options and incentive schemes, pensions and business assets. We then consider the extent to which it is possible and necessary to value these assets before deciding how they might be divided fairly. We also consider appropriate liabilities and how these might be best dealt with.
We look at parties’ financial and non-financial contributions to the marriage/civil partnership and their ongoing needs which help to determine a fair outcome. We consider whether it is appropriate for financial support which may need to be paid by one party to the other in the form of spousal or child maintenance. Separation often involves an adjustment to both parties’ lifestyles and we examine what the parties’ and children’s financial needs are likely to be post-separation to determine suitable future arrangements.
Financial arrangements are often agreed by way of negotiation with the assistance of solicitors, or through mediation or the collaborative law process. If this is not possible, Court proceedings or arbitration may be an option. The final financial decisions are encapsulated into a ‘financial order’ which is approved by the Court. This provides a legally binding and enforceable document for each party.
It is important that full disclosure of both parties’ financial position takes place as part of the process of dealing with finances. This ensures that any financial order made is based on accurate information, and minimises the risk of the order being overturned at a later stage.
How can we help?
We aim to streamline the disclosure process for you as much as possible and guide you towards an acceptable settlement of your finances. If possible, we aim to work with your ex-partner or spouse amicably using out of court methods. Sometimes, court proceedings or arbitration may be necessary to resolve financial disputes. We can provide all the advice and support you need in the early stages of your divorce or separation, to help you choose the right process and help you work towards the right financial outcome for you and your children.
Our Family Law team can advise if you are unsure how to progress your financial arrangements on divorce so please get in touch if you would like to find out more.