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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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Setfords Legal Guides
Guide to finances on divorce
For individuals
T: 0845 450 6135
Setfords Legal Guides
Guide to finances on divorce
There is no simple answer with regard to how much you are entitled to after your marriage breaks down. If matters cannot be agreed between spouses, and the need arises to settle matters in court, the aim of the Court is to achieve fairness and a key factor is often the reasonable needs of each spouse. There are various factors which the Court will take into consideration when making a financial order, their first consideration being given to the welfare of any child of the family who has not attained the age of 18. The Court will have regard, particularly, to the following:
1. The income, earning capacity, property and other financial resources which each spouse has or is likely to have in the foreseeable future including, in the case of earning capacity, any increase in that capacity which it would be, in the opinion of the Court, reasonable to expect a person to take steps to acquire.
2. The financial needs, obligations and responsibilities which each spouse has or is likely to have in the foreseeable future.
3. The standard of living enjoyed by the family before the breakdown of the marriage.
4. The ages of each spouse and the duration of the marriage.
5. Any physical or mental disability of each spouse.6. The contributions which each spouse have made
or is likely to make in the foreseeable future to the welfare of the family, including any contribution by looking after the home or caring for the family.
7. The conduct of each spouse, if that conduct is such that it would be, in the opinion of the Court, inequitable to disregard.
8. The value to each spouse of any benefit which one spouse, because of the divorce, will lose the chance of acquiring.
Going through a divorce can be an incredibly stressful and hugely emotional time, particularly when there are children involved. The financial side of the situation can prove difficult to resolve and can be the most complication part of the precedings. There are always a number of initial questions that come to mind, and in this guide we have tried to present some answers to some of the most common.
T: 0845 450 [email protected]
How much money will I be entitled to?
There are various financial claims that one can make against the other spouse. From our experience, spouses, frequently, are primarily concerned with the matrimonial home and what will happen to it once the parties divorce. There are several options available, which are as follows:
1. Immediate sale of the house and the proceeds to be divided between the spouses.
2. Transfer of the house into the sole name of one spouse.
3. Sale of the house is postponed until a specified date and the proceeds to be divided between the spouses on the sale.
The latter (3) is what is known as a ‘Mesher order.’ This preserves both spouses’ interest in the family home but postpones the sale until a certain specified event, for example one may wish to sell the property once the youngest child reaches 18 or completes full time education. Mesher orders tend not to be attractive to
the courts as they necessarily mean that one spouse (frequently the husband) is unable to access his share of the equity in the former matrimonial home until a date in the future.
It is important to note that the Court will not simply divide the assets 50:50, rather they will have regard to all the circumstances of the case (as set out above) and make an order dividing the assets as it sees fit.
Either party can make a claim against the other in respect of any matrimonial assets whether they are held in sole or joint names. A spouse can make any of the following financial claims, in addition to that set out above, by applying to the court for an Order for:
1. Maintenance (i.e. Income Payments).2. Lump sums (i.e. capital payments).3. Pension sharing/attachment orders.4. Property adjustment ( i.e. a transfer of property).
What financial claims can I make?
Setfords Legal Guides
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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.
I do not want to go to Court, and I think my wife/husband and I will agree the finances between ourselves. What are my options?
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Contact Us
For more information or further advice on the financial matters surrounding divorce please contact:
Esha KalraT: 01483 408 780E: [email protected]
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This content of this guide is for information purposes only and does not constitute legal advice. For detailed legal advice please contact us and we will be happy to assist. No liability can be accepted in relation to any reliance on the content of this guide. Copyright in this publication belongs to Setfords Solicitors. Extracts may not be copied without our express permission. Setfords Solicitors is a trading name of Meaby and Co Solicitors LLP. Our registered number is OC322672. Our registered office address is 2 Camberwell Church St Camberwell Green London SE5 8QY. We are regulated by the Solicitors Regulation Authority SRA number 447880
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