Financial Settlements on Divorce

Deciding to divorce is very rarely an easy decision but once that decision has been made and the grounds agreed on it is easy to think that the difficult part has been dealt with. However, it is often the case that the financial settlement can prove to be the most difficult and protracted aspect.

The psychological aspects and emotions such as hurt and anger over the circumstances of the divorce may cloud the parties’ judgment as to what a fair settlement is and it is then easy to become entrenched in the ‘take them for every penny’ scenario .

The more assets and wealth involved the more difficult the solution can become.

Dealing with these issues with the help of an expert, usually your Solicitor, will be a great help as they will be able to look at it from a professional aspect without the emotion which the parties may attach to it. The aim of the Solicitor will be to achieve an outcome that deals with their client’s needs in respect of accommodation and financial security. This is absolutely essential if children are involved.

At an early stage in the process each party will be required to complete a ‘Form E’ which sets out their financial circumstances. This includes their income, their expenses including day to day living expenses together with all their assets including property, cars, etc. It will also require supporting evidence such as statements for bank accounts, savings accounts, credit cards, mortgages, loans, valuations of property, pension valuations, etc etc. These forms are then exchanged between the parties’ solicitors and there begins the start of negotiations.

It is also very likely that both party’s solicitors will have differing opinions on what a fair settlement is but it is the role of the solicitors to work towards a negotiated settlement.

As far as the Courts are concerned the negotiations would start at a 50/50 division of all assets which have accumulated during the marriage. But it is important to stress that this is just a starting point. The Judge will look at the financial position of both parties and make its own decision as to what is a fair settlement. It may be that one party has a huge income while the other may have given up a career to bring up children and this is all taken into account.

If the process continues to Court there will be a first appointment where the Judge will make his recommendation

Wherever possible, the solicitors will aim for a negotiated settlement thus avoiding the protracted court process which can be both lengthy and expensive. It can also add to the acrimony between the parties as facing each other across a court room instantly becomes adversarial. Sometimes, the difference between what one party may believe they are entitled to and what the other is offering is greatly diminished by the legal costs of taking the matter to a Final Financial Dispute Resolution Hearing. However, if your solicitor believes that this is in fact the best route for you they will advise you accordingly and try to make the process as painless as possible.

Your Solicitor is the best person to guide you through this potentially complex process and lead you to an outcome where you can move forward with your new life.

If you would like more information or wish to discuss this further please contact Margaret Porter or Dee Finnegan on 01279 799598.