Division of the Finances on Divorce
Almost every divorce is naturally stressful. Where there are children involved, this is often the main concern, followed by finances.
In almost all cases, it’s true to say that a significant part of a good divorce lawyer’s role is to balance the objective of getting a client the most advantageous outcome whilst also seeking to avoid excessive and unnecessary legal fees and increasing risk and stress for the client.
For many clients, another important objective is seeking to limit damage to the relationship with their former spouse, which is particularly important when there are children involved.
At Streathers, we have a highly experienced team of divorce specialists for advice on and to assist in obtaining the best financial settlement on divorce.
How are assets and debts dealt with on divorce?
Although not all divorce finance settlements end up being decided by a judge at a final court hearing, the court process and underlying laws will always be the starting point.
For many, divorce financial settlements are negotiated and agreed between the parties before court proceedings are even issued, or at some point during the court process before the final hearing.
A key part of the initial process will be mutual disclosure of information about finances. This is especially important in the case where clients are not 100% sure about the assets and debts of their spouse.
The court takes into account a number of factors when deciding how to settle the assets between the parties, including:
- Financial needs of the parties;
- Length of marriage and ages of the couple;
- Current and future potential earnings;
- Any health issues;
- Assets including pensions;
- The parties’ standard of living during marriage;
- Financial and non-financial contributions made during the marriage.
What is a clean break divorce and can it be insisted upon?
Many clients have the objective of a financial settlement on divorce which results in no future obligations or claims thereafter. However, a clean break divorce is not always possible or advisable. It is also not possible to reach a settlement which is legally binding where children are involved, which legally prevents either party from applying for a financial order for the children’s needs in the future.
If there are no children and the marriage has been relatively short, or in circumstances where there are significant assets which would allow both parties reasonable financial security, it may be appropriate to seek a clean financial break settlement.
What happens to the house or flat?
Where the matrimonial assets include the family home, there are a variety of possible outcomes. The starting point will be the welfare of the children. In many situations, there may not be enough equity in a property to sell it and buy 2 new properties. In this situation, the court might order that one party should remain in the family home with the children for a set period of time.
Contact our London family lawyers for advice on your financial rights on divorce. We are highly experienced in negotiating the best available financial settlement.