Five important things to know about a financial settlement in divorce
Finances and divorce are something our solicitors deal with every day, they have the experience and professionalism to give clients the right advice and when it comes to splitting the property, the money and other marital assets, we realise they are causes close to our clients' hearts.
1. You must apply for a financial settlement
Even after your divorce is granted, financial ties remain unless you get a legally binding settlement. This means either party could make a financial claim years later unless a court-approved order or clean break order is in place.
2. A financial settlement covers more than just the house
All financial assets and liabilities are considered, not just the assets in joint names. A financial settlement will include:
- The family home
- Savings and investments
- Pensions
- Business assets
- Debts
- Spousal maintenance
3. Fair financial settlement in divorce
It's not always an equal 50/50 split as the court aims for a fair outcome for both parties. The family courts will consider many factors which are set out in the Matrimonial Causes Act 1973:
- The needs of any children
- The earning capacity of each party
- Contributions to the marriage (financial and non-financial)
- Standard of living during the marriage
- The length of the marriage
4. A 'Clean Break' can end future financial claims
A clean break order ensures that neither party can make future financial claims. This can provide peace of mind, but it’s only granted if the court agrees it's fair and reasonable.
5. Even if you agree you still need to get a Court Order
Even if you and your ex agree on how to split everything, that agreement is not legally binding unless it is turned into an order and approved by the court. Without it, either person can come back years later and ask for more.
How can we help?
For more information on your finances during divorce proceedings contact our Family Law solicitors on 0161 785 3500 or enquiries@pearsonlegal.co.uk
Subscribe to our newsletterPlease note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
