Every couple has unique circumstances, therefore there is no one method that works for everyone when dividing assets during a divorce. Having said that, there are some guidelines you may adhere to to make sure a judge will find your agreement to be fair.

In this article, you’ll discover what factors a court considers when examining your financial arrangement and how the procedure differs for spouses who are and are not in agreement.

Can I get financial settlement and support from my spouse if we decide to divorce? 

Every couple has unique circumstances, therefore there is no one method that works for everyone when dividing assets during a divorce. Having said that, there are some guidelines you may adhere to to make sure a judge will find your agreement to be fair.

In this article, you’ll discover what factors a court considers when examining your financial arrangement and how the procedure differs for spouses who are and are not in agreement.

What is a Divorce Financial Settlement?

The process by which the court might deal with dividing assets and finances in what is known as a financial order is known as a “divorce financial settlement,” which is the term used to describe the financial processes inside a divorce.

When you are divorcing your partner, it’s crucial to reach a financial agreement because unresolved financial issues could disturb your life for years after the divorce has been finalised.

Even after a divorce, you can still file financial claims against your ex and vice versa in England and Wales, and there is no time limit on doing so.

The only way to stop this is to have a lawyer create a consent order that will serve as legal proof of your financial arrangement. This will be presented to the court for approval before becoming enforceable.

The calculations of a divorce settlement 

Knowing how a court determines what constitutes a fair divorce settlement is necessary to comprehend what rights you have in a divorce.

The rules outlined in Section 25 of the Matrimonial Cases Act 1973 are used by the judge to do this. Couples rarely settle on a 50/50 split as their starting point.

Before you may agree to a split of assets, both parties must provide complete financial disclosure in order to determine how the overall pot is made up.

There are many things to take into account, but the court must pay close attention to the following:

• Are your ex-financial spouse’s needs taken into consideration?
• Which spouse has the greater future earning potential (capacity)?
• Will the existing quality of life be able to be maintained by both parties?
• Exists a credit card overdraft or other significant debts owed by just one person? The two issues that should be handled first are any childcare arrangements and the decision of what to do with the family home for practical reasons. The family home can be divided in a number of ways, which may have an impact on the division of other assets like pensions and child support.

The splitting of money and assets in a divorce?

You need to understand the distinction between assets before considering how property and money may be divided in a divorce settlement.

Marital possessions

Matrimonial assets are those that you have accumulated or acquired during your marriage.

They typically consist of real estate, pensions, savings, possessions, and money in the bank.

These resources must be divided equally because they are always added to the total “pot.” Keep in mind that being fair doesn’t always entail splitting everything equally.

Non-marital possessions

Financial assets obtained prior to marriage, such as real estate, pensions, enterprises, etc., are referred to as non-matrimonial assets.

Despite the fact that they are sometimes handled differently from matrimonial assets, these assets aren’t always excluded from a divorce settlement.

For instance, if an inheritance was utilised to buy a house or automobile during the marriage, the asset would now be classified as a marital asset.

There are several options for dividing your assets, including lump-sum payments to one spouse, balancing a pension against other assets of equal value, and formulas for calculating maintenance payments for both a spouse and children.

Case 1) Both parties agree to a settlement

In England and Wales, both parties can create their own agreement if the relationship between you and your spouse is cordial, you haven’t been married long, or your financial situation isn’t too problematic.

Whether you’re getting a divorce or ending a civil partnership, you can decide to resolve the assets, finances, and property issues without hiring a lawyer. By reaching an understanding, you can avoid going to court and save a lot of time and money.

Yet, you must use the help of a skilled expert to make the agreement you’ve made legally binding. If you choose to accept a financial statement, you must have a lawyer create a financial consent order, which the court will then sign. The financial order specifies how to divide financial resources including property, cash, savings, investments, and so forth. It may also include provisions for any children or spousal support.

Case 2) Applying to the court for a financial settlement if there’s a lack of agreement

Even a mediator may not always be able to resolve the conflict.

You can think about asking the court to order a financial settlement when negotiations are challenging, you and your ex-spouse have a complicated financial situation, or your ex-partner won’t even discuss finances.

You may be better off asking the court to make a financial settlement in some situations, such as;

• If your spouse or you own a business
• If one party depends on the other for money 
• If you have dependents (children)
• If one side is unwilling to accept a settlement
• If one party has materially greater net worth than the other

In essence, if both parties are unable to come to an agreement, they must appear in court and request that a judge issues them with a financial order.

Nonetheless, you must demonstrate to the court that you were present for the mediation session (unless there has been domestic abuse or social services involved in which case you can go straight to court).

The deadlines for requesting a financial order are the same: they must be requested prior to requesting the final legal document but after you have begun the divorce or dissolution of your civil partnership process.

You must submit two copies of the document to the court handling your papers if you want to request a financial order from the court (but keep one copy for yourself).

The application itself is £255, and you might have to appear at multiple court hearings and appointments. This procedure could take six to twelve months.

Should I agree to a financial settlement?

When you realise that divorce is your only viable option, it’s crucial to talk about how any assets or money will be distributed.

Before submitting an application for the final order (also known as a “decree absolute”), attorneys typically urge their clients to organise their finances.

Although there are numerous potential causes, one of the following two is typically the case;

1. You can have a “clean break” after your divorce if you can organise your funds while going through a divorce. Knowing that neither party can make any more claims, both parties can go on with their lives.

2. Dealing with your divorce initially without taking care of your finances occasionally affects your eligibility for certain assets, such as pensions. Before submitting an application for the decree absolute, it is advisable to consult with your attorney first since pension transfers can only be made to a spouse, who you would no longer be.

Even if your marriage was brief and you don’t have any shared assets (like a home, savings, or pension), it’s still crucial to get your spouse to sign a clean break agreement so that all financial links are severed.

Contact us and allow us to help you get a divorce

Divorce settlement negotiations are never simple. Wealthy couples should always seek legal counsel.

You should take into account our online consent order services if you are managing your divorce independently or want to do so soon.

The procedure includes coming to an agreement, but unless it is expertly drafted into a formal document, it has no legal force. Still, having trouble reaching a consensus? Contact us to get all the legal advice you need! 

The process by which the court might deal with dividing assets and finances in what is known as a financial order is known as a “divorce financial settlement,” which is the term used to describe the financial processes inside a divorce.

When you are divorcing your partner, it’s crucial to reach a financial agreement because unresolved financial issues could disturb your life for years after the divorce has been finalised.

Even after a divorce, you can still file financial claims against your ex and vice versa in England and Wales, and there is no time limit on doing so.

The only way to stop this is to have a lawyer create a consent order that will serve as legal proof of your financial arrangement. This will be presented to the court for approval before becoming enforceable.

How is a divorce settlement calculated?

Knowing how a court determines what constitutes a fair divorce settlement is necessary to comprehend what rights you have in a divorce.

The rules outlined in Section 25 of the Matrimonial Cases Act 1973 are used by the judge to do this. Couples rarely settle on a 50/50 split as their starting point.

Before you may agree to a split of assets, both parties must provide complete financial disclosure in order to determine how the overall pot is made up.

There are many things to take into account, but the court must pay close attention to the following:

• Are your ex-financial spouse’s needs taken into consideration?
• Which spouse has the greater future earning potential (capacity)?
• Will the existing quality of life be able to be maintained by both parties?
• Exists a credit card overdraft or other significant debts owed by just one person? The two issues that should be handled first are any childcare arrangements and the decision of what to do with the family home for practical reasons. The family home can be divided in a number of ways, which may have an impact on the division of other assets like pensions and child support.

How are money and assets split in a divorce?

You need to understand the distinction between assets before considering how property and money may be divided in a divorce settlement.

Marital possessions

Matrimonial assets are those that you have accumulated or acquired during your marriage.

They typically consist of real estate, pensions, savings, possessions, and money in the bank.

These resources must be divided equally because they are always added to the total “pot.” Keep in mind that being fair doesn’t always entail splitting everything equally.

Non-marital possessions

Financial assets obtained prior to marriage, such as real estate, pensions, enterprises, etc., are referred to as non-matrimonial assets.

Despite the fact that they are sometimes handled differently from matrimonial assets, these assets aren’t always excluded from a divorce settlement.

For instance, if an inheritance was utilised to buy a house or automobile during the marriage, the asset would now be classified as a marital asset.

There are several options for dividing your assets, including lump-sum payments to one spouse, balancing a pension against other assets of equal value, and formulas for calculating maintenance payments for both a spouse and children.

Scenario 1) Both parties agree to a financial settlement

In England and Wales, both parties can create their own agreement if the relationship between you and your spouse is cordial, you haven’t been married long, or your financial situation isn’t too problematic.

Whether you’re getting a divorce or ending a civil partnership, you can decide to resolve the assets, finances, and property issues without hiring a lawyer. By reaching an understanding, you can avoid going to court and save a lot of time and money.

Yet, you must use the help of a skilled expert to make the agreement you’ve made legally binding. If you choose to accept a financial statement, you must have a lawyer create a financial consent order, which the court will then sign. The financial order specifies how to divide financial resources including property, cash, savings, investments, and so forth. It may also include provisions for any children or spousal support.

Scenario 2) Applying to the court for a financial settlement if there’s no agreement

Even a mediator may not always be able to resolve the conflict.

You can think about asking the court to order a financial settlement when negotiations are challenging, you and your ex-spouse have a complicated financial situation, or your ex-partner won’t even discuss finances.

You may be better off asking the court to make a financial settlement in some situations, such as;

• If your spouse or you own a business
• If one party depends on the other for money 
• If you have dependents (children)
• If one side is unwilling to accept a settlement
• If one party has materially greater net worth than the other

In essence, if both parties are unable to come to an agreement, they must appear in court and request that a judge issues them with a financial order.

Nonetheless, you must demonstrate to the court that you were present for the mediation session (unless there has been domestic abuse or social services are involved in which case you can go straight to court).

The deadlines for requesting a financial order are the same: they must be requested prior to requesting the final legal document but after you have begun the divorce or dissolution of your civil partnership process.

You must submit two copies of the document to the court handling your papers if you want to request a financial order from the court (but keep one copy for yourself).

The application itself is £255, and you might have to appear at multiple court hearings and appointments. This procedure could take six to twelve months.

When should I agree to a financial settlement and why?

When you realise that divorce is your only viable option, it’s crucial to talk about how any assets or money will be distributed.

Before submitting an application for the final order (also known as a “decree absolute”), attorneys typically urge their clients to organise their finances.

Although there are numerous potential causes, one of the following two is typically the case;

1. You can have a “clean break” after your divorce if you can organise your funds while going through a divorce. Knowing that neither party can make any more claims, both parties can go on with their lives.

2. Dealing with your divorce initially without taking care of your finances occasionally affects your eligibility for certain assets, such as pensions. Before submitting an application for the decree absolute, it is advisable to consult with your attorney first since pension transfers can only be made to a spouse, who you would no longer be.

Even if your marriage was brief and you don’t have any shared assets (like a home, savings, or pension), it’s still crucial to get your spouse to sign a clean break agreement so that all financial links are severed.

Contact us and allow us to help you get a divorce

Divorce settlement negotiations are never simple. Wealthy couples should always seek legal counsel.

You should take into account our online consent order services if you are managing your divorce independently or want to do so soon.

The procedure includes coming to an agreement, but unless it is expertly drafted into a formal document, it has no legal force. Still, having trouble reaching a consensus? Contact us to get all the legal advice you need!