Financial Issues

If you are going through a divorce or dissolution, there are a number of ways to try to reach a financial settlement with the other party. Ideally, if the situation allows, this would be by way of agreement.

One of the most common ways of doing this is by way of mediation. You can attend a Family Mediation Information and Assessment Meeting (MIAM) to see if mediation is appropriate. There are different ways mediation can take place and this is something which a mediator can discuss with you. The Court will usually refuse to deal with any application you make for an order if you have not attended one of these meetings, unless there is a particular exception such as a risk of domestic abuse.

There are also other options including the collaborative law process, arbitration or negotiation through solicitors. We can provide you with more information about these.

Court proceedings

If you make an application to the Court for financial remedy, a Judge will have a very wide discretion to apportion finances to bring about a fair settlement and this can include adjusting the existing ownership of assets. All finances, including income, savings, houses and pensions must be considered.

The first consideration of the Court will always be the welfare of any child under the age of 18. After that, the Court will have regard to the following:-

1. The income, earning capacity, property and other financial resources which each of the parties to the marriage has or is likely to have in the foreseeable future;
2. The financial needs, obligations and responsibilities which each of the parties to the marriage 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 age of each party to the marriage and the duration of the marriage;
5. Any physical or mental disability of either of the parties to the marriage;
6. The contributions made by each of the parties to the welfare of the family, including any contribution made by looking after the home or caring for the family;
7. The value to either of the parties to the marriage of any benefit (for example, a pension) which (by reason of the divorce) that party will lose the chance of acquiring.

As set out above, a Court will have expected you to try to resolve matters by agreement first. If this has not been attempted, then a Judge can pause proceedings and refer you back to mediation or another alternative dispute resolution process before continuing.

Once you have a settlement

A financial settlement will be recorded in an order which can only be authorised by the Court after the Conditional Order of divorce has been granted. This is an important step because without an order any agreement you reach is unlikely to be enforceable. Having the financial settlement approved by the Court is also the only way to ensure that neither party can make any claims against the other in the future. This is often referred to as a ‘clean break’.

How can we help?

The above summary is only very general information. We can provide advice or representation tailored to your own particular circumstances. To find out more about your options and how we can assist you please contact us on 01823 256 494 or submit an online enquiry below.