A Guide to Arranging a Favourable Financial Settlement in a Divorce

Separating your finances during divorce proceedings is essential. While you and your ex-partner might still be separated on legal terms, not handling your finances properly allows them to make a claim (and vice versa) on all financial assets without there being any time limit.

These financial assets can include:

• Money, savings, shares
• Property
• Division of pension or debt
• Spousal/children maintenance

Therefore, it is advisable that you obtain a financial settlement during the divorce, although when you choose to get it done (before or after) is up to you. Typically, we advise to get financial settlements sorted out either during the divorce proceedings or at least before a partner is to be remarried.

Once the settlement is decided by the court, it is confirmed with a consent order.

What Affects a Favourable Outcome?

Spousal behaviour doesn’t affect the outcome of your financial settlement. So if there was adultery or even some unreasonable behaviour involved that served as grounds for the divorce, it won’t have any effect on the financial settlement.

However, what does affect the outcome is how fair both parties are, whether there will be any child maintenance, and the length of your marriage. If both parties are at a stalemate, they must bring in a mediator so the process doesn’t drag on for too long.

But, if the financial settlement is not resolved even with the help of a mediator, the case will need to go to the court, whereupon the judge issues a financial court order.

How are Your Assets Divided?

If your case goes to court, the judge decides on the division of your assets by taking the following factors into account:

• The age of both parties
• Ability to earn
• Available property and money
• Living expenses and standard of living
• Role in a marriage i.e. who is the primary breadwinner and who is the stay-at-home parent etc

While the court does strive to be fair in the division of assets, the arrangements can sometimes lean heavily to one side if there are children involved.

What if You Want a Clean Break?

This can be done if you and your partner don’t have any assets to divide. In this case, the judge simply issues a clean break order which allows both parties to cut off financial ties from one another. However, it does not guarantee that protection from a financial claim if one party does come into some money in future.

Need Help?

Wembley Solicitors in London can assist! With our expert guidance, you’ll be able to handle the complexities of family law, divorce and financial settlements without worry.

Contact us today to get started!