The Challenges You Might Face in Financial Settlements After a Divorce

Most people might not even know that the first Monday after Christmas break is called “Divorce Day,” and that January is the month that traditionally has the highest divorce rate. So it’s no wonder that “I want a divorce” searches shot up by 230% in December 2019.

The fact that a “divorce day” exists is a testament to the prevalence of divorce.

Hollywood might treat it is as a selling point for movie jokes, but the truth is that divorces are ugly. And if the concern for mental health after a divorce isn’t daunting enough, there are other troubles afoot.

Other troubles… such as financial settlements.

Financial Settlements as Ancillary Relief

Financial settlements weren’t always called that—at a point in time, they were ancillary relief, since they were ancillary to a divorce. Financial settlements follow after all the initial ugliness of a divorce is over.

At this point, ex-couples think more practically about their financial future, especially that of their children. This is the stage in which former spouses define parameters and discuss future financing.

When Children are Involved

The courts will always be concerned about the welfare of children. Questions such as which parent the children will live with and how many children are involved are especially important. The number of children and their ages matter too, since these factors determine the kind of housing required for their needs.

A critical consideration is the length of the marriage, since that directly affects the settlement size. Marriages are considered short if they lasted five or less than five years. A marriage longer than 14 years is considered “long,” and anything in the middle is considered the median.

Filling Form E

Form E is mandated next—a sworn statement that mentions future income and spending on children. Many people find Form E particularly hard to fill, which is why getting help from an expert divorce solicitor can help. If you exaggerate your future housing needs or underplay your income, you might run into trouble with the judge. Getting professional legal help can prevent these problems from taking root.

How Much Will You Have to Pay?

Whether it’s a question of who gets to keep the children or finances and property, the amount that is to be paid isn’t pre-determined. The court takes your current income and the prospects of your future income into account before coming to that decision.

A divorce lawyer might be able to provide a fairly good estimate even before the court gets to that point. The merits are different on a case by case basis; for example, if the court finds assets—such as property—that are considered “matrimonial,” that will likely be shared between the two parties. Non-matrimonial wealth isn’t shared, neither is it mentioned in the settlement.

Maintenance and Alimony

When it comes to maintenance and alimony, it is usually the wealthier party that pays the less wealthy party. The period for maintenance is decided by the court and is subject to extension. Of course, these obligations no longer apply if the recipients of alimony start cohabiting with someone else.

We know that all of this might be too much to take in, specifically for people with no legal background. Whether you’re struggling with getting a divorce or with settling the finances after a divorce, Wembley Solicitors in London can help you—so don’t hesitate to reach out!