Financial Settlement after Divorce
- Not concluded a financial settlement after divorce?
- What is included within a financial settlement?
- Factors to consider in a financial settlement?
- Does the reason for the divorce affect how the financial settlement is worked out?
- How is a divorce financial settlement calculated?
- How soon within the divorce process do we need conclude a financial settlement?
- How can I protect savings in a joint account before a financial settlement is agreed?
- Child maintenance after a divorce
A divorce financial settlement are terms which set out the division of financial assets involved in a marriage after separation. Those terms are approved by a Court within financial proceedings.
In undefended divorce and financial cases a financial settlement can often by obtained by a consent order which is effectively the terms approved by the parties before the Court seals the Order as being final. If you fall into this category is it incredibly important that you consider securing legal advice to check the terms of the financial settlement after divorce is not only fair but accounts for the future needs of yourself as well as any children of the marriage.
You should finalise a financial settlement before you divorce otherwise they may come back to disrupt your life years after your divorce.
Not concluded a financial settlement after divorce?
In England and Wales you can still retain the ability at any time to make financial claims after you have divorced against you ex and vice versa if neither of you concluded financial settlement. If you have divorced but not concluded your finances after divorce then speak to our divorce law experts for advice today on 0330 094 5880 or arrange a telephone appointment.
Financial settlements can be complex cases depending on the needs of parties, type of assets and income available which is why it can be helpful to get legal advice to secure a suitable settlement that is in your best interests.
What is included within a financial settlement?
The financial issues to consider during a divorce will differ from family to family.
All assets should be considered as a starting point which may include:
- Interests in businesses, stocks or shares, trusts
- Division of debts, pensions and savings
- Future earnings
- Children and Spousal Maintenance
Factors to consider in a financial settlement?
Any financial settlement should be properly considered in terms of being fair, practical and realistic in both short and long term.
Other factors we recommend you consider are:
- Immediate financial concerns after separation – you need to consider how you can financially continue after you separate without falling in financial arrears
- Maintenance after divorce – calculate you income needs and have this figure ready to hand when you speak to a divorce law specialist so you can better assess how long you will need maintenance support for
- Whether the matrimonial home can be retained or needs to be sold
- Future savings and pensions
Whether a divorce financial settlement includes a paying party agreeing to a regular monthly financial contributions over a period of years towards settling the mortgage, the paying parties health, promotional prospects and ability to continue earning should be carefully considered.
You may want to consider placing a charge against an asset, if available, as a form of security in the event of the paying party being unable to fulfill their financial commitment to you; so you can recoup the shortfall balance from the asset.
At Kabir Family Law we see financial settlements drawn up which don’t factor for practical securities being put in place against contingencies; it is incredible important that you secure advice from an experienced divorce law expert.
Our divorce law specialist are able to explore how to devise a proposal in a way that minimises a risk of a financial settlement not being fulfilled in the future. Equally our divorce law specialists regular advice and assist on challenging or reopening a financial settlement where there has been untruthful disclosure or the maintenance is no longer capable of being adhered to.
Does the reason for the divorce affect how the financial settlement is worked out?
All assets should be considered as a starting point which may include:
The reason for a divorce doesn’t usually affect the calculation of a financial settlement award. This is because the primary focus of a financial settlement is the welfare and needs of any children before the parties and the parties needs will often trump the reason for a marriage breakdown.
While it is rare for the reason of divorce to affect the financial settlement, it doesn’t mean that it is impossible. There are certain reasons that may affect a financial settlement, for example, if one partner’s violence or behaviour has had an impact on the other or if one partner has been reckless or deliberate in excessive spending or destroying assets. An easy example would be if the partner gambled monies away due an addiction.
How is a divorce financial settlement calculated?
There is no set formula in calculating a financial settlement because no case is the same, as each family will differ from one to the other. Our financial settlement specialists are highly trained and experienced in carefully helping you quantify a settlement before considering your basic needs.
How soon within the divorce process do we need conclude a financial settlement?
A financial settlement can be concluded any time before or after divorce providing neither party remarries and financial claims have been properly preserved within the divorce process. It is advisable to conclude a financial settlement during your divorce before the Decree is made Absolute.
How can I protect savings in a joint account before a financial settlement is agreed?
You may want to consider either placing a restriction on the account so no monies can be taken be taken out without both your consent or freeze the account, if possible so they are preserved as part of the financial settlement or later used by agreement.
You will be jointly responsible for any overdrawn overdrafts so it is important that precautions are taken to protect the account.
Child maintenance after a divorce
Child maintenance should be considered for the parent who is retaining care of the children after the divorce. The amount of child maintenance payable depends on the paying parent’s income, expenditure.
Where the paying parent is a normal rate tax payer you should consider usual child maintenance rates otherwise speak to our family law specialists about pursuing a top up on child maintenance above the usual rates. Our divorce law specialist would advise that any child maintenance payments are factored into a financial settlement.
Arrange a consultation with our Divorce and Financial Settlement Specialists today
If you have reached an agreement on your financial settlement after divorce or simply require further advice, our divorce specialists are happy to speak to you on 0330 094 5880 to help you better explore your options. We have experience in helping countless separated conclude their financial settlement and we are confident that we can also help you.