Finances

Financial Settlements

All assets acquired during the marriage or civil partnership need to be considered and evaluated. This includes property, bank accounts, savings, shares, investments, pensions and businesses (both solely and jointly owned). There may also be assets abroad.

One of the hardest issues is the family home, which can be the main asset in the relationship, and because negotiations begin with the equal division of assets, this can appear difficult to resolve. The needs of any children are a major priority, but the courts will still not allow an unfair settlement for either party.

There can be other financial issues that need to be considered, such as maintenance or the issue of debts. A financial settlement is legally binding on the parties, and it determines how the assets and other wealth will be divided between the two parties.

The terms of each financial settlement are very fact-reliant, so each one will be very different. The finances of the parties, together with related lifestyles, need to be considered in each case.

There are various issues that will be considered when determining a financial settlement, including:

• The age and health of both parties
• If there are any children
• The length of the relationship and marriage (if applicable)
• The assets and finances of both parties
• The needs (both now and in the future) of both parties
• The earnings of both parties, including earning capacity for the future
• If there’s likely to be a change in one party’s finances
• The standard of living enjoyed by the parties during the marriage
• The financial contributions made by both parties to the marriage
• Any non-financial contributions made by both parties, for example, running the household and looking after the children

Financial settlements can be agreed outside of court via negotiation, mediation, arbitration or collaboration. These methods are all encouraged before the parties consider using the courts.

It’s generally much less stressful and time-consuming when both parties can agree to resolve matters via more informal methods. If an agreement is reached, the courts will then check it to ensure it’s reasonable before endorsing and making it legally binding. Where the courts do need to become involved, the parties risk losing some degree of control over the final terms of the settlement.

Where there are no children involved, it’s possible to have a ‘clean break’ financial settlement, where there are no ongoing financial commitments between the parties after the agreement is finalised.

Contact Us

Our specialist family finance lawyers can work with you and represent you throughout the process, including court hearings. They can discuss all your options and acquire all necessary information from your ex-spouse or partner to ensure all financial matters are handled correctly.