Financial Settlements – The Importance of ensuring that a Financial Order is made and the pitfalls of not obtaining one
If you and your spouse are getting divorced, you must also separate your financial affairs. This is not an easy task as your finances are likely to be deeply entwined.
We understand that the stress and pressure that accompany a divorce may be magnified by the need to untangle your finances. We can help you to complete this process with the least amount of stress possible and work with you to achieve the best outcome for you.
Your financial settlement can be agreed at any time during your divorce but if you are struggling to agree, you do not need to let this delay the process of completing the divorce. Whilst it does not hinder the process, it is quicker and easier to agree the financial settlement prior to the divorce if this is possible. If you agree the financial settlement before the divorce, the court can make any necessary orders it needs at the same time as processing the decree nisi (the first stage of the divorce process).
Mediation could help you to get to the root of the issues stopping you reaching the settlement you want. A mediator will listen to both sides and make a decision about what the financial settlement should look like. Mediation can help take out the antagonism from the process. This may facilitate an early agreement without the associated costs of going to court.
However, if mediation is unsuccessful, your only option for settlement is to let a judge decide on your financial settlement. This will be costly in terms of your time and financially too, and where there are children in your family, litigating a divorce can have a significant impact on them.
However an agreement is reached whether via Solicitors negotiation or Mediation it is important that the Agreement is set out in a Court Order.
Pitfalls of No Order
If you fail to incorporate the terms of an agreement into a financial Order both yours and your former spouses’ financial claims against the other remain open, as long as you have not re-married. It is a misconception that if the Divorce is finalised no further financial claims can be made – they can.
You may have read in the press about the lady who had divorced her husband over 20 years ago was still able to make a financial claim against her husband, even though at the time of the Divorce both parties had very little assets; the husband in that case became a multi-millionaire and the Court allowed the ex-wife to make a financial claim. The Wife received a substantial lump sum.
To avoid this scenario, a financial Order should be made at the same time as the Divorce.
We were recently consulted by a lady who had divorced 26 years ago; she hadn’t consulted with Solicitors at the time of her Divorce – her home had remained in the joint names of herself and her husband; she had renovated the property and paid off all the mortgage. She thought that her husband had no claim. Sadly, for her, as no financial Oder was made at the time of the Divorce, her husband was still able to claim against the property.
If you Divorce and no final Financial Order is made all of your assets at the time of the claim are considered when finalising an agreement, this could include an Inheritance which you have received subsequent to your Divorce.
Why Choose Avenue Solicitors?
To avoid financial claims being made against you many years after your Divorce has been finalised. Financial settlements can be one of the hardest parts to agree in any divorce. We can help you to achieve the best outcome possible for you and we work hard to ensure a fair and reasonable outcome. With over 20 years of experience in divorce law, you can rely on us to clearly lay out your entitlements and the areas, such as your ex-spouse’s pension, which could be overlooked.
We offer a 15-minute Initial Telephone Consultation at no charge, so that you can discuss your circumstances with us and we can establish how we can help you with regards to reaching a financial settlement and the costs involved. This will allow you the opportunity to consider what to do next.
Contact Us Today
To arrange a 15-minute initial Financial Review telephone Consultation at no charge to find out more about making a financial settlement, what is included in the settlement and how this settlement can affect you please get in touch today.
You can call us on 0800 014 8575 or 0203 540 7665 and our experienced family law team can talk this through with you during an initial 15-minute Telephone Consultation.
However, if you would rather get in touch online, please Make An Online Enquiry and we’ll be in touch soon.