Divorce Financial Settlement Solicitors
Guiding you through all financial settlements in divorce
Choosing the right lawyer to deal with the financial settlement in your divorce can have a significant impact on the rest of your life.
Our team of financial settlement solicitors is experienced in helping people through the complexities of financial settlements in divorce, focusing on key areas such as pensions, investments, property, businesses, and spousal maintenance.
We take a pragmatic approach and will provide you with a clear, accurate picture of your financial position, the options available to you, and the information and guidance you need to make well-informed decisions about your financial future.
We work with a network of accountants, IFAs, pension experts, property experts, and business valuation experts so we can tailor our approach to your unique circumstances and goals.
Our family lawyers are all members of Resolution. Our team are also ranked in the Legal 500 and Chambers and Partners.
Request legal advice on divorce settlement agreements
Why choose us?
People-driven is at the heart of everything we do. It's more than part of our strapline or words on a webpage. That, combined with our legal excellence, makes us the perfect choice to assist with your financial settlement.
Our expert team of financial settlement solicitors will offer you the following:
Specialist, pragmatic guidance: Our experienced, down-to-earth divorce and finance solicitors understand the impact of negotiating a financial settlement during a divorce and will guide you through your options with professionalism and expertise.
Tailored solutions: Our legal advice is bespoke to your individual financial circumstances and goals. We work towards a resolution that protects your interests and your family.
Full-service approach: You can benefit from a wide range of legal expertise across our full-service firm, including tax, property, and estate planning.
Trusted advice: Our advice has been trusted for 150 years. Our clients rate us 4.9* on Review Solicitors.
External recognition: Our family lawyers are all members of Resolution. Our team are also ranked in the Legal 500 and Chambers and Partners.
Meet the divorce settlements team
Philip Barnsley
Partner and Head of Family Law
Amira Desai
Paralegal - Family Law
Karen Gray
Senior Associate - Family Law
Jodie Johnson
Associate - Family Law
Alex Sankey
Paralegal - Family Law
Megan Davies
Associate - Family
Rhian Gray
Partner - Family Law
Ellie Norton
Principal Associate - Family Law
What is a financial settlement in a divorce?
In a divorce, a financial settlement is a legally binding agreement which covers the assets, debt and support of the divorcing couple. It includes financial responsibilities like pensions, property, savings, and investments. The goal of the financial settlement is a fair distribution of assets that takes into account each spouse's unique dynamics and the standard of living during the marriage.
Financial settlements process
The process differs depending on the individuals involved, but as a guide, it follows the process below.
- The full disclosure of all assets and all liabilities
- The negotiation and mediation process
- Once an agreement is reached, a legally binding agreement is drafted, called a Consent Order
- If an agreement cannot be reached, the process would proceed to court.
What is covered in the financial settlement?
The financial settlement covers matrimonial and non-matrimonial assets.
- Matrimonial assets are financial assets built up during the marriage. These are the primary focus of the settlement agreement and will be divided fairly while meeting the reasonable needs of those involved. They include savings, investments, life insurance, pensions, property, household contents, cars, personal items, debts, loans, credit cards, and, if applicable, complex assets such as businesses, trusts, crypto, and international assets.
- Non-marital assets are those acquired before or after marriage. As a general rule, these are kept separate from the matrimonial assets, but in specific circumstances, they may be considered part of the overall settlement.
Because non-marital assets can be taken into consideration, it is essential to work with a settlement agreement lawyer to understand the impact of non-marital assets on your divorce.
How to reach a financial settlement?
Many factors are taken into account when reaching a financial agreement, including the length of the marriage, the financial and non-financial contributions made to the marriage, the standard of living throughout the marriage, and responsibilities such as child care or health issues.
The overarching principles of a financial settlement in a divorce are need and fairness.
Reaching a fair agreement may mean splitting assets such as savings, pensions, property, and investments, and assessing the need for ongoing financial support.
Couples are encouraged to reach an agreement either through negotiation between themselves or with the help of a mediator or lawyer. In very rare cases, the matter goes to court.
Types of settlement agreement
In cases where an amicable, out-of-court settlement is not possible, financial orders can be put in place either by mutual agreement or a financial consent order issued through the court, including:
These are the main types of agreements you will see:
- Lump Sum Orders
- Property Adjustment Orders
- Spousal Maintenance Orders
- Pension Sharing Orders
- Pension Attachment Orders
- Child Maintenance Orders
- Clean Break Orders
What can affect your financial settlement?
The first consideration when dividing your assets is always the needs and welfare of any dependent children. The court prioritises ensuring that children have suitable housing and that their care needs are met.
However, several other factors can influence how your finances and assets will be split:
Your ages and length of marriage
This includes any time spent living together before marriage. Shorter marriages can often result in spouses returning closer to their pre-marriage financial positions, while longer marriages typically tend to see a more equal division of the assets.
Your current and future needs
The court considers each spouse's needs for living expenses, including housing costs, day-to-day expenses, and any special requirements. For example, if one spouse has given up their career to raise children, this will be factored into the settlement.
Earning potential
Your current income and your ability to earn in the future are taken into account. For example, if one spouse has taken a career break for childcare or has reduced earning capacity due to age or health issues, this can affect how your assets are divided and whether ongoing maintenance is appropriate.
Contributions
Courts recognise both financial contributions and non-financial contributions, such as childcare and supporting a spouse's career as having equal value when determining a fair settlement.
Family business and its value
If you or your spouse owns a business, expert valuation is usually necessary to determine its value. The court considers whether the business can be divided, whether one spouse can buy out the other, or whether it should remain with the spouse who runs it, with alternative compensation provided.
Pension provisions
Pensions are often the second-largest asset after property, but are frequently overlooked. The court will assess all pension pots held by both spouses and may order pension sharing to ensure fair provision for retirement.
FAQs
In an infinite number of ways!
There is no one right way to divide assets following a divorce, and our lawyers will talk to you about your aims and objectives, giving clear guidance about whether they are achievable and what compromises may need to be made to get you to the position you want to be in.
The law regulating how assets are divided in divorce is Section 25 of the Matrimonial Causes Act, and this sets out numerous factors which need to be considered when weighing up how to divide assets. These include things like the needs of children under the age of 18, the ages of the parties, the resources of the parties, their health etc.
A list of these factors can be found here https://www.legislation.gov.uk/ukpga/1973/18
Our team will consider the parameters of what outcomes are fair when considering your circumstances and your assets and resources. We look to negotiate the outcome of splitting the finances with you, being clear about the likelihood of success of your strategy if we were in court proceedings.
If parties are unable to reach an agreement about the split of finances, it may be necessary to engage in court proceedings. There are usually at least two hearings designed to bring parties to a position where they can reach an agreement themselves. If that is not possible, a final hearing is listed and this is a hearing when a Judge will decide as to what the split of finances should be, and this Order is binding upon the parties.
Matrimonial assets are those that are acquired by the work of one or both parties during the marriage. The term also usually includes the family home, regardless of how or when it was acquired or by which party.
This can be really difficult and the answer is not straight forward. Generally, we would ask questions to try to work out the truth of the assets, but if a spouse keeps being evasive, Court proceedings may be necessary.
When the Court becomes involved, the first Order made is for the disclosure of all financial resources using a Form E. Both parties are asked to provide financial disclosure that is full, frank and clear i.e. that giving information is not enough, the financial landscape must be clear.
Sometimes, even this order is not enough and if a spouse continues to be dishonest, a Court might have to judge the honesty of the information they have.
This depends on the individuals involved.
Sometimes people come to us with agreements that they have already negotiated. If that is the case, this can be formalised in a Financial Consent Order. This is an Order filed alongside the divorce proceedings, after Conditional Order has been made. If that is the case, this can be around 6 months.
If we have to go through financial disclosure and negotiate a settlement, this can take longer, generally somewhere between 6 and 12 months.
If Court proceedings are necessary, but a settlement can be negotiated, generally this can take between 9 to 18 months.
If an agreement cannot be reached by negotiation and the Court makes an Order that is being in on the parties at a Final Hearing this is likely to take between 18 and 24 months, but this depends on the Court.
Pensions should always be considered in a divorce, though it is not certain that a claim should be made.
It is important to take advice about pensions on divorce.
Spousal maintenance may be paid to ensure that there is a fair outcome on divorce. Sometimes there is a need to pay spousal maintenance because one party cannot meet their outgoings without ongoing financial support.
In other cases, spousal maintenance is paid as a form of compensation because one spouse has sacrificed their earning potential because of the functions carries out by each party during the marriage leaving them unable to meet their own needs after he marriage. More rarely, spousal maintenance might be paid because it is fair to share in the income generated through the marriage.
If a financial clean break can be made, the Court has a duty to provide one as soon as possible following the end of the marriage, so often we see that there is either no spousal periodical payments order, or that the payments might be limited to a term.
Divorce only deals with the change to marital status. Alongside this, there are financial claims that both spouses can make for the assets to be divided fairly.
If there is no financial settlement which is approved by the Court and made into an Order, the financial claims of both parties live on, even after the divorce has finished.
It isn’t always necessary to “split” the business so before considering how to deal with the business, your lawyer needs to know about the business through the financial disclosure exercise.
Sometimes, it is necessary to instruct an accountant to value the business and to confirm whether there is any liquidity within the business.
Follow this link to an article by PXB about dealing with business assets on divorce – dig this out.
