What is a Financial Settlement?
A financial settlement is the agreement between you and your ex-partner on the division of your assets and finances when your marriage has ended.
Once an agreement has been reached you should make a consent application to the Court for a legally binding Financial Order, finalising the agreement you have reached.
This can be reached by consent, or by order of the Court where there is no agreement between the parties.
Do I need a Financial Settlement?
Our best advice is to get a Financial Order during the divorce process. In doing so, this legally guarantees financial certainty for both parties once the divorce is finalised, enabling the both of you to move on into the future with no financial ties to one another.
I am divorced and don’t have a Financial Settlement?
It’s not too late to get a financial settlement in place after you are divorced although not having this could potentially cause issues for you in the future as your former spouse is entitled to claim money and assets from you regardless of the amount of time passed since divorcing.
If this does happen to you; your assets including inheritances, the fruits of business success and increases in value of property and pensions will be valued at the same time the claim is made and not at their value when the marriage broke down.
Are assets always equally split in divorce?
The starting point is that matrimonial assets should be divided equally however the Court also has discretion to consider the children of the marriage; length of marriage; ages of parties along with their health and income earning capacity and any other relevant circumstances in making a final decision and these are the reasons as to why financial assets are not always shared equally.
Is my spouse entitled to half of my business?
Typically, business assets will be considered as matrimonial asset, it is important you seek advice from a family law solicitor to ensure the best outcome in relation to those assets.
I cant support myself financially after divorce. What am I entitled to?
If you don’t have income to financially support yourself, you could be entitled to spousal maintenance and/or a greater share of the matrimonial assets.
What is spousal maintenance?
A regular payment by former husband, wife or civil partner to their ex-partner.
The amount you receive can depend on:
- previous standard of living
- income you already have
- potential earnings in the future
Can I re-marry without financial settlement from my previous marriage?
If you were the respondent in the divorce proceedings, once you re-marry you will be barred from making any financial application. This can result in you losing the right to claim any assets that you may of been entitled to from your previous marriage.
We hope you found this blog informative. If you would like further advice on the following, don’t hesitate to get into touch with us, or you can visit our contact form at the bottom of our home page and we will contact you.
~ Birkett and Co Solicitors