Financial Settlements

Entering into a marriage creates certain financial ties. When the marriage breaks down, you need to take specialist advice about addressing those, including a possible a financial settlement. Speak to us to help understand what your rights and obligations are

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Financial Settlements

Entering into a marriage creates certain financial ties. When the marriage breaks down, you need to take specialist advice about addressing those, including a possible a financial settlement. Speak to us to help understand what your rights and obligations are

legal22 1.2

UNITED KINGDOM

LEADING FIRM

2021

legal22 1.2

UNITED KINGDOM

LEADING FIRM

2022

legal22 1.2

UNITED KINGDOM

LEADING FIRM

2023

legal22 1.2

UNITED KINGDOM

LEADING FIRM

2021

legal22 1.2

UNITED KINGDOM

LEADING FIRM

2022

legal22 1.2

UNITED KINGDOM

LEADING FIRM

2023

Request a callback

Enter your details below and organise a no-obligation, confidential callback. We offer a low-cost, fixed-fee consultation.

Financial Settlements

Entering into a marriage creates certain financial ties. When spouses get divorced they also need to take steps to address those financial ties. If you do not take steps to address your financial relationship when going through a divorce it be very problematic for you in the future as those financial ties may well continue, notwithstanding the fact you are divorced.

Financial Settlements FAQ'S

How is property divided following divorce or separation?

At present, the law of England and Wales is different for those that are divorcing (i.e. are married) and those that are simply just at the end of a committed relationship (i.e. unmarried parties). Your financial rights and remedies are often far better protected as a married couple than an unmarried one. If you are unmarried, then any property you own with your ex-partner will likely be divided by reference to property law principles i.e. how it is owned, subject to any arguments about indirect interests. If you are married, then the court has a much wider discretion and can make orders to transfer property between spouses, even if it is not owned in their name.

Pensions can be a very valuable asset and are just as capable of being shared on a divorce as a house or a savings account. The court can order one party to give the other party part of their pension pot so that they get their own pension fund, or can order that the income drawn from a pension be shared. You should take specialist advice about your pension needs and requirements and whether sharing pensions is something that is in your interest to pursue, or whether you would rather take more of the other assets that are available to be shared.

You financial behaviour and affairs will be under the microscope when going through a divorce. The courts of England and Wales have significant powers to undo any transactions that it considers are illegitimate, have been done to try and put assets beyond the reach of the court or to try to defeat their spouse’s possible claims. You should take legal advice as soon as possible when faced with a divorce to ensure that you understand your duties and obligations.

You are always under a duty to provide full and frank disclosure of your assets or of any transactions that you are involved in, or may be involved in that has the effect of altering how your assets are presented and structured. Whilst not impossible to sell certain assets during a divorce (indeed, in some cases that may be needed), it is always essential to take proper advice before committing to any transactions. The court will want to know the reasons why you are interfering with your assets before a divorce is finalised. For example, selling a very valuable property at an undervalue in the context of a case with limited assets is likely to raise a few questions.

The duty to provide full and frank disclosure of your assets is absolute; it includes any interests that you might have in trusts. The court has wide ranging powers when it comes to disclosure and it also has the power to vary trust settlements i.e. it could order a property owned by a trust to be transferred to your spouse. There are certain procedures that have to be followed when dealing with trusts in divorce proceedings and trust are certainly an increasingly common feature when dealing with divorces that have an international element to them.

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