Family Law Solicitors In Essex
Family Financial Settlement Lawyers
What is a Financial Settlement in Divorce?
A financial settlement in divorce, or a financial settlement agreement, is an essential arrangement between two individuals who have agreed to separate legally. This agreement addresses how financial assets, liabilities, and responsibilities will be divided following the dissolution of the marriage. If you or your spouse own joint financial assets, a financial settlement will be required to ensure a fair and equitable division of wealth. At Kayson Solicitors, we offer expert legal guidance to help you navigate this complex process.
What is Included in a Financial Settlement?
A divorce financial settlement includes the fair division of the following assets:
- The family home and any other properties
- Savings, investments, and trusts
- Joint bank accounts
- Vehicles
- Business assets that are jointly owned
- Pensions
Divorce settlements are based on the guidelines outlined in Section 25 of the Matrimonial Causes Act 1973. To achieve a fair settlement, both parties must provide complete and frank disclosure of all their assets, whether held individually or jointly or in the UK or abroad. Hiding or concealing assets is illegal and can negatively affect the settlement process.Once full financial disclosure has been made, Kayson Solicitors will guide you through the following steps. We can help you evaluate your options for reaching an agreement, including:
If a resolution cannot be reached through these means, we can advise you on your options for going to court.What is a Typical Divorce Settlement?
Divorce settlements are highly individual and can vary based on numerous factors. However, several common aspects are typically considered when determining how assets are divided, including:
Regardless of the complexity or scale of your wealth, having an expert divorce lawyer is crucial to ensuring a fair division of assets and securing your financial future.
Is a Financial Settlement Legally Binding?
For a financial settlement to be legally binding, it must be approved by the court through a Consent Order. This formal document reflects the agreement you and your spouse have reached. Once approved, it severed all financial ties between the parties, except for ongoing obligations like spousal maintenance.A Consent Order prevents either party from making future financial claims against the other. Without this order, there is a risk that one party could make a financial claim later, even after the divorce has been finalised. The court will impose a Financial Remedy Order if the parties cannot agree on a financial settlement.
How is Property Divided in Divorce?
The division of property, particularly the family home, can be one of the most complex aspects of a divorce. In England and Wales, the starting point for dividing assets is equality. However, the court will consider various factors that may justify an unequal division. These include:
- The financial needs of both parties, including housing and income requirements
- The welfare of any children, particularly in relation to where they will live
- Contributions made by each party, both financial and non-financial
- Other relevant circumstances, such as health, age, and any misconduct
How Are Pensions Split in Divorce?
Pensions are considered a valuable asset and must be addressed as part of a divorce settlement. There are three main ways to divide pensions:
- Pension sharing: One spouse receives a share of the other’s pension
- Offsetting: The value of the pension is offset against other assets, such as property or savings
- Pension attachment/earmarking: A portion of the pension is allocated to the spouse and payable upon retirement
Gathering complete and up-to-date valuations of both spouses’ pensions is vital to ensure a fair division.
How Are Business Assets Treated in Divorce?
If you or your spouse are interested in a business, it must be disclosed as part of the financial settlement. Business assets are treated the same as any other asset in a divorce, and their value will be included in the division of assets. This may involve business valuations and, in some cases, the need to buy out the other party’s share of the business.How Are Trusts Treated in Divorce?
Trusts are separate legal entities, meaning neither spouse owns the assets held within them. However, they can still be considered in the division of marital assets if they have been used for the benefit of either party during the marriage. The court will examine the role and financial impact of the trust during the settlement process.
How Are Inherited Assets Treated in Divorce?
Inherited assets may be treated differently from other marital assets, depending on factors such as:
- The value of the inheritance
- When the inheritance was received (during the marriage or before)
- How long the couple has been married
- The financial needs of both parties
How Are International Assets Treated in Divorce?
Both UK and foreign assets must be disclosed when assets are located abroad. The UK courts can make financial orders that apply to international assets, but enforcement of these orders can be more complicated and may require legal action in the country where the assets are located.
Do I Need a Financial Settlement Agreement?
Even if you and your spouse have reached a verbal agreement, seeking legal advice and securing a Financial Remedy Order is essential to ensure the division of assets is fair and legally binding. A formal agreement protects both parties from future claims, including any inheritance or unexpected windfalls that might arise after the divorce.How Long Does a Divorce Financial Settlement Take?
On average, a financial divorce settlement can take 9–12 months to complete. This depends on the assets’ complexity and whether both parties can reach an agreement without going to court.Can a Financial Settlement Be Modified Once It Has Been Agreed?
Once a financial settlement is finalised and a Consent Order is in place, it is extremely difficult to change the terms. However, in some instances, such as Barder vs Barder (1987), the court may allow a settlement to be reopened if there has been a significant change in circumstances since the order was made.
Do I Need a Solicitor to Agree a Financial Settlement?
It is highly recommended. A family lawyer ensures that your rights are protected, the agreement is fair, and the settlement is legally binding. At Kayson Solicitors, we are experts in financial settlements and can help guide you through the process from start to finish.
How Kayson Solicitors Can Help
Choosing the right solicitor is crucial when negotiating a financial settlement in divorce. At Kayson Solicitors, we understand that every family’s circumstances are unique, and we will tailor our approach to suit your specific needs. Our highly skilled financial settlement solicitors will:
- Advise you on the best approach to protect your interests
- Negotiate on your behalf in mediation, arbitration, or court proceedings
- Ensure the fair division of assets, including pensions, property, and business interests
- Help you navigate the complexities of international divorce or inherited wealth
If you need expert legal advice or assistance securing a fair financial settlement, contact Kayson Solicitors today for a confidential consultation. We’re here to protect your future and ensure you receive the fair settlement you deserve.
