Divorce Financial Settlements: Your Guide To A Fair Settlement

Summary

Reaching a fair agreement on how to separate your finances when you get divorced or end a civil partnership is an important step in the process. Having said that, understanding who should get what isn’t always straightforward because in family law there is no set rubric for what a fair financial settlement on divorce should look like. This ambiguity is deliberate, because all families and their circumstances are different, therefore all financial settlements are different. So, how exactly do you decide on a financial settlement when getting divorced? While going to court to decide on financial settlements should be your very last resort, it's helpful to know what the Courts do consider when spouses can't agree. The Court takes into account all relevant circumstances when deciding on financial settlements in a divorce. Some of these factors are detailed in Section 25 of the Matrimonial Causes Act 1973 and include: The Family Court typically makes decisions that are in the best interests of children in any family case, including divorce. With that, financial agreements should take into account child arrangements. For example, if it is agreed that a child or children are to primarily.

Key information

• Reaching a fair agreement on how to separate your finances when you get divorced or end a civil partnership is an important step in the process. Having said that, understanding who should get what isn’t always straightforward because in family law there is no set rubric for what a fair financial settlement on divorce should look like.
• This ambiguity is deliberate, because all families and their circumstances are different, therefore all financial settlements are different. So, how exactly do you decide on a financial settlement when getting divorced?
• While going to court to decide on financial settlements should be your very last resort, it's helpful to know what the Courts do consider when spouses can't agree.
• The Court takes into account all relevant circumstances when deciding on financial settlements in a divorce. Some of these factors are detailed in Section 25 of the Matrimonial Causes Act 1973 and include:
• The Family Court typically makes decisions that are in the best interests of children in any family case, including divorce.
• With that, financial agreements should take into account child arrangements. For example, if it is agreed that a child or children are to primarily live with one parent, then the financial settlement may include how much the non-resident parent should contribute to the child’s living costs. Other costs that should be considered also include: school fees and childcare, the extra-curricular activities, school uniforms, and trips.
• It’s important to detail who is responsible for paying what when it comes to children and financial settlements in order to avoid misunderstandings and disputes further down the line. It’s much better, and less stressful, for both parties and children.
• The Court will also consider accommodation for dependent children. Sometimes the result of this will be an order for a deferred sale of the matrimonial home (Mesher Order), which means the Court decides the sale of a property can be postponed until children meet a certain age, or other conditions are met.
• The Court will also look at what each person needs financially to live their life comfortably, like rent or mortgage payments, food, bills, and other everyday living costs, as well as look at the responsibilities of each person, like taking care of the children or paying off debts.
• It’s important to note that the Court will also consider financial needs, obligations and responsibilities that each person has both in the present or is likely to have in the foreseeable future. This can include benefits like company cars, phone bills, and pension payments, among other things.
• When it comes to dividing money and assets in a divorce, the court looks at how much money each person is making in the present, what they might make in the future, matrimonial assets (including property), non-matrimonial assets and any other sources of money like savings and stocks.
• The court will also consider how the family was living before the marriage broke down and the couple decided to go their separate ways. This is because they want to make sure that both parties can continue to live somewhat like they used to after the divorce.

Practical guidance

• Source: Divorce Financial Settlements: Your Guide To A Fair Settlement

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