Your divorce is likely to come with its fair share of financial disputes, and the finances surrounding your divorce are likely to be of great concern to you and your former partner. According to UK law, legal spouses are entitled to financial provisions from their former partner upon a divorce. Contrary to popular belief, however, most divorce cases will not end with you “getting half of everything”, especially if assets and children are involved. Also, bear in mind that those in civil partnerships and those who are not legally married are not eligible for the same financial provisions as married couples. Here we offer you some guidance on common financial disputes which arise due to a divorce.
What are the legal considerations for financial disputes during a divorce?
You must agree to a financial settlement with your spouse before approaching the court. This may be done via mediation, negotiation, or a mutual understanding. After you both agree upon the settlements, you can make an application to the court for a financial order. If you have a child between you who is under 18 years of age, the court will make decisions which are most likely to benefit the child financially. They will take into account both parties’ income, earning capacity, and assets, expecting them to continue generating similar amounts of income in the foreseeable future. The court will also assess the standard of living enjoyed throughout the marriage, your contributions to your children’s welfare, and other forms of behaviour.
What legal processes must I go through to settle financial disputes in a divorce?
The court will evaluate your documents in a short meeting around 10 weeks after you submit your application, deciding whether they can proceed with the case with the documents which have been supplied. If so, you will then attend an FDR (financial dispute resolution) hearing, where the judge will study your papers, listen to comments from you and your solicitor, and give you an indication of a potential court order regarding your finances, which you can accept or reject as you please. You will be able to discuss the court’s potential order with your solicitor before you come to a decision, allowing you to choose the course of action that best suits you. If one of the parties rejects the indicated order, then the legal proceedings will continue afterwards until a settlement is eventually reached. If you’re experiencing trouble with agreeing to a financial court order, our team of legal experts may be of some assistance to you.
What is Financial Remedy?
Financial Remedy, sometimes called Ancillary Relief, is the name of the process which the court uses for resolving financial matters with you and your former spouse upon divorce . This is the process which UK law stipulates that courts must use to settle financial disputes upon a divorce, dealing with all aspects of a former couple’s finances, both individually and as a couple. The process may include, for example, transfers of property, sales of property, lump-sum payments, spousal and child-related maintenance arrangements, and pension divisions. There are other things which may be affected by a financial remedy too, such as the distribution of business shares, the payment of school fees for your children, and other potential financial orders which may arise. These are some of the more common orders which a court will impose on the parties during a divorce settlement, although there are numerous more orders that a court can create based on your circumstances.
I’m getting a divorce, can I protect my inheritance?
Your inheritance, in general, is treated as a “non-matrimonial asset” in court, meaning it may be included in settlements unless you can fulfil your financial requirements in other ways. For example, if you have a high salary and a high amount of inheritance money, you may pay more money to your former spouse (out of your salary) due to your large amount of reserved inheritance funds. If your inheritance money has been worked into the marriage in some way, such as being used for the purchase of the family home, then it may be harder to protect legally.
Financial disputes are often an inevitable part of a divorce, so it’s important to have the right legal professionals by your side. Get in touch with Gulbenkian Andonian Solicitors today for bespoke advice on divorces and financial disputes.