01744 626 600
info@frodshams.co.uk
Financial Settlements
Our Family Law Solicitors are here to ensure the best outcome for you and your family, both now and in the future.
What is a Financial Settlement in a Divorce?
A financial settlement is a term used to describe the split of assets and any ongoing payments that are made to each party after a divorce or separation. This includes decisions about the family home, shared assets (such as cars, businesses, or additional properties), and any finances or debts acquired during the marriage.
The financial settlement also addresses what the ongoing responsibilities are after divorce. *For example*: Whether any spousal maintenance payments should be made to one party after a divorce, and if so, how much it will be.
How are assets split in a divorce?
Financial settlements can be complex, and assets are rarely divided in a straightforward 50/50 split. While some assets may be shared equally, others might be divided differently to ensure a fair outcome based on individual circumstances.
Assets in a marriage generally include:
Property (family home and any additional properties)
Pension funds
Investments
Savings in both joint and personal accounts
Income(s)
Other valuable assets, such as businesses or cars
Prenuptial and postnuptial agreements can also play a significant role in determining asset division. If you and your spouse entered into a prenuptial (before marriage) or postnuptial (after marriage) agreement, it might specify how assets should be divided in the event of a separation.
How Do You Agree a Financial Settlement?
During a divorce, reaching an agreement on the division of assets is essential, and doing so with a solicitor’s support ensures all assets within the marriage are considered. A solicitor can guide you through this process, helping to prevent disputes and facilitate a fair agreement.
Here are the main steps to agreeing on a financial settlement:
Solicitor involvement
Our solicitors offer expert legal advice, specific and personalised to your situation, identifying areas for consideration to help avoid disputes (including the consideration of any potential future cohabitation disputes). With our guidance, we aim to create an agreement that the court can easily approve. We also help future-proof the terms, ensuring clarity on arrangements in the future (Other considerations might also include cohabitation agreements and/or separation agreements).
Application to court
Once you’ve agreed on the terms, your solicitor will apply for a court order to make the financial settlement legally binding. If agreement proves difficult, we can also refer you to mediation services for assistance in resolving any disputes.
Mediation (if needed)
Mediation services can often help settle disagreements quickly and cost-effectively. The court typically expects mediation to be attempted before you apply for a financial order (a request for a court-approved financial settlement).
Going to court (if needed)
If mediation doesn’t resolve matters, your solicitor can help you apply for a financial order, which involves taking the case to court. Court proceedings are usually a last resort, as they can be lengthy and costly.
Considerations During Court Proceedings
During the legal process, the court will assess various factors to determine a fair financial settlement, including:
- Housing and income needs of each party
- Resources available to each person
- The couple’s standard of living before separation
- Ages of each party
- Duration of the marriage
- Any physical or mental health considerations
- Contributions, financial or otherwise, made by each person
- Any dependent children
Reaching an agreement before a final court decision is ideal, as the court’s imposed outcome may not fully satisfy either party. Legal advice is invaluable in ensuring your interests are protected and can help avoid unexpected outcomes.
We’re here to make things easier, every step of the way
Separation is an emotionally challenging time, particularly when addressing financial matters. Whether ending a marriage, civil partnership, or long-term cohabiting relationship, we understand how important it is to make decisions that support your future financial security.
At Frodshams, our expert family law solicitors are here to guide you through each stage. We’ll work closely with you to understand the full picture of shared assets and ensure you reach the best possible outcome for yourself and your family.
Handling Financial Settlements with expert care
Prevent disputes and avoid costly court proceedings
Court proceedings can be stressful, time-consuming, and costly. Our financial settlement solicitors aim to help you avoid these challenges by working proactively to mitigate disputes, guiding you towards resolutions without the need for court intervention.
Expert, tailored legal advice
Our focus is on achieving the best possible outcome for you and your family. We provide personalised legal advice based on your unique circumstances, ensuring a solution that fits your needs.
Services delivered with empathy
We understand that separation can be a complex and emotional time. Our solicitors are here to treat you and your case with the compassion and respect it deserves, offering guidance and care every step of the way.
Enquire nowFrequently asked Financial Settlement Questions
Yes, even if you and your ex-partner agree on the division, it’s wise to formalise the financial settlement with a legally binding consent order. This ensures that the agreed terms are enforceable and helps prevent future disputes.
No, financial settlements can also apply to civil partnerships and cohabiting couples, particularly if there are shared assets, children, or financial ties. Cohabiting couples may need to pursue civil claims if they are not married, while civil partners can seek financial settlements similar to divorcing couples.
The timeline varies, depending on factors like the complexity of the assets, whether mediation or court proceedings are required, and each party’s willingness to cooperate. Financial Settlements can range from a few months to over a year in complex cases.
If an agreement can’t be reached, mediation may help both parties find common ground. If mediation fails, you can apply to the court for a financial order, where a judge will decide on asset division. Courts generally encourage mediation before proceeding to a full hearing.
Yes, pensions are typically considered marital assets and can be included in the financial settlement. Pensions may be divided or offset against other assets. It’s advisable to seek expert advice to determine how to handle pensions, as they can significantly impact long-term financial security.
Yes, you can apply for a financial order after the divorce is finalised, though it’s usually simpler to address financial matters during the divorce process. Delaying a financial settlement can sometimes complicate pension arrangements and asset distribution.
While it’s possible to negotiate directly, having an experienced financial settlement solicitor can make the process easier, ensure legal compliance, and help protect your interests. A solicitor at Frodshams Solicitors can guide you on what’s fair and legally binding, helping to avoid issues in the future.
