Financial Distribution in Divorce: What You Need to Know

 

How does a court decide how to divide assets in a divorce?

When determining the division of assets in a divorce, the court considers several factors outlined in Section 25 of the Matrimonial Causes Act 1973. These include:

– The income, earning capacity, property, and other financial resources of each party

– The financial needs, obligations, and responsibilities of each party

– The standard of living enjoyed by the family before the breakdown of the marriage

– The age of each party and the duration of the marriage

– Any physical or mental disability of either party

– Contributions made by each party to the welfare of the family

– Conduct of each party, if it would be inequitable to disregard it

– The value of any benefit that a party will lose the chance of acquiring due to the divorce

 

The court’s primary consideration is the welfare of any children of the family under the age of 18.

 

What is the starting point for asset division in divorce?

The starting point for asset division in divorce is often a 50/50 split. However, this is just a starting point, and the final division can vary based on the factors mentioned above. The court aims for a fair distribution, which doesn’t always mean an equal split.

 

Can we reach our own agreement about finances without going to court?

Yes, you can reach your own agreement about finances without going to court. In fact, this is often encouraged as it can be less stressful and more cost-effective. However, it’s crucial to have this agreement formalised through a Consent Order to ensure it’s legally binding and enforceable. We strongly recommend seeking independent legal advice before finalising any agreement to ensure your interests are protected and all aspects of your financial situation have been considered.

The Importance of Consent Orders

 

What is a Consent Order?

A Consent Order is a legal document that sets out the financial agreement between divorcing or separating couples. It covers how you’re going to divide assets such as property, savings, pensions, and any arrangements for maintenance payments. Once approved by the court, it becomes legally binding.

 

Why is a Consent Order so important?

A Consent Order is crucial for several reasons:

– It provides legal certainty and enforceability to your agreement

– It can prevent future financial claims against you by your ex-spouse

– It offers protection if your ex-spouse’s financial situation changes in the future

– It can include provisions for the sale of property, pension sharing, and ongoing maintenance

– It gives you peace of mind that your financial matters are settled

 

We’ve agreed on everything ourselves. Do we still need a Consent Order?

Yes, even if you’ve reached an amicable agreement, it’s strongly advised to have a Consent Order. Without one, your agreement is not legally binding, and either party could make a financial claim against the other in the future, even years after the divorce is finalised. A Consent Order provides certainty and closure, protecting both parties’ interests.

 

Can I draft a Consent Order myself, or do I need legal advice?

It’s strongly recommended to seek legal advice. Here’s why:

– Complexity: Consent Orders involve complex legal and financial considerations. A solicitor can ensure all aspects are properly addressed.

– Legal terminology: The order must be drafted using specific legal language to be enforceable. Errors could render the order invalid or ambiguous.

– Comprehensive coverage: A solicitor can help ensure that all relevant assets and potential future scenarios are considered and included.

– Fairness and balance: Legal advice can help ensure the agreement is fair and balanced, reducing the risk of the court rejecting it.

– Long-term implications: A solicitor can advise on the long-term implications of the agreement, which may not be immediately apparent.

– Court approval: The court must approve the Consent Order. A professionally drafted order is more likely to be approved without complications.

 

Remember, a Consent Order is a crucial document that can affect your finances for years to come. Professional legal advice can help protect your interests and provide peace of mind that the agreement is comprehensive and legally sound.

 

Why should I instruct Lennons Solicitors?

 

‘Small but agile’ appropriately describes Lennons’ family law offering. Whilst we do not have the size of many of our larger competitors, we are more than capable of matching (or bettering) them for service offered.

At Lennons Solicitors, we believe that personal relationships and trust are crucial in navigating any separation, divorce or relationship breakdown.

Our team is led by Denise Bullock, who has over 20 years of experience in family law, specialising in high net worth cases.

Under Denise’s leadership, our team offers:

1. Discretion and confidentiality in all matters
2. Tailored strategies to protect your wealth and future
3. Clear, jargon-free communication throughout the process
4. A proven track record in high-value cases across England
5. Access to a trusted network of financial experts and valuers

Denise and her team combine the personal touch of a regional firm with the expertise typically found in large city practices. We understand that every case is unique, and we pride ourselves on offering bespoke solutions that address your specific needs and concerns.

The team is recognised in the 2024 edition of the Legal 500 as a ‘Firm to Watch’.

Take the First Step

 

Navigating a breakdown in your relationship can be overwhelming. Denise and her experienced team at Lennons Solicitors can guide you through this challenging time with expertise and compassion.

 

We can speak in a way that is most convenient to you, by telephone, video meeting or in person. Talk to our friendly, experienced family law solicitors in Buckinghamshire and Hertfordshire today. 

To book a free initial call with our head of department, Denise Bullock, please click here.

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