Finances and Property

Divorce only brings an end to the marriage, it does not finalise the financial aspects of your relationship, so you also need to resolve how to separate your home, money and other assets.

If the relationship with your former partner is amicable, you may be able to reach an agreement concerning the terms of an Order – an enforceable legal document from the court that sets out the obligations that you and your former partner have agreed to. Without a formal order, your former partner might not follow the terms of any financial agreement you’ve reached. Additionally, if either of your respective financial situations should change after the agreement, either of you could make a new financial claim, despite any previous arrangements.

If you are unable to reach agreement, Laceys are able to assist you through mediation or solicitor negotiations. However, if a settlement cannot be reached between you and your former partner we will robustly advise and represent you throughout Financial Remedy Proceedings before the Family Court.

At Laceys we understand that each case is unique and may come with its own set of complex issues. We are skilled at negotiating fair financial settlements for our clients which provide for their needs or lifestyle to be met. First consideration must always be given to the welfare of any child(ren) of the family who have not attained the age of eighteen and may be affected by the divorce.

In divorce proceedings, the court prioritises the interests of minor children while also trying to meet the needs of both parties. It evaluates the total family wealth alongside each party’s contributions, valuing non-financial contributions as much as financial ones. Sometimes, other family members may have a property interest in assets that are considered marital. If so, they might need to participate in the proceedings to establish their claims before dividing the remaining property between the divorcing parties. Additionally, compensation might be necessary for a spouse who couldn’t advance financially due to decisions made during the marriage, like those related to child care.

Typically, Laceys deal with the following types of Financial Orders;

Clean Break Orders

A Clean Break Order effectively draws a line under the division of assets when a couple divorce, preventing either party from making any future claims against the other’s property, income or pensions. However, it should be noted that a Clean Break Order does not prevent the primary carer of any children from claiming child maintenance.

Consent Orders from the Family Court

When a clean break isn’t feasible, such as when one spouse has left a career to raise children and still has childcare responsibilities making it difficult to return to work, they can seek financial support from the other spouse. This support, known as maintenance or periodical payments, can be arranged through a Consent Order. The order may specify a payment amount agreed upon by both parties or determined by the court.

These orders can deal with various aspects of property according to a wide menu of orders that are available in the Family Court under the Matrimonial Causes Act 1973 including;

• Your family home – You can sell the property right away, or you might delay the sale using a Mesher order. This means the sale would be postponed until your dependent child(ren) turn 18 or finish their education or training. At that point, the proceeds from the sale could be divided, or one of you could take over joint ownership.;
• How any joint assets such as savings, investments or pensions will be shared;
• Child maintenance payments (where agreed or otherwise outside of the jurisdiction of the Family Court and to be determined by the Child Maintenance Service);
• Spousal maintenance or periodical payments;
• Who will take responsibility for the repayment of any outstanding debts

Alternatives to financial orders from the Family Court

In divorce proceedings, Financial Orders (excluding interim maintenance or maintenance pending suit) are granted only with a Final Decree or Decree Absolute. For clients who have separated but do not plan to divorce, our solicitors can help by negotiating and drafting a Separation Agreement between the spouses. This legal agreement covers important matters such as the future of the family home, the children’s living arrangements, and how finances will be shared, prior to any potential Financial Order from the court.

Couples who are not married but are separating will also derive significant benefit and security by entering into a Separation Agreement with their ex-partner if they have shared assets between them. Find out more on Separation Agreements here.

If you would like further information on how to plan your financial separation, please contact one of our team today.