In this article
Divorce is an emotional rollercoaster, and no more so when it comes to money and the divorce settlement. Regardless of whether you’re the one filing for divorce or the respondent, divorce settlements almost always result in high amounts of stress and financial cost.
As a result, it’s of the utmost importance that you understand your rights and entitlements in advance to your divorce to ensure you can help alleviate stress and minimise the financial burden.
For any questions surrounding divorce settlements, please don’t hesitate to contact our solicitors in Brighton on 020 3007 5500.
What is a divorce settlement?
Divorce settlements set out what is to happen to all of a couple’s finances and properties after a divorce. They will normally list out all the marital assets the couple has, and dictate the terms on which they will be split and when they must be sold off.
Divorce settlements don’t have to be formally agreed upon. However, if one spouse later decides to dispute an informal agreement, there is nothing to stop them from doing so.
A formal divorce settlement will normally contain a clause to prevent this from happening.
Talk to us now. Save costs further down the line.
Save yourself potentially thousands of pounds by seeking advice now. Speak to us today for more information.
Lines open 24/7
020 3007 5500
What constitutes a marital asset?
When it comes to a divorce settlement, one of the first questions that springs to mind is what assets come into the settlement. These applicable assets are referred to as marital assets. Marital assets are the assets that you and your spouse have purchased or gained during the marriage. Marital assets can include any of the following:
- Properties
- Pensions
- Savings
- Cash in the bank
- Vehicles
- Furniture and appliances
- Stocks, bonds and mutual funds
- Businesses (even if one partner has no involvement in the business)
Furthermore, another marital asset that is commonly overlooked is debt. Any debts incurred during the marriage are split and paid off in the divorce financial settlement. Marital debts include mortgages, loans, overdrafts etc.
What about assets gained before marriage?
Assets gained before marriage become non-marital assets. They are usually treated differently when it comes to a divorce settlement.
However, in some cases, non-marital assets are involved in a divorce settlement. One example is if you had money saved up from before the marriage which was then spent on a joint property. Circumstances like this would classify as a marital asset.
Must you declare all assets in a divorce settlement?
Yes – it’s compulsory to declare all your assets when it comes to a divorce settlement. If a spouse has taken unethical steps to hide assets, they are susceptible to punishments. In this instance, the court will take a dim view of a spouse’s unethical behaviour and this could potentially result in a large fine.
If you suspect your spouse may not be declaring all their assets don’t worry. There are several ways that you can tackle this. A top solicitor can offer tailored legal advice on the best course of action to uncover any hidden assets.
Need help with a divorce settlement?
Don’t worry, we’re here to give the advice you need when you need it. Just contact us to arrange an appointment.
Lines open 24/7 020 3007 5500
Are marital assets always split 50/50 in the divorce settlement?
In short, no. It’s a common misconception in the UK that assets are automatically split 50/50. While most negotiations start at a 50/50 split, multiple factors can and will alter the division of marital assets in the divorce settlement.
From the perspective of the UK courts, their overarching aim is to divide the assets equally and fairly depending on each spouse’s needs. Equally and fairly doesn’t necessarily mean 50/50.
A few factors the court will consider in the division of assets are:
- Relative needs of each party. An economically weaker spouse may receive a larger portion of the financial assets.
- Child custody. The judge may award a larger amount to the party who has to look after the children. The justification of giving a party a larger share in this instance is to ensure the protection of the children’s wellbeing.
- Future earnings. A party who has sacrificed a career progression, and therefore future earnings, is often entitled to more in the divorce financial settlement to compensate for this sacrifice.
- Domestic violence. If extreme domestic violence was prevalent and resulted in a lasting impact on one party’s health and ability to work the judge may alter the division of the assets in favour of the victim.
How is the family home divided?
During a divorce, the family home can spark a whole array of questions. However, one of the most common questions is regarding the division of the family home.
When a couple is getting a divorce, there are a few options available to divide the family home. These options include:
- Sell the property and split the money.
- One party buys the other out of their percentage share of the property.
- Transfer part of one party’s share into the other party’s name. The departing spouse would then own a smaller share of the house. In this instance, the sale of the home will mean the party with a share will receive their cut.
- Leave ownership unchanged. In this instance, one partner continues to live in the house, but actual ownership of the property remains shared.
- Mesher order. This order delays the sale of the family home for a certain amount of time or a specific event. (e.g. when the children move on from school etc.)
When does a divorce financial settlement need to be reached?
There’s no set time that the divorce financial settlement is due. However, our solicitors recommend coming to an agreement before the divorce proceedings or through mediation. If failing to reach an agreement by then, it will result in complications, delays and further legal costs.
Simultaneously, if there are negotiations and court hearings over the financial settlement, the marital assets will likely deplete through funding these extensive legal fees. In some cases, disputing the financial settlement results in both sides walking away from the divorce financially worse off than they would if they just came to an initial agreement.
What if I have a prenuptial agreement?
The answer is sometimes. In certain circumstances where the behaviour within the divorce has impacted on the financial capabilities of a spouse will the grounds and finances overlap.
As stated earlier in the article, one example is if domestic violence has caused a long-term injury to one party and directly influenced their ability to work and earn. Additionally, another example is if one party has been reckless with their spending and sabotaged matrimonial assets.
How can Britton and Time Solicitors help?
Divorce is an emotionally challenging time, made worse by costly disputes over the financial settlement. Instructing a top divorce solicitor will ensure the correct handling of the divorce settlement. As a result, you will walk away with your fair share of the assets while keeping legal costs at a minimum for your matter.
For more information, please visit our divorce and separation page. To contact us directly, send us an email via info@brittontime.com or call our solicitors on 020 3007 5500.
Nice, very informative, Thanks for sharing with us how to win a court case ,here how got my lost love back with Dr Obodo , for help info templeofanswer@hotmail . co . uk
Thank you for the comment Emiradge! I’m glad that you found this article on the divorce settlement useful.