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Divorce Financial Settlements and the Impact of a New Partner

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It can be tough to negotiate a divorce financial settlement. One of the reasons you can find it hard to reach a financial agreement is if one of you has moved on and formed a relationship with a new partner.

In this article, our specialist family law solicitors look at divorce financial settlements and the impact a new partner can have on the negotiations and eventual financial agreement or court order.

Online and London Family Law Solicitors

For family law legal advice call the expert London family lawyers at OTS Solicitors on 0203 959 9123 or complete our online enquiry form.

New partners and the impact on divorce proceedings

If you or your estranged husband or wife are both in new relationships it doesn’t affect the divorce proceedings. The law on divorce has changed. With the introduction of no-fault divorce proceedings, you do not need to give a reason for the breakdown of your marriage to secure a divorce and you do not need to mention adultery to get a divorce.

For advice on starting no-fault divorce proceedings call our specialist family lawyers on 0203 959 9123.

New partners and the impact on divorce financial settlement negotiations and proceedings

A new partner can impact on divorce financial settlement negotiations or court proceedings in 2 ways:

  • Emotional – the spouse who hasn’t got a new partner can react badly to the fact that their estranged or ex-husband or wife has moved on with their life whilst they haven’t been able to do so. This reaction is common even if a new relationship was formed a long time after the separation or the conclusion of the divorce proceedings. Emotions and unresolved feelings of hurt or anger can make it harder to reach a financial agreement directly or through solicitor negotiations or family mediation. For example, the presence of a new partner can make your ex-spouse all the more determined to stay in the family home, rather than agree to a sale, because that ‘is all they have left’ whilst you have moved on
  • Financial – the presence of a new partner can make either a minimal or significant financial impact on a financial settlement or financial court order. For example, a spouse may not be willing to agree to capitalise spousal maintenance by offering their ex-spouse a greater share of the family assets instead of ongoing monthly spousal maintenance payments. That’s because the paying spouse may gamble that if their ex may get married to their new partner the spousal maintenance would automatically stop on remarriage. The presence of a new partner makes remarriage a possibility so the financially stronger spouse may be prepared to risk not getting a clean break financial court order. For example, if you meet a new partner and move into their house, your ex-spouse may want to argue you don’t need as much equity from the family home as you have a house to live in provided by your cohabitee

Disclosing the existence of a new partner

It may be tempting to you to not disclose the fact that you are in a new relationship. That may be because you are worried about the hurt your revelation will cause to your ex-husband or wife or because you know that the prospects of reaching a financial agreement will reduce if you disclose the existence of a new partner.

In financial settlement negotiations and court proceedings, you are under a duty to provide full and frank disclosure. This includes the formation of new relationships if you are cohabiting with a new partner or you are planning to cohabit or remarry.

Even if your new partner has no assets, you still need to disclose the information. If you are staying with a partner but you are not sure if your living arrangements amount to cohabitation (for example, because one of you is still renting a property) then it is best to talk to your family law solicitor about disclosure requirements.

If the existence of a new partner is discovered during financial negotiations or court proceedings this can make your ex-spouse more suspicious about your financial affairs and financial disclosure. It could make the court draw adverse inferences about your honesty in other financial matters.

Family law solicitors say that in extreme cases a financial court order can be reviewed and set aside if it later comes to light that you did not disclose a new relationship. For example, if you were engaged to marry your new partner at the time of the financial negotiations but you did not tell your ex-spouse about your engagement and the non-disclosure meant they agreed to capitalise spousal maintenance so you got all the equity in the family home instead of a percentage of the equity and ongoing spousal maintenance. Your engagement would be highly relevant as spousal maintenance automatically ends on remarriage so this may have affected your ex-spouse’s decision to pay off your spousal maintenance claims by giving you an extra cash lump sum instead of regular spousal maintenance that would end on re-marriage.

Proving your ex-spouse is in a new relationship

You may be convinced that your ex-husband or wife is in a new relationship but they are denying it. Your suspicions may stem from their social media posts or the disclosure of their bank statements as part of the financial disclosure process and entries on the statements or unusual cash withdrawals.

It is best to speak to a family law solicitor about the relevance of proving your ex-spouse is in a new relationship if they are denying the relationship before you devote time or money to proving the existence of their new partner. That’s because in some situations the existence of a new partner makes no difference to the outcome of divorce financial settlement court proceedings, even though it may be very upsetting for you to learn about the partner or their identity.

The job of your family law solicitor is to give you objective legal advice so that you can reach a divorce financial settlement as quickly as possible so that you can move on. That job includes assessing both financial disclosure and the personal circumstances of your ex-spouse so you have the confidence to negotiate a financial settlement through solicitor negotiations and secure a financial court order that meets your needs.

Online and London Family Law Solicitors

For specialist family law legal advice call the expert London family lawyers at OTS Solicitors on 0203 959 9123 or complete our online enquiry form.

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