Options for getting a financial settlement in a divorce
The best London divorce solicitors will tell most people that if they have taken the decision to separate or divorce that it makes sense to reach a financial agreement at the same time and to record the financial agreement in a separation agreement or financial court order.
When you are separating, divorcing or dissolving a civil partnership everything can seem a bit overwhelming. Many people are therefore tempted to just deal with the physical separation and one partner moving out of the family home, getting the decree absolute of divorce or the dissolution of civil partnership document.
For other people, their focus is not on getting divorced but instead getting a financial settlement sorted out. That is because they think it is too stressful to get divorced or to dissolve their civil partnership at the same time as negotiating a financial settlement. However, the top London divorce solicitors will tell you that it is important to get a divorce or a dissolution of civil partnership at the same time as reaching a financial settlement. That is because the family court only has the power to make a clean break financial court order if there is a divorce or dissolution of civil partnership.
Likewise, the best London divorce solicitors will recommend that you do not start divorce proceedings or dissolution of civil partnership proceedings without also securing a financial court order. That is because even if you are divorced or your civil partnership dissolved your former partner can still bring a financial claim against your assets unless you got a clean break financial court order.
How can OTS Solicitors help?
If you need legal advice on divorce or dissolution of civil partnership proceedings or advice on your financial settlement options or financial court proceedings then OTS Solicitors’ divorce and family finance team can help you.
For a confidential discussion on how OTS Solicitors can help you please call us on 0203 959 9123.
Options for getting a financial settlement in a divorce
The top London divorce solicitors will tell you that there are a number of ways you can get a financial settlement in a divorce or dissolution of civil partnership, namely:
1. Reach an agreement with your spouse or civil partner
Agreement can be reached in a number of different ways including:
- Negotiating directly with your spouse or civil partner;
- Negotiating through solicitors;
- Attending a round table meeting;
- Attending family mediation.
The top London divorce solicitors say that however you reach an agreement it is important that:
- There is financial disclosure of capital, income, pension values and other assets such as the equity in a family home or the goodwill value of a family business;
- Legal advice is taken so that your agreement is “reality tested” for fairness and whether it meets your goals, for example if you have negotiated a deal that the family home will be transferred to you this solution may not work if the mortgage company will not transfer the mortgage into your name or the monthly mortgage payments are more than you can afford without payment of spousal maintenance;
- If both of you agree the financial settlement then it should be converted into a financial court order within either the divorce or dissolution of civil partnership proceedings. If you have a financial agreement and an agreed financial court order a judge will need to approve the financial court order but it should not be necessary for you, your partner, or solicitors to attend a financial court hearing.
2. Start financial court proceedings
The top London divorce solicitors advise that financial court proceedings (sometimes referred to as ancillary relief proceedings) is one way to obtain a financial settlement if a financial agreement cannot be reached.
Starting financial court proceedings quickly is sometimes necessary if there are concerns about:
- Threat of bankruptcy;
- Threats that assets will be used, spent or dissipated;
- Threats that assets will be transferred overseas or into the names of third parties.
Financial court proceedings normally involve a series of court hearings, namely:
- A first directions appointment hearing;
- A financial dispute resolution hearing;
- A final hearing.
During the financial court proceedings, a couple can continue to try to negotiate a financial settlement. If they cannot reach an agreement then at the final hearing a judge will hear evidence from both parties and make a financial court order.
3. Use family arbitration to reach a financial resolution
If a husband, wife or civil partners cannot reach a financial agreement and do not want to start financial court proceedings then arbitration may be a good option for them. Arbitration is a bit like starting financial court proceedings but instead of a judge making the decisions, an independent arbitrator decides on how assets are split.
The top London divorce solicitors say that the advantages of using arbitration in comparison to starting financial court proceedings are:
- Arbitration can be quicker than starting court proceedings as you are not waiting for court staff to process applications or for judge time to hear the case;
- Arbitration can be more confidential and discrete;
- Arbitration can be more flexible than court proceedings as the arbitrator can agree a more flexible process than a rigid court process;
- Any financial award made in arbitration will be binding but:
- The arbitration award will need to be converted into a financial court order. This process is relatively straight forward and should not involve attendance at a court hearing;
- The arbitrator is a bit like a private judge and will need to be paid for his or her services. Although you have to factor in the costs of the arbitrator, the overall costs of using arbitration may be similar to court proceedings if you are able to tailor and streamline the arbitration process to your family financial circumstances.
The best London divorce solicitors say that whatever option you use to deal with your finances in a divorce or dissolution of civil partnership the important thing is to ensure that you get a financial court order. The financial court order will then prevent or limit future financial claims and give you and your family future financial security.
How can OTS Solicitors help?
For advice on obtaining a divorce or dissolution of civil partnership or for help in negotiating a financial settlement or if you need representation in financial court proceedings please call OTS Solicitors on 0203 959 9123 for a confidential discussion about how the London divorce solicitors at OTS Solicitors can help you.