Settling the financial arrangements during/after divorce proceedings can prove lengthy, difficult and be far more complicated than the actual separation.  The settling of financial matters on divorce or dissolution of civil partnership is called “Ancillary Relief”. 

 

The Court has a wide discretion in applying the law, and therefore it is advisable to agree arrangements where possible and avoid the delay and uncertainty of a Court hearing.

 

We are able to advise you on how financial arrangements could be shared and what might be a fair division.  Furthermore, we can advise you on the options available to you and negotiate on your behalf.

 

We are also able to organize mediation which may prove useful for both parties to reach agreement on key issues, providing advice on any implications of the agreements reached, which we can then convert into an order recognized and enforceable by the Courts.

 

You have a duty to provide full and honest disclosure of your personal and financial circumstances, to ensure that everything is known about before the financial position is finalised.

 

The Court are able to, once a couple has agreed, make arrangements for cash payments, transfer of property or other assets, maintenance and pension sharing. 

 

A clean break is also available, and preferred by the Court, especially where financial arrangements can be settled by way of a lump sum payment, and/or property transfer with no ongoing maintenance.  A clean break would end any financial relationship between both parties, however  where there are not enough assets, it would be difficult to achieve this due to the need for regular maintenance payments from one party to the other. 

 

The families main assets are the family home and, a pension fund which is most often neglected to be taken into account and often is an important and most valuable asset that can be shared on divorce.  A pension sharing order may not be appropriate in all cases, as although it is an option, the fund may not always be divided equally.  We are able to offer you advice on this complex area and able to instruct specialist pension advisors/independent actuaries who can give advice on cumulative equivalent transfer value (CETV) of a party’s pension scheme, and the most appropriate methods to share it in the given circumstances.

 

Where an application is made to the court to decide on the division of the parties matrimonial assets/finances, the Court will impose a timetable and you may be advised to issue an application to avoid protracted negotiations and correspondence.

 

There are certain factors the Court takes into account before deciding on the Order to make.  The Court aims to achieve fairness in every case, and therefore there are certain factors the Court takes into account in deciding what is fair.  These factors are considered in trying to reach an agreement and their importance varies from case to case.  These factors are listed in s.25(2) of the Matrimonial Causes Act 1973 and include the following:

 

1.                  Welfare of any child of the family.

 

2.                  Annual income, parties earning capacity, property and resources of each person now and in  the foreseeable future.

 

3.                  Financial needs, obligations and responsibilities of each person now and in the foreseeable future.

 

4.                  Standard of living enjoyed by the family before the breakdown of the marriage or partnership.

 

5.                  Age of each person involved.

 

6.                  The duration of the marriage or partnership.

 

7.                  Contribution made by each person to the welfare of the family, including looking after the home and bringing up the children.

 

8.                  Conduct of each person, which is unusual to be raised but may particularly be an issue where it has a direct bearing on the parties’ finances.

 

9.                  Physical or mental disability of the parties involved or of children of the family.

 

Any benefit lost because of the divorce or dissolution (i.e. loss of pension benefits).

Information required to advice on amounts likely to pay on a divorce: download pdf form

Ancillary Relief Procedure Flowchart: download pdf