Divorce brings forth numerous questions, especially when it comes to financial matters and settlements. In this blog post, we’ll answer some of our frequently asked questions to provide clarity and guidance during this challenging time. Read on to find answers to important questions about finances and divorce settlements.
How are finances split in a divorce?
The division of finances in a divorce is based on the principle of fairness. The court takes into account several factors, including the financial needs of both parties, their contributions to the marriage (both financial and non-financial), their earning capacities, and the welfare of any children involved. The goal is to achieve a fair and equitable distribution of assets and liabilities. It’s important to note that a 50/50 split is not always the default, as the court considers the unique circumstances of each case.
At what stage of divorce do we need to reach a financial settlement?
Ideally, couples should aim to reach a financial settlement as early as possible during the divorce process. It is advisable to explore mediation or negotiation to reach a mutually agreed-upon settlement. This allows both parties to have control over the outcome and avoids the need for court intervention. However, if an agreement cannot be reached, court proceedings may be necessary. In such cases, a financial settlement can be reached at any stage of the divorce process, including during or after court proceedings.
Will my business assets be included in the divorce settlement?
Business assets can be included in the divorce settlement, particularly if they were acquired or developed during the marriage. The court considers various factors, such as the nature of the business, its value, and the contributions made by both spouses. If one spouse owns a business, the court may decide to include its value in the overall settlement and make provisions for a fair distribution. Valuation experts may be involved to assess the worth of the business accurately.
What happens to a pension in a divorce?
Pensions are considered an important part of the financial settlement in a divorce. The court will assess the value of pensions held by both parties and may decide to split them or make other arrangements to ensure a fair division. This can be done through a pension sharing order, where a portion of one spouse’s pension is transferred to the other spouse, or through pension offsetting, where other assets are adjusted to account for the pension value. In some cases, a pension attachment order may be issued, allowing one spouse to receive a share of the other spouse’s pension upon retirement. Seeking advice from a pension expert and a family law solicitor is crucial to understanding the options available and making informed decisions regarding pensions.
Remember, every divorce case is unique, and it’s crucial to seek individualised legal advice to address your specific circumstances. Consult with a qualified law solicitor who can guide you through the complexities of the process and help you achieve a fair financial settlement.
Disclaimer: This blog post provides general information and should not be considered legal advice. Please consult with a qualified solicitor like Fair Result for advice specific to your situation. You can get in touch with our friendly team by clicking here.
Have more questions surround separation and the division of assets? Check out our other FAQ articles.