Finance and divorce: How to sort out money and other settlements

The ins and outs of the divorce process can be unpleasant to navigate. However, that process can be much smoother when you and your partner carefully plan out who will get what. There are many assets that you will have to account for, but various factors can influence how you should deal with each of these. Let us clear a lot of the confusion…

 

How easy should separating the finances be?

 

This can be difficult to discern; there is certainly no straightforward, blanket rule. Of course, you’re not going to be in the best mood upon breaking up with your partner – and there is the danger of the divorce process becoming acrimonious or lengthy due to disagreements over how the finances should be split.

 

Making the crucial decisions over money matters is likely to be easier, however, if you have both agreed to the divorce, you do not have children who financially depend on you, or one of you does not financially depend on the other. Also, if the two of you can readily agree how the property and pensions should be divided, deciding other financial matters should then become easier. So, it could be a good idea to focus on those particular subjects first.

 

Will you need help from a solicitor?

 

If you live in England or Wales, you have the option of deciding your divorce strategy independently, without turning to a solicitor for their advice. Indeed, if your situation meets any of the criteria we have just listed above, you could find the whole process surprisingly straightforward. However, not all divorcing couples will be that fortunate…

 

There are various instances in which working with your ex-partner to decide what assets go to who could actually prove unexpectedly arduous. These include if you have a complicated financial position, one of you has not agreed to the divorce, there is a business owned by one or both of you, or one of you has a lessened ability to earn an income due to a medical problem or disability or having given up work to raise children. Should you be faced with any of these situations, it could be worth seeking our assistance for planning a divorce strategy.

 

Make a priority of considering who gets the house

 

As we have already mentioned, the issue of property should ideally be tackled early in the divorce process. So, how should you? If there are no children and the marriage has been short, the house could easily be just sold, with the proceeds divided. It might not be an equal division; if, for example, one partner has took money into the marriage, the division could be adjusted in order to ensure fairness.

 

If, on the other hand, there are children to think about, you should make sure that a second residence can be bought for allowing both spouses to live in separate homes – all while endeavouring to maintain minimum disruption to the children. Keep in mind that children will need a “family home” with each parent.

 

Whilst resolving matters amicably would save a lot of time and not to mention legal costs, the reality is that many couples are unable to resolve their differences at the time of divorce.  This is where ensuring you have the best strategy in place is crucial – as the financial settlement that you enter in to now, will have a direct impact on your future financial security .

At Pinder Reaux, we have the tools in place to ensure that the best strategy is put in place to ensure the best outcome possible.