This can include: -
- The Family home and/or any property owned individually or jointly with another;
- Furniture;
- Vehicles;
- High value items (over £500) such as jewellery;
- Pensions;
- Life insurance policies, any investments and savings;
- Businesses;
- Debts such as mortgage/credit cards and loans;
To reach a financial settlement by agreement, full and frank financial disclosure has to be exchanged between the parties to include a recent valuation of all property, land and other assets, twelve months worth of bank statements (whether the account is in joint names or a single name) and details of any private pensions with an up-to-date valuation of the current estimate transfer valuation (CETV). Also, evidence of any liabilities including mortgage, credit cards and loans would need to be disclosed. The parties would need to provide evidence of their income including wage slips and P60. Any business would need to be valued and accounts for the last three years would need to be provided.
If there is an agreement, a lawyer can draft a legally binding document incorporating the financial agreement made. If no agreement can be reached, the parties would need to attend mediation. If that was not successful, a certificate can be obtained from the mediator and only then can an application be made to the court. The parties have to be prepared for a series of Court Hearings which they have to attend for the Court to then make an order to decide the financial division of any property, assets and/or liabilities to ensure fairness. Making an application to Court is a drawn out, expensive route to take and can also be very stressful. Ideally divorcing couples should try and reach an agreement without getting the Court involved.
The Court will take into account other relevant factors such as: -
- Income, earning capacity, property and other financial resources which each of the parties to the marriage has or is likely to have in the foreseeable future;
- The financial needs, obligations and responsibilities which each of the parties to the marriage has or is likely to have in the foreseeable future;
- The standard of living enjoyed by the family before the breakdown of the marriage;
- The age of each party to the marriage and the duration of the marriage;
- Any physical or mental disability of either of the parties to the marriage;
- The contributions which each of the parties has made or is likely in the foreseeable future to make to the welfare of the family, including any contribution by looking after the home or caring for the family;
- The conduct of each of the parties, if that conduct is such that it would in the opinion of the court be inequitable to disregard it;
- The value of any pension benefits that may be lost by one party as a result of the divorce.
The children (if any) are the first consideration whilst under 18, and the main child carer may need to keep the family home for the children.
Reaching an agreement can be tricky and sometimes emotional. It is important to consider the future, especially your financial needs and how they might change.
Our experts can give you advice on the right approach to enable you to make well informed decisions about your financial security.To get in touch with a member of our Family Department. please contact us on 01754 897150