Peter Marples

Pension Sharing Orders: What You Need to Know
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Pension Sharing Orders: What You Need to Know

Published on
Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

Why a Pension Matters in Divorce

Only 13% of divorcees consider pensions when dividing assets. Pensions are often the second biggest asset after the home – but often ignored at your peril to protect you in later life.

Pensions represent a critical part of financial security, particularly in later life. Yet, during the tumultuous process of divorce, they are frequently overlooked. This can lead to significant financial disadvantages for one or both parties. Understanding the importance of pensions and the mechanisms available for sharing them is essential for anyone going through a divorce or dissolution of a civil partnership.

What is a Pension Sharing Order?

A Pension Sharing Order (PSO) is a legal order that allows for the division of pension assets between divorcing spouses or civil partners. This order ensures a fair distribution of pension benefits, providing financial security to both parties. It is often described as equalisation of income in retirement, and this is what the courts try to achieve when looking at pension distribution even when only one party has a significant pension. A report is often required from a pension expert to forecast how dividing a pension between parties will result in the equalisation of income for the later years.

When a PSO is granted, a specified percentage of one party’s pension is transferred to the other party. This division is legally binding and can be enforced by the court, ensuring that the agreed-upon split is executed. The transferred pension benefits can either be directed into a new pension scheme for the receiving party or remain within the original scheme with the benefits reallocated.

Pension Sharing vs. Other Options

While a Pension Sharing Order is a common and often preferred method for dividing pension assets, there are other alternatives, such as offsetting and pension attachment orders.

Offsetting: This involves balancing the value of the pension against other assets. For example, one party may keep the pension while the other party receives a larger share of the property or other financial assets. This is effectively simply dividing the overall assets at the time of divorce to achieve equalisation at that point – with the courts often accepting house values and pension values rise at roughly the same rate.

Pension Attachment Orders: This method, also known as earmarking, directs a portion of the pension benefits to the ex-spouse when they are paid out. However, this does not transfer ownership and can be less flexible and reliable than a PSO. Often not a common approach taken by the courts.

PSOs are often favoured because they provide a clean break and clear division of pension assets, ensuring that both parties have financial independence post-divorce.

Who Can Apply & When

PSOs are available to individuals undergoing divorce or dissolution of a civil partnership. It is important to note that these orders are not automatic and must either be agreed upon by both parties or ordered by the court. The division of the pension will clearly be set out in the financial consent order and a pension sharing annex attached to the consent order will also be approved by the court. This must be sent to the pension company dealing with the distribution within 4 months of the consent order being approved by the court.

Eligibility conditions include:

  • The parties must be legally divorcing or dissolving a civil partnership.
  • Both parties must agree to the order, or it must be mandated by the court.

How the Process Works

The process of obtaining a PSO involves several steps and can be complex. Here is a simplified timeline:

Step 1: Obtain a pension valuation. This requires contacting the pension provider to evaluate the current worth of the pension. This is commonly referred to as obtaining the CETV value of the pension (Cash Equivalent Transfer Value)

Step 2: Legal paperwork and court involvement. Solicitors and sometimes actuaries and pension experts will be involved in drafting and submitting the necessary documents to the court.

Step 3: The court grants the Pension Sharing Order. Once the court approves the order, the pension provider is instructed to execute the division of assets.

What Happens After the Order is Made?

Once a PSO is granted, its implementation begins:

  • Percentage-based transfer: The agreed-upon percentage of the pension is either transferred to the receiving party’s new pension scheme or reallocated within the current scheme.
  • Internal transfer: In some cases, the benefits remain within the original scheme but are adjusted to reflect the new ownership division.

Common Pitfalls to Avoid in Pension Sharing Orders

Navigating the division of pensions can be fraught with challenges. Here are some common pitfalls to avoid:

  • Not valuing the pension correctly: Obtaining an accurate valuation is crucial for a fair division.
  • Agreeing to a split without legal or financial advice: Professional guidance ensures that your interests are protected.
  • Failing to account for future needs: Consider long-term financial security when dividing assets.
  • Also consider the scheme rules for each pension and find out what happens if you die before you receive the pension – can it be distributed as part of your estate or do the scheme rules not allow for this. Very common in some public sector pensions.

Fair Result’s Approach

At Fair Result, we support our clients through the process of obtaining a Pension Sharing Order with expert financial advice and clear communication.

  • Access to financial experts who can provide accurate pension valuations and strategic advice.
  • WhatsApp contact for convenient and timely communications.
  • Fixed-fee model ensuring financial clarity from day one.

Conclusion

In conclusion, pensions should be a part of every divorce conversation. Their importance to financial security in later life cannot be overstated. Ensuring a fair division through a Pension Sharing Order can provide peace of mind and stability for both parties involved.

Download our Divorce Guide or get in touch for a free consultation to explore how we can assist you in protecting your financial future.

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

Investing After Divorce: Securing Your Future Financially
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Investing After Divorce: Securing Your Future Financially

Published on
Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

Divorce can have a significant financial impact, often leaving individuals feeling uncertain about their future. Taking control and focussing on long-term financial planning is crucial for recovery and stability. This blog aims to guide you through the process of investing as a vital component of your financial journey post-divorce.

Assessing Your Financial Position Post-Divorce

To begin, it’s essential to understand your current financial position. Assess your assets, savings, and income to build a clear picture of what you have. Reviewing your settlement, including pensions, property, and savings, is crucial. Additionally, knowing your monthly outgoings and setting a realistic budget will help you manage your finances effectively.

Why Investing is Key to Long-Term Security

Investing is a powerful tool for growing your money over time and securing long-term financial stability. Relying solely on a savings account is not enough to ensure financial growth. Investing can also be emotionally empowering, giving you confidence and a sense of control over your financial future.

Types of Investments

There are various investment options to consider, each with its own benefits and risks: a licensed financial advisor can give you more advice but here are some areas to consider.

  • Stocks, Bonds, and ISAs: These are common investment vehicles that can offer substantial returns.
  • Property Investment: If relevant to your situation, investing in property can be a lucrative option.
  • Pension Top-Ups: Consider consolidating your pensions or making additional contributions for future security.
  • Diversification: Spread your investments across different asset types to minimise risk.
  • Risk Levels: Choose investments that align with your personal comfort zone and risk tolerance.

Starting Small & Building Confidence

You don’t need a large lump sum to begin investing. Starting small can help you build confidence and understand the power of compound interest and consistency. Working with a financial advisor can provide personalised advice and support as you navigate the investment landscape.

Mistakes to Avoid

Avoid rushing into investments without proper research. It’s essential to make informed decisions rather than relying on advice from non-experts, such as friends or family. Taking the time to understand your options will help you avoid costly mistakes.

Where to Get Help

Speaking to a financial advisor or planner can offer valuable insights and guidance tailored to your unique situation. Fair Result‘s wider network of professional contacts can provide continued support beyond legal proceedings, ensuring you have access to the resources needed for successful financial planning. Please contact any member of the team on the link below and we can help point you in the direction you need to get the help you deserve after the stress of divorce. Whether that be financial advisors- mortgage advisors or phycological help we are here to assist. And it’s all done within our fixed fee divorce model, where you know your exposure to legal fees right at the outset, whether you case takes 2 weeks or 2 years.

Conclusion

Rebuilding financially after divorce is not only possible but achievable. With the right knowledge and support, you can secure your future and take charge of your financial destiny. Download our Divorce Guide available on our website or contact the team at Fair Result for additional assistance and resources.

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

How to Create a Post-Divorce Budget: Steps to Financial Stability
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How to Create a Post-Divorce Budget: Steps to Financial Stability

Published on
Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

Steps to Regain Financial Stability and Plan for a Secure Future

Divorce can be a challenging and emotional journey and managing your finances during and after this period is crucial for your long-term wellbeing. This blog aims to provide clear, actionable steps to help you navigate your finances post-divorce, regain stability, and make informed decisions for a secure future.

The Importance of a Budget After Divorce

Adjusting to a Single-Income Household

One of the most significant changes after divorce is moving to a single-income household whereas prior to divorce it was a single household with two incomes. This shift requires careful budgeting and financial planning to ensure you can meet your needs and obligations and don’t quickly fall behind and into debt.

The Impact of Divorce on Personal Finances

Divorce often brings about substantial changes in your financial situation. Understanding these changes immediately and their impact on your income, expenses, and overall financial health is essential to navigate this new phase effectively, adapting to your new post-divorce budget.

Assessing Your New Financial Situation

Start by evaluating your current financial status. Make a list of all your assets, liabilities, income sources, and expenses. This assessment will provide a clear picture of where you stand financially and help you plan accordingly ensuring you can obtain financial stability after divorce.

List All Income Sources

Salary, Spousal/Child Support, Investments

Identify all sources of income you have post-divorce. Managing your finances after divorce is crucial. This includes your salary, any spousal or child support payments, and income from investments. Understanding your income streams will help you create a realistic post-divorce budget.

Understanding New Expenses

New expenses can arise after divorce, such as housing costs, utilities, legal fees, and child-related expenses. Listing these expenses will ensure you account for them in your budget. Divorce and money management is essential to your future financial planning

Creating a Practical Post-Divorce Budget

Develop a budget that reflects your new financial reality. Include all your income sources and expenses, and ensure it aligns with your financial goals. A realistic budget is a cornerstone of financial stability. Financial planning for divorcees is important for all parties to the divorce and start to do this as you come to the completion of the divorce process and financial dispute resolution so you are ready when the consent order is finally approved by the court.

Differentiating Between Essential and Discretionary Expenses

Setting Realistic Financial Goals

Distinguish between essential expenses (housing, utilities, groceries) and discretionary expenses (entertainment, dining out). This differentiation will help you prioritise spending and set achievable financial goals. What you would like and what you can afford is going to be very different post-divorce and managing your finances after divorce is imperative and needs to be set in place right at the start. Things will become easier as you adjust to life after divorce.

Emergency Funds and Why They Matter

Building an emergency fund is crucial. It provides a safety net for unexpected expenses, such as medical bills or car repairs, ensuring you don’t fall into debt. A little and often will build up this fund.

Managing Debts and Obligations

Handling Joint Debts and Separating Finances

Address any joint debts you have with your ex-spouse and take steps to separate your finances. This might involve refinancing loans or closing joint accounts. Most of this should be done within the sphere of negotiating the consent order for the financial dispute resolution.

Prioritising Debt Repayment

Create a manageable debt repayment plan that prioritises paying off high-interest debts first. Reducing debt will improve your financial health and credit score. Stick to this plan as you navigate yourself away after the divorce.

How to Rebuild Credit After Divorce

After divorce, your credit score might take a hit. Focus on rebuilding your credit by paying bills on time, reducing debt, and monitoring your credit report. Pay them on time and if there are any problems contact each creditor immediately the problem becomes apparent.

Long-Term Financial Planning

Reviewing and Updating Financial Documents

Ensure your financial documents, such as wills, insurance policies, and pension plans, reflect your new circumstances. Updating these documents is critical for long-term security.

Retirement Planning as a Newly Single Individual

Reevaluate your retirement plan. As a single individual, you may need to adjust your savings strategy to meet your retirement goals.

Seeking Professional Financial Advice

Consider consulting a financial advisor to help you navigate the complexities of post-divorce finances. Professional advice can provide tailored strategies for your unique situation.

Practical Tools & Resources for Financial Stability

Budgeting Apps & Financial Management Tools

Budgeting apps and financial management tools to track your expenses, manage your budget, and stay on top of your finances. It is possible to streamline all your entire expense management using any of the free apps on the App Store.

If you find yourself struggling with your financial situation post-divorce, don’t hesitate to seek professional advice. Call the team at Fair Result to discuss your financial planning pre and post-divorce at any time.

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

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How to Prepare for Financial Discussions During Divorce

Published on
Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

(Sponsored post by Fair Result.) Many people focus on the divorce process itself, but in reality, the financial settlement is often the most complex and costly part. It’s important to remember that financial discussions are separate from the divorce application, and many lawyers don’t include these costs in their initial quotes.

In an ideal world, couples should agree on finances before filing for divorce. Unfortunately, that’s not the reality. Instead, financial negotiations are the stage that:

  • Takes the most time
  • Causes the most disputes
  • Can become extremely expensive

Some lawyers justify high fees by claiming they can secure a better settlement. But is a marginally better deal worth years of delays, stress, and family tension? In my personal experience, the financial battle took over a decade to repair relationships within the family.

Common Mistakes in Financial Settlements

Divorcees understandably worry about their financial security and getting their fair share, but common mistakes often make the process harder:

  • Delaying financial negotiations until the final divorce order is in place
  • Unrealistic expectations of what they are entitled to
  • Focussing on minor assets instead of the bigger picture (e.g., arguing over furniture instead of pensions)
  • Assuming their lifestyle will remain the same post-divorce
  • Forgetting that one marital home must now fund two separate households

Understanding these issues early can minimise costs and help you move forward smoothly.

Take a Strategic Approach

The best way to approach financial discussions is strategically. The first question you should ask yourself is: What do I actually want?

Being clear and realistic from the start can prevent unnecessary delays. For example, many clients insist they want to keep the family home, only to realise months later that it carries too many memories, leading to wasted time and weakened negotiation power.

Additionally, be mindful of asset values—a dining table purchased for £10,000 five years ago may only be worth £500 today. A spouse may counter by offering to let you keep it in exchange for £5,000, which is an unfavourable deal.

Understand the Marital Pot

Before formally starting divorce proceedings, take stock of all assets and debts, including:

  • House(s) and property ownership details
  • Pensions and savings
  • Employment income
  • Bank accounts and investments
  • Loans, credit cards, and other debts

This doesn’t take long, but failing to do so can lead to confusion and unfair settlements. Surprisingly, many individuals don’t even know their spouse’s income or pension provisions.

Also, check property ownership—if you’re not on the mortgage, you may not be a legal owner. Consider placing a home rights order to protect yourself.

Ignore ‘Advice’ from Friends & the Internet

Friends and online sources may tell you what you want to hear—“You’ll get 80% of everything”—but that’s rarely the case. In most UK divorces, courts aim for a 50/50 split, regardless of who earned the money.

What matters is realism, not wishful thinking.

Don’t Let the Process Control the Outcome

Many assume that completing a Form E (a financial disclosure document) is the key to unlocking hidden assets. While it provides a snapshot of finances, it rarely reveals surprises that dramatically change settlements. Lawyers may encourage it to justify fees, but if you already know your finances, this step may add little value.

Focus on substance over form—you know better than anyone what matters in your settlement.

Be Realistic & Plan for the Future

Divorce almost always results in both parties being financially worse off—at least initially. Two separate households are more expensive than one. However, this is often temporary.

Most individuals find a new relationship shortly after divorce, either during or within a few years post-settlement. This may mean cohabiting again, reducing financial strain. Understanding that financial hardship is often short-term can help in making practical decisions.

Do You Need Professional Advice?

Yes—but choose wisely. Many cases drag on for years simply because no settlement offers have been exchanged. Others suffer from unrealistic expectations that lawyers fail to challenge.

Look for a professional who:

  • Offers fixed-fee services (not just an hourly rate)
  • Provides clear, pragmatic advice
  • Challenges unrealistic expectations
  • Helps you focus on the bigger picture, not minor disputes

If your lawyer isn’t giving you clarity, you might be paying for unnecessary delays.

Key Takeaways

  1. Start early—understand your finances before filing for divorce
  2. Think big—avoid costly fights over small assets
  3. Be realistic—divorce means financial adjustments for both sides
  4. Know what you want—and be prepared to adapt
  5. Get solid legal advice—but ensure it’s strategic, not drawn-out
  6. Plan for the future—life continues, and financial struggles won’t last forever

Finally, protect yourself for the future. Divorce is becoming more common, and many people go through it more than once.

Need expert, fixed-fee family law advice?

Contact www.fair-result.co.uk today for pragmatic, award-winning guidance.

Call: 07 500 933 818 or 0333 577 7009

Email: peter@fair-result.co.uk or chris@fair-result.co.uk

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

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What Happens to Your Finances in Divorce? Key Factors to Consider

Published on

 

Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

Divorce is a complex and emotionally challenging experience, and it’s often accompanied by a range of financial implications. As you navigate the divorce process, understanding what will happen to your finances can make a significant difference in protecting your future. In this guide, we’ll cover the essential financial aspects of divorce, including financial settlements, consent orders, mediation, and how the divorce proceedings impact your financial outlook.

Understanding Financial Settlements

A financial consent settlement is an agreement between you and your former spouse on how to divide your financial assets after the marriage is dissolved. This settlement typically includes assets such as property, savings, investments, pensions, and sometimes, even personal belongings of substantial value.

It’s crucial to remember that a financial settlement can have long-lasting implications on your financial health. Therefore, ensuring a fair and thorough agreement is essential. Financial settlements are not automatic during divorce; you must actively pursue this part of the divorce proceedings. Without a formal agreement, financial ties may remain in place, leaving you vulnerable to potential future claims from your ex-spouse. You should seek professional independent legal and financial advice as you navigate the agreement on how to divide your assets, to avoid any pitfalls commonly made such as tax liabilities.

The Role of Consent Orders

A consent order is a legally binding document that finalises the division of assets and financial responsibilities between you and your ex-spouse. Once you and your ex have reached an agreement on the financial settlement, a consent order is submitted to the court for approval. This document is critical as it prevents either party from making future financial claims against each other, providing closure and security for both parties. Once the consent order is sealed by the court your future security is protected and it would be very difficult for an ex-spouse to challenge.

Without a consent order, you could potentially face financial claims from your ex-spouse in the future, even years after the divorce. For this reason, securing a consent order is a wise step to ensure that your financial settlement is legally recognised and protected.

Mediation: A Cost-Effective Solution

For many couples, mediation is a valuable tool in reaching a financial settlement. Mediation allows both parties to discuss and negotiate the terms of their divorce in a controlled environment, with the assistance of a neutral third party. It’s often more cost-effective than going through prolonged court battles and can help facilitate a less adversarial divorce process.

During mediation, you and your ex-spouse can discuss various financial aspects, including the division of assets, child support, child, and spousal maintenance, if applicable. Mediators are trained to guide conversations constructively, focusing on mutual understanding and compromise. Although mediation isn’t a substitute for legal advice, it can be a highly effective first step in reaching an amicable and fair agreement.

Feel free to get in touch with Fair Result if you are seeking a mediator or need help with drawing up your agreed financial consent order. You will need a specialist solicitor to draw up and submit your agreed consent order, even if you have used a mediator to assist with reaching the agreement. This is because mediators cannot complete the final act of having the order approved by the court.

Key Financial Aspects to Consider in Divorce

When going through the divorce proceedings, several financial considerations need your attention. Here’s a breakdown of some of the key areas:

  • Property: One of the most significant assets for many couples is their home. Deciding who gets to keep the property or whether it should be sold, and the proceeds divided can be challenging. The financial settlement will outline how the property is handled and whether the home is split equally or otherwise, including whether one party should remain in the property until the children reach a certain age.
  • Pensions and Retirement Funds: Pensions are often overlooked during the divorce process, but they can be one of the most valuable assets to consider. In the UK, pensions can be divided through pension sharing orders or earmarking orders or offsetting the value of one person’s share in the pension against their value in another asset – normally a house. Working with a financial advisor and solicitor can help you understand your options and make the best decision for your future.
  • Savings and Investments: Savings accounts, investments, and other assets acquired during the marriage are typically considered matrimonial assets and are subject to division. It’s essential to disclose all assets honestly to ensure a fair settlement.
  • Debts and Liabilities: Divorce doesn’t just mean dividing assets—it also includes dividing any joint debts. If you and your ex-spouse accumulated debt during your marriage, such as credit card debt, loans, or mortgages, these liabilities may be divided as part of the financial settlement. Make sure to discuss how these debts will be managed to prevent financial complications in the future. This is also especially important if there is a business owned by either or both parties to the divorce.
  • Child Support and Maintenance: If you have children, child maintenance payments may be required to support their upbringing. The amount is typically determined based on the income of the non-residential parent. It’s vital to include child maintenance in your financial settlement to ensure that your children’s needs are adequately addressed. This can either be done using the child maintenance service calculator which simply divides income against the number of nights each parent has the child or alternatively you could agree voluntarily an agreed amount each week/month.
  • Spousal Support: In some cases, one spouse may be entitled to receive spousal support, especially if they have lower earning potential or sacrificed career opportunities during the marriage. The financial settlement will outline the terms of spousal support, including the amount and duration. It is important to remember though now the aim of the court is not to give spousal maintenance for life – it is just for a period of time for a spouse to return to independent living.

Navigating the Divorce Process: Seeking Expert Help

Understanding the intricacies of financial settlements and consent orders can be overwhelming. This is where professional guidance comes into play. A skilled divorce solicitor can help you navigate the legal landscape, ensuring that your rights are protected and that you achieve a fair outcome.

Working with experts not only provides peace of mind but also helps you avoid costly mistakes that could impact your financial future. Divorce is more than just a legal process—it’s a time of transformation and taking proactive steps to protect your financial wellbeing is essential.

The Importance of Taking Early Action

The earlier you begin preparing for your financial settlement, the better positioned you will be to protect your assets and secure your financial future. It’s easy to become overwhelmed by the emotional aspects of divorce but ignoring the financial side can lead to lasting repercussions. Start gathering financial documents, organising assets, and assessing your individual financial needs as soon as possible.

With a solid plan in place, you can approach the divorce process from a position of confidence. Whether you pursue mediation, seek a consent order, or simply work through the financial aspects with a solicitor, taking these steps early on can make a world of difference.

Final Thoughts: Protect Your Financial Future

Divorce is one of life’s most challenging transitions, but with the right preparation and support, you can secure a stable financial future. Remember, reaching a fair financial settlement and obtaining a consent order can provide the legal protection you need to move forward without the fear of future financial claims.

If you’re considering divorce or are already going through divorce proceedings, don’t wait to get expert guidance. Fair Result offers a unique, fixed-fee divorce service, covering all aspects of divorce, including court time, barrister fees, valuations, and everything required to achieve a fair and equitable outcome. Let us help you navigate this journey with confidence.

Ready to take control of your financial future during divorce?

Get in touch with Fair Result today to discuss your options and learn how we can support you:

Call: 07500933818 or 0333 577 7009

Email: peter@fair-result.co.uk or chris@fair-result.co.uk

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

Divorce – It’s a Balance Between the Emotional Stress, the Cost and the Return!
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Divorce – It’s a Balance Between the Emotional Stress, the Cost and the Return!

Published on
Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

Many of you know I was the founder of a progressive family law practice Fair Result with my business partner Christopher Sweetman.

The practice is not apologetic that we are a challenger brand but in the past 4 years we have become a major practice in England, with unique partnerships including the Professional Footballers Association and winning countless awards, both in the UK and Internationally.

Whist a number of our clients could be seen to be ‘wealthy’, by no means all of them – indeed 75% of them are not in this category.

We have a wide spread profile of clients, representing the whole of society and we will often take on a client who has no money to fight their divorce in terms of fees. This is exactly the reason we set up the practice.

As a non-lawyer, it never ceases to amaze me how ruthless lawyers are when it comes to their fees. I was brought up to focus on my clients and the returns would ultimately follow, not think of myself first and that customers are way down the line of those we should be focussed on.

In the past four years, I have witnessed opposing clients dropped by lawyers because they can’t see a future income stream, that client engagements are paused because lawyers don’t have visibility of their fees over the next few months and a total destain for client’s emotions and challenges.

Don’t get me wrong, we need to be paid for what we do. We aren’t a charity, but there does come a point at which clients should be respected for what they are ‘those that pay the wages and the overheads’.

We set up Fair-Result to do exactly that, client first! We do have challenges with clients paying but this is always at the end of a process, and we share the risk in that as the process progresses.

There is never a week goes by in our business where we receive a call from someone that we spoke to over 2 years ago. A call which starts in the normal way. ‘Hi, its… remember me’ followed by our response that is ‘Yes, how are things’. The same line always follows – the fact that frankly nothing has progressed in the previous two years, they have spent some money, but not a lot and are now in a place where they simply don’t know what to do, and their legal advisors are not offering much in the way of solutions.

Nothing surprises us anymore.

However, in the past three weeks alone, we have received at least five calls such as this, one with £m’s in the marital pot, another with a not inconsiderable number of rental properties and a third instance where the wife (our potential client) is starved of cash and assets, despite there being considerable funds to distribute, in the form of Public Sector pensions, a marital home and some limited investments.

During my own divorce, I used to call my former wife ‘penny wise and pound foolish’. She would argue about the pennies but forget about the substance of the whole pot we were arguing about and spend endless thousands with her lawyers arguing about where I had taken the latest EasyJet flight too.

So, what is the purpose of this article? Quite simply it is to present a position that when undergoing a divorce, you are balancing up three key things:

  • Your emotions
  • The cost
  • The reward or result in terms of financials and in many cases the impact on the children.

So, if you are arguing about £50,000 or £5m the principle is the same.

You have to invest to get the result you want, or you will one of those people calling us up after two years having got nowhere.

But I hear you say, I don’t have the cash? To fight them.

Well, that is where Fair Result comes in. The ONLY fixed fee financial divorce settlement business in the UK. And guess what, you pay nothing until the financial agreement has been signed by both parties, whether it takes us 2 months or 2 years to finalise.

We share the risk with you, our aim is to minimise the emotional stress but above all it is to get you exactly what you are entitled too.

So, stop plodding on for two years, when you know you won’t get anywhere, spending £500 here and there when that is all you can afford, getting more and more wound up about your spouse’s behaviour and spending habits.

Get it closed off, sorted out and you too can move on both emotionally and financially.

As we get older, we begin to realise that life is short, the years clock off quicker than you want them too. Why spend 2 years getting nowhere when you can contact the Fair Result team, and it will cost you nothing until your divorce is sorted – absolutely nothing.

Contact Peter at peter@fair-result.co.uk 24/7 and you will be guaranteed of a response within 30 minutes. A fixed fee, set from the outset and nothing to pay until your divorce is settled.

If you can get a better offer than this contact us and we will do your divorce for absolutely nothing, irrespective of its complexity – GUARANTEED!

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

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Business Assets in Divorce – Director Loan Account Obligations
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Business Assets in Divorce – Director Loan Account Obligations

Published on
Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

In every divorce where there is a business involved, there almost certainly will be the need to value it. Often, a Single Joint Expert (SJE) is appointed to do this, agreed by both parties.

The conclusion from the work of the SJE is always agreed upon by the Court and the Judge presiding over such matters. Remember the Judge is not an expert on financial matters, hence they get the opinion of a SJE to help them.

Fair-Result brings together unique accounting and finance skills. Indeed, we advise KC and Barrister Chambers on the financial aspects of Divorce through training and updating both KC’s and Barristers given our widespread knowledge.

The work of the SJE is determined by their terms of reference. It is important that these are correct as they direct what the SJE is being asked to do. The value of a business must be done on the basis of a ‘willing buyer and a willing seller’ – i.e. what someone would expect to pay for your business. That is not the headline valuation, it is after deducting debt and other matters, commonly referred to as ‘debt free, cash free’ to arrive at an equity valuation.

For most private businesses, owners have often significant Director Accounts balances. These are commonly amounts owed to the Company by the Directors. They typically represent private spending that the Director has incurred using Company Funds, which they are obviously required to pay back to the Company, normally through the use of Dividend payments.

With the significant issues arising from CBILS Loans and Bounce Back loans and changes in the tax regime for Businesses from April 2024, the declaration of dividends is now, no longer attractive to many business owners. This means Director Loans Account balances will stubbornly remain on the balance sheet of the business. BEWARE of this, because on the one hand, the business valuation by the SJE should include the amount due to the business from the Director Loan Account balance as it is a debt due to the business (i.e. assets). On the other hand, the Director (s) have a personal obligation to the business to repay the Director Loan Account Obligations.

It is important that when you complete your FORM E, declaring all of your assets and liabilities, you declare what your Director Loan Balance is. Very commonly, parties omit this from their FORM E, thus overstating their level of marital assets. Upon a settlement, if this is not considered then you could be saddled with a debt that needs repaying and it is not reflected in your settlement. We believe this is a major issue for parties who have divorced where they have not obtained appropriate advice from their legal advisors at the time.

Contact the team at Fair-result Limited to discuss how we can review how your business valuation was treated and the action you can take and most importantly if you are going through a divorce, how we can provide you with the expertise in this highly technical area. Remember lawyers aren’t accountants and this is about how the money flows in a divorce settlement.

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

Divorce Month 2024: Trends, Statistics, and Financial Realities.
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Divorce Month 2024: Trends, Statistics, and Financial Realities

Published on
Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

As the clock struck midnight on the 1st of January 2024, not only did it mark the beginning of a new year but also the renowned “Divorce Month.” This annual phenomenon sees a surge in enquiries to family lawyers from couples seeking to untangle the threads of their marriages. However, this year’s Divorce Month may differ, according to recent research that unveiled the profound impact the cost of living crisis had on divorce proceedings.

In this blog post, we will delve into the key divorce statistics and trends, shedding light on the financial pressures causing delays and explore why many individuals choose Divorce Month to initiate this stressful process.

The Cost of Living Crisis and Its Ripple Effect on Divorce Proceedings

Legal & General’s research reveals a staggering statistic – the cost of living crisis has led to the postponement of 19% of divorces, involving a staggering 270,000 couples. Fair Result emphasises that financial pressures, including income concerns, cost of living pressures, and the expenses associated with divorce, have become significant deterrents to separation.

The Economic Strain and its Role in Delaying Divorces

Peter Marples, Director at Fair Result said, “While financial pressures can be a breaking point for some couples, they also serve as a glue, keeping others together. The challenging economic landscape, characterised by inflation and interest rate rises since 2020, has made it difficult for families to navigate the complexities of divorce. Selling and buying homes, new mortgage rates, and maintaining two households have become unattainable for many.”

Divorce Month: A Consequence of Economic Challenges

The timing of divorce enquiries, particularly on the first working day after the new year, has earned the title “Divorce Month.” However, the research suggests a shift in this trend, with 272,000 divorces reportedly postponed due to financial concerns. The economic strain is evident, as 48% of divorcees experienced a 31% reduction in their incomes, leaving them with an average of £9,700 less each year.

The Overlooked Role of Pensions in Divorce

Surprisingly, despite the financial implications of divorce, only one in five couples discussed their pensions when dividing assets. The Pensions and Lifetime Savings Association (PLSA) released guidance on how private workplace pension schemes could aid spouses during divorce, highlighting the importance of considering long-term financial implications.

The Fallout on Retirement Funds

The impact of divorce on retirement funds is significant, with an average monthly reduction of £63 contributed to pension pots. Joe Dabrowski, Deputy Director of Policy at the PLSA, emphasises the importance of ensuring both parties are provided for in retirement, especially when one party has been the primary earner.

Divorce Statistics and Trends in 2023

A comprehensive look at divorce statistics from 2023 reveals a changing landscape. The introduction of no-fault divorce laws in April 2022 aimed to reduce conflict among divorcing couples. Between April and June 2023, there were 24,624 divorce applications under the new law, marking a 30% decrease from the previous year when the law was first introduced.

Reasons Behind January Divorce Enquiries

The tradition of Divorce Month, often fuelled by media reports, is questioned by family lawyers who note similar peaks in divorce enquiries in other months, such as September. The post-holiday period brings a culmination of pressures, from the demands of the festive season to the desire to create a perfect Christmas. Couples may also postpone divorce until after Christmas, attempting to save their marriage or provide one last united holiday for their children.

When is the Right Time to Start a Divorce?

Divorce Month does not impose a mandatory starting point for divorce proceedings. Understanding the readiness to divorce involves considering various factors. The decision may stem from the pressures of the festive season, the desire to save the marriage for one final Christmas, or the reflection and resolutions that come with the new year.

A New Chapter and Positive Resolutions

Amidst the challenges, divorce also signifies a new beginning. Individuals contemplating divorce are encouraged to communicate and resolve disputes amicably, focussing on co-parenting for the wellbeing of their children. The end of a marriage can be an opportunity for personal growth and positive change.

Final Thoughts

As we navigate Divorce Month 2024 against the backdrop of a cost of living crisis, it is crucial to acknowledge the challenges and opportunities presented by divorce. If you are considering divorce, seek the guidance of divorce professionals to ensure a fair and equitable process. Whether it’s financial advice or legal support, taking proactive steps can pave the way for a smoother transition. Embrace the new chapter that awaits and ensure that the decisions made during this challenging time lay the foundation for a brighter future.

Do you have any questions or need support with initiating divorce proceedings? Contact our team of experts today.

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

Budgeting for One: A Guide to Post-Divorce Finances
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Budgeting for One: A Guide to Post-Divorce Finances

Published on

Embarking on the journey of financial planning post-divorce can be a challenging but transformative process. Navigating the complexities of single parenthood and managing tighter finances might seem overwhelming. Divorce often brings significant financial changes, transitioning from joint incomes to a single income, requiring a solid financial plan.

Here’s a breakdown of key aspects to consider:

1. Budgeting and Financial Planning:

  • Dive deep into your income, expenses, and financial obligations to create a realistic plan aligning with short-term and long-term goals.

2. Debt Management:

  • Prioritise and manage shared debts, exploring strategies for a debt-free future.

3. Insurance Analysis:

  • Review insurance coverage to ensure adequate protection for you and your children.

4. Investment Guidance:

  • Craft a tailored investment strategy based on your risk tolerance, time horizon, and financial goals.

5. Asset Division and Settlement Support:

  • Navigate asset division with insights into short and long-term consequences and make informed financial decisions.

6. Estate Planning:

  • Safeguard assets and secure your children’s future by creating a comprehensive estate plan, including wills, trusts, and guardianship arrangements.

7. Tax Planning:

  • Collaborate with a tax advisor to comprehend and optimise post-divorce tax implications.

Navigating these aspects can empower your financial journey after divorce. Consider seeking guidance from financial professionals or utilising online resources to make informed decisions tailored to your unique circumstances.

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

The Four Phases of Divorce and Separation and How to Manage Them
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The Four Phases of Divorce and Separation and How to Manage Them

Published on
Peter Marples
Peter Marples
Director
Fair Result

As professionals operating for many years in the divorce market, there are similarities in every divorce we are involved in.

Whilst the process itself often causes distress – the common phases which most people experience are:

  • Time
  • Cost
  • Uncertainty
  • Stress

How you manage each of these, which occur either during the entire divorce process or can be experienced intermittently is key to both understanding and planning on how you deal with each of them.

Time

It takes time to make the decision itself to divorce or separate. Often years of misery ultimately bring the moment upon which there is a ‘tipping point’.

Whilst that is a milestone itself, the time taken to divorce can be long and you need to plan for this.

Even the simplest of divorces will take a minimum of six months – that is the process set by the Justice system, giving parties time to cool off if they want to or to plan arrangements. We have never seen a situation where a couple uses the 20 weeks cooling off to actually reconcile but I am sure there are some.

But too often, couples apply for a divorce and DON’T use the 20-week cooling-off period to actively manage the financial aspects of the divorce. This process should run in parallel to the divorce itself so that if negotiations are effective then you will be ready to finalise the financials and the divorce itself as soon as the process enables you to do it.

So, the first tip is to use the time from filing the divorce application to immediately commencing the financial negotiations.

Cost

Costs can be significant, the process slow and the quality-of-service provision poor from advisors. As we have said many times before, you wouldn’t build a house extension or even have your house decorated at an hourly rate, so why does everyone agree to this when going through a divorce?

Your lawyer will say ‘they can’t give you a fixed price because they don’t know what is involved’ when the reality is that 80% of divorces require the same processes and anyone with a few years of experience should be able to judge the likely time required, accepting some tasks will take longer than expected but sometimes they don’t take as long. It’s no different to when you are digging foundations.

So, make sure you get a fixed price for your divorce – not an estimate. A fixed price gives you certainty and, in my opinion, means your lawyer is focused on getting you a result, often quicker than charging you in 6-minute increments.

So never get an estimate, always a fixed price for each element of your divorce and make sure they stick to it – even better if you don’t have to pay until the divorce is finalised.

Uncertainty

Probably the biggest issue in any divorce or separation, both before the separation occurs, during the divorce and frequently after.

We have many situations where spouses often stay together because they simply cannot bear the uncertainty of a new future – despite how miserable they may be with their existing relationship. We hear all too often, still in this modern world of spouses that have restricted funding and men in particular use this as leverage to keep them in the relationship and marriage, however unhappy they may be.

Whilst the future is uncertain, for most people they do move on quickly after a marriage, either alone, with extended family or with a new partner.

With finances pooled in a marriage, despite my observation above they are always going to go further than when a couple have to set up two homes and have two sets of overheads. It will be inevitable for a year or more, the finances will be strained. It’s much akin to a couple stretching themselves to buy their first home – after 18 months or so, the financial stretch doesn’t seem so bad.

The key is to try and look forward – life will change, often for the better with a new partner and the grass can be often greener on the other side of divorce.

Don’t let the uncertainty keep you in a miserable relationship. We often maintained contact with our former clients who tell us ‘It’s the best thing I ever did.

And finally,

Stress

Divorce and separation is often the most stressful experience of someone’s life, much more so than the loss of a loved one through death, loss of a job, or other sudden shock.

It causes some sense of failure, uncertainty, and above all – how to move on.

The unknown of the divorce process, the unwinding of joint finances, the arguing and battling to agree on parenting arrangements and indeed finances are all matters that cause significant stress.

Stress needs to be managed and it is not a sign of weakness to ask for help. Quite often, we refer our clients to CBT support – just 2/3 sessions will bring a sense of perspective to what is happening, enabling individuals to cope with the short-term impact of divorce and separation.

Finding a professional who can help you with all of this as part of your divorce team is important. Look for those that are available 24/7 – our unique WhatsApp group provide such support.

Get help and support and ask your advisors before you appoint them how they can help you.

Conclusion

To get out of that miserable relationship is never without pain, but it is a short-term pain for long-term gain. Don’t be frightened as you are not alone and make sure you find a family law practice that understands the issues described above and most importantly helps mitigate them, not exacerbate them!

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

Unlocking Success in Divorce: The Equation for Peaceful Resolutions
Photo provided by Fair Result.

Unlocking Success in Divorce: The Equation for Peaceful Resolutions

Published on

Pace (p) x Momentum2 (m2) – Process (pr) = Success

Divorce, much like any business transaction, involves a delicate blend of emotions and strategies. While the emotional landscape might differ, the underlying principles of pace, momentum, and process remain pivotal, just as they are in business acquisitions, separations, or disputes.

Having delved into numerous business activities and handling over 100 divorce cases in the last three years, my experience highlights the significant role of process (pr) in determining the fate of any divorce. Unfortunately, process often becomes a hindrance, leading to frustration.

Many legal practitioners tend to focus solely on process, often disregarding the mounting stress that clients and families bear. It’s not uncommon that our caseload includes individuals who have grown weary of the inactivity of their lawyers, leading to a less-than-satisfactory outcome. An illustration of this occurred in August when numerous lawyers were seemingly inaccessible with their ‘out of office’ messages, reflecting a lack of commitment to the very clients they serve. This business of law is, after all, a service, with clients investing real money from their pockets. In contrast, at Fair Result, we operate round the clock, maintaining dedicated WhatsApp groups for each client to ensure seamless communication.

The distinction between pace (p) and momentum (m2) is essential. While pace refers to the movement forward, momentum signifies the ongoing drive to achieve a result. Consistent advancement, irrespective of the speed, is the crux of success. Any slowdown in pace disrupts the momentum, resulting in increased costs and delayed settlements. Particularly, financial settlements demand focused attention and steady momentum. However, this is impeded when legal advisors perpetuate delays or lack responsiveness.

Notably, Fair Result stands apart in offering an absolute fixed fee for our services, ensuring transparency and client-centricity. It’s akin to building a house extension; no one employs hourly rates for such endeavours. I assert that the technicalities and challenges faced in constructing a house extension are no less intricate than those encountered in a divorce.

Momentum (m) is the secret sauce of success. It’s this continuous driving force that propels us toward favourable resolutions. While client participation is essential, the onus of momentum lies primarily with us, your advisors. Hence, when selecting divorce solicitors, the initial conversation holds immense weight. Rather than fixating solely on the divorce process, focus on where your settlement might culminate. Ask how they plan to seize control and foster momentum in your case.

So, if we encapsulate it as p x m2 – pr = success, it becomes evident why Fair Result stands out as the global innovators in the family law sector.

Reach out to us at 0333 577 7009 for an informal chat. Experience our commitment firsthand, available to you 24/7! One of our current clients sums it up perfectly, “Fair Result’s team is incredible. Amidst their busy client roster, they make me feel like their priority. They drive the process relentlessly. In contrast, my wife’s lawyers are sluggish, overlooking key aspects like property valuations, causing unnecessary stress. Fair Result’s responsiveness is unmatched.”

Read more articles by Fair Result.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

The Escalating cost of Mortgages – How it impacts on Divorce in 2023.
Photo by Tierra Mallorca on Unsplash.
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The Escalating Cost of Mortgages & Its Impact on Divorce in 2023

Published on
Peter Marples
Peter Marples
Director
Fair Result

One of the largest components of any divorce is the issue of the family home. With over 1/3 of all households having a mortgage, and many divorcees also having the odd rental property or two – the case of mortgages is always high on the agenda in any divorce.

Whilst a large majority of people are on fixed rates, a more significant number than you think are on interest only – meaning many of these deals are coming to an end shortly.

For those of you who have secured a divorce financial settlement with your partner committed to making the mortgage payments into the future, the cost of living squeeze will almost certainly be biting – with the risk and fear of default against the order that you may have agreed to.

As we face a long period of high-interest rates, the ability of spouses to continue to pay mortgages will almost certainly become a bigger issue to contend with in a divorce scenario. With a significant number of divorcees being based on ‘need’, the balancing of resources to meet that need means that flexibility on both sides has to be the basis of any settlement. Whilst a spouse may wish to remain in the family home for the stability of the children, if the former husband (or wife) simply cannot afford to pay the mortgage and house themselves then something has to give. It is not a scenario anyone wants but one that is becoming all too familiar and common in the work we do in divorce.

So, some simple tips and advice for those of you facing this dilemma, either in the process of divorce or facing a default in an existing order:

  • Remain flexible and understand that there is only so much available to make all the necessary commitments
  • Make sure that any divorce settlements enable you to maximise Government support in terms of universal credit and other support systems
  • Discuss with your mortgage company the option of converting to interest only – particularly if you are committed to the long term
  • Don’t jump at selling the family home – almost certainly the cost of a new mortgage will be more than the cost of your existing home in the medium term
  • Remember the days of cheap mortgages are gone forever – so budget that rates will be at least 4% in the medium term and the impact this is going to have on your divorce settlement and your cost of living.

As always, the team at Fair-Result are here to discuss with you your options and a way forward. We specialise in achieving pragmatic and fair solutions to divorce scenarios, focussing on what is achievable both in the short term and looking to the future.

Feel free to contact Pete or Chris for an informal, free-of-charge initial discussion. Remember we are the only fixed fee divorce service in the UK focussing on financial settlement with nothing to pay until the end of the process.

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

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