Financial and Legal Advice - Page 16

Divorce involves complex financial and legal considerations that can have long-lasting impacts on your future. This section provides expert guidance on crucial topics such as property division, spousal support, tax implications, and legal rights, empowering you to make informed decisions and protect your interests throughout the divorce process.

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Divorce Advice UK – Practical Tips When Facing a Divorce

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Practical Tips Women Should Know When Facing a DivorceAre you facing a divorce now or planning to file for one to end your current relationship? Whatever the case and your grounds may be, if it is inevitable, it is imperative that you think very carefully about it and find out ways on how to deal and proceed with it.

Getting a divorce is never easy. It causes negative impacts to the individuals affected by the situation. But it can be overcome. Learn to face the situation with the help of the following tips below:

  • Consult and talk sincerely with a divorce lawyer or family lawyer.

If you know other women who have faced a divorce in the past, ask for recommendations for a good attorney who can help you with your case. If one of your friends is a lawyer, you might also want to consider seeking his or her guidance and recommendations. Check backgrounds, reputations, and success rates.

Some lawyers provide free initial consultations and fees at affordable rates, so better ask them before signing them for your case. It is integral that you understand the laws governing divorce in your state because each one is somehow different from the other. It also is very important that you understand how each law applies to your situation.

  • Explore mediation if the separation is good-natured.

You can find expert counselors that can guide you through mediating with the other party involved in the case. This is imperative for parties that find it hard to seek common ground or an agreement. If you think you can do it without professional help, remember that initial consultations are still better conducted with experts to ensure the stability of the process. Your own attorney should also be able to review the grounds to make sure that your personal interests are not taken for granted as well as your child’s, if you have any.

  • Seek legal advice before moving out of your house.

Before leaving the house, always seek the advice of legal counsel. If you have any safety concerns, look into what restraining orders you can file or any order that can protect you while you are living in your current home.

Some women think that moving out and leaving their children in the hands of their spouses is the best solution. This is a terrible one, to be honest. Be very smart and explore any consequences and alternatives that will best suit your predicament.

  • Cooperation will not always last.

Women should understand that things could be friendly on the initial phases of the process and get sour along the way. This is natural. Be very mindful and tread the path carefully. Never set out into the field looking for war. Look for grounds that satisfy the interests of both parties.

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Importance of Financial Goal Setting

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Independent financial Advisor
Paul Gorman
Principal Partner
Beaufort Planning

In my previous article we spoke about the importance of gathering accurate data and piecing together your financial jigsaw. If you follow the steps suggested you’ll now hopefully have a good understanding of your current financial position.

In this one I’d like to take a look at setting goals, and working out what is it from a financial perspective you’d like to achieve.

If at all possible, don’t rush into this and also remember ( and this bit may be difficult ) to try and be realistic in the context of your circumstances as you will need to agree all of this with your partner and if you can’t then the courts will.

You may have a reasonably straightforward financial situation with straightforward aims that you want to achieve, or your financial situation and your goals may be more complex.

Whatever your situation, don’t just think of the immediate here and now.

Whilst, that’s likely to be the most pressing for you, also try and think and plan ahead:

  • · Short term – the next five years.
  • · Medium term – five to ten years.
  • · Long term – more than ten years.

Write down all your thoughts, think them through, discuss them with your lawyer. It may be that you decide to eliminate those that are of least importance to you or refine others having taken time to think things through.

If you need help with budgeting and calculations there is some excellent information available at The Money Advice Service.

The calculators help to explore potential settlement scenarios and are able to give you an indication of how financially matters may pan out for you post divorce.

By going through these steps and those suggested in my previous article, you are now hopefully in a position of being better informed about your financial position and have some direction as to where you would like to get to.

Paul Gorman

www.beaufortplanning-westmidlands.co.uk

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What is a Clean Break Divorce?

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Online Divorces
Jay Williams
Online Divorces

You may think that the financial ties that exist between a husband and a wife are severed permanently following a divorce, but this is not the case.

In fact, until a court order determining precisely how a couple’s assets are to be divided has been put in place, either party can make a claim on the other’s assets at any time – that’s why we have what are colloquially known as Clean Breaks.

Consent Orders, to call them their correct, legal name, are documents that describe precisely how various assets such as properties, cars, pensions, furnishings and other items of significant value are to be divided between the two parties. As the name implies, though, both parties must agree on this division in order for the courts to approve of the order.

It is possible to obtain a divorce without having such an order put in place, of course. It is also possible to finalise a divorce without requesting that the courts determine how assets should be divided. Should you do this, however, then, as discussed above, either party can make a claim against the other.

Now, many people will argue that a former spouse would be entitled to a substantial share of the winnings should the other win the lottery in order to argue the merits of such an order.

In spite of the fact that such an example is distinctively unrealistic, there are several infinitely more likely windfalls that divorcing couples would do well to remember: pay rises, inheritance and growing property values to name but a few. Provided an agreement can be reached, then it is always advisable that a Consent Order be obtained – if only for the peace of mind that it provides.

clean breakAs ever, though, a person should never be tempted to agree to such a division simply to prevent a future claim.

It is infinitely more important to ensure that the provisions afforded through the agreement are sufficient to support you for a reasonable period of time.

It may seem like a good idea to rush through an agreement in order to lower your stress levels but, as you’ll only find yourself feeling much more anxious if you later release that you’ve left yourself in a precarious financial situation this is little more than a false economy.

Should you feel that a Consent Order is something that you’d like to obtain, though, be warned: you’ll not only need to get the order itself prepared, but additional documents that clearly describe your current financial circumstances (i.e. your current earnings, savings, debts etc.) as will your spouse. These documents are needed as the courts must be provided with evidence to show that both parties are aware of the other’s financial position as they simply could not consent to an agreement concerning the division of their finances if they did not.

Yes, people can, and indeed have, falsified figures for these documents and unfair and unreasonable agreements have been approved as a result. Fortunately, this is also regularly discovered at a later date making the agreements null and void and bringing about expensive further legal proceedings.

Still, if you trust your soon-to-be former spouse and can agree on how to divide your assets in a way that suits both parties’ needs, then a Consent Order is a cost-effective way of getting the peace of mind that comes from knowing that a binding financial order is in place.

You may also be interested in Is online divorce Right for You?

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How Pension Sharing Orders Work in Divorce – Splitting Pension after Divorce

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Independent financial Advisor
Paul Gorman
Principal Partner
Beaufort Planning

We speak with accredited chartered financial planner Paul Gorman of Beaufort Planning  on pensions and divorce.

Paul works mainly in the field of family law working together with family lawyers as well as family mediators with the aim of helping clients achieve a suitable settlement in divorce.

He has worked on mediation cases and have been involved in mediation meetings alongside trained family mediators and divorce solicitors. He also gets involved in collaborative work and is a member of three PODS.

Here he talks about pension sharing orders, splitting pension after divorce, pension on divorce, pension plans and divorce as well as pensions transfers.

Some of the questions he answers are:

• What is a pension sharing order?

• Can the basic state pension be shared?

• Is pension sharing compulsory or do couples need to have a pension sharing order?

• Can I use my share of the pension to buy my children and I a home and is it wise to do so?

• What happens in the case of a pensioner whose benefits are subject to a Pension Sharing Order?    

 

PART 2 of How Pension Sharing Orders Work in Divorce – Splitting Pension after Divorce he answers more questions among which are:

• When is pension sharing not an option or the best solution?

• I only have a small pension — do i really have to share that?

• What does offsetting your pension mean?  

• What is an attachment order and why are they rarely used?

• Is there a cost attached to the process of pension sharing?

• Can I protect my pension with a prenuptial agreement?

• Where do non-married couples stand when it comes to pension sharing?

• How long does the pension sharing process take from start to finish?

Get in touch with Paul – pgorman@beaufortplanning.co.uk

Follow Paul on Twitter

 

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What Mortgage Can I Afford?

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 Mortgage Capacity Assessment – Helping to Negotiate the right divorce Settlement.

Director at Simpson Financial Services Limited
Director at Simpson Financial Services Limited

Recently a friend of mine who is currently going through a divorce came to me with a problem.

She had done everything right so far; she had sought advice from a reputable Family Solicitor and agreed that the most amicable course of action would be to attend mediation meetings.

Access and maintenance payments for the children were dealt with quickly and her husband agreed that, assuming she could take over their mortgage by herself, she could keep the house in return for him retaining his pension and savings. With negotiations proceeding so smoothly all appeared to have gone in her favour…..or so she thought.

As we all know once a divorce settlement has been finalised it cannot be re-written, therefore, getting it right is imperative. Emphasis should be made on ensuring you have the correct information from the outset to allow you to make the right decisions, save time and money.

What my friend had failed to find out is whether she could actually raise a mortgage herself?

The last visit she made to her now ex-Mortgage Advisor was nearly 5 years ago and at that time her husband had just started his own business and could not prove any income.

The Mortgage Advisor confirmed that with her salary and the Child Benefit they receive for their 3 children they still qualified for a mortgage. With this in mind my friend confidently agreed to the terms of the divorce settlement assuming she would be able to take over the mortgage on the marital home.

After a visit to her bank my friend discovered, to her surprise, that the Mortgage Advisor no longer worked at the bank. In fact the bank no longer provided mortgages. This is when she came to me to explain what had happened and wanting to know where she should go from here?

I mentioned that she would benefit from having a Mortgage Capacity Assessment carried out.

This is where a Mortgage Capacity Expert would, after considering her Form E and any other relevant financial information, be able to confirm her likely maximum mortgage borrowing and more importantly the amount of mortgage she could actually afford to maintain. After making relevant enquiries she received her Mortgage Capacity Report a few days later which confirmed a number of things:

  • what mortgage can I afford
    What mortgage can I afford?

    Lenders would no longer consider the Child Benefit she receives. This is because her children are nearing an age when these benefits will stop; her children are now aged 14, 16 and 17.

  • Her Credit Card bill had crept up to nearly £6,000.00, further reducing her borrowing.
  • As soon as she had agreed not to take any of her husband’s pension she increased her own contributions to her employer’s retirement scheme reducing her ‘take home’ pay.
  • After a lengthy period of low interest rates and with increasing speculation that rates will rise in the near future mortgage lenders are now undergoing Stress Testing. This is where they assess a person’s ability to afford their mortgage based on higher interest rates. This all meant that her borrowing power had shrunk significantly and unfortunately my friend no longer qualified for the amount of mortgage she needed.

This has all led to a delay in the divorce being finalised and her husband still being party to their mortgage. Also, not only has her own chances of getting a mortgage been scuppered but her husband’s too.

The chance of buying himself a new home has not only been blighted by years of low self-employed income but in the eyes of mortgage lenders he is still responsible for another mortgage. So despite the efforts they made to keep their divorce amicable they are at loggerheads anyway.

However, all this could have been avoided had she obtained a Mortgage Capacity Report at the outset of her divorce.

  • Her financial circumstances could have been assessed and she would have been made aware of her mortgage capacity before she agreed to anything.
  • The Mortgage Capacity Expert could have considered a number of different financial scenarios so she would have been well informed on what her borrowing ability would be based on any number of outcomes from her settlement.
  • She could also have been informed of up-to-date lending criteria and how much a new mortgage would cost.

Getting a realistic and reliable idea of capacity to mortgage from the outset is important for all parties involved in any divorce.

It may not only give you an idea of your own capacity to mortgage but also your ex-partner and could help to create a more harmonious separation. With each party knowing their mortgage limits the assessment can help illustrate what is reasonable to expect from divorce.

Demanding everything except the kitchen sink might seem like a good course of action but if all it achieves is a lengthy battle at court and a costly solicitor’s bill finding out this information from the outset could save a lot of money and a great deal of heartache.

ABOUT NATASHA

Natasha Palmer is a qualified Mortgage Advisor at Simpson Financial Services Ltd with offices in Coventry and Leamington Spa.

With over 10 years experience in Financial Services Natasha starting her career in Financial Administration. She became qualified to advise on Mortgages, Protection and General Insurance in 2008 and then spent the next 4 years advising home owners, first time buyers and small businesses on the most appropriate lending and protection solutions.

Becoming a Director of Simpson Financial Services in 2010 she then went on to win the Insurance Institute of Coventry’s Young Achiever of the year award in 2010/11.

Her career in Mortgage Capacity Assessments started over lunch with a with a local family solicitor one day who asked if she could provide mortgage capacity details for a divorcee having difficulties negotiating future housing needs with their soon to be ex. Natasha began producing Mortgage Capacity Assessments from that day on.

She can be contacted at natasha@simspsonfs.co.uk and you can check out her services on the website: mortgagecapacityassessments.co.uk.

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Income and Divorce

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Income and Divorce
Paul Gorman
Principal Partner
Beaufort Planning

Aviva’s Winter 2013 report explores the growing diversity among UK families fuelled by trends in cohabitation, separation/divorce and remarriage.

Past relationships are teaching families valuable lessons about managing money yet Aviva’s latest Family Finances Report also paints a worrying picture of unprotected incomes and outdated policies.

The Report reveals:

  • Nearly half of adults who live as part of a modern family have experienced at least one previous committed relationship (involving marriage or cohabitation) prior to their current family set-up.
  • More than one in six have had two or more past committed relationships, with 5% having had three or more.
  • More than one in three marriages is a remarriage for at least one partner, with 15% involving a remarriage for both parties.
  • Almost a third of two-parent UK families include one or more children from a previous relationship.

Income and Divorce – Financial arrangements in the modern family context can be stretched and complex:

One in three families with children from past relationships in December 2013 received financial support from an ex-partner. This includes almost one quarter who get a regular income from this source and 10% who receive occasional payments.

Regular monthly payments received range from less than £50 per child to more than £1,500, averaging out at £254 per child, per month. One in three who receive financial support rely on it to make ends meet, while another 38% would need to make major cutbacks to manage without this income.

With this is mind, it is worrying to read from the report that only one in four knows for definite that their former partner has financial protection – such as life insurance, income protection or critical illness cover – in place, that could be invaluable in helping secure maintain these regular payments in the event of ill health, incapacity or death.

Disturbingly, almost one in five know that their ex-partner’s finances are definitely not covered, another 30% fear this may be the case.

With many adults experiencing more than one committed relationship, any change in family circumstances can have a significant impact on financial arrangements.

Updating bank accounts and mortgage/rent agreements seem to take priority when a relationship ends, with Aviva findings suggesting that only 6% of affected adults fail to make such changes following a separation.

In contrast, almost one in five fail to update their will, potentially leading to future complications.

It is very much understandable that housing and a place a live is the main concern, this is an immediate need that requires action and attention.

Yet, it is also really important to look at and consider your all round finances during divorce and as hard as it is consider not just immediate and short term needs, but also your needs over the medium and long term.

Paul Gorman

www.beaufortplanning-westmidlands.co.uk

 

Sources: www.aviva.co.uk

 

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A Man is Not a Financial Plan: 7 Steps to Become Wealthy

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Here are the 7 steps to how to become wealthy:

financial plan
Mary Waring
Independent Financial Advisor and The Wealthy Woman: A Man is Not a Financial Plan: A Woman’s Guide to Achieving Financial

1. Calculate your starting point

Until you calculate a starting point you have no way of knowing whether you’ve improved your wealth or by how much.

So work out the value of everything you own, (your house, car, investments, pensions etc) and deduct the value of everything you owe (your mortgage, credit card balances, HP etc.). The difference is your net worth. Set a target for what you want this to increase to over the next 6 months or 12 months

 

2. Control your debt

If you have large balances on your credit card and only pay off the minimum each month you are paying a huge amount of interest.

If you only pay off the minimum balance each month it could take 47 years to repay your balance and cost 3-4 times the initial balance. So before you put a purchase on your credit card consider how much it will cost you to pay it back in total, rather than how much you pay back each month.

 

3. Save before you spend

Don’t plan to save what balance you have left in your bank account at the end of the month, because invariably there won’t be anything left. Instead have a standing order each month that goes out of your account as soon as your income comes in. That way your savings will be taken care of.

Over time it will be easier to increase the amount of the standing order, as you see your savings grow.

 

what mortgage can I afford
It’s easy to think that a small amount isn’t worth saving.

4. Save regularly even if it’s only a small amount

It’s easy to think that a small amount isn’t worth saving, but over the long term you’d be surprised how much it can grow. For example, if you were to invest your child benefit from the day your child is born until they are aged 18 and get a 10% return, at the age of 18 that would be worth over £53,000.

Enough to fund university,  provide a deposit on a property, fund a gap year etc. However, if instead of giving this sum to your son or daughter at age 18 you left it invested continuing to earn 10% return each year it would be worth over £4.6 Million when they are aged 65.

That’s based on investing £20.30 per week- or £2.90 a day. A similar price to an upmarket cup of coffee!

 

5. Monitor your spending

If you think you don’t have enough money to save keep a detailed record of all that you spend over a 3 month period- including everything you spend in cash. Then review each item on the list and consider “how can I reduce it?” Is it possible to eat out less often, eat out in a cheaper spot, or have friends round instead of eating out?  You may be surprised at where your money’s going, and the options to reduce your costs.

 

6 Review everything regularly

Doing the above exercises is not a one off. Over time bad habits can creep back in. So do all this on a regular basis to ensure your money is working hard for you.

 

7. Enjoy your money 

Don’t be fearful of dealing with your finances. If you approach each of the exercise with the attitude it won’t work or you’ll hate doing it, then that’s exactly what you’ll get. Follow the steps to improve your financial position in the knowledge that small steps on a regular basis can lead to a significant increase in your wealth

Mary Waring

www.mary-waring.co.uk

Author of  The Wealthy Woman: A Man is Not a Financial Plan: A Woman’s Guide to Achieving Financial Security 

 

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Divorce Mediation vs Collaborative Law

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Suzy Miller www.thedivorcemagazine.co.ukInterview by Alternative Divorce Guide Suzy Miller with Mediator and Collaborative Lawyer Kim Beatson of Anthony Gold Solicitors

 

What is the best way to go through divorce?

As the Alternative Divorce Guide I often get asked if my role is to guide people back into their marriage, and away from divorce.  I explain patiently each time that people need to be allowed to make their own decisions about whether they divorce or not – all I do is to wave the flag for doing it in a way that doesn’t destroy their family, even though that family is now changing it’s form.

Collaborative Divorce and Divorce Mediation are both roads that lead away from the courtroom, but some may see them as in competition.  One includes lawyers by the sides of the divorcing couple, and the other relies on an impartial Mediator (sometimes more than one) helping the couple to create their own settlement and plan a new future.

Mediator and Collaborative Lawyer Kim Beatson of Anthony Gold Solicitors is experienced in supporting couples through divorce, and knows that the choice of dispute resolution method is a very personal one:

“I would say to anyone: ‘Here is my options leaflet, giving you the choices of Mediation, Collaborative Law, lawyer-led mediation or the court system. It’s your choice. Think about those options carefully.’”

 

Why don’t people know more about it?

What continually shocks me is that so few members of the public have ever heard of Collaborative Law, let alone know what it means.  Kim explained to me why this is the case:

family mediation vs collaborative law
Kim Beaston

“Mediation awareness was funded by the government for a time, and Divorce Mediation has been around in the UK since the mid 80’s. Collaborative law has only been around in the UK since 2003.  The main people who have to take responsibility for the fact that the public are mostly unaware of Collaborative Law, are the lawyers. Most clients still come to lawyers as the gate keeper, and the onus is on the person taking those initial telephone calls and making those appointments to let them know that court is the last resort, and that there are preferred resolution options.  That is what I am trying to make sure happens in my own practice at Anthony Gold Solicitors.”

 

What happens if you’re not legally married?

Having gone through family change having not been legally married, I am fully aware of the lack of legal rights for cohabiting couples to protect them if the relationship fails.  This is why I am so persistent in spreading the word of dispute resolution, as a court-based approach is even more unsatisfactory for such couples as it is for those who are legally married.

With the increase in people not getting married and then breaking up post-children, I asked Kim why those couples need to become more aware of the choices open to them:

“Dispute resolution processes, whether Mediation or Collaborative, can be very useful for couples who separate having been cohabiting and who are not legally married. In this country people do not always realise that they have few rights for themselves which can be very unfair after a long relationship with children, with career and pension sacrifices.

So Mediation and Collaborative Law are perfect forums for dissolving that sort of relationship because the importance for both parties is that they are bringing their idea of fairness to the table.  They are not trying to emulate the court system and the uncertain outcome that could be achieved.  They are able to set the agenda and create their own solution to their family dispute.”

 

Does Dispute Resolution make business sense for law firms?

A phrase I often hear is: “Ah, well, law firms don’t want to encourage Mediation and Collaborative Law because they make more money from adversarial processes”.  However, I personally believe such views are very short-sighted, and I brought this question up during my interview with Kim: “I think there is a sound business model for all forms of dispute resolution.  It’s good for the client, but ensures a good cash flow for the professionals as it’s so much quicker than remuneration from court-based cases.

So there is every reason for regarding it as a complementary practice, and it creates a much more authentic solicitor-client relationship if you are not only able to offer clients the most expensive option – that of going to court.”

 

What does the future hold for dispute resolution?

My own belief that lawyers are going to lose their status as the gatekeepers to divorce is not always a popular one with divorce solicitors, but Kim had some thoughtful insights into how Dispute Resolution is evolving in the UK:

“I think this government has missed an opportunity with Mediation with no further funding to support the encouragement for clients to use MIAMS.  Solicitors and all family law professionals are responsible for getting the word out there for all forms of dispute resolution, and for encouraging the client to access them. It is an accident that family lawyers are dealing with finance and parenting arrangements during family breakdown.  So we have to be quite humble about the power of our roles. Research does show that clients prefer independent financial advice and having their own independent lawyer.

But I think there will be a day when couples enter the separation process through a variety of services and that family lawyers really should not to take it for granted that they are necessarily the best person to deal with every aspect of the divorce process, or that they should be the natural gatekeepers to divorce.”  

 

Kim Beatson: Mediator & Collaborative Lawyer

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Mediation for Divorce: Is Family Mediation any Good?

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Austin Chessell is a qualified Collaborative Solicitor, Child and Family Mediator and regular contributor to The Divorce Magazine.

When it comes to divorce and family separation does the family court have to get involved?

Is it part of the family court decisions that a couple should attend family mediation or go for mediation for divorce?

Here Austin answers your questions on family mediation and how it can help in finding mediation solutions during divorce and family separation.

Mediation for Divorce?

  • How can family mediation help?
  • Is the agreement reached in family mediation legally binding?
  • Can children participate in the family mediation process?
  • Is family mediation for you?
  • How can you ensure that your mediation process has a positive outcome?

If you would like to speak more with Austin about family mediation you can contact him here:

Tel: +44(0) 7920 445832

Twitter: FamilyLawLondon

Linkedin: austin-chessell

 

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What is a Pre-nup?

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Why you need a pre-nuptial agreement even if you’re not filthy rich

Ann Corrigan founder of Clarity Family Law
Ann Corrigan founder of Clarity Family Law

Nigella Lawson was glad to have entered into one before her marriage to Saatchi, whereas Dragon’s Den tycoon Duncan Bannatyne claims to have lost most of his wealth through his divorce because he hadn’t signed one before saying his vows the second time.

We’re talking pre-nups, of course. These formal pre-marital agreements are in the news again because the Law Commission is expected to propose this week that they become legally enforceable in Britain.

Ann Corrigan, specialist family lawyer and founder of Clarity Family Law in Buckinghamshire, gives the lowdown on pre-nups and explains why you should care – even if you’re not filthy rich.

 What is a pre-nup?

A pre-nup is a formal agreement/settlement entered into prior to marriage or a civil partnership.

It is used to set out who owns what at the time of the marriage and how the couple plans to divide these assets if they should split up.

Some people, including religious leaders such as Roman Catholic bishop, The Right Rev Mark Davies, argue that deciding how to separate before tying the knot undermines marriage, whereas others simply feel it’s unromantic.

what is a pre0nupHowever, the sad reality is that around 43% of marriages in the UK and Wales end in divorce and if you’re not prepared, you could find yourself in a very unenviable financial situation, as Duncan Bannatyne appears to have done.

A pre-nup is a good idea in most marriages – particularly as couples often tend to get married a bit later nowadays, which means they’re likely to have accomplished some wealth of their own by that time.

The idea of the agreement is to protect or ‘ringfence’ their individual wealth and/or any inheritances they may bring into a marriage, should they decide to separate.

It becomes even more important in the case of marriages/civil partnerships later in life or second marriages/civil partnerships where there may be children from a previous marriage or where one partner moves into the already-owned home of the other.

A pre-nup can contain more than just how to split your wealth – in the US they often contain clauses about how the couple should dress, how often they should exercise and even how often to expect sex!

Are pre-nups legally binding in the UK?

At the moment, no – and that is what the Law Commission is expected to propose next week – to make pre-nups legally enforceable.

But even now, since a landmark decision in Radmacher v Granatino, the court is likely to attach weight to such an agreement PROVIDED the following criteria are met:

  • If both parties entered into the agreement freely
  • If both understood the implications of what they were agreeing at the time
  • It is fair to hold the parties to the agreement

So, how can you make sure your pre-nup is upheld – as the law stands now

  • Obtain independent legal advice, which helps to show both parties understood the agreement.
  • Full financial disclosure (both parties should be 100% honest about what they own) to show that they were fully aware of the financial implications of the agreement
  • The agreement must be entered into freely to prevent one party alleging later that they entered into it under duress or undue influence.
  • Ensure it is realistic and fair
  • Provide for future changes – circumstances change, so most pre-nups should only be valid up until the birth of the 1st child or for up to 5 years.

This is a complex area of the law and one where taking specialist family law advice at the outset could save heartache and dire financial circumstances later on.

Ann Corrigan

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PENSIONS AND DIVORCE

Divorce and Your Financial Plan

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Independent financial Advisor
Paul Gorman
Principal Partner
Beaufort Planning

Going through divorce is a very emotional time, so much so, that it is often very difficult to focus upon and make clear decisions about what you need to do about your finances.

This situation can easily become exacerbated if you’ve had none or little involvement in managing the family finances and it can be very tempting to just bury your head in the sand.

Putting things to one side and leaving them until later, is likely to cost you more in the long run, so as hard as it maybe, the earlier you get to grips with financial matters and a have clear picture of where you stand the better you will be and also probably feel.

You’ll need to gather together financial information for disclosure purposes as part of the divorce proceedings and it maybe, depending upon the process you choose, you are asked by your family lawyer to complete a Form E

In general terms you will need to get an understanding of your income and outgoings and all assets and liabilities.

The gathering of some of this data will be straightforward enough and some may be a little more difficult to obtain.

At this point you may need some professional help and assistance on what to gather and where to go to get it.financial plan

It’s a bit like putting together a jigsaw.

Putting the corners and sides in place are relatively easy. Building and completing the full picture can be both time consuming and difficult, depending on the number of pieces you have in your financial picture and its complexity.

But like a jigsaw, once fully complete and you have all the pieces in place, you will be able to see clearly what your current financial position looks like.

The earlier in the process you and the professionals you work with have a clear understanding of your finances, the sooner you can all work together to consider all of your financial options and start to shape and put together your thoughts on an appropriate settlement.

Taking this first important step will help you achieve clarity and give you a greater understanding of your finances. It will hopefully enable you to be more confident and money matters.

In a following article, I will look in more detail at shaping financial settlements.

Paul Gorman

www.beaufortplanning-westmidlands.co.uk

You may also like Paul’s article on INCOME AND DIVORCE 

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collaborative law

Collaborative Law Explained

Published on
Family Mediation
Austin Chessell

Each person who has decided to separate or divorce in the Collaborative Law process has their own solicitor where meetings take place in the same room with the aim of resolving everything face to face.

I find this works better than correspondence and allows the process to cover a lot more ground rather than waiting for a response to a letter.

Each person and the lawyers sign an agreement with one of the important things being that a financial application will not be made to court. Common matters can include children, finances, relocation or all of these matters.


Collaborative Law Explained?

Once each person has instructed a Collaborative Lawyer there will usually be around 4-5 meetings to discuss the issues ‘around the table.’

Legal advice can be given to the parties during this process.

For Collaborative Law to work everyone needs to work towards reaching an agreement on the matters that have been raised and also agree for court proceedings not to be issued.

If an agreement is reached this can be drafted into a court order.

Collaborative law
Collaborative Law has a high success rate

What can you discuss in Collaborative Law?

  • How to separate in a dignified way that will not destroy the family
  • When to tell the children about the separation
  • Your views on the separation and the other persons view
  • Aim to rebuild communication that make have broken down
  • Legal aid
  • Emotions – In this situation a Family Consultant would usually be part of the
  • Is the family home to be sold or will someone and the children remain
  • Relocation internal and
  • Who and when each parent will care for the children and how to co-parent even though the family is
  • Agreeing a financial outcome that looks at the families interests rather than focussing on positions

 

Other Collaborative Experts

In some cases other professionals work with me. I commonly work with other Mediators, Accountants, Independent Financial Advisors and Divorce Coaches where clients feel this will help the Collaborative Process.

 

Does Collaborative Law Work?

Yes Collaborative Law has a high success rate when separating couples come to the meetings when they discuss possible options and outcomes by being prepared to express and listen to the other persons views in an open and free forum.

 

Austin Chessell is a Collaborative Family Lawyer at Shortlands (www.shortlands.co.uk) and Family Mediator at FAMIA (www.famia.co.uk)

Email: achessell@shortlands.co.uk
Tel: 0207 629 9905
Twitter: @FamilyLawLondon

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