Financial and Legal Advice - Page 2

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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The Document That Could Decide Your Divorce: What You Need to Know About Mortgage Capacity Reports

Published on
Byrne Harris CeMAP
Mortgage Capacity Report Expert
RI at Cornerstone Finance
Founding Member of helpnetwork.co.uk
Affiliate of Resolution and the Expert Witness Institute.

Divorce is one of the most complex events most people will ever go through, and the list of forms and documents can feel overwhelming, but there is one document that often carries more weight in determining the financial outcome of a divorce than almost anything else.

The Mortgage Capacity Report – Understanding what it is, how it works, who can produce one — and crucially, how to challenge one — could make a significant difference to your settlement.

What Is a Mortgage Capacity Report?

A Mortgage Capacity Report sets out, in formal terms, how much each party in a divorce is realistically able to borrow as a mortgage in their own right. This sounds straightforward, but the implications are enormous.

When a court — or a mediation process — is deciding how to divide the matrimonial home and any other assets, it needs to know what each party can afford going forward. Can the spouse who wants to keep the family home genuinely raise the finance to buy the other out? Can the departing spouse afford to purchase a new home of their own? With a room for each dependent? The answers to these questions directly shape who gets what.

This is why the report is so powerful. It is not a vague estimate or a solicitor’s opinion — it is a formal, detailed assessment of borrowing capacity that courts and mediators treat as authoritative financial evidence. Get it right, and it supports your position. Get it wrong — or allow the other party’s report to go unchallenged — and it could shape your financial future for decades.

Only a Qualified Mortgage Professional Can Write One

This is one of the most important points to understand: a Mortgage Capacity Report cannot be produced by a solicitor, barrister, or any other legal professional. The law may be their domain, but mortgage lending is not.

The report must be written by someone holding a CeMAP qualification — the Certificate in Mortgage Advice and Practice, which is the industry-standard professional qualification for mortgage advisers in the UK. CeMAP-qualified professionals understand how lenders assess affordability, how income is stress-tested, how credit profiles affect borrowing limits, and what lenders will and won’t accept. That specialist knowledge is what gives the report its credibility and authority.

These Reports Are Not Beyond Challenge

Here is something that many divorcing individuals — and even some legal professionals — do not fully appreciate: Mortgage Capacity Reports are not regulated by the Financial Conduct Authority (FCA) in the same way that mortgage advice itself is. This matters for one very important reason: They can be challenged. In other words, if their final affordability seems far too low, speak up.

There are two distinct ways to question a report:

  1. The information that was provided to the report writer by your ex. A report is only as reliable as the data it is based on. If income figures are incomplete, if financial commitments are inflated or if the numbers are just wrong? — the conclusions drawn from that data will be flawed. Identifying what information went into the report, and questioning its accuracy or completeness, is a legitimate and often effective line of challenge to be directed at your ex.
  2. The conclusions the writer reached. Even with accurate data, two qualified professionals can reach different conclusions, i.e. optimistic or pessimistic, but if a report does not clearly explain why the assessed borrowing capacity falls below what the standard rule of thumb would suggest — typically 4.5 times gross annual income — then the methodology itself is open to scrutiny. A well-constructed report will walk through this reasoning explicitly: what an age over 47 will bring it down, how debt level and credit score can impact affordability, etc. If that explanation is absent or unconvincing, the report’s conclusions can be directly challenged. In addition, the writer must demonstrate that they had access to the whole market, state clearly that their primary duty is to the court, not the subject of the report, and include a ‘statement of truth’.

This is why the quality of a report matters as much as who wrote it. A good Mortgage Capacity Report is not just a number — it is a reasoned, evidenced analysis that can withstand scrutiny in a formal legal context.

You Can Commission a Report on the Other Party

Many people are surprised to learn this, but it is entirely legitimate to commission a Mortgage Capacity Report on your spouse or former partner — not just yourself. If the other party is claiming they cannot afford to buy you out or is arguing that their borrowing capacity is severely limited, you do not have to simply accept their report at face value.

Using the financial information disclosed in proceedings — which both parties are legally required to provide — a qualified mortgage professional can independently assess what the other party is genuinely capable of borrowing. If that assessment differs significantly from the one they have submitted, it becomes a powerful piece of counterevidence in your case.

This is not about gaming the system. It is about ensuring that the financial picture presented to the court or mediator is accurate, not artificially inflated or deflated to gain an advantage in the settlement.

What Does a Report Cost — and What Should You Expect?

The cost of a Mortgage Capacity Report varies considerably across the market. At the lower end, reports can be obtained from around £99. At the higher end, some providers charge upwards of £400. The price does not reflect the quality — what matters is whether the report is thorough, clearly reasoned, and written by someone with the right qualifications and genuine lending market knowledge.

  1. Ask whether the report will clearly explain any gap between the 4.5x income rule of thumb and the actual assessed capacity.
  2. Ask whether the writer has experience of producing reports for divorce proceedings specifically — this is a different exercise from standard mortgage advice, and experience in the legal context matters.
  3. Ask whether the report will hold up to the kind of scrutiny described above.
  4. If you really want to save time, ask them about Rule 25.3 of the Family Procedure Rules (FPR) 2010. If they can’t answer, hang up and find another supplier.

A report that is poorly constructed, light on reasoning, or based on incomplete data could harm your position. The investment worth making is in a report that is done properly — one that gives a court or mediator everything they need to understand and rely on the conclusions it reaches. A nice bonus is to have it formatted as a regular legal document.

Do Not Let This Document Be an Afterthought

Divorce proceedings involve a great deal of paperwork, and it is easy for individual documents to get lost in the noise. The Mortgage Capacity Report should not be one of them. It directly determines what each party can afford, shapes how property is divided, and carries real evidential weight in front of a judge.

It is a document that requires a qualified specialist to produce, that operates without the safety net of FCA oversight, and that can be challenged — and successfully challenged — if the information it contains or the conclusions it draws do not hold up to scrutiny.

Whether you need a report for yourself, want to commission one on the other party, or need to assess whether a report already in proceedings is as robust as it should be, taking this seriously is one of the most important financial steps you can take during your divorce.

About Byrne Harris CeMAP

Mortgage Capacity Report Expert, RI at Cornerstone Finance, founding member of helpnetwork.co.uk , affiliate of Resolution and the Expert Witness Institute.

After arranging mortgages exclusively for divorcees for many years, Byrne has become an expert on Mortgage Capacity Reports and understands what a critical tool they can be if produced, used and understood correctly.

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Cryptoassets and Divorce: Why Digital Assets Are Becoming a Critical Part of Financial Disclosure

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Louise Mackie
Louise Mackie
Tax Manager
Myna

Divorce proceedings are often financially complex. The increasing prevalence of cryptoassets is introducing an additional layer of difficulty for separating couples and their advisers.

As digital assets become more mainstream, they are appearing more frequently in financial settlements. Yet many individuals involved in divorce proceedings remain unfamiliar with how these assets are held, valued, or disclosed.

This lack of understanding can create a significant information gap. In some cases, one spouse may hold cryptoassets without the other fully appreciating what it is or how it works. In others, digital assets may simply be overlooked because they do not resemble traditional financial holdings such as bank accounts, pensions, or property.

For family lawyers and divorce practitioners, recognising when cryptoassets may form part of the financial landscape is becoming increasingly important.

Why crypto can be difficult to identify

Unlike traditional investments, cryptoassets are not always held through a centralised institution such as a bank or brokerage. Instead, it can be stored in digital wallets that are controlled directly by the owner. These wallets may exist as accounts on exchanges, mobile apps, hardware devices, or encrypted files that store cryptographic keys controlling the assets.

Because of this structure, digital assets may not appear clearly within standard financial documentation. Bank statements might show transfers to a cryptoasset exchange, but the assets themselves sit elsewhere. If an individual uses multiple exchanges or transfers assets between private wallets, tracing ownership can become more complex.

However, this does not mean cryptoassets are invisible. Most major blockchain networks record transactions permanently on a public ledger. The challenge is not that the information does not exist, but that it requires the right expertise to interpret it.

Indicators that digital assets may exist

In practice, there are often clues that cryptoasset holdings may be present. Transactions to well-known exchanges can appear on bank or credit card statements. References to trading platforms or crypto applications may also appear within financial records.

In some cases, individuals may disclose involvement in digital assets but underestimate or misunderstand the value of their holdings. Cryptoasset prices can fluctuate significantly, and assets acquired several years earlier may now be worth far more than originally expected.

For legal advisers, asking clear and direct questions about digital asset activity can be an important first step in ensuring that financial disclosure is complete.

Understanding how crypto is held

Cryptoassets can be stored in several ways. Many investors use exchanges that operate similarly to online trading platforms. Others move their assets into private wallets that they control directly. These wallets can exist as software applications or as physical devices designed to store cryptographic keys securely.

Transfers between wallets are common, and assets can move across different platforms quickly. As a result, reviewing the history of transactions is often necessary to understand where digital assets are currently held and how they have been managed over time.

This process may involve forensic accounting or specialist blockchain analysis in more complex cases.

Tax considerations in divorce settlements

When cryptoassets form part of a financial settlement, tax implications should not be overlooked. In the UK, cryptoassets are generally treated as property for tax purposes. Disposing of them, including selling, exchanging or transferring them in some circumstances, can trigger capital gains tax.

If one spouse transfers cryptoassets to the other as part of a divorce settlement, the timing and structure of that transfer can affect the tax outcome. In some situations, transfers between spouses or civil partners can often take place on a no gain, no loss basis for capital gains tax purposes. Since 2023, separating couples may have up to three tax years after separation to make such transfers.

Valuation is also important as cryptoasset prices can move quickly, agreeing on the value of digital assets at the time of settlement can be challenging.

Increasing transparency around digital assets

Regulatory reporting around cryptoassets is evolving rapidly. Exchanges are under increasing pressure to comply with anti-money laundering requirements and to share information with tax authorities. International initiatives such as the OECD Crypto-Asset Reporting Framework are designed to standardise how cryptoasset transactions are reported across jurisdictions. As these rules are implemented, tax authorities will gain greater visibility over digital asset activity held on regulated platforms.

While cryptoassets once carried a reputation for anonymity, the reality today is more nuanced. Blockchain technology creates permanent transaction records, and as regulatory frameworks develop, the ability to identify and analyse digital asset activity continues to improve.

A growing area of financial complexity

For many separating couples, cryptoassets will simply be one part of a broader financial picture. However, its presence can complicate disclosure and valuation if it is not properly understood.

The key for advisers and individuals alike is awareness and appropriate enquiry. Asking the right questions, recognising the signs that digital assets may exist, and seeking specialist

advice where necessary can help ensure that financial settlements are based on a complete and accurate view of the assets involved.

As digital assets continue to move into the financial mainstream, their role in divorce proceedings will likely become more common. Ensuring that both parties understand how these assets work is an important step toward achieving fair and transparent financial outcomes.

About Louise Mackie

Louise Mackie is a Tax Manager at Myna Accountants, where she leads the firm’s tax team and oversees the delivery of tax advisory and compliance services.

She works with a wide range of clients, including individuals and sole traders, with a particular focus on cryptoasset taxation.

Louise advises clients on the tax implications of digital asset transactions and investments, while also supporting those outside the crypto sector with personal and business tax planning, compliance, and practical guidance.

She is known for translating complex tax rules into clear, actionable advice, helping clients make informed financial decisions.

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What Family Lawyers Should Know About Business Sales in Divorce Settlements

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Edouard Lyndt
Edouard Lyndt
Founder, M&A Advisor
Sundance Financial

Divorce lawyers routinely handle cases where a privately held business is the largest marital asset, yet the business brokerage engagement process often receives less attention than other aspects of the settlement.

When a business needs to be sold, time pressure from court deadlines, mounting legal fees, and the emotional toll of divorce can make it difficult for clients to carefully evaluate broker engagements. A well-structured brokerage agreement protects both parties and supports a smoother transaction.

This article explains the contract red flags lawyers need to spot and how to protect clients navigating a business sale during divorce.

The Small Business Brokerage Market

33 US states require few formal qualifications to operate a business brokerage. Most other states require only a real estate license. Industry estimates suggest only 3,000-4,000 brokerage firms serve 33 million US businesses. This supply-demand imbalance drives commissions up to 15% on successful sales, far higher than the 5-6% typical in residential real estate (albeit partly due to the higher complexity of business sales).

Deal economics also create interesting market dynamics. A broker working on a $10 million transaction earns significantly more than one handling a $2 million business, which naturally draws experienced professionals toward larger deals. This means business owners in the $500K-$3M range—often the core of divorce-related sales—benefit most from careful broker selection.

For a $2 million business, a 12% commission equals $240,000. Understanding this context helps frame the importance of the engagement terms that follow.

Red Flags in Broker Contracts

When helping your client select a business broker, watch for these engagement terms:

Fees for non-performance

While small retainers are relatively common, standard brokerage agreements charge a success fee only when the business sells. Contracts that require substantial payment even if no transaction closes create severe incentive misalignment.

Red flag: A broker who values a small business at $600,000 and requires a $50,000 “minimum fee” that becomes payable if the seller terminates the engagement or the business fails to sell. That is not a retainer or cost recovery mechanism- it is effectively a guaranteed 8% commission, regardless of outcome.

Automatic renewals without exit rights

Some agreements include long initial terms that automatically renew unless the broker agrees to terminate. A contract with a 12-month initial term that automatically renews for another 12 months creates an effective 24-month exclusive period with no seller exit clause.

Divorce timelines rarely align with business sale timelines. If the divorce settles and circumstances change, your client remains locked in.

Excessive tail periods

Tail provisions protect brokers from circumvention by ensuring they are paid if a buyer they introduced closes after the contract ends. Twelve months is commonly seen in the lower middle market.

Red flag: A contract that combines a 24-month term with a 24-month tail, effectively tying the seller to the broker for four years. If a buyer the broker contacted in month one does not close until year three, the broker still gets paid. This creates long-term financial uncertainty that can complicate settlement negotiations.

What Brokers Actually Deliver

A skilled business broker provides pricing guidance, prepares a Confidential Information Memorandum (CIM), assists in organizing a data room, conducts buyer outreach, and manages the transaction process through closing.

The value differential among brokers typically lies in their ability to negotiate and structure a reasonable transaction, while ensuring that business owners are well informed throughout the process.

How to Protect Your Clients

Lawyers do not need to become M&A specialists to materially improve outcomes for their clients. A few practical steps can reduce risk significantly:

Encourage clients to interview multiple brokers.

Different brokers specialise in different industries and business sizes. In particular, you should distinguish between a broker that specialises in business-sale M&A and one that operates primarily as a real-estate intermediary.

Review engagement terms.

Exclusivity periods, tail lengths, commission rates, and termination rights are negotiable. Having yourself or a trusted person familiar with M&A review the agreement can surface problematic provisions early.

Build relationships with vetted advisors before clients need them.

The worst time to evaluate an M&A advisor is when your client has already decided to sell. Brokers often love engaging with lawyers, so build relationships early.

The Bottom Line

Most business owners spend decades building their business. For many, it represents 70-80% of their net worth. In divorce, that asset often needs to be liquidated under pressure.

As your client’s trusted advisor, your role is not to become an M&A expert. It is to recognise where risks lie, ask the right questions, and spot red flags. A brief review of a broker agreement can protect a meaningful portion of the marital estate.

About Edouard Lyndt

Edouard Lyndt is the founder of Sundance Financial, an M&A advisory firm supporting small business owners through their exit. He has worked with leading investment banks, private equity firms, and consulting companies on deals worth hundreds of millions. Edouard holds an MBA from Harvard Business School, where he graduated as a George F. Baker Scholar.

Connect with Edouard Lyndt on LinkedIn
Follow Sundance Financial on LinkedIn
Visit Sundance Financial

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Budget 2025: What Families Need to Know When Planning Separation or Divorce
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Budget 2025: What Families Need to Know When Planning Separation or Divorce

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Emma Davies
Emma Davies
Partner
Nelsons Law

The 2025 Autumn Budget brings several tax and financial reforms that could significantly affect separating couples, especially those with complex assets.

Emma Davies, partner and family law specialist at Nelsons, highlights that these updates make it even more important for families to plan ahead. Below Emma outlines the key changes and what they mean for those preparing for separation or divorce.

November’s Budget introduced a series of reforms that will shape how families manage their finances going through separation or divorce, some of these changes carry significant strategic implications.

While many headlines focused on support for lower-income families, the Budget also introduced reforms to the taxation of wealth, property income and investments. These shifts mean that separating couples, particularly those with complex assets, should take specialist advice earlier and plan their financial arrangements with even greater precision.

  1. Increased tax focus on wealth and asset income

A central theme of Budget 2025 is increased taxation on income derived from assets, including investment portfolios, rental properties and other passive income streams.

Why this matters during divorce

  • Asset-related tax liabilities can directly influence the value of a settlement.
  • Transfers of investment assets or property between spouses, traditionally tax-neutral, may now carry more considerations around future tax exposure.
  • Individuals with diversified portfolios will need to evaluate the tax efficiency of keeping or trading certain categories of assets, especially where maintenance obligations are involved.

The opportunity

This is the time to revisit tax planning, both before and during a divorce. With specialist advice and careful planning it is possible to preserve value and reduce future tax exposures.

  1. Property and investment portfolios require new strategy

Reforms affecting property income and the broader taxation of asset-derived wealth mean that real estate portfolios, buy-to-let interests and investment properties require closer evaluation during a divorce.

Potential impacts

  • Rental income may attract different tax treatment, affecting affordability of ongoing financial commitments.
  • Timing of asset disposals, particularly high-value properties or shares, becomes more important.
  • Practical takeaway

During negotiations, it’s no longer just about who gets what, but who can most efficiently hold a particular asset class going forward and it will be important to work in tandem with your family lawyer and other professional advisers.

  1. Pension and long-term wealth planning take centre stage

The Budget includes reforms to pensions and savings support including caps on salary sacrifice pension contributions which means these schemes will become less tax advantageous.  In turn, this affects long-term financial planning during divorce as the ability of divorcing couples to rebuild their pensions post-divorce needs to be considered and may affect how settlements are structured.

For individuals with substantial pension wealth, this means:

  • Greater scrutiny on how pensions are shared or offset.
  • Increased importance of actuarial valuation to ensure fair outcomes.
  • More strategic use of pensions as part of overall settlement structuring.

Given the complexity, specialist advice is highly recommended when reviewing pension division and post-divorce retirement planning.

  1. Tax threshold freezes: A slow-burning impact

Personal tax thresholds remain frozen, effectively pulling more individuals into higher tax bands over time (“fiscal drag”).

For some individuals, this means:

  • Increased exposure to higher tax rates on both earned and investment income.
  • Potential increases in effective maintenance obligations.
  • More need for forward-thinking cash-flow planning post-divorce.

This change subtly but meaningfully affects long-term affordability and financial planning for both parties.

  1. Changes to family benefits: Relevance for blended and larger families

Although primarily aimed at lower-income families, the abolition of the two-child limit for Universal Credit and related child benefits has indirect implications for separated parents, blended families and households with childcare responsibilities split between homes.

For clients with more wealth, the relevance is twofold:

  • It may affect negotiations where one parent has significantly lower income or earns irregularly (e.g. entrepreneurs, directors, or individuals with fluctuating asset income).
  • Where school fees, childcare, and lifestyle expectations are high, these changes may form part of broader discussions about child maintenance and living arrangements.

  1. The landscape is more complex – early planning is essential

The Autumn Budget 2025 creates a more complicated financial environment for separating couples, particularly those with:

  • High-value property portfolios
  • Significant investment income
  • Businesses or shareholdings
  • Trust structures
  • International assets
  • Large pension pots

Strategic advice at the earliest stage is crucial. The way assets are valued, shared, or retained now carries different long-term consequences than it did even a year ago.

Emma emphasises that, despite the added complexity, with the right advice families can still make informed and confident decisions about their future. If you’re considering separation or are in the early stages of divorce, Nelsons’ family law team can help you navigate the Budget’s implications and protect your long-term financial position.

To find out more about Nelsons’ family team, please visit: https://www.nelsonslaw.co.uk/personal-legal-services/family-law-solicitors/

For more information, please contact Huma Mian or Niamh Tracey at Cartwright on 0115 853 2110.

About Emma Davies

Emma is a partner and head the family law team at Nelsons. She qualified as a Solicitor in 2008 and has been at Nelsons since 2009.
Emma advises on divorce and financial settlements which involve complex issues and substantial assets. She also advises on pre and post nuptial agreements and separation agreements along with private law Children Act disputes. Emma is a qualified collaborative practitioner.
Emma’s areas of expertise include divorce, civil partnership dissolution, financial provision, collaborative law, pre-nuptial agreements, post-nuptial agreements, separation agreements, parental responsibility, child arrangements, and prohibited steps orders and specific issue orders.

About Nelsons: 

Nelsons was established in 1983 and provides support to businesses, individuals and families with their legal and investment needs. Nelsons’ experience and depth of resource has also enabled them to offer services to other solicitors through Fusion Legal – a mutually-beneficial referrals and support network for law firms. The firm is recognised by the leading, independently researched Legal 500 and is recommended by them in more than 20 practice areas. The firm is recommended by Chambers and Partners and also features in The Lawyer’s UK 200 Annual Report of the UK’s largest 200 law firms. Nelsons has offices throughout the East Midlands in Nottingham, Leicester & Derby

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How Hidden Assets Deny Fair Divorce Settlements, and What You Can Do
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How Hidden Assets Deny Fair Divorce Settlements, and What You Can Do

Published on
George Simpson
George Simpson Director of Operations, Investigations and Regulation Services iSanctuary

Every year, thousands of people face unfair divorce settlements because their former partners hide or disguise their true wealth.  In this article, iSanctuary’s Director of Investigations, George Simpson, talks about how hidden assets can be uncovered, and what you can do to protect your financial future.

When the truth about money and assets are concealed

Divorce is often a hugely emotive and stressful event, where even seemingly amicable and open arrangements are later found to have been made in bad faith.  Too often, one party (more often, though not exclusively, women) faces the devastating reality of a partner concealing or obfuscating their wealth to the detriment of the other.

“We see time and again that hidden wealth isn’t always about vast fortunes, sometimes it’s the house that was unknowingly transferred, or the company shares ‘sold’ to a friend,” says George Simpson, an experienced financial crime investigator and Director of Operations at iSanctuary.  “What makes the difference is early identification of the issue, before the trail goes cold.”

Whether through offshore holdings, crypto assets, or conveniently “forgotten” investments, hidden assets can dramatically distort the outcome of a divorce.

The Growing Challenge of Hidden Assets

For those in the UK, the disclosure process is designed to ensure both parties reveal their full financial position.  Unfortunately, some individuals choose to conceal or misrepresent information during this stage, and without expert help, it can often go unnoticed.  Such actions can result in a drastically reduced settlement with potentially life changing consequences in terms of a spouses’ long-term financial stability.

In today’s globalised financial world, funds can be moved across borders instantly.  Crypto assets, offshore structures in opaque jurisdictions make tracing assets increasingly complex.

Women that paused their careers to raise families are disproportionately affected, often simply because they lack access to the full financial picture.

Red flags to watch for include:

  • Unexplained changes in business ownership or spending
  • Delays or evasions during Form E disclosure
  • Transfers to family members or new entities
  • A sudden interest in cryptocurrency or “foreign investments”.

“Every asset leaves a footprint, the challenge is following that footprint through layers of misdirection, and that’s where professional asset tracing becomes an indispensable.”

Practical Steps: Protecting What’s Rightfully Yours

If you suspect your spouse may be hiding wealth, here are five practical steps to safeguard your position:

  1. Act early: Raise your concerns as soon as possible; time is critical in preventing asset dissipation.
  2. Keep everything: Store copies of statements, tax returns, and even old emails, they may reveal inconsistencies.
  3. Engage professionals: Solicitors, forensic accountants, and investigators can collaborate effectively to expose concealed assets.
  4. Know your rights: Under UK family law, both parties are legally required to give full and frank disclosure.
  5. Ask about funding: If you’re financially restricted, specialist funding can help cover investigation and legal fees until your settlement is finalised.

How iSanctuary Can Help

At iSanctuary, our Divorce Asset Tracer service is designed to give clients clarity and control.

This fixed-price investigative service offers an initial assessment of a person’s global asset profile, helping uncover what’s missing from disclosure documents and providing the client with sufficient information to inform their decision making and develop a negotiation strategy.

For more complex cases, iSanctuary’s full-suite of investigative services combine traditional field expertise with advanced technology to trace crypto assets, reveal offshore holdings, and build robust evidence for court if required.

Our reports are legally defensible in UK proceedings, and our investigators, including George Simpson, are available to provide expert witness testimony.

“Our work isn’t about confrontation, it’s about restoring fairness and creating a level playing field.  We help clients see what’s really theirs and ensure settlements reflect reality, not manipulation.”

The Human Impact, and the Hope

Hidden assets don’t just skew numbers on a spreadsheet.  They determine whether someone can afford a safe home for their children, continue schooling without disruption, or simply move forward without financial anxiety.

“It’s powerful when we can give someone the evidence to walk into court with confidence, knowing they have the truth on their side.”

Take the First Step

If you believe your spouse or partner may be hiding assets, don’t delay.  Hidden wealth can be traced, but timing and expertise matter.

You can contact iSanctuary for a free, confidential consultation and learn how our Divorce Asset Tracer service can help you protect what’s rightfully yours.

Email Tim Gilkison in confidence at: tg@isanctuary.io

https://isanctuary.io/asset-tracer-divorce/

 

About George Simpson and iSanctuary

George Simpson is Director of Operations, Investigations and Regulation Services at iSanctuary.  He is a highly experienced professional with specialist knowledge and proven experience in law enforcement and financial services regulation in the context of a broad range of financial crime settings. George has worked in specialist departments within New Scotland Yard, precursor agencies of the National Crime Agency, and latterly the Financial Conduct Authority.  His expertise includes the investigation and successful prosecution of ground-breaking serious and complex fraud and money laundering cases.  George has extensive knowledge of the UK’s regulatory anti-money laundering and counter terrorist financing regime.

iSanctuary is a specialist intelligence and investigations firm uncovering hidden wealth and undisclosed assets worldwide.  With over $1 billion in assets identified, the company provides legally defensible investigations that help clients achieve fair and transparent financial outcomes in divorce and litigation.

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New Guide to International LGBTQ+ Laws
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New Guide to International LGBTQ+ Laws

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David Allison
David Allison
Director & Mediator
Family Law in Partnership

It’s hard to believe in 2025 that consensual sex between same-sex individuals is still criminalised in a third of the world and there are countries which retain the death penalty.

An exciting and informative international guide of the laws affecting the LGBTQ+ community has been published by the International Academy of Family Lawyers (IAFL) with contributions from specialist family lawyers across the globe.  The guide includes contributions from 56 legal jurisdictions, including several within Africa and the Middle East. 

Each contributor was asked the same set of questions covering topics including the legality of same-sex relationships and gender identity (including legal penalties), relationship status and marriage, as well as parenting.

Whilst there are some bright spots with proper equality before the law for LGBTQ+ individuals, progress is still slow and in parts of the world there has been a worrying regression. For example, in 2021, a Bill titled, “Promotion of Proper Human Sexual Rights and Ghanaian Family Values Bill” was presented before Ghana’s 8th Parliament. The primary objective of this Bill was to explicitly outlaw activities associated with LGBTQ+ identities and related practices, including gender identity and gender-affirming treatments.

FLiP director, David Allison, Chairs the Sexual Orientation and Gender Identity Committee (SOGI) of IAFL. He launched the guide at the IAFL’s Annual General Meeting in Kenya, where homosexuality is currently illegal and punishable by 14 years in prison.

He says:

“There is no other guide on this topic that provides expert insight from the very people who act for clients in these cases, in their own words.  It will be an invaluable resource for many. 

We intend for this guide to be a living resource, which is updated regularly to reflect changes in the law, and we want to find contributors in more countries.  Please do get in touch if you are willing to contribute or know of suitably qualified people who can provide information about jurisdictions which are not included in the guide.”

As IAFL President, Rachel Kelsey says:

“IAFL supports all efforts towards full equality of the LGBTQ+ community throughout the world, and the end to rules that discriminate against such individuals and their families. There remains a lot of work to be done and this Guides is part of our contribution.”

You can access the guide at: www.iafl.com/news-blog/2025/sexual-orientation-and-gender-identity-guide/ 

In Kenya David worked with the National Association of Gay & Lesbian Human Rights Commission based in Nairobi on a press release for IAFL. The press release was issued at the General Meeting calling for the elimination of laws that unfairly discriminate against LGBTQ+ citizenry and criminalize countless couples in Kenya.  You can find that release at https://www.iafl.com/news-blog/2025/statement-in-support-of-lgtbq-kenyans-refugees-and-asylum-seekers\

Read more articles by Family Law in Partnership.

About David Allison

David specialises in financial claims on divorce, especially cases with an international element. He has extensive experience in cases where jurisdiction is an issue and those which involve claims for financial relief after an overseas divorce. He is also well known for his work for cohabitants, same sex couples, and civil partners. You can find out more about his work here.

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Why Prenups are Losing Their Stigma - and Why More Couples Should Consider Them
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Why Prenups are Losing Their Stigma – and Why More Couples Should Consider Them

Published on
Fiona Lazenby
Fiona Lazenby
Partner – Family
Knights

Prenuptial agreements have made a comeback into the spotlight recently – not least after Jeff Bezos tied the knot with Lauren Sánchez earlier this summer. While they continue to often be branded ‘unromantic’ or ‘pessimistic’, these agreements are quietly becoming more mainstream, with growing numbers of millennials and everyday couples separating themselves from traditional perceptions and exploring them as a pragmatic way to protect assets and ensure financial clarity in the event of divorce.

As a family specialist at national leading law firm Knights, Jane Livingstone has seen first-hand how prenups have evolved from being a niche, often misunderstood concept into a recognised mechanism that can bring clarity and security to relationships.

What is a prenuptial agreement really for?

A prenuptial agreement, commonly known as “prenup”, is effectively signed before marriage, setting out how a couple would regulate or separate finances should the marriage later break down. 

They’re often associated with situations where one spouse has significantly greater wealth, owns a business, expects to inherit or wants to protect a family asset. Increasingly, however, couples with more modest means have started to recognise the value of deciding these matters early rather than leaving everything to chance. 

While the Supreme Court has recently ruled that on divorce, spouses should share the assets they build together, they need not share assets received from their families or inherited, known as non-matrimonial assets. However, such assets can become ‘matrimonialised’, depending on how they’re used during the marriage. A prenup is a useful tool to clarify that certain assets, such as gifts, inheritances, or family wealth, are to remain outside the pool of shared assets, even if circumstances change during the marriage.

Similarly, if a spouse inherits or receives family wealth after the marriage has begun, a postnuptial agreement can serve the same purpose, offering protection and clarity at any stage of the relationship. 

Where the change of heart comes from among younger generations

With many people deciding nowadays to walk down the aisle later in life, they often enter marriages with more established careers and accumulated assets. Many would’ve also witnessed, within family or friends, the financial fallout and emotional strain of divorce, making them more conscious of planning ahead.

Far from being a sign of mistrust, most couples find that talking openly about their finances before marriage brings them closer. As morbid as it may sound, it’s not unlike writing a will: it’s rarely done in expectation of the worst, but to provide clarity and peace of mind.

Are prenups legally binding?

Prenups aren’t automatically legally binding in England and Wales. Courts retain discretion to decide what is fair, especially in cases involving the needs of children.

However, if a prenup is properly prepared – with full financial disclosure, independent legal advice for both parties, and fair, realistic terms – it will carry significant weight. In practice, this often means that a well-drafted prenup does exactly what it’s intended to: reduce conflict and avoid lengthy, expensive and unnecessary disputes. 

Who can benefit and what assets can be covered?

While high-profile examples like Bezos make headlines, prenups are valuable for anyone who wants to protect particular assets, spanning across family businesses, inherited wealth, property purchased before marriage, savings or investments built up independently, and trust funds. 

For business owners, a prenup can be particularly constructive. Without one, divorce can trigger intrusive business valuations, disrupt operations, and create liquidity pressures. Agreeing in advance on how the business will be treated helps protect its stability.

Prenups can also address responsibility for existing debts, ensuring that personal liabilities remain personal rather than becoming joint obligations.

Importantly, these agreements aren’t standard templates – they’re tailored documents, drafted to reflect each couple’s unique circumstances and priorities.

Common misconceptions

One of the most enduring myths is that prenups are only for the very wealthy. The reality is now shaping these agreements differently, as prenups have been increasingly used by couples with moderate wealth who simply seek clarity and fairness. 

Another misconception is that discussing a prenup is cynical or unromantic. In practice, most couples who choose to have these conversations find it reassuring, providing peace of mind and establishing respect for each other’s financial futures, which can hugely reduce anxiety.

How to get it right

The process by which a prenup is created is as important as its content. Some key points:

  • Start early: don’t leave it until weeks before the wedding, but aim to finalise the agreement well in advance, ideally several months before the big day.
  • Full disclosure: both partners must share an honest, detailed picture of their finances. Attempts to withhold disclosure or inaccurately disclose fundamental information could lead to the agreement not being upheld.
  • Independent legal advice: each person should seek separate legal advice to show they understand and freely agree to the terms.
  • Fairness: the agreement must be reasonable and account for both parties’ needs.

If a prenup appears rushed, one-sided or signed under pressure, it’s far less likely to hold up in court.

Keeping it up to date

Life changes, and so should a prenup. It’s sensible to review it every few years or after major events, like the birth of a child or receiving an inheritance. If needed, updates can be formalised to keep the agreement aligned with the couple’s current situation.

Final thoughts

A prenup won’t remove every risk and courts still have a duty to ensure outcomes are fair. But for many couples, it paves the way to a clear plan, agreed together. 

At its best, a prenup isn’t about expecting divorce – it’s about protecting what matters most, reducing future conflict, and entering marriage with openness and confidence. That’s why, stigma aside, more couples are realising that love and pragmatism can go hand in hand.

Read more articles by Knights.

About Fiona Lazenby

Fiona Lazenby is a partner in the family team at Knights. Working with landowners and farming families to entrepreneurs, lottery winners and football club owners, she specialises in helping to negotiate the property and financial repercussions of relationship breakdown as well as resolving disputes over children’s living arrangements and wellbeing. Her high-net-worth clients have assets into the hundreds of million pounds. With expertise in the treatment of assets held in offshore trusts her clients are supported in both the UK and internationally.

She also advises clients on wealth protection when they decide to marry or cohabit, and prepares pre-nuptial, post-nuptial and cohabitation agreements to safeguard inherited wealth or business value created before marriage.

Seeking the best possible outcome for clients underpins her approach and she has often faced national media on their behalf.

She is also a member of the Law Society Family Advanced Panel in respect of complex assets.

About Knights

Knights is one of the fastest-growing legal services businesses in the UK, delivering high-quality services to more than 10,000 business clients from 26 offices nationwide.

Knights is ranked within the top 50 UK law firms by revenue – with specialists in all key areas of corporate, real estate and commercial law. Its extensive expertise is consistently strengthened through its acquisitions and the recruitment of high-calibre talented professionals.

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Breaking Up is Hard to Do: Separation, Finances and Children for LGBTQ+ Families
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Breaking Up is Hard to Do: Separation, Finances and Children for LGBTQ+ Families

Published on
Joe Ferguson
Joe Ferguson
Family Law Solicitor
Myerson Solicitors

The end of a relationship is never easy, but for LGBTQ+ couples, navigating the legal and emotional aspects of separation can come with distinct challenges. For LGBTQ+ families knowing your rights is vital – particularly if your family has been formed through surrogacy, adoption or other routes that can carry additional legal considerations.

In this article, we explore how separation works for same-sex and LGBTQ+ couples, how financial matters are resolved, and what options are available when children are involved.

Ending the relationship: divorce and civil partnership dissolution

LGBTQ+ couples have had the legal right to marry since 2013 in England and Wales, and civil partnerships continue to be recognised. Both marriage and civil partnerships can be formally ended through the family court – divorce or dissolution, respectively – and the process is now based on a no-fault system. This means that neither party needs to prove wrongdoing for the legal process to begin.

Whether it is a divorce or a dissolution the procedure is the same: an initial application, followed by a conditional order, and finally, a final order to formally end the marriage or civil partnership.

But while the legal framework is the same for all couples, LGBTQ+ individuals may face different questions when it comes to resolving finances and parenting arrangements, particularly when their relationship pre-dated legal recognition.

Financial matters: reaching a fair outcome

Financial settlements can be one of the most emotive and difficult topics to brooch following separation. Like opposite-sex couples, same-sex spouses and civil partners are entitled to a full range of financial remedies. These can include:

  • Lump sum payments
  • Spousal maintenance
  • Property transfers or sales
  • Pension orders
  • A clean break, ending future financial ties

The court will assess the financial resources, needs and contributions of each party amongst other factors, and aims to reach an outcome that is fair and meets the needs of the parties and any children involved.

However, there can be added complexity when considering assets that were acquired before marriage – especially for couples who lived together for many years. Determining whether these assets are “marital” or “non-marital” can become a key issue, particularly where significant property, pensions or savings are involved. Cohabitation alone does not automatically give rise to legal rights, though it is typically taken into account that any period of seamless cohabitation prior to the date of the marriage or civil partnership when determining the length of the marriage. Accordingly, timelines and clear evidence of cohabitation is often required. It should be noted of course that many LGBTQ+ couples were unable to enter into marriage or civil partnership previously owing to the lack of provision within the law for them. Accordingly, these arguments can be important as evidence of the enduring relationship between the parties. 

Children: supporting parenthood in all its forms

For LGBTQ+ families, parenting often involves a range of routes – from adoption and surrogacy to donor conception. These arrangements can create additional legal considerations during a separation.

The starting point is to establish parental responsibility: the legal authority to make decisions about a child’s health, education, and welfare. Biological and adoptive parents usually have parental responsibility automatically, but others (such as non-birth parents in a surrogacy arrangement) may need to apply for parental orders, declarations of parentage or child arrangements orders. 

If both parents are legally recognised, they may choose to agree parenting arrangements voluntarily. Options include:

  • Mediation: This process can help couples reach agreement on how children will be cared for, where they will live, and how contact will work. Mediation is not legally binding but can lead to a more amicable, cost-effective solution.
  • Collaborative law: This process enables separating couples to work together with trained professionals to resolve disputes without going to court. Everyone agrees to work together as a team to resolve disputes without going to court. 
  • Negotiation: working with solicitors, with the benefit of independent legal advice, to work out what would be best for their family, avoiding costly and potentially acrimonious court proceedings.

If agreement cannot be reached, the family court can make a Child Arrangement Order which is legally binding and sets out the child’s living and contact arrangements. The court’s priority is always the child’s welfare.

Planning ahead for a smoother separation

While the legal system provides equality on paper, LGBTQ+ families may still encounter unique issues when relationships end. The reality is that the law in this area is continues to evolve but has not caught up to the social realities of life as an LGBTQ+ person and the unique family dynamics which are increasingly commonplace. The key to navigating these challenges is early advice and a tailored, bespoke approach that reflects the structure of your family, the history of your relationship, and the complexities involved.

If you are an LGBTQ+ individual facing the challenges associated with separation and need assistance, the team at Myerson Solicitors are here to support you with clarity, empathy and practical expertise.

Read more articles by Myerson Solicitors.

About Joe Ferguson

Joe Ferguson is a solicitor in the Family Law team at Myerson Solicitors. He specialises in divorce, financial remedy proceedings, and complex children matters, with particular expertise in supporting LGBTQ+ clients through family law issues with sensitivity and pragmatism.

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Thinking About A Prenup? Divorce Solicitor Answers Your Most-Googled Questions
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Thinking About A Prenup? Divorce Solicitor Answers Your Most-Googled Questions

Published on
Sophia Yau-Rosher
Sophia Yau-Rosher
Director
Beecham Peacock LLP

The celebrity world is abuzz with yet another high-profile divorce case. Billionaire and former record executive, David Geffen, has filed for divorce from his 32-year-old dancer husband, David Armstrong. The marriage only lasted two years, and despite the 82-year-old being worth a reported $8.7 billion, the couple did not sign a prenup.

Although the majority of us won’t have anywhere near as much wealth to protect, it’s important to protect your future, ensuring that your assets remain protected in the event of a divorce. The first three months of 2024 alone saw 27,908 divorce applications, with 21,662 final orders also granted.

With more and more engaged couples entering into marriage with a realistic viewpoint, prenups are becoming more commonplace than ever. The popularity of prenups has risen by 60% in recent years, with postnup agreements seeing an increase of nearly 185%.

If you – like 31% of couples who now have a prenup – are anxious around the concept of tying your assets to your relationship, you will likely have some questions. Expert divorce solicitor Sophia Yau-Rosher – from Newcastle-based divorce solicitors Beecham Peacock – answers the top ten most-Googled prenup questions per month, helping you stay informed ahead of your marriage.

1. What is a prenup?

“Put simply, a prenup is a legal document that two parties agree to before they marry, or enter a civil partnership,” Yau-Rosher explains.

“The document sets out the financial responsibilities of both parties and allows for the protection of certain assets, including property, investments, inheritance and more in the event of a divorce. It also outlines which party is responsible for specific debts and other financial issues, should the marriage or civil partnership come to an end.

“A prenup can provide protection and offer clarity for both parties in the event of a difficult or contentious divorce.”

2. Can you change a prenup?

“Ahead of your marriage, you can make as many changes to your prenup as you like,” Yau-Rosher assures. “As long as both parties have sought independent legal advice and feel comfortable with the changes, there is no reason why amendments cannot be made to the document before it is signed.

“However, after you are legally married, you cannot change or modify your prenuptial agreement. If your financial or emotional circumstances change during the course of your marriage and the prenup is no longer relevant, you can consider a postnuptial agreement – or postnup – which carries the same kind of legal weighting.”

3. Are prenups legal in the UK?

“Your prenup is not legally binding in either England or Wales. A court will not automatically enforce the terms of your prenup in the event of a divorce. However, a prenup that both parties have freely entered into will likely add weight to any court arrangements.

“If both parties concerned have disclosed their full financial situations and received independent legal advice pertaining to the prenup, the court will usually give considerable legal weight to the agreement during any financial disputes.”

4. What does a prenup do?

“Essentially, a prenup safeguards any assets that you or your partner bring to the marriage, protecting your interests in the event of a divorce. It also deals with the financial impact of any inheritance, dependents – such as current or future children – and any shifts in earning potential.

“Your prenuptial agreement provides you and any children from previous relationships with financial reassurance in the case of divorce,” Yau-Rosher explains. “It is not a sign that either party is unsure about the marriage, but rather a sensible step in future financial planning.”

5. Can you write your own prenup in the UK?

“As prenuptial agreements are not legally binding documents, you can pen your own in the UK. However, in order for the court to take your prenup seriously in the event of a divorce, it needs to be prepared in a specific way.

“I always advise my clients to seek professional legal assistance in drafting their prenup, as DIY agreements often don’t stand up in court,” Yau-Rosher counsels. “This way, you can ensure that the document is put together in a way that will protect and benefit both parties, if it is required in the future.”

6. What cannot be included in a prenup UK?

“There are a number of strict rules regarding what can and cannot be included in a prenuptial agreement in the UK. If these rules are not obeyed, it could lead to your prenup losing all legal weight in court.

“Your prenup should not include any personal or lifestyle issues, references to child support, visitation rights or child custody, or discussion of matters that could be deemed ‘unfair’ for one or both parties. A family law solicitor can help you draft a prenup that adheres to these rules.”

7. How much does a prenup cost?

“The cost of a prenup varies, but the majority of professional solicitors in the UK will charge £2,000–£5,000. The more complex your financial situation and the larger your wealth, the more your prenuptial agreement is likely to cost.” Yau-Rosher explains.

8. How do I get a prenup?

“The first step in securing a prenup is always to seek professional legal advice from a family law specialist. Both parties should seek their own independent legal counsel. You will then be required to provide your chosen solicitor with a full run-down of your current financial situation, along with any information about debts, income and inherited wealth. The solicitor can then draft the document.

“Once both parties are satisfied, the prenuptial agreement can be signed in the presence of the solicitors and independent witnesses. Ideally, the prenup should be signed at least 28 days prior to the signing of your marriage or civil partnership certificate.”

9. Can you cancel a prenup?

“Cancelling a prenup is a complex process, but can be achieved under specific circumstances. For example, if the prenup is deemed unconscionable at the time of signing, due to a lack of legal advice or due to one party being under pressure or duress to sign.

“If you can prove that your partner has committed fraud or deliberately misrepresented their finances, this constitutes another reason for cancellation of the prenup,” Yau-Rosher says. “A prenup may also be deemed invalid if the financial situation of one or both parties has changed significantly, making the original agreement unfair.”

10. What is a postnuptial agreement?

“A postnuptial agreement is very similar to a prenuptial agreement, aside from the fact that it is drafted and signed after the marriage or civil partnership, rather than before.

“You can opt for a postnup instead of a prenup, or mutually agree to replace the original agreement with a postnup if your or your partner’s financial situation changes significantly after you marry or enter into a civil partnership.

“Due process must still be followed and both parties must still seek independent legal advice to ensure that the postnup holds a similar legal weighting to a prenup if required in court.”

“If you are considering entering into a prenuptial or postnuptial agreement, seeking independent legal advice is always the best first step. Communicate your intentions and any concerns with your partner to ensure that you both enter the agreement with shared goals and a realistic outlook when it comes to your finances.”

Read more articles by Beecham Peacock Solicitors.

About Sophia Yau-Rosher

Sophia Yau-Rosher is a Director at Beecham Peacock Solicitors. Beecham Peacock Solicitors are a trusted divorce solicitors based in Newcastle Upon Tyne, and they know how important it is for your divorce settlement to be treated with the utmost respect and care.

They have countless experiences handling intricate divorce proceedings, so they understand that the process needs to be quick, smooth and respectful for both parties involved.

If you are getting a divorce, ending your civil partnership or even just agreeing to the terms of a separation, their talented divorce lawyers will make sure you are supplied with the most current and prudent advice to deal with the money, assets and property belonging to both parties.

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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

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Common Financial Mistakes to Avoid During and After Divorce
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Common Financial Mistakes to Avoid During and After Divorce

Published on
Nicki Mitchell
Nicki Mitchell
Partner
Jones Myers

Sponsored post by Jones Myers.

The fear of starting all over again and all the financial worry that can bring with it can understandably have a profound effect on many people going through divorce or separation.

This fear can be particularly acute for those who have not had to deal with financial practicalities such as tax, standing orders and direct debits during their relationship.

If you are going through divorce or contemplating it and are concerned about future finances, this article will help to keep you on the right financial track throughout your divorce and beyond.

Be Open and Honest

Not sharing financial information during a relationship can contribute to problems during divorce proceedings.

One spouse may have no idea where the budget line is – or even where it should be drawn – and may have unrealistic expectations of what they are entitled to, or what is a realistic and affordable.

One spouse may have hidden savings or income from the other or scrutinised the other’s spending without being transparent about their own. On divorce, there is nowhere to hide. It is fundamental that both spouses fully and frankly disclose everything they have to each other as a starting point for an informed negotiation.

The Importance of Financial Disclosure

In every divorce, separating couples must provide to the other full details of their assets, income, pension and liabilities.   This is known as financial disclosure.

Financial disclosure ensures that both spouses can make fully informed decisions about what they consider to be a fair settlement. A failure to disclose anything material to the settlement can in some cases lead to an agreement being set aside. Lawyers and judges know every trick in the book and will ask questions if they suspect that money has been concealed. They may even employ forensic accountants to track down missing assets.

Don’t be tempted to hide money in offshore banks. These still have to be disclosed.  If you do not provide everything that is necessary to understand the financial position, family courts have the power to question your accountant, your financial advisor and even your bank manager.

Setting up a new business shortly before separation may well be seen as suspicious or even a deliberate attempt to hide assets.  Taking steps designed to put money beyond the reach of your spouse could lead to injunctions being made against you, freezing assets, or ordering the return of monies from third parties.  In the long run, actions such as these are highly unlikely to succeed and will almost certainly damage your credibility in the eyes of the court.

The Penalties of Concealing Assets

If it later comes to light that you have withheld material financial information during the financial disclosure process, your spouse might be able to ask the court to set aside the Financial Consent Order and relook at what would be a fair order – taking into account all the assets, including those not previously disclosed.

The court can also make an order that you pay your ex’s legal costs. In the worst-case scenario, deliberately withholding financial information in breach of a court order can amount to a contempt of court for which a range of penalties (including ultimately imprisonment) could be imposed.

Include Pensions in Financial Settlements

Frequently overlooked in financial settlements, pensions are frequently one of the most valuable assets of a marriage. They often make up the second highest- value asset in a divorce settlement after the family home – or sometimes the highest.

It is key that information about pensions is made available in the financial disclosure process which must include details of all pensions, including state pensions – and the value of each one.

The most common way in which a disparity in pensions is addressed in a divorce settlement is pension sharing.  Pension sharing splits the pensions immediately and provides a clean break

As an alternative, in some cases ex-spouses prefer to take a greater share of the equity in the family home or other capital, as a trade-off for a share of the other’s pension.

Some divorces may involve several pension arrangements so it is important to consider which arrangements should be shared, and to what extent.  Pensions are complex and, save in very straightforward cases with pensions of limited value, it is important to get specialist advice about them before agreeing a settlement.

The pension share may be internal (when the recipient becomes a member of the scheme) or external when the share must be invested in an existing or new arrangement of the receiving party. Care should be taken to obtain details of the cost of any transfer.

In deciding what is best for them, the couple need to consider how their respective financial needs will be met and what other assets are available for distribution.

Consider Financial Planning

It can be helpful to have financial advice during settlement negotiations.  Many financial advisers use cashflow modelling, which can be a valuable way of how different settlement options might pan out in the future. In processes such as collaborative practice or mediation, it is quite common to bring a financial adviser into the process as a neutral to help the discussions.  Further financial advice can then be taken on an individual basis when settlement terms are clear.

Get a formal Financial Order

Once a financial settlement is agreed, it is almost always best for the terms agreed to be made final and binding in a court order. This is a legally binding document which details the main assets owned by divorcing couples and sets out the financial arrangements agreed between them. The terms of an order are binding and can be enforced through the courts if there are any problems putting those terms into effect.

It is important to understand that the divorce process itself does not dismiss financial claims which  can be pursued many years after the divorce has been finalised provided the person bringing the application has not remarried. Putting off the conversation at the time of separation can sometimes just be kicking the can down the road.

Try to avoid exceeding your budget

I am not a financial adviser, but these are some pointers which might be useful to think about:

  1. Create a ‘to do’ list of all things financial (bills etc) and an aspirational list to set goals for enjoyable things such as treats and breaks
  2. Consider having two bank accounts – one for day-to-day expenses for the house, food, car and associated expenses, direct debits, standing orders and credit card payment. The second is for setting aside some savings for exceptional expenses such non-essential clothing, holidays, and house repairs.
  3. Set out the absolute and exact payments needed every month for your house and family
  4. Know when your maintenance payments arrive and budget accordingly. Ensure standing orders don’t go out before your monthly payments are due in
  5. Apply to your Council for a 25% council tax discount. The concession applies if you are on your own or have younger children
  6. Expand your support network if you’re on your own or have children. Now is an ideal time as the country emerges from lockdown
  7. Take professional advice on preparing and budgeting for your own retirement
  8. Make a will. If you have a pension or life assurance, ensure it includes your chosen beneficiaries and is updated. Review it every few years.
  9. Stay healthy in body and spirit – try new things. You could also consider engaging a life or Divorce coach who specialises in helping people in your situation prepare for their new future

Spousal Maintenance and Child Maintenance

Remember that Spousal Maintenance will usually be paid for a period of time to enable you to adjust to financial independence or when your financial needs are reduced, for example, when your children finish school or university, or leave home.

Be aware that your spousal maintenance will stop if you remarry or enter into a civil partnership or if either of you dies. It could also be affected if you meet a new partner and move in together

It is also important to plan for when child maintenance – which is mandatory for both parents for children under sixteen and youngsters under twenty who are still in full time education – comes to an end.

As part of our holistic approach, Jones Myers advises and guides our clients through the stages of divorce during and after their divorce.

A champion of non-confrontational divorce and resolving issues in a spirit of collaboration and cooperation, our extensive expertise includes alternative to avoid courts which include mediation and collaborative family law.

Our pre-divorce and post- divorce support includes helping them to stay on the right financial track as they embark on the next chapter of their lives.

Read more articles by Nicki Mitchell.

About Nicki Mitchell

With extensive experience in family law, Nicki specialises in the financial aspects of relationship breakdown – and particularly complex cases involving family businesses, multiple properties, and complicated pension arrangements.

A skilled Mediator, Child Inclusive Mediator and Collaborative Family Lawyer, Nicki champions Alternative Dispute Resolution processes which avoid a lengthy court process and can lead much more quickly and cost effectively to a successful resolution.

Her exceptional track record also includes advising clients on the more traditional methods of resolving issues surrounding family breakdowns.

Direct Dial: 01904 202553 or email  Nicki.mitchell@jonesmyers.co.uk. Website: www.jonesmyers.co.uk

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Investing After Divorce: Securing Your Future Financially
Photo by Towfiqu barbhuiya on Unsplash
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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

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