Financial and Legal Advice - Page 3

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.

No-Fault Divorce Doesn’t End Everything: Why You Still Need a Financial Consent Order
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No-Fault Divorce Doesn’t End Everything: Why You Still Need a Financial Consent Order

Published on
Sarah Hawkins
Sarah Hawkins
CEO
National Family Mediation (NFM)

This article is for informational purposes only and does not constitute legal advice.

When no-fault divorce came into effect in England and Wales in April 2022, it was seen as a much-needed shift toward a more respectful, less confrontational way to end a marriage. And for many couples, it has delivered on that promise—removing blame and encouraging a more constructive path forward.

But here’s the catch: while the legal end of a marriage is now simpler, financial separation is often left unresolved. This misunderstanding can lead to serious complications down the line.

The Common Misconception: Thinking Everything’s Already Settled

With the ability to complete a divorce online in just a few steps, it’s easy to assume that everything—money, property, pensions—is automatically taken care of, especially when the split is amicable.

It’s not.

“A divorce legally ends a marriage, but it doesn’t end the financial relationship between ex-spouses.” – Sarah Hawkins, CEO, NFM

Unless you obtain a court-approved financial consent order, either party can make financial claims in the future—even years after the divorce is finalised.

What Happens Without a Financial Consent Order?

At NFM, we regularly see people return to mediation long after their divorce, unaware that their financial ties were never legally closed. The consequences can be significant:

  • A house purchase falls through when a buyer realises their ex could still have a claim on the equity.
  • Retirement plans are disrupted by surprise claims on pensions
  • Second marriages become legally complicated due to unresolved financial obligations

Without a consent order, your financial past may unexpectedly resurface.

What Is a Financial Consent Order?

A financial consent order is a legal document that formalises the financial arrangements you’ve agreed with your ex. Once approved by a judge, it becomes legally binding and prevents either party from making further financial claims.

You don’t need to go to court in person to get one—but you do need to go through the right process. And while it’s often associated with disputes, it’s just as important when both parties are in full agreement.

Making It Legal: Your Options for Getting a Consent Order

Mediation is often the best starting point, especially for couples who want to avoid unnecessary conflict or legal costs. It helps both parties reach a fair agreement in a calm, structured setting.

Once an agreement is reached, there are several ways to make it legally binding:

  • Do it yourself – If you agree on everything and feel confident managing the paperwork, you can draft your own consent order and apply to the court for approval. Guidance is available on the GOV.UK website.
  • Get legal advice – A solicitor can review or help draft the order to ensure it’s fair and likely to be accepted by the court. Judges can reject a consent order if they suspect one party may have been disadvantaged.
  • Use a solicitor service – At NFM, we offer NFM LegalEyes, a service that connects clients with qualified solicitors who can prepare the consent order – leaving you just needing to submit to Court.

How NFM LegalEyes Works:

  1. You agree on how to divide finances through mediation.
  2. A solicitor drafts the consent order and completes the required paperwork.
  3. You submit the consent order
  4. If the judge finds it fair, the order is granted—and your financial arrangements are legally finalised.

Help with Costs: Legal Aid and the Mediation Voucher Scheme

Worried about costs? Support is available.

  • Legal Aid is still available for family mediation for those who qualify.
  • The government’s Family Mediation Voucher Scheme offers up to £500 toward mediation costs for separating families with children.

These schemes make it easier for families to access professional help early—often avoiding more expensive issues later on.

Why Mediation Still Matters—Even with No-Fault Divorce

Some assume that because no-fault divorce removes the need to assign blame, mediation is less important. The opposite is often true.

Mediation:

  • Encourages calm, cooperative conversations
  • Helps you focus on what’s best for your children
  • Reduces long-term legal and financial risks
  • Leads to more sustainable, tailored agreements

“Most people going through divorce simply want to move on—securely and with dignity. That means more than ending a marriage; it means drawing a clear legal line under the relationship.” – Sarah Hawkins

Final Thoughts: Don’t Leave Loose Ends

No-fault divorce has simplified one part of the process. But it’s just as important to bring financial clarity and closure to your separation.

If you’ve already divorced without a financial consent order, it’s not too late—you can still apply for one. If you’re just starting out, make sure it’s part of your plan.

Ending a marriage should include ending financial ties—formally, fairly, and for good.

About Sarah Hawkins

Sarah Hawkins is the CEO of National Family Mediation (NFM), the largest provider of family mediation services in England and Wales. A passionate advocate for conflict resolution and family wellbeing, Sarah has over 20 years of experience helping families navigate the emotional and legal challenges of separation and divorce.

📍 www.nfm.org.uk | 📧 info@nfm.org.uk | 📱 @FamilyMediationNFM

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Financial Claims for Stay-at-Home Parents Upon Divorce: What You Need to Know
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Financial Claims for Stay-at-Home Parents Upon Divorce: What You Need to Know

Published on
Stephanie Kyriacou
Stephanie Kyriacou
Managing Associate
Freeths

When a marriage breaks down, financial settlements can be particularly complex where one spouse has sacrificed their career to raise children. In England and Wales, the law recognises this contribution and provides a framework for fair financial division under the Matrimonial Causes Act 1973. This contrasts sharply with the legal position of unmarried cohabitees, who have far fewer rights.

Cohabiting couples in Britain account for nearly 1 in 5 families and are the fastest growing family type – with almost 3.6 million opposite-sex cohabiting couple families. Despite this, when a cohabiting couple’s relationship breaks down, the law treats them as though they were two completely unconnected individuals with no basic legal protections.

Financial Claims Under the Matrimonial Causes Act 1973

A stay-at-home parent who has put their career on hold for the benefit of the family may be entitled to substantial financial relief upon divorce. Under the Matrimonial Causes Act 1973, the court has wide discretion to ensure a fair division of assets and income, taking into account factors such as:

  • The needs and resources of both parties – this includes income, earning capacity, property, and financial obligations. A parent who has been out of work for many years may struggle to re-enter the workforce at the same earning level as before.
  • Contributions to the marriage – non-financial contributions, such as childcare and homemaking, are valued equally to financial contributions. The court acknowledges that raising children is a crucial role that has economic value.
  • The welfare of any children under 18 – ensuring financial stability for children is a priority, often influencing maintenance and housing arrangements.

Types of Financial Orders Available

A stay-at-home parent may apply for various financial orders, including:

  1. Spousal Maintenance – A regular payment from the financially stronger spouse to help the stay-at-home parent meet their needs, especially if they cannot immediately become financially independent. This may be for a fixed term or, in some limited cases, for joint lives.
  2. Lump Sum Payments – A one-off capital payment to balance the division of assets.
  3. Property Adjustment Orders – The court may transfer or adjust ownership of the family home, sometimes allowing the primary caregiver to remain there until the children are older/finish their secondary education.
  4. Pension Sharing Orders – Stay-at-home parents may claim a share of their spouse’s pension to provide for their long-term financial security.

Key Differences: Married vs. Cohabiting Parents

While married stay-at-home parents have various legal rights upon divorce, cohabiting partners have no automatic financial claims against each other upon separation, regardless of how long they lived together or whether they raised children together. The law does not recognise “common-law marriage.” Instead:

  • A cohabiting parent can claim child maintenance from the other parent, calculated under the Child Maintenance Service (CMS) formula.
  • They have no right to spousal maintenance or a share of their partner’s assets unless they can prove ownership through property law principles, such as trust claims.
  • Cohabitees cannot claim a share of their ex-partner’s pension.

A co-habitee may have recourse to make claims under Schedule 1 of the Children Act 1989, but these financial claims are solely for the benefit of any children of the family and not for themselves.

Conclusion

For stay-at-home parents, the Matrimonial Causes Act 1973 provides vital financial protections upon divorce, recognising the economic sacrifices made in raising children. In contrast, unmarried cohabitees face significant financial vulnerability, with limited legal remedies available.

  • Under current law, it is possible to live with someone for decades and have children together, but then simply walk away with the economically stronger party taking no financial responsibility for a former partner when the relationship breaks down.

The current Government have committed to legislation to better protect cohabitees, however, as yet, there is no date for when this new legislation may come into effect.

About Stephanie Kyriacou

Stephanie Kyriacou is a Managing Associate in Freeths Family team and is based in the East Midlands. Stephanie is a highly experienced specialist family lawyer whose work includes divorce, middle to high net worth (HNW) financial matters, private children law matters, cohabitation disputes, Schedule 1 claims and pre and post nuptial agreements. Stephanie is on the board for the Leicestershire Resolution Committee and is committed to the Code of Practice which promotes a constructive approach to resolving family issues that considers the needs of the whole family.

A link to her profile can be found here: Stephanie Kyriacou | Family Law | Leicester | Freeths

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

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

Sponsored post by Fair Result.

Steps to Regain Financial Stability and Plan for a Secure Future

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

The Importance of a Budget After Divorce

Adjusting to a Single-Income Household

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

The Impact of Divorce on Personal Finances

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

Assessing Your New Financial Situation

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

List All Income Sources

Salary, Spousal/Child Support, Investments

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

Understanding New Expenses

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

Creating a Practical Post-Divorce Budget

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

Differentiating Between Essential and Discretionary Expenses

Setting Realistic Financial Goals

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

Emergency Funds and Why They Matter

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

Managing Debts and Obligations

Handling Joint Debts and Separating Finances

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

Prioritising Debt Repayment

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

How to Rebuild Credit After Divorce

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

Long-Term Financial Planning

Reviewing and Updating Financial Documents

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

Retirement Planning as a Newly Single Individual

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

Seeking Professional Financial Advice

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

Practical Tools & Resources for Financial Stability

Budgeting Apps & Financial Management Tools

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

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

Read more articles by Peter Marples.

About Peter Marples

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

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

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A Guide to Spousal Maintenance
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A Guide to Spousal Maintenance

Published on
Chris Sweetman
Chris Sweetman
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

This blog serves as a practical and informative guide to spousal maintenance in divorce settlements. It clarifies what spousal maintenance is, who may be eligible, how payments are determined, and key considerations when negotiating or contesting maintenance. Keep reading to find out more.

What is Spousal Maintenance?

Spousal maintenance, sometimes mistakenly called alimony, is financial support paid by one spouse to the other following a divorce or separation. Its purpose is to provide financial assistance to the lower-income spouse, ensuring they can maintain a standard of living similar to that enjoyed during the marriage. Unlike child maintenance, which is specifically for the support of children, this kind of support focusses on the financial needs of the ex-spouse. It is often seen as support for the partner receiving it as financial assistance to allow them to adjust to single living.

Who Qualifies for Spousal Maintenance?

Eligibility for spousal maintenance depends on several key considerations by the court:

  • Income Disparity: The court examines the difference in income and earning capacity between the spouses.
  • Length of Marriage: Longer marriages are more likely to result in spousal maintenance awards, especially as above where one partner needs time to adjust maybe for example having a period of time to look for work.
  • Childcare Responsibilities: If one spouse is responsible for the care of young children, this may influence the award but must always recognise that this is entirely separate from child maintenance, but it does sometimes get merged by the courts and practitioners.

Each case is unique, and the court’s decision is based on the specific circumstances of the divorcing couple. At Fair Result, we use our experience in divorce financial settlements and negotiating to assist you in this aspect of your overall financial settlement and remember we operate on fixed fee divorce services.

How Payments Are Determined

Several factors influence the determination of spousal maintenance payments:

  • Financial Needs and Resources: The court assesses the financial needs of the lower-income spouse and the resources available to both parties.
  • Standard of Living: The standard of living during the marriage is considered to ensure fairness.
  • Age and Health: The age and health of both spouses can impact the duration and amount of maintenance.

Payments can be structured as either a lump sum referred to as a capitalised lump sum or ongoing periodic payments. The duration of payments varies and may be fixed term or open-ended. However, the consent order would need to allow for extendable spousal maintenance, and this again is where Fair Results negotiating skills would be utilised for you.  It is also necessary to understand capitalised lump sum payments are reduced in financial value as against monthly payments, to reflect the fact the recipient is getting all the spousal maintenance payments in one lump sum. They can then invest this over time or utilise it immediately to help with for example the purchase of a new home.

Common Misconceptions

There are several misconceptions about spousal maintenance that need addressing:

  • Maintenance is Guaranteed: Spousal maintenance is not automatically awarded in every divorce case; it depends on the specific circumstances.
  • Men Never Receive Spousal Support: Although less common, men can and do receive spousal maintenance if they are the lower-income spouse.

Can Spousal Maintenance be Changed or Stopped?

Spousal maintenance arrangements can be reviewed and changed under certain conditions:

  • Reviews and Reductions: Maintenance orders can be reviewed periodically, and changes in financial circumstances can lead to adjustments if the circumstances are deemed necessary and the original order allowed for review at a particular time.
  • Impact of Remarriage or Cohabitation: If the recipient spouse remarries or cohabits with a new partner, maintenance payments may be reduced or stopped.

Negotiation Tips

Successful negotiation requires professional advice and careful planning:

  • Seek expert advice from family law professionals, such as those at Fair Result.
  • Be realistic about financial needs and future earning capacity.
  • Consider the long-term implications of the maintenance arrangement.

Fair Result offers fixed-fee divorce services to help you navigate the complexities of spousal maintenance and achieve a fair financial settlement.

If you need expert advice on financial settlements and spousal maintenance, get in touch with Fair Result. Our fixed-fee services ensure you have the support and guidance you need through your divorce. Visit https://fair-result.co.uk/ for a free no obligation discussion to see how our team can help you negotiate your UK divorce law spousal support.

Get in Touch

Call us at 07 500 933 818 or 0333 577 7009

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

Read more articles by Chris Sweetman.

About Chris Sweetman

Chris Sweetman is an independent family solicitor and director of Fair Result – An award-winning law office who pride themselves on using innovative ways to help clients through the stress and complications of a marriage breakdown.

Chris can be contacted on 07500933818 or via email chris@fair-result.co.uk.

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How to Prepare for Financial Discussions During Divorce

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

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

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

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

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

Common Mistakes in Financial Settlements

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

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

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

Take a Strategic Approach

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

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

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

Understand the Marital Pot

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

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

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

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

Ignore ‘Advice’ from Friends & the Internet

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

What matters is realism, not wishful thinking.

Don’t Let the Process Control the Outcome

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

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

Be Realistic & Plan for the Future

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

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

Do You Need Professional Advice?

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

Look for a professional who:

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

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

Key Takeaways

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

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

Need expert, fixed-fee family law advice?

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

Call: 07 500 933 818 or 0333 577 7009

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

Read more articles by Peter Marples.

About Peter Marples

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

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

You might be interested in

5 Common Myths About Financial Settlements in Divorce
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5 Common Myths About Financial Settlements in Divorce

Published on
Chris Sweetman
Chris Sweetman
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

Financial settlements in divorce refer to the process by which a couple’s joint assets and finances are divided upon the dissolution of their marriage. This often complex and emotionally charged process aims to ensure that both parties receive a fair share of the marital assets. However, numerous divorce myths and misconceptions surrounding financial settlements can lead to misunderstandings and unrealistic expectations.

Believing these myths can be risky and may result in unfavourable outcomes. Therefore, it is crucial to separate fact from fiction to navigate the financial aspects of divorce more effectively. More importantly contact a specialist lawyer or financial accountant at Fair Result who will advise you the best ways to deal with financial separation on divorce.

Myths to Debunk

Myth 1: “Everything is split 50/50 in a divorce”

A common misconception is that marital assets are automatically divided equally between spouses in a divorce. The division of assets is based on what is deemed fair and just, which does not necessarily mean a 50/50 split. Courts consider various factors, such as the length of the marriage, each spouse’s financial contributions, future earning potential, and the needs of any children involved. The goal is to achieve an equitable distribution, which may result in one party receiving a larger share of the assets. The courts will also often look at spousal maintenance. There has long been a misconception that spousal maintenance will always be paid. This spousal maintenance misconception is wrong and maintenance will only be paid for as long as it is necessary to allow the party receiving it to adjust to single living again.

Myth 2: “The higher-earning spouse always pays spousal maintenance”

Another prevalent myth is that the spouse who earns more money will always be required to pay spousal maintenance to the lower-earning spouse. While the higher-earning spouse may be ordered to provide financial support, this is not a given. Courts consider multiple factors when determining maintenance, including the length of the marriage, the standard of living during the marriage, and each spouse’s financial resources and needs. In some cases, no maintenance may be awarded if both parties are deemed capable of supporting themselves.

Myth 3: “You can hide assets to avoid sharing them”

Some individuals believe they can conceal assets to prevent them from being included in the financial settlement. However, this is both illegal and unethical. Courts require full financial disclosure from both parties at the outset on a disclosure form known as Form E, and failure to disclose all assets can result in severe legal consequences. Methods of hiding assets, such as transferring money to friends or family or undervaluing property, are likely to be uncovered during this process. If hidden assets are discovered, the court may impose penalties, and the guilty party could face criminal charges.

Myth 4: “The parent with custody gets the house”

It is often assumed that the parent who receives primary custody of the children will automatically be awarded the family home. While the needs of the children are a significant consideration, the decision to award the house is based on various factors. Courts will evaluate each party’s financial situation, the ability to maintain the home, and the best interests of the children. In some cases, the house may be sold, and the proceeds divided, or the custodial parent may be allowed to stay in the home until the children reach a certain age. This is known as a Mescher Order, and you will need advice from a lawyer to obtain this as property division in divorce is complex to ensure each parties needs are met with the courts first priority being to ensure the children of the marriage are safely housed.

Myth 5: “You need to go to court to finalise a settlement”

Many people believe that financial settlements can only be resolved through a court process. However, there are alternative methods to resolve financial disputes that can be less stressful and more cost-effective. Mediation and collaborative divorce are two popular alternatives where both parties work together with the help of a neutral third party to reach an agreement. These methods allow for more control over the outcome and can often result in a quicker and more amicable resolution. However, even if mediators are used you will still need to get a lawyer to draft the financial consent order for approval by the court.  if you use a mediator that is not a qualified lawyer you will still need the lawyer to submit the consent order and supporting documentation to the government portal for approval by a judge. You do not need to attend court for this. The online process will deal with this for you.

Addressing Common Questions

What are the most common misconceptions people have about financial settlements?

The divorce myths mentioned above are among the most common misconceptions in financial disclosure on divorce. Additionally, people may believe that only marital assets are subject to division (when, in fact, non-marital assets can sometimes be considered) or that prenuptial agreements are always upheld without question.

How do courts determine a fair settlement?

Courts determine a fair settlement by considering several factors, including the length of the marriage, each spouse’s contributions, both financial and non-financial, the standard of living during the marriage, and the future financial needs and earning potential of each spouse. The primary goal is to ensure that both parties can maintain a reasonable standard of living post-divorce.

What legal requirements are involved in disclosing assets?

Both parties are legally required to provide full and frank disclosure of all assets, liabilities, income, and expenses. This information is typically exchanged through financial statements Form E and supporting documentation including payslips bank statements and details of properties you feel would be suitable for your post-divorce settlement. Failure to disclose assets can lead to serious legal repercussions, including fines, penalties, or having the settlement overturned. Fair Result can help you complete all this paperwork

Are there alternatives to court for resolving financial disputes?

Yes, alternatives to court include mediation, collaborative divorce, and arbitration. These methods involve working with neutral third parties to reach an agreement outside of the traditional court setting. They can be less adversarial and more efficient, allowing couples to maintain greater control over the outcome.

What are the consequences of believing or acting on these myths?

Believing or acting on divorce myths about financial settlements can lead to unrealistic expectations, prolonged disputes, and unfavourable outcomes. Misconceptions can result in unnecessary stress, increased legal costs, and potential legal penalties for unethical behaviour such as hiding assets which could ultimately lead to prison. It is always best to have all your divorce myths dispelled and get legal advice about the best way to proceed from one of the team at Fair Result.

Conclusion

Understanding the realities of financial settlements in divorce is crucial for making informed decisions and achieving a fair outcome. By debunking common myths, individuals can better navigate the complexities of divorce and avoid common pitfalls. For expert advice and guidance, readers are encouraged to contact Fair Result or use our WhatsApp service. Each client receives their own WhatsApp group where they can ask questions of the team at Fair Result anytime if they have questions or concerns over their case.  Navigating divorce with accurate information and professional support can make a significant difference in achieving a fair and amicable resolution.

Get in Touch

Call us at 07 500 933 818 or 0333 577 7009

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

Read more articles by Chris Sweetman.

About Chris Sweetman

Chris Sweetman is an independent family solicitor and director of Fair Result – An award-winning law office who pride themselves on using innovative ways to help clients through the stress and complications of a marriage breakdown.

Chris can be contacted on 07500933818 or via email chris@fair-result.co.uk.

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How to Get Through Divorce in 2025: Proven Step-by-Step Process
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How to Get Through Divorce in 2025: Proven Step-by-Step Process

Published on
Chris Sweetman
Chris Sweetman
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

Divorce can feel overwhelming, but at Fair Result, we’ve created a proven, step-by-step process to help you navigate it with clarity and confidence. In 2025, with shifting legal landscapes and evolving financial complexities, our transparent, fixed-fee approach ensures that you can focus on your future without worrying about spiralling costs or hidden surprises.

1. Acknowledging the Emotional Impact

Divorce is one of life’s most emotional and challenging experiences. It’s essential to recognise and process these feelings, rather than suppress them. Many people find that seeking emotional support can make a world of difference during this time.

Tips for self-care during divorce:

  • Consider joining a support group to connect with others who understand your situation.
  • Seek counselling or therapy to work through your emotions in a healthy way.
  • Prioritise self-care through activities like exercise, mindfulness, or spending time with loved ones.

At Fair Result, we not only focus on the legal and financial aspects of your divorce but also recognise the importance of addressing your emotional wellbeing.

2. Understanding the Financial and Legal Landscape in 2025

The divorce process in England has evolved over the years. With changes such as the introduction of the no-fault divorce law under The Divorce, Dissolution, and Separation Act, the legal framework is now more streamlined. However, financial clarity remains crucial.

Key divorce trends in 2025:

  • Longer average timeframes: On average, the time to a conditional order in sole divorce cases is now around 36 weeks, with the full process from application to final order taking approximately 49 weeks. Joint divorce cases tend to be slightly quicker, with an average of 30 weeks to a conditional order and 43 weeks from application to final order.
  • Increase in divorces among older adults: The rise of “silver splitters” reflects changing attitudes toward relationships in later life.
  • Shifts in divorce applications: While January remains a peak month for divorce enquiries, overall divorce rates fluctuate based on factors such as economic pressures and societal trends.

At Fair Result, we emphasise the importance of financial preparedness. From property division to pensions, we help you navigate the complexities with transparency and clarity.

3. Fair Result’s Proven Step-by-Step Process

At Fair Result, we pride ourselves on offering a transparent, fixed-fee process designed to minimise stress and maximise efficiency. Here’s how our approach works:

a. Initial Consultation

We begin with a free consultation to understand your unique circumstances. During this meeting, we’ll identify your priorities and goals, laying the foundation for a tailored strategy that meets your needs.

b. Financial Assessment

Our team of legal and accountancy experts conducts a comprehensive review of your financial situation. With a commitment to transparency and fairness, our fixed-fee model ensures there are no unexpected surprises.

c. Tailored Strategy Development

Based on your goals, we develop a personalised plan that considers legal, financial, and emotional factors. This strategy ensures that you achieve a fair settlement while minimising unnecessary conflict.

d. Settlement Negotiations

We focus on  avoiding the need for lengthy court proceedings. Our team works tirelessly to negotiate a fair and efficient settlement.

e. Finalising Your Divorce

From managing paperwork to obtaining consent orders, we handle every legal requirement to finalise your divorce. Our goal is to ensure you’re fully equipped to move forward with confidence.

4. Client Success Stories

We’ve helped countless clients achieve fair outcomes and build brighter futures. Here’s just one example:

“After years of financial uncertainty during my separation, Fair Result gave me the clarity and support I needed. Their fixed-fee model meant no surprises, and their team made the process so much easier than I expected. Today, I’m not only financially secure but also confident about the future.”

These stories reflect our commitment to putting clients first, every step of the way.

5. Looking Ahead: Building Your Future Post-Divorce

Divorce is not the end—it’s the beginning of a new chapter. Planning for your future is key to moving forward with confidence.

Post-divorce planning tips:

  • Reassess your finances: Create a realistic budget that reflects your new circumstances.
  • Set personal goals: Whether it’s advancing your career, pursuing a passion, or focussing on your children, take steps toward achieving what matters most to you.
  • Seek support: Don’t hesitate to lean on professionals, friends, or family for guidance as you navigate your new life post-divorce.

At Fair Result, we’re here to ensure you leave the divorce process feeling prepared and empowered to embrace the next stage of your journey.

6. Trends and Insights for 2025

The festive season often prompts reflection, and many couples decide to take the next step in January, leading to a surge in divorce enquiries. Known as “Divorce Day,” the first working Monday of the year—6th January 2025—is anticipated to see a spike in divorce applications.

While divorce rates have fluctuated, certain trends stand out:

  • Coastal towns like Norwich and Hastings have the highest proportion of divorced individuals.
  • Most divorces occur between 3 and 8 years of marriage, with “silver splitters” on the rise.

These insights underscore the importance of working with experts who understand the unique challenges of today’s world. Find out more about divorce trends here.

Conclusion

Divorce doesn’t have to feel like an uphill battle. With Fair Result’s proven step-by-step process, you can navigate this challenging time with clarity, confidence, and support. Our fixed-fee, transparent approach allows you to focus on what truly matters: building a brighter future.

If you’re considering divorce in 2025, let us help you take the first step. Contact Fair Result for a free consultation today.

Read more articles by Chris Sweetman.

About Chris Sweetman

Chris Sweetman is an independent family solicitor and director of Fair Result – An award-winning law office who pride themselves on using innovative ways to help clients through the stress and complications of a marriage breakdown.

Chris can be contacted on 07500933818 or via email chris@fair-result.co.uk.

You might be interested in

Why it is Vital to Include Pensions in Divorce Settlements in 2025
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Why it is Vital to Include Pensions in Divorce Settlements in 2025

Published on
Nicki Mitchell
Nicki Mitchell
Partner
Jones Myers

Sponsored post by Jones Myers. I cannot underestimate the critical role that pensions play in financial settlements as the volume of  divorce enquiries I am receiving increases this January.

Their importance has been further reinforced by New Year calculations from online investment service Interactive Investor, whose financial analysts say that spouses could lose up to £665k by overlooking pensions and failing to take them into account in divorce settlements.

Pensions are frequently one of the most valuable assets of a marriage, often making up the second highest – or sometimes the highest – value asset in a divorce settlement after the family home.

It is key that information about pensions is made available in the financial disclosure process, which must take place before any binding financial settlement can be made.

Disclosure must include details of all pensions, including state pensions – and the value of each one. This ensures that couples are able to make informed decisions as to what a fair settlement looks like for them

The most common way in which a disparity in pensions is addressed in a divorce settlement is pension sharing which provides a clean break between parties, as the pension assets are split immediately.

Alternatively, 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.

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.

Alternative and non-confrontational ways for divorcing couples to reach a financial settlement without a lengthy and expensive court process include Mediation and Collaborative Family Law.

Both options – in which I have extensive expertise – are conducted in a spirit of mutual co-operation and put children’s best interest first.

At Jones Myers we always recommend that divorcing couples seek expert advice from highly experienced lawyers regarding their finances. Independent Financial Advisers can assist with pension valuations and projected future incomes.

Taking guidance early on will avoid the risk of losing out on what could be a substantial pension sharing provision that spouses are entitled to – and which can prevent long-term financial issues.

Read more articles by Nicki Mitchell.

About Nicki Mitchell

With three decades 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  www.jonesmyers.co.uk

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Child Maintenance and Spousal Maintenance: Understanding the Differences
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Child Maintenance and Spousal Maintenance: Understanding the Differences

Published on
Nicki Mitchell
Nicki Mitchell
Partner
Jones Myers Family Law

Sponsored article by Jones Myers Family Law.

In the countdown to the festive season, concerns over finances can understandably escalate – especially for those divorcing and separating who have children but do not have their own income streams.

The aim of this article is to provide key insights into Child Maintenance and Spousal Maintenance.

While they are often believed to be inextricably linked, they are two very distinct issues.

Child Maintenance Support

How do divorcing/separating couples work out Child Maintenance?

Child Maintenance is something which needs to be considered whenever separating couples have children, regardless of whether they were married or not and whatever their financial circumstances.

The Child Maintenance Service (CMS), a stand-alone government body,  provides a formula for parents to calculate child support.

Most separated couples will use the formula as a basis for agreeing the level of child support to be paid and make informal arrangements for this to be paid directly.

Divorcing couples have the option of including their agreement on child support in the order (often known as a consent order) which sets out their agreement as to how their assets, debts, pensions etc will be divided.

Which parent is responsible for paying the support?

The parent with whom the children spend less time will be responsible for paying child support to the other parent.  Where the children’s time and the child care responsibilities are shared equally between the parents then no child support is usually payable.

If there is any dispute between the parents about whether this is the case then the CMS will generally assume the primary carer to be the parent who receives Child Benefit and assess child support accordingly.

For how long does Child Maintenance continue?

The paying parent is obligated to provide child maintenance until the child completes “qualifying education” which is generally full-time secondary education but can include other forms of ongoing study such as some apprenticeships. No child support is payable after the child attains the age of twenty.

What happens if parents cannot agree on the level of support?

If the parents are unable to agree then either one of them can make an application the Child Maintenance Service (CMS) for a calculation.

The CMS will calculate the support payable using a six-step process.

The various stages include determining the paying parent’s yearly gross income. The relevant parent usually provides this. However, the CMS can obtain the information from HM Revenue and Customs (HMRC) if the parents do not supply this.

Factors, such as pensions and school fees, which could change the paying parent’s financial situation, are also assessed before converting the yearly gross income into a weekly figure.

Key criteria the calculator draws on includes the number of children receiving the income and the level of what is called ‘shared care.’ This is based on how much time the child/children of the paying parent spends with them and includes overnight stays.

What happens if the paying parent loses their job?

Either parent can let the CMS know of a change in circumstance. The Agency will then re-evaluate and reduce the level of support the paying parent needs to provide based on the calculator system.

What happens if the paying parent refuses to pay?

The receiving parent can contact the CMS which would then take appropriate enforcement measures such as applying for a court order to take legal action.

What happens if the paying parent dies during the support period?

CMS payments would cease on the death of the paying parent. State benefits, such as Universal Credit, may be available to the surviving parent, depending on their circumstances at the time.

Are there any other options besides the CMS for parents to agree Child Maintenance?   

Agreements between parents can be negotiated with support from experienced family law experts such as Jones Myers.

Our specialist services include mediation, a non-confrontational option for parents to reach a solution in a spirit of co-operation which puts their children’s best interests first.

As a qualified Mediator and Child Inclusive Mediator I regularly see at first hand the  benefits of the mediation process for parents, children and the wider family.

Spousal Maintenance

Divorce does not automatically bring an end to the financial obligations between divorcing and separating couples.

Significant income disparities between spouses may require ongoing financial support to prevent undue hardship, especially when considering the well-being of any children involved.

What is Spousal Maintenance?

Spousal Maintenance is a payment made by one party to the other as part of the financial settlement on their divorce or separation.

Usually, it is paid every month and can last for either a defined period or, in increasingly rare cases, until one of the former spouses dies.

Spousal Maintenance is different from Child Maintenance, which is statutory. It is not an automatic  entitlement and only applies to divorcing couples.

How is the amount and duration agreed?

There is no set formula for working out Spousal Maintenance payments. How much is paid and for how long can be settled through mutual agreement between a spouse and their ex during divorce proceedings.

Information is exchanged about each spouse’s income and their monthly outgoings. If one spouse has insufficient income to meet their needs and the other can afford to make up or contribute to that shortfall then Spousal Maintenance may be appropriate.

Interim Spousal Maintenance can be agreed or ordered in the initial stages of separation to ensure that the spouse who is weaker financially can manage their basic monthly outgoings.

Does getting Spousal Maintenance involve going to Court? 

If the couple are unable to come to a mutual agreement, the Court can decide whether Spousal Maintenance should be paid.

In every case the Court must consider the possibility of a Clean Break Order – which severs all financial ties between the couple.

If a Clean Break Order is not appropriate immediately, the court will order what the Judge considers to be a reasonable level  of Spousal Maintenance – and for how long this must be paid.

The court will have before it detailed information about the income available and each party’s income needs. Spousal Maintenance is usually only ordered for a fixed period of time, long enough to enable an adjustment to independence.

How can couples reach a solution without going to court?  

More couples are turning to non-confrontational options, which allow them to retain control of decisions which affect them, put their children’s best interests first and avoid costly and destructive court battles.

They include negotiation, mediation or collaborative practice where couples and their lawyers commit to find a positive solution without going to court and sign a binding agreement to that effect. Our specialist lawyers at Jones Myers have extensive experience in advising couples in these areas.

In what circumstances is Spousal Maintenance terminated?

When Spousal Maintenance ends will be set out in the court order.  Typically this will be when the spouse receiving the payments has had time to adjust to independence or when their financial needs are reduced. For example, when the children finish school or university, or they leave home.

Spousal Maintenance will cease when one of the spouses dies or if the recipient of the maintenance gets married again or enters into a civil partnership.

What happens if the parties situation changes?   

If the circumstances of the spouses alter significantly after a Spousal Maintenance Order has been made, they can agree to change the payments ordered and send an agreed order to the Court which supersedes the original order.  If agreement is not possible then either of them can apply to the Court to vary the terms of the order.

The Court will consider factors such as changes in income, employment status or financial needs to assess if a variation is appropriate.

For vital areas of law such as Child Maintenance and Spousal Maintenance, I cannot emphasise enough the importance of consulting experienced family lawyers like Jones Myers.

Offering expert legal advice to our clients, we help them to understand their legal position and options.

Providing legal guidance and representation with child maintenance disputes, we support clients to ensure that the child maintenance arrangements are fair and reasonable.

Our approach prioritises resolving disputes in a non-confrontational manner, allowing us to assist couples in reaching voluntary agreements for child maintenance.

We can also assist in negotiating Spousal Maintenance agreements to reach a fair and mutually acceptable solution. If an agreement cannot be reached through negotiation, we can represent clients in court proceedings to seek a Spousal Maintenance Order or to vary an existing order.

Read more articles by Nicki Mitchell.

About Nicki Mitchell

With three decades 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  www.jonesmyers.co.uk

You might be interested in

How Do I Ensure a Fair Financial Settlement in Divorce?
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How Do I Ensure a Fair Financial Settlement in Divorce?

Published on
Chris Sweetman
Chris Sweetman
Editor at The Divorce Magazine
Director at Fair Result

Divorce is not just an emotional challenge; it’s a legal and financial minefield. For many, the process of negotiating a financial settlement is often drawn out and fraught with unnecessary complications. Beyond the stress, traditional divorce services—dominated by solicitors—often come with spiralling costs, lengthy delays, and strained family relationships.

At Fair Result, we understand these frustrations and have created a better way to ensure fair, transparent, and efficient financial settlements. With our innovative fixed-fee divorce service, our priority is to help you move forward with your life without unnecessary delays or hidden costs.

The Problems with Traditional Divorce Services

Divorce services are notorious for their inefficiency and costliness, and it’s easy to see why. Solicitors often focus on creating lengthy correspondence and drawing out the process, which not only increases stress but also inflates legal fees significantly.

What’s worse is that many divorcing couples—especially those married for a long time—don’t fully realise the true value of their shared assets. Property, pensions, business interests, and other significant financial considerations can quickly escalate into disputes, complicating the process of reaching a settlement.

This is where Fair Result takes a different approach:

Why Fair Result’s Approach is Different

At Fair Result, we take pride in doing things differently. Rather than getting bogged down in unnecessary legal formalities, we start at the endpoint—your goals. From the moment you decide to divorce, our aim is to reach a financial settlement and establish child arrangements, all in the form of a legally binding Consent Order.

Our process is designed to minimise stress, maximise fairness, and allow you to focus on moving forward with your life.

What Makes Fair Result Stand Out?

With over 30 years of legal practice and a unique combination of legal, financial, and commercial expertise, our team is uniquely positioned to deliver results. Here’s how we do it:

1. Fixed Fees with No Hidden Costs

Unlike traditional solicitors, Fair Result offers a fixed-fee service. This means you’ll never have to worry about unexpected costs piling up. From court time and barrister fees to valuations and all other necessary expenses, everything is agreed upon upfront and only payable once your Consent Order is approved.

2. Negotiating the Best Outcome

We focus on the end goal: negotiating a fair financial settlement that reflects the true value of your assets. By combining legal knowledge, financial expertise, and accountancy skills, we ensure that all aspects of your settlement are carefully evaluated, from business interests to pensions and property.

3. A More Efficient Process

Traditional divorce services often waste time on unnecessary instructions or correspondence designed to inflate fees. At Fair Result, we prefer the direct approach—picking up the phone and negotiating. This means faster resolutions and less stress for you.

4. Risk-Free for You

We take on the commercial risk of delayed negotiations, ensuring that your position is never compromised by inefficiency or drawn-out proceedings.

How Do We Ensure a Fair Settlement?

Reaching a fair settlement requires a clear understanding of what you’re entitled to and a strategic approach to negotiation. At Fair Result, we help you navigate key areas of financial division, including:

  • Property: From the family home to rental or holiday properties.
  • Pension Funds: Often overlooked but a significant marital asset.
  • Savings and Investments: Including ISAs, stocks, and bonds.
  • Business Interests: Our accountancy expertise ensures accurate valuations and fair division.
  • Debts, Loans, and Credit Cards: Matrimonial debts are shared, but the specifics depend on the case.
  • Possessions: This may include household contents, cars, or personal items (worth over £500).

The Fair Result Process

Our process is designed with you in mind, ensuring transparency and efficiency at every stage.

Step 1: Advice and Support

We begin with a clear assessment of your situation, providing personalised advice on what you’re entitled to and how to achieve it. We encourage clients to take control of the process, setting the pace and making proactive decisions to avoid unnecessary delays.

Step 2: Application

Once we determine that our service is the right fit for you, we guide you through the divorce application process. By simplifying the legalities, we ensure that your case progresses as smoothly as possible.

Step 3: Negotiation

This is where Fair Result’s expertise truly shines. Our team handles every aspect of the negotiation process, from valuations to court appearances, with all costs included in your fixed fee. Our priority is to secure a fair and balanced settlement that meets your needs.

Step 4: Finalising Your Divorce

With the financial settlement agreed upon and the Consent Order approved by the court, you can move forward with confidence and peace of mind.

What Am I Entitled To in a Divorce?

Many clients wonder, “How do you calculate a fair divorce settlement?” The answer depends on several factors, including the length of the marriage, each partner’s financial contributions, and the needs of any children involved.

By partnering with Fair Result, you’ll receive a detailed evaluation of your assets to ensure that nothing is overlooked. Our goal is to provide you with the tools and support needed to achieve a settlement that reflects your financial reality and secures your future.

Get in touch

If you’re ready to secure a fair financial settlement and take control of your future, we’re here to help. Contact Fair Result today to learn more about our fixed-fee divorce services and how we can support you through this challenging time.

Call: 07 500 933 818 or 0333 577 7009

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

Don’t wait—take the first step toward a fair and stress-free divorce today.

Sponsored post by Fair Result.

Read more articles by Chris Sweetman.

About Chris Sweetman

Chris Sweetman is an independent family solicitor and director of Fair Result – An award-winning law office who pride themselves on using innovative ways to help clients through the stress and complications of a marriage breakdown.

Chris can be contacted on 07500933818 or via email chris@fair-result.co.uk.

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When "I Do" Turns Into "I Don't": Key Considerations for Divorce Later in Life
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When “I Do” Turns Into “I Don’t”: Key Considerations for Divorce Later in Life

Published on
Hayley McCormack
Hayley McCormack
Partner
Roythornes Solicitors

Over the past 30 years, divorces among individuals aged 60 and over have surged by an astounding 85%. In the past decade alone, divorce rates for men over 65 have risen by 23%, while rates for women over 65 have climbed by 38%. This has slowly but surely materialised in a steadily growing trend, commonly referred to as ‘grey divorce’ or ‘silver splitting,’ particularly prevalent among those nearing or already in retirement, and embodying a deviation or redefinition of ‘for better or worse’.

Unlike earlier-life divorces, grey divorce often poses implications of its own kind due to the life stage of those involved. Hayley McCormack, a family law specialist at Roythornes Solicitors, navigates the complexities of separating at later stages in life, particularly as this presents significant financial challenges, due to the proximity to retirement and the complexity of accumulated assets.

Historically, divorce was rarely a viable option for older couples, as financial dependence and social stigma discouraged separation. Women, in particular, often lacked financial independence, making it difficult to consider leaving a marriage in later years. Today, however, as societal norms have evolved and financial autonomy has increased, more couples see separation as a realistic path, even in retirement. Unlike younger couples, later-life divorces often involve the division of lifetime possessions such as pensions, property, and savings, which can have a profound impact on future security and stability.

There’s no place like home

One of the most contentious aspects of later-life separation is agreeing what to do with the family home, which for many is one of the most valuable assets in a marriage. The matrimonial home often carries sentimental significance over financial value. In most grey divorce cases, deciding whether to sell, retain, or transfer ownership of the home can be acutely convoluted as the choice will precede to lasting financial and emotional consequences.

While there may be a sum of options to ponder, it is often easier or sometimes necessary to sell the family property to fund the purchase of two properties instead. Selling the home and splitting the proceeds is often the simplest solution, especially if both parties prefer a clean financial break. This option can provide each party with the funds to purchase or rent new homes suited to their needs.

In this situation, it is essential for both parties to consider what is most affordable, taking into account repayment of any mortgage and early redemption fees, purchase price, stamp duty, legal costs, moving fees and any furniture or white goods they will need. If there is an existing mortgage, this can either be redeemed from the net proceeds or one of the individuals, if you need it, may be able to port the existing mortgage to a new property if there are any preferential rates to benefit from.

The place that holds a piece of your heart

Selling the home may not always be the desired approach and often one partner may wish to stay in the property. If this is a viable option financially, it can provide stability, particularly if there are health considerations or a desire to remain in a familiar community. However, retaining the home requires careful consideration of whether one partner can sustain the home’s upkeep and associated costs independently.

If one partner wishes to retain the family home, they may be able to offset the home’s value with other assets. For instance, one partner may keep the house while the other retains a larger share of cash, investments, or pensions. Although pensions are a significant marital asset, they are often overlooked during separation negotiations. Offsetting the value of the family home against pension assets can be a viable solution, but due to the complexity of these calculations, legal and financial guidance should always be sought.

Another approach for staying in the home is to refinance or increase the mortgage to buy out the other party’s share. In this scenario, the partner who remains in the home would need to assume full responsibility for the property’s costs and may have to qualify for a new or adjusted mortgage. The buy-out process typically involves transferring the property into the sole name of the individual staying in the home, which a solicitor would handle to ensure the contemporaneous transfer and payment of funds. High street lenders have amended their borrowing criteria so that mortgages can be taken later in life, but this will still be dependent on affordability and specialist mortgage advice may be required.

Together apart with joint ownership

For some, continuing to co-own the family home while one partner lives there may be a practical solution, particularly if both parties expect a rise in the property’s value or wish to avoid selling in a perhaps down market. However, delayed interest payment involves several complexities.

Setting a “trigger event” for when the other party will receive their share is essential. This could be a specific future date, the sale of the home, mortgage redemption, or even the passing of one party. Legal advice is vital in these situations, as both parties may need to prepare updated wills or trusts to address inheritance or transfer issues.

Delaying the transfer or sale can additionally lead to tax complications, particularly if one partner receives their share at a future date, which may affect capital gains tax.

Finally, if both parties remain on the mortgage but only one stays in the home, the partner who leaves may have limited borrowing capacity for a new mortgage, affecting their ability to purchase their own property.

Mapping the road ahead

Given that later-life divorces often come just before or during retirement, careful planning around long-term financial security is vital. In addition to decisions about the family home, separating couples should closely review pensions, savings, business assets and other retirement funds to ensure both parties are financially secure. Professional advice is crucial in navigating these challenges to avoid pitfalls that could impact future stability.

Fresh starts in later life

As the rise in grey divorce reshapes societal views on marriage, independence, and retirement, it highlights the evolving needs and priorities of later-life couples. Navigating these unique challenges, particularly decisions surrounding the family home, pensions, and savings, can be complex.

With the right guidance, couples can move forward confidently, ensuring they make informed choices that support their future. Family lawyers assisting those who are facing a divorce, with all the challenges that brings, are there to tune in to what clients are experiencing and ensure matters are handled sensitively; while similarly ensuring they give clear, pragmatic advice to help put their client in the best position to recover from the stress and cost that comes with separation.

Read more articles by Roythornes Solicitors.

About Hayley McCormack

Hayley is a partner at Roythornes Solicitors. She has been practising family law for nearly 20 years having worked for a number of top tier national firms. Hayley has extensive experience in dealing with a broad range of family issues, such as divorce, financial settlements, and issues relating to children. She has particular expertise in complex financial cases involving company and trust structures, pensions, offshore assets, and intervenors, often advising business owners, farming families, entrepreneurs, and professionals.
She collaborates with clients’ advisors to provide wealth protection solutions, including pre/post-marital and cohabitation agreements aligned with company and shareholder agreements.
A trained collaborative lawyer, Hayley offers clear, pragmatic advice tailored to achieve the best outcomes for clients and their families. While skilled in robust litigation, she prioritises cooperative, non-confrontational solutions for family disputes.
Recognised by Chambers and Legal 500, her expertise includes:
  • Divorce
  • Financial settlements
  • Pre/post-nuptial agreements
  • Cohabitation issues and agreements
  • Child-related matters, including international/domestic relocation
  • Trusts and inherited wealth
  • Pre-marriage and post-separation acquired wealth

About Roythornes Solicitors

Roythornes Solicitors is a top 150 national law firm with five strategically located offices across the Midlands and East Anglia. The firm adopts a one team ethos across all offices, with trusted advice being given by its recognised experts on a national spread. It prides itself on building longstanding relationships with clients with a high emphasis on personal connectivity. The firm’s clients include major blue-chip companies, family businesses and private individuals, based nationally and internationally.

Each client benefits from the company’s partner-led, practical approach. As well as a powerful breadth and depth of legal expertise, the team brings commercial know-how and invaluable lateral thinking to each case, drawing on a diverse range of skills and contacts.

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

Published on

 

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

Sponsored post by Fair Result.

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

Understanding Financial Settlements

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

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

The Role of Consent Orders

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

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

Mediation: A Cost-Effective Solution

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

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

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

Key Financial Aspects to Consider in Divorce

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

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

Navigating the Divorce Process: Seeking Expert Help

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

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

The Importance of Taking Early Action

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

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

Final Thoughts: Protect Your Financial Future

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

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

Ready to take control of your financial future during divorce?

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

Call: 07500933818 or 0333 577 7009

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

Read more articles by Peter Marples.

About Peter Marples

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

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

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