Financial and Legal Advice - Page 4

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.

The Benefits of Early Divorce Preparation: Financial and Emotional
Image by freepik
//

The Benefits of Early Divorce Preparation: Financial and Emotional

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

Sponsored post by Fair Result.

The decision to end a marriage is one of life’s most challenging crossroads. While divorce is never an easy journey, early preparation can significantly smooth the path ahead and protect your interests.

Our experience consistently shows that early preparation is crucial for achieving the best possible financial and emotional outcomes.

Understanding Financial Preparation

The Importance of Asset Documentation

The foundation of any successful divorce settlement lies in having a complete and accurate picture of your financial situation.

Starting this process early allows you to methodically gather and organise crucial financial information without the pressure of looming court deadlines. This involves more than simply collecting bank statements; it requires a comprehensive review of your entire financial portfolio.

When you begin early, you have the time to track down old pension statements, locate property deeds, and compile tax returns from previous years. This thoroughness can reveal forgotten assets or highlight financial patterns that might be relevant to your settlement.

For instance, we’ve seen cases where early preparation helped clients discover pension entitlements they weren’t aware of or identify patterns of spending that proved crucial during negotiations.

Financial Planning for Your Future

Early preparation provides the luxury of time to thoroughly evaluate your financial future. This means not just understanding your current financial position but actively planning for life after divorce.

You’ll need to consider questions like: Can you afford to keep the family home? What will your monthly expenses look like as a single person? How will your pension be affected?

Working with financial advisors early in the process allows you to create realistic budgets and financial plans. This might involve exploring different scenarios, such as whether to sell the family home or buy out your spouse’s share, or understanding how your pension might be split.

These decisions shouldn’t be rushed, and early preparation gives you the time to make informed choices rather than emotional ones.

Understanding and Managing Costs

One of the most significant advantages of early preparation is the potential for cost savings. Divorce proceedings can be expensive, but many costs can be minimised through proper preparation.

When you start early, you can:

Take time to gather documents systematically, avoiding rushed searches and duplicate requests that can increase legal costs.

  • Consider mediation or collaborative divorce approaches, which often cost significantly less than contested court proceedings.
  • Make clear-headed decisions about which issues are worth contesting and which might be better resolved through negotiation.

Emotional Wellbeing and Support

Personal Growth and Healing

The emotional impact of divorce shouldn’t be underestimated. Early preparation gives you valuable time to process your emotions and adjust to the idea of significant life changes.

This period can be used constructively to work with counsellors or therapists who can help you navigate the emotional challenges ahead.

Many of our clients find that starting therapy or counselling early in the process helps them maintain better emotional stability throughout the proceedings. This emotional stability often leads to better decision-making and more amicable negotiations with their spouse – which can significantly reduce both the emotional and financial costs of divorce.

Supporting Children Through Transition

When children are involved, early preparation becomes even more crucial.

Parents who take time to plan how they’ll handle the transition often see better outcomes for their children. This means carefully considering how to break the news, planning living arrangements, and maintaining stability in children’s routines.

Early preparation allows you to research and implement effective co-parenting strategies before they become urgent necessities. You can take time to understand how to communicate effectively with your co-parent, establish boundaries, and create parenting plans that truly serve your children’s best interests.

Many parents find that working with family therapists or child psychologists during this preparation period helps them better understand and address their children’s needs.

Professional Development and Career Planning

Divorce often necessitates career changes or returns to work – particularly for parents who have been out of the workforce.

Early preparation gives you time to:

  • Refresh your professional skills through courses or training programs.
  • Network within your industry or explore new career paths.
  • Research the job market and understand current salary expectations.
  • Consider flexible working arrangements that might better suit your new circumstances.

Practical Considerations and Legal Planning

The Value of Early Legal Consultation

Seeking legal advice early doesn’t commit you to divorce; instead, it empowers you with knowledge about your rights and options.

Early consultation with a solicitor allows you to understand the divorce process in detail, including potential timelines, costs, and outcomes. This knowledge can be invaluable in making informed decisions about your future.

During initial consultations, we can help you understand various approaches to divorce, from traditional court proceedings to mediation or collaborative divorce. Each approach has its advantages and disadvantages, and understanding these early allows you to choose the path that best suits your situation.

Building Your Support Team

A successful divorce often requires more than just legal support. Early preparation gives you time to assemble and work with a team of professionals who can support different aspects of your divorce:

  • Financial advisors can help you understand the long-term implications of different settlement options.
  • Accountants might be necessary for complex financial situations or business valuations.
  • Mediators can help facilitate productive discussions with your spouse.
  • Property experts can provide valuations and advice on housing options.

Moving Forward

The path through divorce is rarely straight or simple, but early preparation can make it significantly more manageable. At Fair Result, we’ve seen how clients who take time to prepare often achieve better outcomes and maintain better emotional wellbeing throughout the process.

Next Steps

If you’re considering divorce or separation, we encourage you to reach out for an initial consultation. Our experienced team can help you understand your options and begin planning for whatever path you choose to take.

Remember, seeking information and preparing early doesn’t commit you to any particular course of action – it simply ensures you’re equipped to make informed decisions about your future.

Feel free to reach out to us to schedule a confidential consultation with one of our experts. We’re here to help you navigate this challenging time with confidence and clarity.

Call: 07500933818 or 0333 577 7009

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

Find out more about 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.

You might be interested in

Divorce and Private Equity: Hedge Funds & Headaches
Photo by Tyler Franta on Unsplash
/

Divorce and Private Equity: Hedge Funds & Headaches

Published on
Nicola Harries
Nicola Harries
Partner & Head of Family
Stevens & Bolton

The financial consequences and processes of divorce can be baffling even when the parties’ assets are reasonably straightforward. Lawyers are prone to using jargon and acronyms that are entirely unfamiliar to the lay client. Where the financial assets include private equity or hedge fund investments, the degree of complexity and jargon increases exponentially.

For those who do not work in the world of private equity, the investment structures and how they work are often entirely alien concepts. Those who do work in that world are so familiar with it that they struggle to explain those concepts to the uninitiated. This can leave a divorcing spouse feeling completely lost; the gradient on their learning curve becomes significantly steeper.

Matrimonial and Non-Matrimonial: To Share or Not To Share

For long marriages, courts will look to equally share the value of wealth accumulated by a couple during the marriage. However, where possible, a non-sharing approach will be taken to wealth brought into the marriage, wealth created after the marriage and inherited wealth.

Broadly, it is considered fair that a party should be able to keep the benefit of the wealth they create after separation because it’s attributable to effort made after the marriage has ended.

Therefore, whilst the capital and pension assets accumulated during a marriage are likely to be shared, future income will not. Income (or maintenance) orders are assessed against ongoing income needs.

Things are seldom clear cut; bonuses are often paid in the financial year after they were earned. A bonus received in the first year of separation is quite likely to have been referable to work undertaken in the final year of the marriage. Marriages don’t break down on schedule, so there is scope for argument where a marriage breaks down partway through the financial year against which a bonus is judged.

With private equity investments, the lines can blur where matrimonial wealth is invested in long running funds which may not pay off for many years after a marriage is over.  An additional complication arises as the structure of these funds means that future payments cannot be clearly said to be either capital or income – so what approach is the court to take?

Private Equity Fund Structure

Managers establish a fund and over time raise funds for investment. A management fee is charged for the funds under investment. As many of these funds are worth hundreds of millions of dollars, the management fees themselves can be significant.

The fund managers are usually required to co-invest in it, demonstrating that they have ‘skin in the game’, albeit usually at much lower levels than the institutional investors they attract.

Investments are then made in carefully chosen businesses, with the aim that these will be built up and sold at a profit over the lifetime of the fund, on average a period of 8-10 years.

A hurdle rate is set for the fund; this is the minimum return that must be achieved for the investors before the fund managers can share in any additional profit created. The entitlement to share in that surplus profit is known as ‘carry’. Not every fund’s return will exceed the hurdle rate so the amount of carry is inherently uncertain.

Co-Invest and Carry Upon Divorce

Co-invest

Usually, but not always, co-invested fund managers will share in the carry. However, in some funds managers can be entitled to share in the carry without having invested. Establishing the detail is key; if the co-invested funds emanate from matrimonial sources they would be shareable, albeit the sharing of that value may be deferred until the fund makes distributions. These often occur when an underlying business is sold.

Carry

The entitlement to share in the carry is far more complicated. To understand how the court approaches this, you must ascertain:

  • the degree of involvement a fund manager has had after the fund has been invested;
  • the dates the fund was established and the date on which the ‘close’ occurred – namely the point when all funds had been raised.

Continuing involvement with the fund

Not all private equity funds are invested in the same way. Whilst some funds invest directly into underlying companies, others invest in larger private equity funds which make those direct investments.

For the former, fund managers will be actively involved with the underlying companies invested in.

For the latter, often known as ‘funds of funds’, managers will decide upon the best fund(s) to invest in but will not be involved in the ongoing management of the underlying investments.  Whilst it requires skill to select the right fund, once the choice is made, the ‘fund of funds’ manager’s involvement is minimal compared to the manager who remains directly involved with the development of the underlying companies.

Using the principles above to reflect post-marital effort, the court could consider that once the ‘fund of funds’ investment is made, the investment return is attributable to the efforts of others and that any returns of co-invest or carry entitlement flowing from the performance of the ‘fund of funds’ should be shared.

Where the divorcing spouse is the actively involved fund manager, the development of the underlying companies can be argued to be a direct result of their ongoing efforts during the lifetime of the fund. In that case, the court will calculate and share the element of carry that is matrimonial.

That is assessed by reference to the period from establishment of the fund to the date of trial, taken as a proportion of the expected term of the fund from the date of close. For example, in the case of A v M [2021], the period between establishing the fund and the trial was 60 months. The period from close to the expected end of term for the fund was 113 months. The judge decided therefore that 53% (60/113) of the carry should be shared equally between the parties, with the fund manager retaining for themselves the remaining 47% to reflect the work they would do over the remaining term of the fund.

Specialist Advice and Drafting

For the large funds, the divorce of an individual whose investment is minimal compared to the overall fund size means that the parties have very limited power to call for the return of funds.  Unless one party is prepared to offset other assets to pay off their spouse sooner, they must usually wait for the fund to run its course before funds are received. As investments do not always pay off, most prefer to share the risk, meaning payments from distributions of co-invest or carry will be deferred, potentially for years.

An order reflecting the division of monies emanating from such a fund requires detailed drafting. Inevitably they are lengthy and complex because they must contain the safeguards to protect the receiving party from any attempts to thwart payments being made. They must also include requirements to provide documentary evidence of the performance of the fund, the timescales for the payments, the actual amounts paid and the tax consequences of those payments.

Some funds may permit the co-invest to be shared so that future distributions can be made direct to each spouse. Where this is possible, the order must make specific provision for the assignment, and further advice from corporate lawyers to implement the assignment will be needed.

If there are private equity or hedge funds involved in your divorce, it’s essential for experienced, specialist family lawyers to be involved to help you navigate and understand these complex investments, and to ensure that you actually receive the sums that you are entitled to.

About Nicola Harries

Nicola is the head of the family team at Stevens & Bolton, looking after clients coping with all aspects of family breakdown. Nicola has extensive experience dealing with mid to very high value divorce, including complex financial proceedings. She has drafted numerous pre and post nuptial agreements and advises unmarried families on the breakdown of their relationships, as well as dealing with disputes in relation to children. Nicola is ranked in the Legal 500 and Chambers UK Legal Directories and is a trained collaborative lawyer as well as a member of Resolution.

LinkedIn:

Nicola Harries

You might be interested in

Photo by Nick Fewings on Unsplash
/

Financial Disclosure: How to Gather Information

Published on
Vikkie Chetcuti-Gee
Vikkie Chetcuti-Gee
Associate
Burgess Mee

If you are filing a divorce application, you will also need to think about the financial aspect of your separation and how your assets will be divided between you. Although the two are (legally) separate processes, they go hand in hand and should be considered at the same time.

As part of figuring out how to financially separate from one another, it is likely that you and your spouse will need to exchange financial disclosure. In this jurisdiction (England and Wales), you have a duty to be full and frank with each other, which means you must both disclose all of your assets, liabilities and income wherever they are in the world.

What is financial disclosure?

If you are attending mediation with your spouse the mediator may have their own procedure and bespoke forms for you to complete. However, ordinarily, you will both need to complete a ‘Form E’, a long document which asks you to set out your financial position in detail. The purpose of the form is to allow each of you to have a clear picture of what the other has and says they will need so that you can make informed decisions about how the finances should be divided (or if they should be divided at all).

Once you have exchanged financial disclosure, you will both have the opportunity to ask questions about the information provided if further evidence or clarity is required. For example, if you are aware that your spouse has another bank account that they have not listed in their Form E, you can ask about this in your questionnaire. If, after receiving the answers to your questions, you are still not sure you have a complete picture, you can raise further questions in a document called a ‘schedule of deficiencies’. This is not an opportunity to ask new questions but to focus on the questions you originally asked that have not been answered properly.

If court proceedings have already been issued then you will both be required to complete the Form E as a formal court direction and it will be referred to in the proceedings and seen by the judge(s) who hear your case. If you are exchanging Forms E voluntarily but proceedings are issued later on (which may require you to complete the form again if it is sufficiently out of date or circumstances have changed) it is important to bear in mind that the court can see your original form.

What documents and information do I need to provide?

The Form E is divided into numerous different sections to enable you to provide information on:

  • Any property in which you have an interest.
  • The sums held in your bank accounts and any investments you may have. Also, the value of any life insurance policies.
  • The value of debts that are owed to you (for example, if you have loaned money to a friend that you are expecting to be repaid), any cash held in excess of £500 and any belongings worth more than £500.
  • Any liabilities you have, such as credit cards or bank loans and any CGT you would have to pay if any property or other asset you have is sold.
  • Business assets and directorships.
  • Pensions (excluding the state pension but it will not hurt to obtain a valuation online for this so that you are aware of any potential shortfall that may need to be addressed as part of the settlement), other assets and income (from employment, self-employment, partnership, investments, state benefits and any other income).

The form also asks you to confirm your income and capital needs (i.e. how much you need to meet your outgoings and to house yourself) and any other information you would like the court to take into account. This includes, but is not limited to, any significant changes in assets or income in the last 12 months or that you expect in the next 12 months. Finally, you can confirm what orders you would like the court to make. Even if you are not in court proceedings and are completing the form voluntarily it can be a good idea to complete this section to ensure your spouse has a clear picture of what you would like to happen. If you have a solicitor, they can advise you how to complete these sections.

You are also required to provide documents in support of the information you have provided. There is an extensive list on the final page of the form; depending on your circumstances, these may include:

  1. A recent mortgage statement (if applicable) and any valuations obtained in the last 6 months for any properties or land in which you have an interest.
  2. For each of your bank accounts, statements for the last 12 months (this is usually one of the most cumbersome tasks in preparing your disclosure).
  3. The latest statement for any investments.
  4. The surrender value for any life insurance policies.
  5. The last two years’ accounts and any other documents on which you base your valuation of your interest in any business.
  6. A statement confirming the cash equivalent value (or ‘CEV’) of your pension(s) and confirmation of your state pension entitlement.
  7. Your last three payslips, most recent P60 and P11D if you are employed.
  8. A copy of your last tax assessment (or a letter from your accountant confirming your tax liability) if you are self-employed and management accounts if your net income for the last financial year and estimate income for the next 12 months is significantly different.

You can also provide additional documents where necessary to explain or clarify any of the information you have supplied in the form.

Common mistakes people make when completing their disclosure

Providing your disclosure can be a protracted and cumbersome task so start gathering this information as soon as possible. It’s not unusual for mistakes to be made but these can lead to avoidable questions being asked at the questionnaire stage, which can increase the time spent on exchanging full disclosure and, if you have a solicitor, will increase your costs.

A common mistake is failing to list bank accounts because they are inactive or have a nil/negligible balance. Even if you no longer use the account, it must still be listed and bank statements provided (evidencing the zero balance). Another mistake is not calculating the total figures correctly. The form provides for all of your assets (less any liabilities) and income to be set out so that your spouse has a clear snapshot of your financial situation. Miscalculations can lead to further mistakes down the line if the figures are used in, for example, an asset schedule.

Finally, it is really helpful all round if the documents attached to the form are in a coherent and clearly labelled order. When putting your disclosure together you should aim to provide as much information clearly and as concisely as possible to avoid further questions. Bank statements are often numbered so it can be easy to see where there is a missing page. Likewise, provided there is a clear run of chronologically-dated entries, there is no need to include the superfluous pages often sent by banks.

What happens if you and your spouse agree not to exchange financial information?

It is possible for you and your spouse to agree not to exchange full disclosure via Form E. This might arise where the situation is amicable between you and you have already agreed how to resolve the financial aspect of your separation (which will need to be jointly filed with the court in a consent order). In that case, the court still requires you to provide some disclosure, but in a much shorter form called a ’Form D81’. This is simply a summary of your finances that shows the net effect of your agreement without providing full details or documentary evidence in support.

If you and your spouse have agreed the above, your solicitor (if you have one) is unlikely to be able to advise you properly about whether or not the agreement you have reached is fair and in line within the bracket of outcomes that a court may have ordered. To do this, they will need to see full disclosure by way of the process set out above. It is not uncommon for solicitors to ask clients who wish to proceed this way to sign a waiver confirming that they understand they are entitled to see full and frank financial disclosure from their spouse, that they wish to proceed without it, and that they accept the inherent risk that there may be unknown assets (or liabilities) of which they have no knowledge. It can be extremely difficult to revisit once concluded so advice should always be sought and caution exercised as to any potential unknowns. Your solicitor is not trying to be difficult. Instead, use this point as a moment to pause and reflect as to whether you are entirely content with the agreement you have reached and whether there is anything else you wish to know.

Conclusion

The main thing to remember when preparing your Form E is to start it early (don’t leave it until the week before you are due to exchange) and be as thorough as possible. It is one of the most important documents you will need to prepare during your separation and will be referred to often. Your case could be delayed if it is not completed correctly or insufficient information has been provided. It is also an opportunity for you to take stock of your own financial situation, obtain a much clearer understanding of your family’s overall finances and help you plan for the future.

Read more articles by Burgess Mee.

About Vikkie Chetcuti-Gee

Vikkie Chetcuti-Gee handles a range of family law cases, including complex financial proceedings frequently involving family trusts, significant business structures and forensic disclosure requests. She specialises in pre- and post- nuptial agreements for a range of clients from all walks of life, often for high net worth clients with a focus on sports personalities and their families. She also has a wealth of experience in private children law matters, particularly involving allegations of domestic violence and abuse, and where the other party involved is particularly intransigent. Vikkie is a member of Resolution and is committed to resolving cases in a non-confrontational way where possible.

You might be interested in

How to Prepare for Divorce: Steps to Take Before Filing
Photo by Andrew Neel on Unsplash
///

How to Prepare for Divorce: Steps to Take Before Filing

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

Sponsored post by Fair Result.

Divorce is an emotional and life-changing process. If you’re considering ending your marriage, knowing how to prepare before you file can make a significant difference in the outcome. With the right preparation, you can avoid common pitfalls and protect both your emotional wellbeing and financial future. Whether you’re seeking guidance on the divorce process or looking for effective divorce solutions, this guide will walk you through the essential steps to take before filing for divorce.

Step 1: Evaluate Your Reasons for Divorce

Before filing for divorce, it’s important to take the time to reflect on why you want to end the marriage. Divorce is a major decision that affects your life, your children (if you have any), and your finances. Ask yourself the following questions:

  • Have you considered marriage counselling or therapy?
  • Is this a temporary conflict or a long-term issue?
  • Are you financially prepared for the divorce process?

If you’ve weighed the pros and cons and feel that divorce is the right path, then it’s time to start preparing.

Step 2: Prepare Financial Documentation

One of the most important steps before filing for divorce is organising your financial records. Divorce settlements heavily rely on accurate and complete financial information. Collect the following documents:

  • Tax returns (last 3–5 years).
  • Bank statements and financial accounts (savings, checking, retirement).
  • Investment portfolios.
  • Mortgage and property information.
  • Pay slips and employment records.
  • Debts (credit cards, loans, etc.)

These documents will provide a clear picture of your financial standing, making it easier to negotiate a fair divorce settlement. If you’re looking for divorce solutions that can help you manage this process efficiently, consider reaching out to Fair Result.

Step 3: Understand and Prepare for the Divorce Process

Divorce laws and processes vary depending on your location. In the UK, you can file for divorce using one of two methods: a sole application or a joint application. It’s crucial to understand which option is best suited for your situation. Here’s a brief overview:

  • Sole Divorce Application: One spouse files for divorce without the other’s participation. This may occur when the divorce is contested, or the spouses are not on good terms.
  • Joint Divorce Application: Both spouses agree to the divorce and file together. This is often the less contentious route and can lead to a smoother and faster resolution.

Understanding which route to take will help you set realistic expectations about timelines and costs. In 2024, the average time from filing to a final divorce order for sole applications was around 49 weeks, while for joint applications, it was 43 weeks. Keep this in mind as you prepare for the process ahead.

Step 4: Plan for Your Children’s Wellbeing

If you and your spouse have children, their wellbeing must be at the forefront of your divorce preparations. The family court system prioritises the best interests of the children, and so should you. Consider the following:

  • Where will your children live?
  • How will custody and visitation be divided?
  • What financial support arrangements need to be made?

Make sure you understand the legal aspects of child custody, support, and visitation agreements in your area. It’s also important to keep the lines of communication open with your spouse when it comes to parenting decisions. If you’re unsure about any of these aspects, seeking advice from an experienced family law professional can help you find the right divorce solutions.

Step 5: Consider Your Living Situation

Divorce often means a significant change in living arrangements. If you’re living with your spouse, you should plan whether one of you will move out or if you will continue living together during the divorce proceedings. The decision may depend on:

  • Ownership or rental agreements.
  • Financial stability and ability to afford separate housing.
  • Custody arrangements for children.

In some cases, staying in the marital home during the divorce process might be necessary to ensure stability for the children or for financial reasons. However, if the environment becomes too toxic or stressful, moving out might be a better option for your mental health.

Step 6: Seek Legal Advice and Support

No matter how amicable your relationship with your spouse may seem, it is always in your best interest to prepare and consult with a family law expert before filing for divorce. Legal advice can help you avoid common pitfalls, such as agreeing to an unfair financial settlement or signing documents you don’t fully understand.

At Fair Result, we offer unique divorce solutions with fixed fees, ensuring that you won’t have to worry about escalating legal costs. Our team of divorce specialists is here to guide you through the entire process, sharing the financial risks with you. You pay nothing until your divorce is finalised, allowing you to focus on moving forward with confidence.

Step 7: Protect Your Emotional Wellbeing

Divorce is an emotional journey, and it’s easy to become overwhelmed by stress, anger, or sadness. Taking care of your mental health is just as important as the legal and financial aspects of divorce. Consider seeking emotional support from:

  • Therapists or counsellors
  • Divorce support groups
  • Trusted friends or family members

Maintaining a strong emotional foundation will help you stay focussed and make better decisions during the divorce process. Divorce solutions that address both the emotional and financial aspects are essential for a smoother transition.

Step 8: Budget for the Divorce Process

The financial impact of divorce can be significant, and it’s important to create a realistic budget for the process. Divorce costs can vary depending on the complexity of your case and the law firm you choose. The cost of living crisis has made many couples hesitant to move forward with divorce, but with the right legal team, you can minimise financial stress.

Fair Result offers a fixed-fee structure, meaning you won’t pay anything until your divorce settlement is finalised. This innovative approach allows you to avoid unexpected fees and prepare your finances with confidence.

Why Early Divorce Preparation Matters

Preparing for divorce before filing can save you time, money, and emotional stress. By following these steps and seeking professional guidance, you can ensure that you are prepared for the challenges ahead. Divorce solutions from trusted firms like Fair Result are designed to help you through the process with minimal disruption to your life.

Are you considering divorce?

Contact Fair Result today to learn how our expert team can assist you in navigating this difficult time. With our fixed-fee divorce solutions, you can rest assured that your financial and emotional wellbeing will be protected every step of the way.

Call: 07500933818 or 0333 577 7009

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

Find out more about 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.

You might be interested in

Divorce – It’s a Balance Between the Emotional Stress, the Cost and the Return!
Photo by Christophe Hautier on Unsplash
//

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

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

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

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

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

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

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

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

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

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

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

Nothing surprises us anymore.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Read more articles by Peter Marples.

About Peter Marples

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

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

You might be interested in

Photo by Gonzalo Facello on Unsplash
/

Navigating the Division of Your Property During a Divorce

Published on
Tom Floyd
Tom Floyd
Marketing Director
Webuyanyhouse.co.uk

Divorce is a challenging experience filled with complex emotions and big decisions. Among the many issues to address, you will need to decide the fate of the family home. The family home often holds substantial emotional value, making decisions about its future particularly difficult. By understanding your options and approaching the process with open communication, you can work towards a resolution that best suits both yourself and your ex’s needs. Our guide aims to offer an insight into what to expect from the process, helping you along this challenging journey.

Understanding Your Legal Position

One of the first steps to understand is the legal side of property ownership during a divorce. If you jointly own the property, you will share rights and responsibilities. This includes financial obligations such as mortgage payments and property taxes. However, it also grants you rights to potential profits if the property is sold.

To fully gauge your legal standing and the implications for the property, consulting with a divorce lawyer is strongly recommended. They can provide expert guidance on

  • How will your financial contributions to the property impact its division?
  • How do pre-nuptial agreements influence property ownership? (If relevant)
  • The potential legal consequences of the options available to you.

Understanding your legal rights and entitlements can help you make informed decisions about the future of your family home.

At this point, it’s a good idea to consider other joint financial commitments you may have:

Joint Financial Commitments

Dividing shared finances extends beyond the property. Joint bank accounts require immediate attention. Contact your bank to inform them of the separation and consider setting spending limits to prevent unauthorised withdrawals.

Mortgage and Loan Solutions

Handling a joint mortgage during a divorce requires careful consideration. Several options exist:

  • Refinancing: Both parties can apply for separate mortgages on their new residences.
  • Transferring ownership: One partner can assume sole ownership of the property and refinance the mortgage.
  • Selling the property: If neither partner wishes to retain ownership, selling the property and dividing the proceeds is an option.

We recommend consulting a financial or mortgage advisor to help you find the best option based on your financial circumstances.

Exploring Your Options

Once you’ve clarified your legal position and financial situation, it’s time to consider your options for the family home. The primary choices are to sell or retain the property.

Selling the Family Home

If both of you agree that selling the home is the best course of action, here are some things to consider:

  • Valuation: Accurately assessing the property’s market value will allow you to determine an accurate sale price.
  • Mortgage balance: Comparing the property’s value to the outstanding mortgage will help you understand if you can cover the payments after a sale.
  • Living arrangements: Consider the financial implications of finding new accommodation.
  • Market conditions: Understanding the current housing market can influence the timing of the sale and potential sale price.

Retaining the Property

If one of you wishes to remain in the family home, buying out the other’s share is an option. This involves:

  • Property valuation: Determining the property’s fair market value.
  • Financial arrangements: Agreeing on the purchase price and payment terms.
  • Mortgage refinancing: The remaining partner may need to refinance the mortgage.

It’s important to weigh the pros and cons of each option carefully. Factors such as emotional attachment, financial implications, and long-term plans should be considered. 

Navigating the Property Division Process

Going through a divorce is typically an extremely emotional time, which can be aggravated further if you decide to sell your home. To manage this process more effectively and reduce the emotional impact on yourself, it’s vital that you try to visualise the property as a financial asset rather than an emotional bond.

Here are some strategies to help you handle the situation:

  • Prioritise Practical Considerations: Before starting the process, establish clear agreements on details like the home’s market value and the acceptable sale price. By understanding this from the start, you will reduce running the risk of misunderstandings later on in the process.
  • View the sale as a Step Forward: Selling the property is an opportunity to move on to a new chapter in your life. Allowing the sale to flow can ensure a smoother and quicker transition.
  • Consider Mediation if Needed: Disagreements are common when dealing with a property during a divorce. If they do arise, mediation can be an effective way to resolve any conflict and reach a fair agreement.

 Pricing Strategy

Determining a sale price for your property is critical in ensuring a smooth transaction. To speed up the sale, consider pricing your home slightly below market value to create more interest and attract more buyers. If this approach isn’t yet achieving the desired results and you’re eager to get the property off your hands, reach out to a property professional. They specialise in fast property sales, helping you move forward with your life without the hassle of the open market.

It’s also essential to communicate openly with your ex-partner about your expectations for the sale price. If direct negotiations prove difficult, involving an estate agent can be beneficial. Estate agents can mediate discussions, facilitate negotiations, and help both parties reach a fair agreement, aiming to keep the process as seamless and amicable as possible. 

To Conclude

By adhering to the steps outlined in our guide and maintaining open communication with your ex-partner, you can navigate the process with confidence. Remember, you don’t have to go through this alone. Estate agents and legal representatives are available to support you throughout the entire process, helping to reduce any stress or tension that may come up.

Approaching the situation with respect and care can help you reach a decision that benefits everyone involved.

About Tom Floyd

We Buy Any House have over 16 years of experience in delivering a quick and hassle-free house sale for thousands of customers. They specialise in supporting customers going through difficult life events, such as divorce, by offering a quick and stress-free property sale. Their team of specialised experts will guide you through the process, taking care of all legal aspects so you don’t have to.

You might be interested in

How to Prepare for Divorce: A Comprehensive Guide
Photo by Nik Shuliahin ???????? on Unsplash
////

How to Prepare for Divorce: A Comprehensive Guide

Published on

Divorce is a significant life event that can impact various aspects of your life. Many people enter the process without fully understanding its implications, but preparation is crucial. This guide will help you navigate divorce in the UK by focusing on mental, financial, and parental preparation.

Mentally Prepare for Divorce

Divorce can be mentally and emotionally challenging. Before proceeding, ensure you’re certain about your decision. Consider marriage counselling or individual therapy to gain clarity and support.

Visualising your post-divorce future can help you focus on your goals instead of the past. Despite preparation, expect to face difficult days. Develop healthy coping strategies like maintaining physical health, exercising, spending time with friends, and engaging in enjoyable activities. A counsellor or therapist can provide valuable support during this time.

When choosing a divorce lawyer, look for someone who offers both legal expertise and empathetic guidance. A good family lawyer can ease the emotional burden of the process.

Financially Prepare for Divorce

Financial concerns are often the most pressing during a divorce. Early legal advice is crucial to understanding your entitlements and preparing for financial changes.

A family lawyer can help you understand your rights regarding the divorce settlement, the family home, and potential spousal maintenance. Plan for your immediate living expenses, as finalising a financial settlement can take months, and court proceedings may extend this period.

If you’ve depended on your spouse’s income, explore long-term financial support options such as benefits and spousal maintenance. Avoid taking actions that could be perceived as concealing funds, like moving money to a private account, as this can complicate legal proceedings.

Always consult an expert family lawyer before making significant financial decisions.

Parental Preparation for Divorce

For parents, divorce adds the concern of its impact on children and the parent-child relationship. Early agreement on childcare arrangements with your ex-partner can reduce stress for everyone involved. Drafting a formal parenting plan can provide clarity and minimise uncertainty.

Consult a family lawyer to understand your parental rights and ensure the parenting plan is fair and in your children’s best interests. Agree with your ex on what and how to tell your children about the divorce, ensuring they receive a consistent message from both parents.

Seeking Legal Advice

Being prepared for the divorce process and your new life afterward is crucial. Expert advice can make the journey smoother and less stressful. Ensure you choose experienced divorce lawyers who can provide specialist legal guidance for a smooth divorce.

Read more articles by Gemma Scourfield.

About Gemma Scourfield

Gemma is a divorce and family law solicitor with Woolley & Co, Solicitors based in Pembrokeshire West Wales. She has been based in Wales since qualifying in 2007 although has clients throughout the UK and abroad. In 2016, Gemma was accredited as an Advanced Family Law Panel Member with the Law Society which recognises her expertise in domestic abuse and financial relief.

Gemma qualified as a family law solicitor in 2007, she joined Woolley & Co from a regional firm in Wales in August 2021.

You might be interested in

The Dangers of DIY Divorces
Image by freepik
//

The Dangers of DIY Divorces

Published on
Emma Alfieri
Emma Alfieri
Legal Director
Greene & Greene Solicitors

Since fault free divorce law came into effect on 6th April 2022, it has become much easier for parties to complete a DIY divorce without seeking legal advice. Whilst the changes were welcomed, the new law has resulted in many DIY divorcees not understanding the law and/or encountering problems along the way.

One common (and wrong) assumption is that the Final Order of divorce automatically prevents an ex-spouse from making financial claims in the future. This is false. The only way to achieve a legally binding financial “clean break” is for the parties to also submit a separate signed Consent Order to the Court embodying the financial agreement they have reached. If this additional step is not taken, an ex-spouse is entitled to make financial claims against their former spouse in the future, even after they are divorced and the assets have been divided.

A trigger for a financial claim by an ex-spouse months or years after the divorce could be, for example, if a former spouse later accumulates wealth, such as by inheritance or lottery win. This situation can be stressful and expensive to sort out and therefore it is always advisable to enter into a Consent Order at the time of divorce.

In some DIY divorce cases the parties may be aware of the requirement to have a Consent Order but do not take advice before signing the document.   This could result in a binding Order that excludes valuable assets or income that cannot later be re-visited.

Another common mistake is some of the less obvious assets of the marriage such as pensions and business interests are overlooked, instead focussing on property alone. The pension assets of a marriage can be some of the most valuable assets and are often ignored resulting in a poor outcome for the party with the lower pension provision.

Timing is another factor that can get overlooked. For example, a divorce lawyer would usually recommend a final Order of Divorce is not applied for until financial matters have been resolved and a Consent Order approved by the Court (but not in all circumstances). There could also be consequences if a party re-marries before they have properly dealt with financial matters.

Believe it or not, every case is different. The individual facts need to be applied to each set of circumstances. Whilst many DIY divorcees will scour the internet for advice, there are no on-line resources that provide the answer to every single situation/scenario.  That’s why is it is always advisable to take legal advice early on, even if that advice is limited to just one consultation.

In conclusion, whilst a DIY divorce will always be the cheapest option, it is important that parties going through divorce can properly understand what they need to do, when, and to consider any other factors they may not have thought about.  This will ensure parties do not find themselves in a position where their quest to save money could be a decision they later live to regret.

This article is only intended to be a summary and not specific legal advice.

Read more articles by Emma Alfieri.

About Emma Alfieri

Emma Alfieri is a Legal Director at Suffolk firm Greene & Greene Solicitors.

Emma advises on all aspects of family law, including divorce and associated financial matters, disputes between cohabitants and child related disputes.

A member of Resolution, Emma is committed to resolving disputes as positively and agreeably as possible whilst also being motivated to obtain the best possible outcome for her clients.

Since 2012 Emma has been consistently recommended by the Legal 500 on an annual basis and in the most recent 2024 edition Emma is ranked as a “rising star”.

As an advocate of fault free divorce, Emma lobbied at Parliament with other members of Resolution in 2016 to bring about the recent changes to divorce law.

You might be interested in

A Guide for Parents - Devising a Co-Parenting Plan Before Getting a Divorce
Image by freepik
///

A Guide for Parents – Devising a Co-Parenting Plan Before Getting a Divorce

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

Going through a divorce can be emotionally and logistically challenging, especially for parents with children. While the decision to end a marriage may be difficult, it’s crucial to prioritise the well-being of the children throughout the process. One of the most important steps in this regard is devising a comprehensive co-parenting plan before finalising the divorce.

A well-crafted co-parenting plan not only sets the tone for a healthy co-parenting relationship post-divorce but also ensures that both parents remain actively involved in their children’s lives. It provides a framework for effective communication, decision-making, and conflict resolution, ultimately minimising the impact of the divorce on the children.

By establishing clear guidelines and expectations from the outset, parents can foster a cooperative and supportive environment for their children, helping them navigate this transitional period with greater ease and stability.

Understanding the Concept of Co-Parenting

Co-parenting refers to the process of raising children collaboratively after a separation or divorce. It involves both parents actively participating in decision-making, sharing responsibilities, and maintaining a healthy relationship for the well-being of their children.

Successful co-parenting requires a commitment to putting aside personal differences and focusing on the children’s best interests. Key principles of effective co-parenting include:

  • Open and respectful communication
  • Consistency in parenting styles and rules
  • Flexibility and compromise
  • Avoiding conflict in front of the children
  • Maintaining a united front when addressing children’s needs and concerns

While co-parenting can be challenging, especially in the aftermath of a divorce, both parents need to work together and prioritise their children’s emotional and developmental needs. This often involves setting aside personal grievances and cultivating a cooperative and supportive dynamic.

Establishing a Parenting Schedule

One of the most crucial components of a co-parenting plan is establishing a fair and consistent parenting schedule. This schedule should outline the custody arrangements and visitation schedules, ensuring that both parents have ample time to be actively involved in their children’s lives.

When determining custody arrangements, parents can choose from various options, including:

  • Joint custody: Both parents share legal custody and decision-making responsibilities for the children.
  • Sole custody: One parent has primary legal and physical custody, while the other parent has visitation rights.
  • Shared physical custody: Children spend a significant amount of time living with each parent.

The parenting schedule should consider factors such as work schedules, children’s extracurricular activities, and living arrangements. It’s essential to create a schedule that minimises disruptions to the children’s routines and provides stability.

To ensure a smooth transition, the schedule should clearly outline the pickup and drop-off times, as well as any special arrangements for holidays, vacations, and other important events.

Handling Decisions Related to Children

In addition to establishing a parenting schedule, a co-parenting plan should outline how major decisions concerning the children will be made. These decisions may include matters related to education, healthcare, religion, and extracurricular activities.

It’s crucial to establish clear guidelines for communication and conflict resolution when making these decisions. Parents should agree on a process for discussing and resolving any disagreements that may arise, such as seeking the assistance of a mediator or counsellor if necessary.

The co-parenting plan should also address potential changes in circumstances, such as relocation, remarriage, or adjustments in financial situations. Having a framework in place for addressing these changes can help minimise conflicts and ensure that the children’s best interests remain the top priority.

Managing Finances and Child Support

Financial considerations are an essential part of a co-parenting plan, particularly when it comes to child support and shared expenses for the children’s needs.

The plan should clearly outline the child support obligations and payment arrangements – taking into account factors such as each parent’s income, the number of children, and any relevant legal guidelines or agreements.

In addition to child support, the co-parenting plan should address how expenses related to the children’s needs, such as clothing, extracurricular activities, educational costs, and medical expenses, will be divided between the parents. Establishing a fair and equitable system for sharing these costs can help prevent future conflicts and ensure that the children’s needs are met.

It’s also important to review any potential tax implications and benefits related to child support and shared expenses. Consulting with financial advisors or legal professionals can provide valuable guidance in navigating around financial assets.

Maintaining Healthy Boundaries

While co-parenting requires open communication and cooperation, it’s equally important to maintain healthy boundaries between the former spouses. The co-parenting plan should establish clear guidelines for interactions and communication, ensuring that each parent respects the other’s personal space and privacy.

One critical aspect is avoiding exposing children to parental conflicts or using them as messengers or go-betweens. Children should not be burdened with adult issues or placed in the middle of disagreements between their parents.

It’s also important to respect each other’s personal lives and relationships. The co-parenting plan should outline boundaries regarding introductions to new partners, attending events together, and maintaining appropriate behaviour in front of the children.

By establishing and adhering to these boundaries, parents can create a more harmonious and supportive environment for their children, minimising the potential for further emotional turmoil or confusion.

Involving Children in the Process

While devising a co-parenting plan, it’s essential to involve the children in an age-appropriate manner. This not only helps them understand the changes occurring in their family dynamic but also provides an opportunity for them to voice their concerns and fears.

Open communication with children is crucial throughout the process. Parents should strive to explain the situation in a clear and reassuring manner, emphasising that the divorce is not their fault and that both parents will continue to love and support them.

Depending on the children’s ages, parents can consider involving them in discussions about certain aspects of the co-parenting plan, such as visitation schedules or living arrangements. This can help children feel heard and respected – ultimately easing their transition into the new family dynamic.

It’s also important to encourage children to express their feelings and concerns openly. Parents should be prepared to actively listen and address any worries or questions that may arise, seeking professional counselling if necessary.

By involving children in the process and fostering open communication, parents can help mitigate the potential emotional and psychological impacts of divorce – promoting a smoother transition for the entire family.

Final Thoughts

Devising a comprehensive co-parenting plan before finalising a divorce is essential for parents committed to prioritising the well-being of their children. By establishing clear guidelines for custody arrangements, decision-making processes, financial responsibilities, and communication, parents can create a supportive and stable environment for their children during this transitional period.

While co-parenting can be challenging, it is vital for both parents to put aside personal differences and cultivate a cooperative dynamic. Seeking professional assistance from mediators, counsellors, or legal professionals can provide valuable guidance and support throughout the process.

Ultimately, a well-crafted co-parenting plan serves as a foundation for a healthy and nurturing relationship between parents and children, helping to minimise the potential negative impacts of divorce and fostering a more positive and harmonious future for the entire family.

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 break down.

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

You might be interested in

New Family Procedure Rules Encourage Non-Court Dispute Resolution
Photo by Tingey Injury Law Firm on Unsplash.
///

New Family Procedure Rules Encourage Non-Court Dispute Resolution

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

With the introduction of the Family Procedure Amendment 2 rules in April 2024, family law practitioners are encouraged to resolve financial disputes at the start of divorce proceedings. This aims to reduce delays and promote a more efficient resolution process. The recent case of NA v LA has highlighted the court’s commitment to non-court dispute resolution (NCDR), emphasising the importance of attempting these methods before resorting to litigation.

The robust approach taken by the court in NA v LA represents a significant shift. The court stayed proceedings, requiring the parties to engage in non-court negotiations. The ruling underlines the necessity of attempting NCDR before bringing a case to court, even in the absence of complete financial disclosure.

At Fair Result, we have always advocated for sensible and realistic financial resolution from the outset of a case. Most divorcing couples are aware of their financial landscape, including the value of their home, bank accounts, and debts. Negotiations should begin promptly, ideally within two to three weeks, even if some financial details, such as pension values, are still being obtained.

The courts have introduced a new form (FM5), requiring parties to submit their views on the suitability of NCDR at the start of the divorce process. This should be submitted alongside the divorce application, focusing the parties on settlement and negotiation immediately.

Emphasis on Non-Court Dispute Resolution

NCDR should be a priority for all parties involved in family law disputes. The judgment in Re X 2024 EWHC 538 emphasised the court’s expectation for serious efforts to resolve disputes outside of court. This judicial emphasis is expected to speed up financial resolution for divorcing couples.

NCDR Methods Going Forward

  1. Mediation: Mediation, including hybrid mediation with support from solicitors and accountants, can be used at the outset. Shuttle mediation can also be effective if parties prefer not to be in the same room.
  2. Collaborative Family Law: Involves roundtable meetings where disputes are resolved through sensible and achievable approaches without court involvement.
  3. Private Financial Dispute Resolution (FDR) Hearings: Parties can appoint a qualified judge to assist with negotiations, focussing entirely on the case without the rush of a court environment.
  4. Arbitration: If other NCDR methods fail, parties can appoint an arbitrator to decide specific aspects of their case, agreeing to be bound by the decision.

These methods provide a quicker, more cost-effective way to resolve financial disputes, minimising the emotional toll on the parties.

Failure to engage in NCDR without good reason could result in court proceedings, where the court may depart from the general rule of no cost orders. This could lead to cost penalties for parties who do not engage realistically with NCDR.

The new regulations empower the court to encourage NCDR at any time, without requiring the agreement of the parties. Practitioners must reflect on this change and encourage early negotiation and practical dispute resolution.

Final Thoughts

The landscape of family law dispute resolution is changing for the better, promoting quicker and more cost-effective solutions for divorcing couples. For a no-obligation discussion, please feel free to contact us at 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 break down.

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

You might be interested in

Business Assets in Divorce – Director Loan Account Obligations
Photo by Romain Dancre on Unsplash
//

Business Assets in Divorce – Director Loan Account Obligations

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

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

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

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

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

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

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

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

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

Read more articles by Peter Marples.

About Peter Marples

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

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

You might be interested in

Image by freepik
///

Pre Action-Protocol Encourages The Use Of “One Couple One Lawyer”

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

A pre-application protocol in family law financial remedy proceedings was published last week and it provides a very useful guide to the changes which the family courts will expect in family financial resolution proceedings.

The goal of the new family law protocol

The protocol sets out the main key steps every court will expect divorcing couples to take in relation to non-court dispute resolution (NCDR)

That is resolving the dispute other than through the court process and certainly making every attempt to resolve proceedings without ever having to start court proceedings the new protocol once again underlines the ever-present duty to make full honest disclosure and everybody involved in the proceedings will be required to comply with the terms of the new protocol even if they have not had professional legal advice.

The non-court dispute resolution process still recognises that full robust honest and transparent disclosure is an absolute prerequisite for both parties and it confirms that the use of the form E is still the best way for parties to exchange information.

In essence, both parties will still complete a form E even in the one couple one lawyer future world of financial divorce resolution.

Divorcing couples who obtain legal advice via the one couple one lawyer scheme can demonstrate that they have tried a constructive attempt to avoid contentious and costly court litigation by demonstrating that they have used the scheme in the first instance. Hopefully with sense and goodwill on both sides, many of the cases that lawyers once fought in and forced into court will no longer be necessary. But if it does become inevitable trying the one couple one lawyer approach in the first instance may protect you in relation to court costs moving forward.

The focus of this new approach is to move on to the process of resolving the financial dispute in an efficient and timely way and hopefully avoid the emotional toll on couples of the adversarial court approach. The guide goes on to stress that the one couple one lawyer approach should be conducted with minimum distress to the parties and in a manner designed to promote as good a continuing relationship between the parties and any children affected as possible in the circumstances.

The new approach also demonstrates the rising concern judges have expressed for a number of years now on the hugely escalating and disproportionate legal fees that have been shown to be on the increase year after year. It is simply not acceptable in our opinion nor in the opinion of the authors of the new protocol for the fees to be so disproportionate to the overall financial value of the subject matter of the dispute. Proportionality must always be taken into consideration and looking at the guide if the resolution is not achieved and court litigation is required the court will take into account when considering and if so to what extent to make an order for one party to pay the cost of the other party if they have been overly aggressive or litigious in their approach in the first instance.

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 break down.

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

You might be interested in

1 2 3 4 5 6 … 17