Financial and Legal Advice - Page 6

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.

Perception is everything in a court process - being open is always the best option.
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Perception is Everything in a Court Process – Being Open is always the Best Option

Peter Marples
Peter Marples
Director
Fair Result

Whilst 80% of our cases never see a formal Court process in the context of a FDA, FDR or Final Hearing there are always a few where the Court get’s involved. Never the ones with the most assets to argue about but more often than not truth a total absence of trust between the two parties.

The further down a court process you go, not only is it more expensive but you start to lose control of the outcome. So our motto is always to endeavour to settle your finances without a Judge getting involved.

We have unfortunately been engaged recently in more and more complex cases – very complex, not because the issues are actually complex but because one or both parties decide they want to be economical with their answers to questions or simply don’t want to disclose matters which they believe they an ‘blag’ away and it will never become uncovered. Our job as professionals is to read our clients behaviours and whilst we will always follow instructions we are not frightened at challenging them. Why ? – because If they aren’t truthful or transparent with the information and documents they provide it is more often than not because they want to hide something. Unfortunately very few clients are able to do this and the risks to them are significant.

Judges are there to look at the characters in the case as much as the information in front of them. They inevitably form judgements and an initial perception is one that often sticks in the mind of the judge as easily as it does with us – whether it is our client or indeed the spouse in the case. The biggest risk to an equitable settlement when the Court gets involved is not the numbers themselves, it is how the Judge considers the parties in the matter, whether they come across as credible and honest or do they try and dodge the questions in disclosure. Faced with this perception – it is difficult to overcome and if negative be aware the Court may just find against you when they are formulating directions and ultimately in a final hearing the division of assets. Remember the principle that a claimant should not benefit from being less than honest or open in their dealings with the Court. If a judge considers this, they are perfectly within their rights to find in favour of the opposing party and you might be left with a settlement that is not at all satisfactory. You are then on the back foot as we often say.

So the motto is to be open – it is always the best option because in protracted proceedings, things will be found out and it is our role to probe and press on what we find to the benefit of our clients. Don’t let the Court form a perception of you as someone who is less than open because the likely result is a settled that will not be one you are happy with.

The best solution is to settle matters outside of the Court process. We are focussed on doing just that – that is why over 80% of our cases settle without Court intervention.

Read more articles by Fair Result.

About Peter Marples

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

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form
10 Steps to Divorce Financial Settlement
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10 Steps to Divorce Financial Settlement

Peter Marples
Peter Marples
Director
Fair Result

Agreeing a financial settlement is a huge milestone during the negotiation process of a divorce. It is advised that separating couples obtain a financial order that sets out this settlement, as whilst this is not mandatory, it will make this agreement legally binding.

Some lucky couples can decide on how to divide up their assets, agreeing their financial settlement without the need of going to court. However, to ensure both parties are protected, and the agreement is legally binding, a solicitor can draft a ‘consent order’ that both parties must sign.

This is then sent to the court with a completed Form A (notice of your intention to proceed with an application for a financial order), a Form D81 (statement about the parties’ financial situation to support your application for a consent order), and a £53 fee (administration fee).

However, a lot of couples fail to agree on a divorce financial settlement, which means that the court will have to decide for them.

In most cases, the process will follow the ten steps highlighted below, however, an agreement can be made at any point during this process. If that is the case, then this is agreed and signed in a legally binding court order to confirm all the details.

Providing notice of application – Form A

To kick start the financial settlement process, you will need to send a completed Form A (notice of your intention to proceed with an application for a financial order) to the courts.

This document will outline the kind of financial order you are looking for, at what stage you are at with the divorce or dissolution of a civil partnership proceeding, contact details of the separating couple or legal representatives, and information about the Mediation Information and Assessment Meeting (MIAM).

First Directions Appointment date

Once you have provided your application, the court will then set a date for the First Directions Appointment (FDA). This is the first hearing in relation to your financial dispute arising from your divorce.

This is an opportunity for the judge to consider what information each party needs to provide to create the divorce financial settlement. Both parties are encouraged to reach an agreement if possible. If this cannot be agreed, a second hearing with the FDA will be arranged to allow for further negotiation.

Financial statement – Form E

Form E (Financial Statement) is an important document in the UK divorce process since it acts as the starting point for the financial settlement negotiations.

Both parties send the court a Form E at least five weeks before the FDA hearing. You must also send a copy to each other.

The purpose of this document is to ensure both parties disclose their financial circumstances, including income, assets, liabilities, and projected financial needs.

FDA documents

These documents are filed by both parties two weeks before the FDA:

  • A concise statement of issues.
  • A chronology of events.
  • A questionnaire which is supposed to address the statement of issues.
  • A Form G, whereby you tell the court whether the FDA meeting can be used for a Financial Dispute Resolution (FDR) appointment. Typically, the FDR meeting takes place after the FDA meeting.

Costs – Form H

At this stage, each party will send the court a completed Form H just before the FDA meeting, listing any costs they have incurred.

This document sets out all the costs of the financial remedy proceedings, including costs from before and after the application was issued.

FDA meeting at court

The judge will consider both you and your partner’s financial disclosures and establish whether further information is required from either of you.

Many judges are keen to see whether a resolution meeting (skip to the final hearing section) can take place at this stage. If not, a date is set for the FDR meeting.

File proposals

Both parties will answer questionnaires, prepare evidence, and submit proposals to the court for the divorce financial settlement.

Both sides also submit a second Form H, which lists updated costs.

FDR hearing

During this hearing, the judge will focus on encouraging both parties to agree on a financial settlement, through judge-led negotiations.

Most divorcing couples settle at this stage (or soon afterwards). If not, the judge will arrange a final hearing, where both parties will need to make new offers and provide evidence.

Further proposals

The negotiations continue between both parties, including revised proposals for the divorce financial settlement which are sent to the court and to the other party.

Final hearing

This is usually the third and final court hearing within the financial remedy process.

In the absence of any agreement and following the submission of updated costs on a Form H1, a new judge will decide on your financial position and impose a settlement on your behalf.

Summary

One of the most important parts of getting a divorce is reaching a financial settlement. Many couples can agree this without the need of going to court however, but a lot of separating partners find difficulty in achieving this.

Perhaps one person is not providing their financial information, or they are not making sensible proposals, in that case, court is advisable.

By following these simple steps and receiving professional advice, you will be on your way to a Fair Result and a happy, brighter future.

Do you require specialist expertise in securing financial settlement? Get in touch with our team today.

Read more articles by Fair Result.

About Peter Marples

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

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form
The New Pension Rules and Divorce - Don't Leap too Soon
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The New Pension Rules and Divorce – Don’t Leap too Soon

Peter Marples
Peter Marples
Director
Fair Result

The recent announcement by the Chancellor to release the pension cap and the annual contribution limit was seen by many as a tax break for the rich.

However, the major beneficiaries of this change was those people in the Public Sector with Senior Roles such as Headteachers, Consultants, GP’s and Civil Servants, most of which are on either final salary or average salary pension schemes.

Why? Because many had already reached the maximum pension allowance and their marginal rate of income tax was becoming such a disadvantage that many had decided to retire.

So it is a good thing that you can add more to your pension fund and benefit from this in retirement – for many yes, but for those contemplating divorce or more particularly those that will be in receipt of a pension sharing order, the benefits are not so obvious.

With over 1/3 of the working population in the public sector, with the prevalence of final or average salary pension funds being prominent in the Public Sector it is not surprising in divorce that the pension is often the major element of the financial settlement.

The number of times we have seen, more often than not the wife in receipt of a large pension sharing order running to many hundreds of thousands of pounds is more common than you think. BUT, very few lawyers or even fewer pension advisors actually tell you that the devil really is in the detail of the pension funding rules themselves. We pride ourselves in giving fair advice to our clients and increasingly that advice is not to take a pension sharing order or at least to consider fully the implications of doing so. So let us pose a few questions, the answers for which might surprise you:

The value of my pension sharing order goes into my estate if I die early?

Nope – if you die, the vast majority of your pension sharing order is returned to the Chancellor of the Exchequer and your estate receives little or no benefit.

My pension is liquid and I can move it?

Nope – scheme rules are clear and different for each scheme. You cannot move funds in most schemes and they are certainly are not liquid. Contrast that with you taking a larger percentage of the family home in the divorce settlement and not a large pension sharing order. Your property is liquid, carries little risk and is yours to do what you want with

If I die before I can draw my pension then my will provides for the money to be distributed?

Nope – if you die before you can draw from the scheme, you get nothing. Just think if at 40 you took a £200,000 pension share and died at 55 – your divorce settlement in this case was not worth a great deal.

So I can draw my pension at 60 ?

Nope – all schemes have different rules. For example, the Fire Service pensions have three schemes and the earliest draw down for the annual pension in one of these schemes is 67 ! – yes 67.

Summary

So in summary, the new requirements allow more money to go into the pension which gives a larger part of any divorce pot being attributable to the pension itself. On face value, good news but unless you can get at it, then it is worth very little.

Each case is very different and needs to be considered, so but don’t just think a big pension sharing order means a great settlement. We would trade a pension for cash in a property NOW every day of the week because you just don’t know what might happen and with a property, you can leave it to your kids or even the RSPCA.

Read more articles by Fair Result.

About Peter Marples

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

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form
A Guide to Financial Settlement in Divorce
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A Guide To Financial Settlement In Divorce

Chris Sweetman
Chris Sweetman
Director
Fair Results

One of the core parts of the divorce process is agreeing on a financial settlement. Especially now, with the introduction of no-fault divorce, it has become more straightforward to get divorced than ever.

However, you don’t want to be caught off guard by the future repercussions of a DIY divorce. Securing your financial future should be one of the main goals of any divorce. That’s why we’ve prepared a guide on the financial settlement.

In this article, Christ Sweetman from Fair Result is going to cover:

  • What is financial settlement?
  • What is included in the financial settlement?
  • How is child maintenance solved?
  • How can you prepare for the financial settlement?
  • Can you reach a financial settlement by yourself?
  • How does the court decide whether the settlement is fair?

What is financial settlement?

In simple terms, financial settlement in divorce is an agreement between you and your ex-spouse on how to divide financial assets after the dissolution of your marriage or civil partnership.

The settlement can be decided on during any point of the divorce proceedings/civil partnership dissolution. Nevertheless, we would recommend signing a consent order before applying for the Final Order (formerly known as Decree Absolute).

The court usually isn’t involved until the legally binding consent order is signed – stating that both parties agree with the terms. Once the order is drafted & agreed upon, the court needs to approve it. Although, there may be exceptions when divorcees can’t agree between themselves, and the court will be required to intervene.

What is included in the financial settlement?

Matrimonial assets (financial assets acquired during the marriage) are divided as fairly as possible – the starting point of the negotiations is usually 50/50. Whilst non-matrimonial assets (financial assets acquired before the marriage) can be protected by a pre-nuptial agreement and may not get shared.

The financial settlement can include:

  • Money (investments, insurance policies, savings)
  • Property (houses, apartments, rental properties, and holiday homes)
  • Child maintenance
  • Household contents
  • Cars
  • Pension funds
  • Business interests
  • Personal items (over £500)
  • Debts, loans, and credit cards

Moreover, stay vary of the division of mortgages and debt that were accumulated throughout the marriage (otherwise known as matrimonial debt). Since matrimonial debt can be split between both parties as long as the loan was taken out for the benefit of both spouses.

How is child maintenance solved?

In its essence, both parents are legally required to support their children financially. Usually, the parent who doesn’t have regular care of the children – must pay child maintenance.

The maintenance must be paid if a child is:

  • under 16 years old
  • under 20 years old but in full-time non-advanced education (e.g., A-levels)
  • 16-17 years old, no longer in full-time education but has registered for work/training with a careers service.

An agreement can be reached between the spouses regarding children. Alternatively, the Child Maintenance Services can work out child maintenance instead. They will determine how much money needs to be paid to the parent whom the children live with. The decision is mainly based on income & financial commitments.

Additionally, if the spouse that needs to pay maintenance doesn’t live in the UK – an application can be made to the court for a child maintenance order.

How can you prepare for the financial settlement?

The best thing you can do to prepare for a financial settlement is to sort out your personal finances. As well as, roughly agreeing with your ex-spouse who continues to pay the bills and who gets what assets.

If you have any joint bank accounts, matrimonial debt, or credit cards – contact your provider as soon as you can to let them know you’re going through a divorce. Also, make sure your salary or benefits go to a separate account that’s only in your name.

In cases where you can’t trust your ex to not spend money from a joint account, you can freeze your bank cards.

Furthermore, it’s important to evaluate your current finances as an individual and a couple. Make sure to take note of: what you own; how much you owe to each other; what a potential split in assets would look like. Lastly, you should figure out how will the pensions be split.

Can you reach a financial settlement by yourself?

If you’re living in England or Wales – reaching a financial settlement in divorce by yourself is an option. This would come in a form of the consent order, which is a legally binding document that outlines the division of assets & child maintenance.

Once the order is drafted & signed, you’ll need to send copies to the court asking for final approval. This costs £53. Although, to guarantee that your consent order is legally binding you should hire a solicitor.

It’s not recommended to draft your own consent order under normal circumstances. But it’s especially important to hire a solicitor if your financial situation is complex (e.g., you’ve multiple business or property assets), you’ve been married for a long period, or communication has broken down between you and your ex.

Reaching a consent order outside the court can not only speed up your divorce process but also reduce costs. As long as the court thinks the order is fair – it will get approved without any additional court hearings.

How does the court decide whether the settlement is fair?

The court follows the guidelines set out in section 25 of the Matrimonial Causes Act to rule on the division of assets. These include:

  • Existing and future financial assets – the considerations begin with complete financial asset disclosure by both parties. Then the existing assets are evaluated, including how earning potential may change in the future.
  • Current and future financial needs – similarly to future potential earnings, the court evaluates the financial needs of both spouses. Fundamentally, the court looks at moving/re-housing costs and which party will be the primary caretaker of the children. Both parties will also be asked to provide estimated expenses to help with the ruling.
  • Standard of living before the divorce – the court tries to sustain the same standards of living, as before the divorce, for both parties. Although, this is rarely achievable, and a more likely scenario is that both spouses’ standard of living falls.
  • The age of the spouses & marriage duration – in situations where the marriage is short, financial contributions made before the marriage become more important. Whilst if the marriage is long and both spouses are older earning potential, childcare, and pensions suddenly become more important.
  • Spouses’ physical and mental health – this isn’t a common factor during considerations. But when it’s applicable the court will ask for a medical professional to provide evidence.
  • Contributions made for the benefit of the family – this tends to be a highly contested point during the financial settlement. As the Matrimonial Causes Act outlines any contributions made to looking after the home or caring for the family count. So, for example, if one spouse works, while the other takes care of the children – they would be considered equal contributors. On the other hand, things can get more complicated if one spouse brought in high-value assets into the marriage, received an inheritance, or accumulated substantial wealth after separation. In cases like these, the court will consider additional factors.

Final thoughts

Overall, having a signed and approved consent order is the first step you need to take to secure your financial future after divorce. To ensure that you won’t face any negative repercussions after the divorce – hiring a solicitor, to help you with your financial settlement, could be your best choice.

Click here for more articles from Fair Results

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 can make it after financial setbacks
Photo by Jan Antonin Kolar on Unsplash

Life after divorce – You can make it after financial setbacks

Dr. Anita K. Smith
Dr. Anita K. Smith
Divorce Coach
Personal Finance Coach

Divorce is something that you cannot adequately prepare for; nevertheless, predict the outcome – whether the breakup is amicable or controversial.

Divorce can affect your emotions, your mind, your health, and your future.

It will cause you pain, anxiety, fear, uncertainty, and stress; leaving you devastated and defeated. Moreover, it can cause financial burdens and setbacks; preventing you from taking control of your finances.

Couples who divorce focus on the legal aspects: property and assets division, child custody and visitation, mediation, signing the paperwork, and other legalities; however, they sometimes neglect to discuss the financial implications of  post-divorce: joint debts, college funds, medical bills, health coverage, summer camps, etc.

This situation, if left ignored or postposed for extended time periods, will cause economic hardship for women who have sole custody of their children; simply being, mothers choose to stay home and raise their children while fathers become the breadwinner in the family.

If mutually agreeable for both parents to have careers, society often portrays men having higher salaries than women in the workforce and causing huge income gaps; although they are equally qualified and well capable to perform the same job.

Many women who become “single again” after divorce face challenges paying their financial obligations and achieving long-term financial success; compared to men who are divorced, and live alone, because of  income inequality and declining income levels, after divorce. Some women receive financial assistance, such as: alimony (up to 2 years), child support, and state health coverage.

Nevertheless, they are solely responsible for personal, medical, and unexpected bills that arise; which causes them to seek additional streams of income to cover their recurring expenses and adjust their finances to make ends-meet on a regular basis.

A recent financial study conveyed that divorced, single mothers experience a 52% decrease in their finances, while divorced, single fathers experience a 48% increase in their finances, and causes financial difficulties for 80% of women who take care of their children and household expenses, alone, after divorce. This is a major financial setback!

Are you going through a financial crisis and living paycheck to paycheck? Are your bills more than your income? Are you wondering how to get unstuck financially? Are bill collectors calling you every day? Are you feeling overwhelmed and having trouble sleeping at night? Are you going through financial setbacks and don’t know how to make a greater comeback?

If you answered Yes to any of these questions, Now is the time to demolish your self-limiting beliefs, conquer your debt permanently, and become financially free!

There are 3 ways that you can overcome financial setbacks: (1) Get your mind right; (2) Get your health right; and (3) Get your money right.

  1. Get your mind right – Avoid negative thinking and renew your mind daily. Focus on what you can control and what you cannot control. Try mindfulness techniques like deep breathing, walks in the parks, meditation, and listening to good music to break free from worry, depression, and anxiety. Try to understand your emotions and behaviors when it comes to money management.

 

  1. Get your health right – Being in debt is hazardous to your health. You must focus on physical exercises and self-care to eliminate stress. Maintaining a healthy lifestyle is important to help you manage stress. You must become financially knowledgeable and empowered to break your financial obstacles by implementing practical, financial exercises to improve your situation.
  • Create a budget, evaluate and track your spending for four months, and develop financial plan to get out of debt.
  • Allocate your expenses using the 50/30/20 rule: 50% needs or living essentials; 30% wants – clothing, shoes, electronics, jewelry; 10% – tithes; charity; 10% – savings
  • Cut your expenses – give up some luxuries (cable TV with 300+ channels, shopping, restaurants, movies). Do you really need all of these things? What can you “do without” in your household? Is it a need or a want? Don’t impulse buy (online) while feeling sad or lonely. Spend money wisely.
  1. Get your money right – earn more: find additional income streams to help with your credit card and other bills. Develop a plan to pay your debts off within 1-3 years using the snowball method (lowest to highest) and use the extra money, after paying your bills off, to build your 6-month emergency fund.

Open a savings account: put money in the account for short-term and long-term goals, such as: retirement planning, birthdays, Christmas, family vacations, or family reunions.

Overcoming financial setbacks is possible and achievable. It takes prayer, planning, patience, and perseverance. You must believe in yourself! Seek professional help and start rebuilding your finances today! You Can Make It After Financial Setbacks!

About Dr Anita Smith

Dr. Anita K. Smith is a Life After Divorce Coach, Certified Financial Education Instructor (CFEI), Financial Advisor, and Keynote Speaker.

Dr. Anita is the award-winning, Amazon.com, published author of “You Can Make It: How To Start Living Your Virtuous Life.”

Dr. Anita works with individuals who are “single again” after divorce and help clients cope with change and uncertainty in their new life by using tools and techniques to transform, heal, recover, and eliminate pain, grief, and loss of the relationship or marriage breakup. She knows firsthand the effects and emotions of going through a divorce, and how it can wreak havoc on your life, and may cause you to experience health issues, financial issues, and relational issues.

Dr. Anita can help you regain your self-esteem and your self-worth. She will guide you, motivate you, and encourage you to become a CHAMPION AGAIN with practical solutions that you can implement right away to break free from a victim mindset and develop a warrior mindset. After working with Dr. Anita, you will recover, re-ignite, and rebuild your life AND finances after divorce.

Instagram: @dr.anita.k.smith

Instagram: @life_after_divorce_coaching

Website: lifeafterdivorcecoaching.net

Email: dranita@lifeafterdivorcecoaching.net

Going through a divorce? Don't forget to update your Will! 
Image by Gerd Altmann from Pixabay

Going through a divorce? Don’t forget to update your Will! 

Stephanie Mooney
Stephanie Mooney
Associate in the Private Client team
Kingsley Napley LLP

Going through a divorce process is stressful. There are lots of things to think about and one of these is likely to be what you should do to protect your hard-earned money.

It is essential to have a suitably drafted Will in place to ensure that your assets pass according to your wishes in the event of your untimely death.

If you die without a valid Will, the intestacy rules will dictate how your assets are distributed following your death.

If you are married without children, the intestacy rules state that your entire estate will pass to your spouse.  If you are married with children then your spouse keeps the first £270,000 and all the personal possessions. The remainder of the estate is divided in half, with one half passing to the spouse and the other half being divided equally between the children.

A divorce is only legally finalised once decree absolute has been granted. If you were to die before this, without a valid Will, a substantial portion of your assets would pass to your spouse – this is not an ideal scenario for most people.

This outcome can be avoided by making a Will stating who you want your assets to pass to. If you have young children, it is likely that a flexible Will containing some form of protective trust would be best for you.  The Will would appoint trustees to manage funds for your children on your behalf until they reach a certain age. It would also address who should be guardian(s) of your children in the event that you and their other parent die whilst the children are under the age of 18.

If you already have a Will which benefits your spouse, you ought to update this early on in the divorce process. It is not unheard of that someone will die whilst part way through divorce proceedings, with the unintended consequence of assets passing to their spouse.

Even once the divorce process is complete, it is important to note that divorce does not revoke a Will. It is clearer and better to take control and prepare a new Will which does exactly what you want it to do.

It is easy to push preparing a Will to the bottom of the to-do list. However, as part of the divorce proceedings you will most likely be taking a closer look at your assets and financial position.  This is an important step in the process of making a Will, so it makes sense to tick this off the list at the same time.

It can be difficult to know what sort of Will you want (or need) during the divorce proceedings when you do not know what your asset position will be at the end of the process. Rather than taking the risk of waiting to update your Will, it is advisable to ask your solicitor to prepare a “holding Will” for you. This can put some very simple protections in place during the interim. The holding Will can easily be revisited once the divorce and financial settlement are finalised.

When reviewing your finances and your Will, you should also ensure that you do not overlook assets which do not usually pass by Will, such as life policies written in trust, death in service benefits and pensions.  Any nomination forms and expressions of wishes should be brought up to date to reflect your wishes.

Note: All references to “marriage” above include civil partnerships and references to “spouse” also include civil partners. 

Click here for more articles from Kingsley Napley LLP

About Stephanie Mooney

Stephanie Mooney is an Associate in the Private Client team at law firm Kingsley Napley LLP. She advises on succession planning, the preparation of Wills, inheritance tax, trust creation and administration, mental capacity and the administration of estates.

kingsleynapley.co.uk

 

can living with a new partner affect your divorce settlement 
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When can living with a new partner affect your divorce settlement?  

Family Lawyer
Peter Jones
Founder of
Jones Myers
Family Solicitors

The prickly issue of how living with a new partner can affect divorce settlements can vary from case to case and have long-term repercussions on a former spouse.

In divorce proceedings, all ex-spouses are required to be open and transparent about financial disclosures (which include cohabitation) until a financial agreement or order has been agreed by a Court.

This agreement is a contract between the divorcing couple and is invariably made an order of the court. It sets out how any property, finances and spousal maintenance should be shared between them post-divorce.

The Financial Order, also known as a Court Order, sets out the financial arrangements between you and your ex. Approved and issued by a Judge, it makes your terms legally binding.

Here are some examples of how cohabiting with a new partner can impact on financial settlements.

Scenario 1

The ex-husband has been the primary earner throughout the marriage while his former wife stayed at home to look after their children. He meets a new partner who owns her house and earns a good salary.

In this case a Court may consider that the housing arrangements of the husband are resolved and may then give a more favourable view of the wife’s position. It could be her entitlement to remain for a period of time in the property or to receive a more generous share on sale.

The husband will also have less housing costs (as he may be sharing these with his cohabitee) and therefore will have a greater disposable income from which to pay maintenance   

Scenario 2

A husband and his former wife have undergone divorce and a financial order has been agreed in which she receives maintenance. During the financial settlement process, his ex-spouse fails to disclose that she has been living with a younger man on a low-income.

The Court would need to be satisfied that the wife’s financial situation was much improved by the cohabitee sharing housing costs and she may risk a reduction in maintenance.  If the cohabitee was earning a substantial income, this could also have an impact by a reduction in the maintenance.

Scenario 3

Complexities arise in situations where, for example, a former husband on a good salary has been cohabitating with a new partner who has four children, one of whom is disabled.

There is a conventional view that first families come first.  The husband in this instance was aware of his responsibilities to his first wife and family before he embarked on a second relationship.  However, in this case the Court has a difficult balancing act to satisfy the financial requirements of 2 families.

Key considerations

As an ex-spouse you must give a full and frank disclosure of your financial means to your ex and vice versa right up to the point that the Court Order is approved.

If you start living with a new partner before the financial settlement is agreed or have an intention to do so after the divorce – and have not disclosed the relationship or intention while negotiations are ongoing – your settlement can be changed when it is later discovered.

The outcome could result in a change in the terms of the order and the possibility of paying the court costs.

If you are unsure of your position on cohabitation while divorcing, I urge you to seek advice from an experienced family lawyer.

Click here for more articles by Peter Jones

ABOUT PETER JONES

Peter Jones is one of the country’s leading divorce and family lawyers. A qualified Arbitrator and Mediator, Peter set up Jones Myers as the first niche family law firm in the north of England in 1992 and has acted for a string of high-profile clients.

Renowned for his sympathetic approach, Peter is the current chair of Resolution’s Accreditation Committee, a former national chairman of Resolution and a former Deputy District Judge. www.jonesmyers.co.uk

Going Through A Divorce During Lockdown
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5 Things You Need To Know About Going Through A Divorce During Lockdown

Stacey St Clair
Associate Solicitor
Hawkins Family Law

Can I apply for a divorce whilst we are in lockdown?

The simple answer is yes you can.

Whether you have made the recent decision to divorce, or if you now have the time to do so, the Courts are still open and processing divorce petitions.

As long as you can demonstrate that your marriage has irretrievably broken down you are free to start the process.

You will need to consider the grounds for divorce which are separation of 5 years, separation of 2 years and you both consent to the divorce, the other party’s adultery or behaviour or desertion.

You will also need either your original marriage certificate or a certified copy and then you can action your divorce – or we can on your behalf.  As the Courts have moved to an online system recently for divorce, the time frame is considerably shorter than it was.

Can I still make a financial application to the Court during lockdown?

As mentioned above, the courts are still open and are conducting hearings remotely, so yes, you can make an application and it will be considered either by the Court or alternatively you may be attracted to alternative dispute resolution – in other words, mediation, collaborative law, private hearings or arbitration.

If you issue within the Court arena then the timetable will be set as has always been the case.

There are changes inevitably with the pandemic, for example the First Appointments are generally dealt with on paper rather than by a hearing.

The other hearings: the financial dispute resolution hearing and final hearings though are being dealt with by the Courts wherever possible, either on the telephone or via video link.

Inevitably this can cause some problems if people do not have the technology – although most people have a telephone.

The key is to consider which approach would work best for you – sometimes having the Court process in the background whilst exploring say a private FDR can be hugely helpful and speed the process up as well.

Can I obtain a new house valuation for my financial case?

As we all know things are different at the moment. The property market has been paused for some time, although things are slowly starting to move with estate agents reopening and socially distanced viewings taking place.

You will need to be guided by professionals in terms of the actual impact on the value of the house, – some people are finding that their house value has fallen – sometimes by as much as 10% or even more, whilst others are being told that their property is in a bubble and may in fact attract a premium.

We would advise everyone to consider carefully the value of their property and speak to their valuer – our advice would be to get an updated valuation.

The relevance of a new valuation will depend upon the stage of the proceedings you have reached.  If you have already finalised your case pre covid then you should seek specialist advice as to whether there is any possibility of you revisiting that order.

This is a complex area of law and each case will be judged on its own merits so please act quickly if you find yourself in this situation. If you have not yet reached an agreement or had a final order then we would advise you get a new valuation.

Can I still co-parent during lockdown?

It should be straightforward to make arrangements and co-parent during lockdown, as the Government confirmed that children are permitted to move between the households of separated families.

What you should do as parents is make a sensible assessment of the circumstances and consider the health & wellbeing of everyone in each household before deciding what the arrangements should be.

If you have any serious concerns about the child arrangements or your child is not returned after spending time with the other parent, an urgent application can be made to the Family Court to determine this short-term issue.

A Judge will scrutinise the actions of both parents and determine what is a reasonable and safe arrangement. If you find yourself in this situation, you should seek specialist advice from a family lawyer as the Court hearing itself would be held remotely via telephone or video.

During lockdown some separated families are finding it difficult to co-parent and decide whose responsibility it is to home school the children.

Where possible, virtual online and home-schooling materials should be shared between both parents. It is important that both parents play an active role, even if this is done virtually with the absent parent supporting the child with homework.

STAY POSITIVE!

We know it’s tough but try not to feel overwhelmed by negative thoughts and feelings of helplessness.

While the situation is undeniably difficult, this won’t be our reality forever and it’s important to look after yourself during this pandemic. We all need hope so try and remain positive during this difficult time.

If you do require advice and assistance with your divorce, then it is important to seek specialist advice from a team of professionals. If you are struggling emotionally with being in lockdown with someone who you have separated from, there are other support networks that can assist.

About Stacey St. Clair

After completing my law degree at the University of Brunel, I undertook my LPC at The College of Law in London. I completed my training at a reputable firm in Beaconsfield and qualified in 2011.

Since qualifying, I have specialised in family law and before joining Hawkins Family Law, worked at a large family law practice based in London. I joined Hawkins Family Law in 2016 and have extensive experience in all areas of family law, dealing with complex financial disputes and sensitive cases involving children.

My experience includes cases involving substantial income and capital, both in this country and abroad, as well as a variety of financial, business disputes and substantial pensions. I advise on Pre and Post Nupital agreements.

I am able to negotiate and advise on arrangements for children, including specific issues about schooling and relocation out of the jurisdiction. I am Resolution accredited and committed to assisting client to reach a solution without unnecessary conflict.

I often represent clients in Court, undertaking my own advocacy for disputes relating to injunctions, occupation of the family home and urgent welfare issues regarding children. My clients feel supported throughout the process and my aim is to give clear constructive advice.

My priority is listening to my clients’ needs and objectives and then adopting a holistic approach, with compassion and empathy. Where possible, I always seek an out of Court settlement to help alleviate the stress of a family breakdown.

I am an experienced collaborative lawyer, and I will always prioritise my clients’ interests and objectives first and take a practical, no nonsense approach to cases. I combine knowledge and experience with empathy to ensure my clients know they are in safe hands and fully supported.

My experience in advising on complex financial remedies, private children law and co-habitation is recognised by Resolution’s specialist accreditation scheme.

Links

Website – https://hawkinsfamilylaw.co.uk/

Twitter – https://twitter.com/hawkinsfamilyl1

Facebook – https://www.facebook.com/hawkinsfamilylaw

Instagram – https://www.instagram.com/hawkinsfamilylaw/

 

 

Will the UK see an Increase in Divorces Post-Lockdown
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Will the UK see an Increase in Divorces Post-Lockdown?

Sophia Yau-Rosher
Sophia Yau-Rosher
Partner at
Beecham Peacock

Reports from China are stating that the number of divorce filings in the country has soared following the lifting of lockdown restrictions; can we expect the UK to follow a similar trend?

China’s emergence from lockdown

Since government-enforced lockdown in China has been gradually lifting in parts of the country as of late March, the number of divorce filings amongst Chinese couples has soared.

Whilst official nationwide divorce statistics are not available yet, being released only annually by the Communist Party of China, reports are coming in from the Marriage Registry in China showing that the government offices in Xi’an and Shanghai have been overwhelmed with record-high numbers of divorce filings.

Social media posts and reports state that queues to the offices are extending into the street outside, with staff being overworked in an effort to keep up with demand.

Why are Chinese couples divorcing due to lockdown?

With couples under enforced quarantine together across China for two months, underlying problems in relationships were worsened by the constant close proximity, causing a breakdown in relationships on a large scale. This was further complicated by the fact that the forced lockdown fell as Chinese New Year was beginning.

During Chinese New Year, almost 3 billion trips are made annually as the majority of the Chinese population, including many people oversees with Chinese heritage, travel to stay with extended family in their hometowns; for many, this meant lockdown occurred whilst they were staying with their family, and the forced isolation with family over this extended period may also have caused relationships to suffer.

Rising domestic abuse levels.

The lockdown creates another problem for many UK couples in regards to domestic abuse. In the enforced lockdown, many in abusive relationships are given no respite from abuse, with UK charities reporting that the number of calls received about domestic abuse has increased hugely since lockdown began.

I would suggest seeking refuge first and foremost in the form of a charity or other safe space, followed by immediate legal support to ensure your long-term safety and wellbeing. If people can contact us over the telephone, we can support them and take their case to court if necessary.

If you are trapped in an abusive relationship or know someone who may be, please see the UK Government’s page on domestic abuse for full information and available charities.

Whether an increase in domestic abuse has had or will have any impact on quarantine divorce rates remains to be seen, however it is possible that the increase in domestic abuse may be a contributing factor to increased divorce rates.

Will the UK see an increase in divorces?

With UK couples in a similar situation to China’s couples during quarantine, many speculate that the UK will follow suit and see a huge increase in divorces once lockdown lifts.

Annually, the two highest points of the year in terms of divorce rates are typically in January and August due to the holiday periods preceding them; the increased time spent together for many couples worsens problems in a relationship.

The difficulty is that parties are in a situation where, locked down together, cracks in the relationship become amplified.

For many couples, the lockdown is the defining change which may cause a divorce after months of deliberation; We have had couples contact us with concerns over their relationship prior to lockdown who had not fully made their mind up in regards to getting a divorce; the current situation might tip them over the edge.

Other lawyers have echoed a similar sentiment: Baroness Shackleton of Belgravia, whose previous clients included the Duke of York and Sir Paul McCartney, addressed the House of Lords saying that “The prediction amongst divorce lawyers is that following self-imposed confinement it is very likely that the divorce rate will rise.”

All factors seem to point towards an increase in UK divorces once lockdown lifts, however the scale at which this will occur has yet to be determined without official records from China to set a precedent.

It does, however, seem certain that this lockdown will have long-term impacts on the relationships of many couples nationwide.

Click here for more articles by Beecham Peacock Solicitors

About Sophia Yau-Rosher

Sophia has been with Beecham Peacock since 2003 and a partner in the firm since 2006.

She has 20 years’ experience in family law work. Her particular interests lie in proceedings concerning matrimonial assets and children.

She is an accredited specialist with Resolution in the areas of Advanced Financial Provision and Private Children Law. She is also Accredited on the Law Society Advanced Accreditation scheme for work relating to Domestic Abuse.

Highly motivated with a strong sense of fairness and justice, Sophia always strives for her clients.

Beecham Peacock Solicitors 

Coronavirus: Is Now a Good Time to get Divorced
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Coronavirus: Is Now a Good Time to get Divorced? And Other Separation Questions

Emma Davies
Partner and Solicitor
Nelsons

With couples cooped up in lockdown due to the coronavirus, law firms across the country have reported an increase in enquiries from spouses who are wanting to split from their partners.

But with the courts currently closed and the negative impact Covid-19 is having on the economy and housing market, is now a good time to get divorced?

Firstly, can I still get a divorce?

Many court staff and judges are working from home and hearings are being done remotely over the telephone or, in some cases, by video link, so it is still possible, but couples may experience delays.

This is because the courts are prioritising urgent cases, such as those involving domestic abuse or child protection.

However, in most divorce cases, a hearing is not needed. Couples will only have to go to court if disputes regarding financial matters or children cannot be resolved by the separated couple or their lawyers.

Financially, is now a good time to get divorced?

With the impact the Covid-19 pandemic is having on the economy, many people may find themselves in a financially less advantageous position.

Housing markets have come to a standstill, retailers, pubs, clubs and restaurants have temporarily ceased trading, and businesses will no doubt be tightening their belts in an attempt to persevere during these challenging times.

For some, however, a financial downturn could be seen as an advantage when it comes to divorce and securing a favourable financial settlement.

Due to the coronavirus outbreak, many assets may well have diminished in value. Businesses may not be considered as valuable, investments are likely to have suffered, and some pensions will now be worth less than they were only a few short weeks ago.

For the party to a marriage who is – or was prior to the pandemic – in a stronger financial position, the answer to the question “should I divorce now” might well be yes.

Hopefully, the economy will bounce back, as will the value of your assets, leaving you better off than if you had divorced in more stable times.

Can a financial settlement be renegotiated if coronavirus has made it unfair?

Although the timing might benefit you, it may not benefit your spouse, who is likely to object to a final financial settlement being reached until some form of normality has resumed.

Additionally, you should be warned that the unprecedented uncertainty brought about by Covid-19 will mean that the court will likely exercise extreme caution when making final orders, dividing the martial assets until the storm has passed.

Every case is different and it is important you seek advice tailored to your specific circumstances.

What happens if the family home struggles to sell?

At the end of March, the government suspended the housing market as estate agents closed their doors and banks withdrew deals.

As a result, homeowners trying to sell their properties saw the number of potential buyers decline. This, of course, could throw settlements into jeopardy and possibly increase a couple’s capital gains tax liabilities when they do end up reaching a deal.

About Emma Davies

Emma Davies qualified as a solicitor in 2008 and joined Nelsons’ family law team in 2009. She specialises in family law cases and advises on divorce and financial settlements that involve complex issues and substantial assets.

For more information on divorce and separation, please visit nelsonslaw.co.uk or call 0800 024 1976.

Nelsons was established in 1983 and provides support to businesses, individuals and families with their legal and investment needs.

Nelsons’ experience and depth of resource has also enabled them to offer services to other solicitors through Fusion Legal – a mutually-beneficial referrals and support network for law firms.

The firm is recognised by the leading, independently researched Legal 500 and is recommended by them in more than 20 practice areas.

The firm is recommended by Chambers and Partners and also features in The Lawyer’s UK 200 Annual Report of the UK’s largest 200 law firms. Nelsons has offices throughout the East Midlands in Nottingham, Leicester & Derby.

Divorced Parents’ Guide to Resolving Family Disputes
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The Nightmare Before Christmas: The Divorced Parents’ Guide to Resolving Family Disputes

Matthew Clemence
Senior Associate, Collaborative Lawyer and Mediator with
Prettys

For families everywhere Christmas can be a tricky time.

Rows about whose family to visit, relatives we’d rather not see and who is cooking the Christmas dinner can all threaten to spoil what should be the most wonderful time of year.

Add divorce and child arrangements to the mix and the festive season can become even more frosty.

Consider mediation

Christmas is all about the magic of children running downstairs to open their presents. This is what parents want to experience most and it can be difficult to make plans they agree on if they have divorced or are separated.

Arrangements may already be in place, so it is all about finding compromises and working out how the child can spend a good amount of time with each parent over the festive period.

One of the best options is to consider mediation – the face-to-face interaction this process offers can help both parents to understand how each other is being emotionally affected.

It also gives them a chance to air their thoughts and feelings, something which can’t be communicated as easily through letters and emails.

Dealing with cases this way can help warring parents to realise the impact their own actions could have on their children and the wider family.

Getting parents to view an issue from the other side can be quite compelling as it can make them think about their own behaviour and perspective.

The Government insists mediation is tried before disputes end up in court and there is also no public funding for this type of issue, so mediation is a much better option.

If there is no agreement, the courts will get involved. They will always try to be fair wherever possible, which means aiming for equal time between the two parents.

Be reasonable with your expectations

One issue which we have seen cause tension is over the Christmas presents a child receives from one parent and how they want to take them between both homes. We’ve seen situations where parents insist that a gift does not go to the home of the other parent.

Children should feel free to take their gifts between houses as they may want to show the other parent what they’ve got for Christmas. Parents need to be reasonable and allow this to happen.

There also needs to be an acceptance that gifts can break and if this happens at the other parent’s house this does not mean it is the fault of that person. These things need to be explored and understood by both parties.

Communication is key

When it comes to gift giving it is vital to communicate. Some parents still jointly buy presents but usually separated parents have their own individual budgets. They need to consult each other so that gifts aren’t duplicated by mistake.

If there is a financial imbalance between the two parents, agreeing a set budget will also stop any feeling of unhealthy competition regarding gift expense.

Alternatively, it should be made clear to a child that if they are receiving an expensive gift that it’s not coming from just one parent but the extended family on that side.

This prevents one parent feeling embarrassed or an ‘inferior’ parent if they can’t afford the same level of gift.

Be aware of family members overseas

Sometimes families have Christmas plans which involve travelling abroad to visit extended family. If this is the case, then you have to remain child-focused and realise that this is a life experience for the child Parents should not put their own opinions and desires before that.

Plus, with technology such as Skype and FaceTime, it is a lot easier for children to communicate with the other parent even if they’re far away.

Involve children in decision-making if appropriate

All children mature at different times and there may be other dynamics at play that sometimes hinder their ability to make a decision – especially as they won’t want to upset either parent.

But they should be included in decision-making if parents deem it appropriate. They need to appreciate the child’s wants and needs over their own.

The best thing at Christmas is for a child to see both parents being civil and accommodating to one another and making an effort to get on well.

Children should not see the conflicts between parents.

Trying to put the needs of the child first will help ensure a trouble-free Christmas that everyone in the family can enjoy.

Click here for more articles by Matthew Clemence

ABOUT MATTHEW CLEMENCE

Matthew qualified as a solicitor in 2001 following completion of his training at a prominent law firm in East London.

Matthew originally joined Prettys in 2003 before leaving to head up the family law team in a firm based in Newmarket in 2009.

Matthew has now re-joined Prettys as a Senior Associate bringing with him a wealth of experience to the family law team.

Notably, Matthew was the husband’s solicitor in the Wright case which received worldwide publicity following the decision passed down by The Court of Appeal involving spousal maintenance, the result of which has dramatically changed the legal landscape in this area of law.

Consequently Matthew now receives instruction from clients both in the UK and abroad seeking advice in this particular area.

In addition, Matthew advises clients on all issues arising from family matters, including divorce, financial resolution, children disputes, pre/post marital agreements as well as financial resolution with cross jurisdictional elements, businesses, trusts and land.

Matthew is collaboratively trained and a member of Resolution.  He is committed to resolving all family matters outside court wherever possible.

prettys.co.uk

mclemence@prettys.co.uk

t 01473 298337

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How to Decide if Arbitration is the Right Route in your Divorce

Family Lawyer
Peter Jones
Founder of
Jones Myers
Family Solicitors

An increasing number of couples looking to avoid a lengthy, expensive and public divorce in court are turning to arbitration where an Arbitrator, also referred to as a private judge, decides the outcome of divorce settlements.

Jones Myers founder, Peter Jones, was one of the country’s first arbitrators when this option was introduced in 2012 to resolve differences on financial and property matters. In 2016 the scheme was extended to include disputes relating to children.

Based on our extensive experience, here are some key questions to help decide if arbitration is right for you.

What is arbitration?

Arbitration is in practical terms a private court designed to resolve the financial issues between the parties. You and your ex appoint an Arbitrator of your choice – based on their matrimonial knowledge and experience.

Arbitration preserves your privacy in contrast to going to court when your future is determined by a judge, who is unknown to you.

Another element in the court process which can cause considerable concern is the fact that it enables the media to attend and report on your case.

What does the Arbitrator do?

Arbitrators are independent and impartial third parties who have read all the information and fully understand the issues.

After listening to all the evidence and the representations made on your behalf, the Arbitrator will then make an award – which is similar to the court order but more comprehensive – and which is final.

The “hearing” will be at a venue agreed between you, often an office with sufficient conference facilities. At this session the Arbitrator listens to the relevant facts and evidence and, after considering your individual views, makes a binding ruling, known as an award.

Can I appeal against the award?

You can only appeal against the award in the most exceptional circumstances – i.e. if the Arbitrator misunderstood the law. No appeal is permitted on the basis that you did not like the result.

How long do arbitration cases take to resolve?

Going through arbitration is considerably faster than going to court and offers you and your ex a more flexible and convenient timetable. This speedier process also assists in reducing the level of stress and the financial costs.

What qualifications does an arbitrator have?

Family Law Arbitrators have been trained and qualified pursuant to the standards of the Institute of Family Law Arbitrators of which they are members.

They are invariably experienced family lawyers who are former judges or family law barristers or solicitors.

Click here for more articles by Peter Jones

About Peter Jones

Peter Jones, one of the country’s leading divorce and family lawyers, set up Jones Myers as the first niche family law firm in the north of England in 1992 and has acted for a string of high-profile clients.

He is qualified to arbitrate on cases including financial and property disputes, the break-up of civil partnerships or disputes between cohabitating couples whose relationships have ended.

Renowned for his sympathetic approach, Peter is a a former Deputy District Judge and former national chairman of Resolution who instigated the D5 Group of law firms that promotes excellence in family law. www.jonesmyers.co.uk

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