Splitting up from a partner can be an emotional roller coaster and planning your future finances may be the last thing you feel like doing.

However, it is vitally important for the long-term wellbeing of both you and your ex that a financial settlement is reached that is mutually satisfactory and will stand up to legal scrutiny.

Generally speaking there are three areas to be considered when working out who has what proportion of the joint finances – and for how long.

• Assets – including savings, investments, property or shares
• Income – the amount and length of time any post separation payments should be made
• Pensions – the type of scheme and its value

The first step in ensuring a robust financial settlement is arranging an exchange of all the financial information. Only by doing this will all parties gain an insight into the whole financial landscape.

The next priority is building a detailed picture of the needs of each party, both now and going forwards. This often involves a process of quid pro quo – for example one of you might seek the security of a home while the other may want to be the sole beneficiary of a future pension pay out.

Crucially, the rationale for any trade-off will need to be clearly explained in the court document so that it can be scrutinised by the judge. Care should also be taken to ensure there are no hidden difficulties such as penalties on settlement of a mortgage or tax problems.

The next stage is drawing up a timetable that ensures all transactions such as maintenance payments, property transfers or lump sum payments have an agreed cut off date. This will also be checked by the court, to ensure that it is deemed fair for both parties.

When making its judgements, the court will take into account a range of factors for both parties including financial resources, financial obligations, standard of living, age, health and the contributions made to the marriage.

Creating an agreement that will stand the test of time is a complex task and it always pays to seek advice from a highly experienced family lawyer who can ensure that everything is encapsulated in an agreement which is in a format that is acceptable to the court.  Once the agreement is approved, it will give clarity and certainty to each party enabling them both to look forward into the future with security and optimism.

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, he is a former national chairman of Resolution, a former Deputy District Judge – and instigated the D5 Group of law firms that promotes excellence in family law. www.jonesmyers.co.uk

Child maintenance is a key issue for many parents who are getting divorced or separating, as it relates to financial support towards a child’s everyday living costs, after two parents have separated.

Understandably this is a key concern for parents who are getting divorced or separating, as the welfare of their children is paramount and can stir up many emotions.

Child maintenance helps to cover important day to day costs for children such as food, clothing, housing costs, and other essentials.

It usually takes the form of regular amounts of money being paid to the parent who cares for the child most of the time. It is designed to make sure both parents contribute to the child’s upbringing when they live apart.

Under the laws relating to child support, the court is not able to make an order for child maintenance other than by consent (agreement). So, if the parent’s divorce or separation is amicable, and communication between the two parents is good, then some parents should be able to agree a sum for maintenance between themselves.

However, court orders by consent made as a result of a divorce are only binding for one year, after which point either parent can apply to have the amount reassessed by the Child Maintenance Service.

In the event that the relationship between the two parents has broken down and agreement can’t be reached about child maintenance (for example how much will be paid and how) a family law solicitor specialising in this area of law should be consulted.

How is Child Maintenance Calculated?

Child maintenance is calculated using a formula determined by the Child Maintenance Service and is based on numerous factors including:

• • a percentage of the non-resident parent’s income, depending on the number of children they have to support

• • the number of nights per week, averaged over a year, that the child or children stay with the paying parent, and

• • the number of children the paying parent has in their own household or if they are paying child support to more than one other parent

However, there are many variables that will determine how much should be paid and so parents who are getting divorced or separating (together with their family law solicitors) are encouraged to use an online calculator to work out the correct figure.

Child Maintenance Calculator

Family Law Partners created their own Child Maintenance Calculator because its family law experts felt there were problems with the Government’s own tool.

The Family Law Partners calculator helps parents who are separating or divorcing to work out their child maintenance calculation.  It has the following features:

• • Easy-capture, easy share – you can share the calculation easily with your co-parent

• • More accurate- it asks for more information that the CMS calculator and therefore gives a more accurate calculation for both parents

• • PDF export –  you can send the calculation directly to your own inbox, as well as to a third party such as your family lawyer or mediator

• • Mobile and tablet-friendly –  unlike the CMS calculator, it can be used across multiple devices

About Alan Larkin

The realisation that divorce is inevitable can result in wide-ranging emotions spanning despair, frustration – and fear of starting all over again.

It is very rare that the person instigating the break up, or the partner who is being left, are prepared for the collapse of the marriage.

Embarking on a life-changing path can seem a daunting and difficult journey. The steps below will help you to start and manage the divorce process:

Check you can apply for a divorce

You must be married for over a year before starting divorce proceedings. Your marriage must be recognised by UK law and in most instances you or your partner will be living in England or Wales when making an application. You will also need to produce your marriage certificate.

Establish your grounds for divorce

In England and Wales there is only one ground for divorce – the irretrievable breakdown of your marriage. You must show one of these five facts exist for divorce:

• Adultery
• Unreasonable behaviour – a common ground for a speedy divorce which can be based on mild allegations such as one party being a workaholic
• Desertion
• Two years’ separation – if both parties agree to the divorce, this is the easiest way to divorce
• Five year’s separation – applicable even if your ex doesn’t agree to the divorce

Seek early professional advice

Enlist professional support, sound advice and practical help from family law experts who can help you with all aspects of divorce and separation including finances and children. Having the correct information early on can help you make informed decisions and avoid costly mistakes later. Knowing what to expect will also settle many preconceived anxieties.

Avoid inflaming the situation

Don’t be tempted to start moving money out of a bank account or change locks on your family home. It may be the main asset and central to any financial settlement. If possible, it is better if one of you can move out to help avoid confrontation and stress. This move does not mean that your or your ex will lose your share in the home.

Telling your children

Parents often find this to be the hardest aspect of splitting up. Don’t leave it too late and, if possible, break the news together after planning your approach and what you will say. Don’t blame each other – aim to be consistent in what you say and reassure them that they are loved.

Click here for more articles from Jones Myers

 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, he is a former national chairman of Resolution, a former Deputy District Judge – and instigated the D5 Group of law firms that promotes excellence in family law. www.jonesmyers.co.uk

Chronic illness is a very common component in divorce – and can have a far reaching impact on issues relating to finance and children.

Long terms conditions such as Multiple Sclerosis, lupus, Motor Neurone Disease not only affect people physically but often mentally and can create tensions and difficulties.

Those living with these illnesses may sometimes find their partner unsympathetic, unsupportive and impatient with the effects of their condition. In our experience, partners can also resent how long term health issues absorb their loved ones.

If the relationship ends, and there are court proceedings about finances or children, how does the court deal with someone living with chronic illness?

Those with long term health conditions are entitled to ask the court to consider their ability to work – it is part of the criteria that the court has to consider.

Such a person may fare better than an able bodied person in terms of capital split as they do not have the ability to work and acquire pension rights.

People with a limited life span may find that that this unpalatable issue is raised. There is no point splitting a pension if the other person is not going to live to enjoy it.

When pensions are split, and the recipient of the split dies, pensions are lost to the family. In some cases, dependent children lose out on the financial support.

However the terminally ill are still entitled to their fair split of the family assets to leave to children or family if they wish.

I had one client who was in a home with very debilitating MS but met a new partner and had a very happy life with him once the assets were split – albeit for a fairly short time. Everyone is entitled to be happy if the court can manage it – even if the time is limited for them to enjoy life.

Someone with serious long term issues is also entitled to ask the court to consider the care needs they will have once the marriage has ended. This can involve an occupational health report being compiled.

If a house has been adapted for the person with the health issue, the court may feel it is important for them to keep it. However the needs of any children also have to be considered.

These situations are very hard and need careful and thoughtful handling by the court – and by the solicitor representing each partner.

They require difficult conversations in which unhappy outcomes need to be considered carefully so the importance of having the right representation cannot be understated.

Click here for more articles by Vanessa Fox

About Vanessa

hlw Keeble Hawson partner, Vanessa Fox, has been head of the firm’s family law department since 1991.

The latest edition of the Legal 500 Guide praises Vanessa for her ‘broad knowledge of finance and childcare, and for her passion for collaboration; she is efficient, caring and robust’.

Collaboratively trained and a qualified mediator, Vanessa is a former chair of South Yorkshire Resolution and a member of the Law Society’s Family Law Panel and the Children Panel.

She can be contacted on 0114 290 6232 or at vanessafox@hlwkeeblehawson.co.uk.

Feature Photo by Thought Catalog on Unsplash

Lawyers get asked all sorts of questions. Quite often these can be unrelated to the legalities of the case they are working on.

In family law, what it often comes down to is additional emotional support.

While this is not what lawyers are there for, it goes with the territory – though a line does need to be drawn at some point.

However, there are some key questions that clients should ask when looking to engage a family lawyer at the start of a divorce process. Getting the right family law specialist is like choosing the right car. Get the wrong one and not only will you be uncomfortable, but you are unlikely to get very far without making a change.

The best lawyers want you to ask the right questions to ensure you are a good fit for each other. It’s better for them as well if everyone knows where we are at the start. Here are the top five questions good family lawyers want you to ask when speaking to them for the first time.

How long will my divorce take?

This may seem obvious but, so many people do not ask this. It means they can have unrealistic expectations about the timetable. This may cause tensions with a lawyer unnecessarily.

There are many things that can affect the time it takes for a divorce to go through, including how quickly you can agree with your ex over the division of assets and whether the court processing the petition is particularly busy or not. Certain elements have set time limits also. For guidance, 24 weeks would be about the fastest it could happen. Generally, expect five to seven months.

Will you be managing my case personally?

It is not uncommon for a law firm to have experienced lawyers or partners who meet potential clients, but the actual work is done by junior people. This means the quality of advice may suffer as well as the relationship you felt you had developed in the first conversation.

It is important you understand who is doing the work and what you are paying for. Are you paying for the work to be done and then additionally for a more senior solicitor to check the work?

You want to speak to the person who will be doing the work for you. You need to make sure they talk to you in plain English, explain legal issues in a way you can understand, and you have a rapport with them.

How will you pay for your divorce?

One of the biggest concerns for people instructing a solicitor is cost. In some instances, lawyers can be vague about fees. This might be justified where a case is contested or particularly complicated as it is impossible to know exactly how long things will take.

However, you should always be told in clarity about divorce costs. It’s always a good idea to ask about fixed fees. These are often available for the basic divorce and specific elements in other cases. A fixed fee gives clarity on the cost – though always check what you are getting for that price so there are no significant hidden costs.

Will I be able to get hold of you when I need to?

Solicitors are notoriously difficult to get hold of and criticism abounds of lawyers failing to return calls or reply to emails. Sadly, there is some truth to these claims. A good solicitor will give you clear guidance on what to expect, for instance they will return a phone call within 24 hours without needing chasing, or they will respond to an email within the day. Knowing this up front means you can hold them to account if these service levels are not met but also provides you with reassurance that you will receive a level of service that is acceptable.

What do past clients say?

Recommendations are a good way to find a family law solicitor, although it’s also important to choose a solicitor based on your own expectations. Testimonials from past clients are a great way of hearing about how they handle their cases. If you are interested in efficiency and professionalism you can look out for these traits. Likewise, if you want to feel listened to and empathised with you’ll find out by reading what others write.

The bottom line is you need a solicitor with the right skills and experience but also one who you can talk to. You also need to make sure that they are reliable and understand that going through a divorce is an emotional time for you. They should not be adding to the stress. Asking potential solicitors the questions above may just help you pick the right one, ensure you check from the start and save time and money.

This was a guest post by Susan Harwood of UK Family Law Solicitors, Woolley & Co.

About Susan Harwood

Susan Harwood is a family lawyer based in Cornwall and has clients all over the UK. Legal 500 describes Susan as ‘a highly competent and experienced practitioner’, ‘giving practical and client-focused advice.’

She deals with a wide variety of divorce and family law matters including cases with an international element, complex financial settlements, arrangements for children on separation as well as the drafting of prenuptial and other agreements.

Susan offers a free initial telephone chat for anyone with divorce or family law questions.  Contact Susan via email – susan.harwood@family-lawfirm.co.uk or call 01326 330684.

When a couple end their relationship, there is typically a big dispute between the two parties regarding all of their assets and finances.

In a lot of situations, it can often be the case that one member of the couple holds the legal title to the owned property, rather than any property being jointly owned.

This can bring potential issues to you if you are the individual that doesn’t have legal ownership of the property, but there are a number of things that you can do to help your situation.

What should you do if you aren’t named as a Proprietor of the Property?

Following the separation from your partner, it is important that you determine whether or not you are named as a proprietor of the property in question.

In the case that you aren’t named as the proprietor, you will need to contact the Land registry and permit yourself occupation by registering a ‘Home Rights Notice’ against the property as soon as you can.

By completing this process, you are essentially protecting your personal rights in relation to eviction and exclusion, and this allows you to enter the property and means that you can continue to live there, even if you had already previously left the family home.

Although this process provides you with the previously mentioned rights, it doesn’t give you ownership of the property.

Property Restrictions

Restrictions for the property in question will prevent any unnatural dealings with the property by your former partner, particularly as restrictions can ultimately prevent them from selling it.

In order to file a restriction against the property, you must demonstrate a particular interest in the property, as well as matching a variety of different criteria.

As restrictions specifically relate to the property and the way in which it is handled by the proprietor, they are typically used within family law cases.

The main focus of this would be to prevent the sale of the property without the consent of the individual, or their solicitors, that ensured the restrictions. This would work in a way that the Land Registry would notify the proprietor of the property of your wish to apply a restriction against the property, with any objections to the restriction leading the case to be reviewed be an adjudicator.

A restriction would be removed from the property in the event of divorce, a court ordering or even a voluntary release, from the individual that initially requested the restriction, be put in place.

A restriction would be put in place against a property up until one of the parties applies for its removal, but this is typically following an agreement between the two parties for it to be removed, ready for the sale of the property.

Home Rights Notices and their Purpose

These notices are specifically designed to protect the rights of third parties as they will be lodged within the charges register of the property title, which would in turn inform any potential buyers of the property.

By having such a notice, you will be informed of any attempts to sell or transfer the property, giving you the ability to stop any transactions.

There are three types of notice that can be registered including:

Registrar’s Notice – This type of notice is designed for certain circumstances, and isn’t a very common occurrence within Family Law.

Agreed Notice – This type of notice would need consent from the proprietor of the property.

Unilateral Notice – This type of notice does not require any consent from the proprietor of the property.

It is essential that you know where you stand in relation to your property and your living arrangements. In the case that you aren’t a named proprietor of the property, we advise that you make use of this guide and take the relevant steps to protecting yourself and your position.

Click here for more articles by Kerry Smith

About Kerry Smith

Kerry Smith is the head of family law at K J Smith Solicitors, a specialist family law firm who deal with a wide range of issues including divorce, domestic violence, civil partnerships and prenuptial agreements.

The family business comes in all shapes and sizes and in view of this can often be the most difficult financial settlement to conclude following a divorce.

In today’s uncertain economic climate there are potential storms on the horizon for the family business and in the event of a divorce, the business needs to be protected as quickly as possible for its survival and commercial viability for the future.

Why are there complications in these circumstances?

Dealing with the family business following divorce can raise many complex issues involving inheritance, financial contributions and other family members having a share or interest in the business.

How do the courts decide who gets what?

Historically, the family court and trial judge would seek to protect the family business from being heavily involved in a matrimonial settlement in order to avoid the business having to be sold. In view of the position, it was previously possible to try and ‘ring-fence’ the business. However, the position has changed following the case White v White 2001.

In the case, the court dealt with a 33-year marriage and assets totalling £4.6 million, the main being the family farming business. The case went to The Supreme Court, where Mrs White was awarded £1.69 million, 40% of the matrimonial assets, which resulted in the business having to be sold in order to provide Mrs White’s settlement.

Since the case, the law has leaned towards fairness and dividing the matrimonial assets and courts will only depart from equality where there is good reason to do so.

Understanding the business structure

The first step in resolving the family business is to understand the business structure, of which there are three main types:

1. The sole trader is the owner and controller of the business assets and personally liable for the business and its debts.

2. Partnerships can be formal or informal. There are various types of partnership. In view of the position the business structure can be more complicated. Partnership shares and ownership can vary as can business liability.

3.  A limited company can also be more complicated. This involves the issue of shares and appointment of directors within the company. There can be many owners of the business with restrictions being placed on the transfer of shares in the business.

Having established the family business structure, the next step is to value the business.

How is the family business valued?

The valuation of the family business is a crucial starting point since this determines what is in the ‘matrimonial pot’ for distribution between a divorcing couple.

The valuation of the business will almost always be based upon the current market valuation. Normally the valuation will be by a single joint expert who will be an independent qualified accountant.

In order to carry out the valuation the accountant will require full financial disclosure in relation to the business consisting of financial and management accounts. The accountant may also be instructed to deal with other issues such as: the liquidity of the business in order to raise funds and Capital Gains Tax payable on the transfer of shares, or disposal of the business.

When the family business involves land and buildings then it will be necessary to instruct an estate agent as a single joint expert to provide a valuation of these assets.

What could happen to the family business?

The final stage of the process is to decide how to deal with the family business as a settlement between a divorcing couple.  This will normally involve three options:

1. Putting the business up for sale: This option enables a divorcing couple to sell the business and divide the profits. However, selling the business may not always be practical or feasible for various reasons. It will also mean ‘selling the goose that lays the golden egg’.

2. Buying out the other spouse’s interest: This can involve a cash payment from the business to achieve this object. This can also involve a set-off, for example, one spouse taking ownership of the family business and the other spouse taking ownership of the former family home.

3. Co-owning the family business: For divorcing spouses who do not wish to sell the business then co-ownership of the business is another option. However, this is subject to the spouses being able to continue running the business together and being able to get on.”

Professional advice

It is important for divorcing spouses to ensure the correct professional experts are instructed to deal with the family business on divorce.

This not only involves specialised solicitors but also other professionals to deal with valuation and taxation implications in order to ensure the business is not at risk going forward and at the same time achieving a settlement which is fair and reasonable.

About Victor Collins

Victor qualified as a solicitor in 1983 and joined Nelsons in 2013.

He is a well-respected expert in financial settlements, regularly handling divorce cases with substantial assets with a particular emphasis on those involving a family business.

Victor has also developed a niche specialism advising on pre-nuptial, post-nuptial and separation agreements.

For more information on Nelsons Solicitors please visit www.nelsonslaw.co.uk or call 0115 958 6262.