Writer / Researcher
Custody X Change
Agreeing isn’t easy when you’ve split, but it has many advantages.
Financial agreements spare you the slog of a drawn-out divorce process, helping you save money and many headaches.
What is a divorce financial agreement?
A divorce financial agreement covers, in writing, how spouses who are ending their marriage will divide:
- Property
- Pensions
- Savings
- Investments
Agreements may also address spousal maintenance, stating the amount and how long it is to be paid.
To make an agreement legally binding, you must apply for a consent order.
To make sure your spouse can’t pursue you for more money, you can get a clean break order. This severs all financial ties between you and your spouse, and makes it so neither of you can hassle each other for money later on.
What is a child maintenance agreement?
If you have children, you might also agree on child maintenance.
A child maintenance agreement covers:
- Who pays maintenance
- How much they will pay
- How often it’s paid
- The payment method
It could be a standalone agreement or part of your agreed parenting plan.
Convincing your spouse to negotiate
If there are hard feelings between you and your spouse, you won’t be too eager to sit down at the negotiating table. Set aside your differences and focus on the positives of agreeing.
Get a faster resolution
If you litigate, the court’s calendar will dictate the pace of your case.
Agreeing means you can resolve things on your own time — and you’ll usually get an order sooner.
Even if you don’t reach a full divorce settlement, your case will still go quicker since you already addressed finances.
Save money
It’s common for spouses to rack up several thousand pounds in solicitor and other fees. Long, drawn out cases can even reach six figures.
Exact costs vary case by case, but alternate methods of dispute resolution are much cheaper than litigation.
- Direct negotiations: You’ll sit down with your spouse and work out your financial agreements. Essentially, you don’t have to pay anything for the negotiations.
- Negotiations with a solicitor: A solicitor provides guidance as you work out your agreement. They will also put your agreement in writing. Costs are generally around £3,000.
- Mediation: A neutral third party will help you and your spouse find common ground so you can agree. On average, mediators charge about £100 to £300 per hour. If your financial situation is simple, the entire process could be less than £1,000.
You’ll save even more by splitting costs with your spouse.
Control the outcome
You and your spouse will have the final say on your financial arrangements. You can customise your agreement to suit your unique needs.
For example, instead of setting a specific amount of child maintenance, you can state the parent will pay for certain expenses, like the child’s schooling.
Preserve decorum
Trials are contentious. If you didn’t already have a fraught relationship, going to court could give you a negative opinion of your spouse.
Negotiating shows grace and a willingness to move on. This is essential if you have children. Agreeing on financials will let you practise compromise which might make it easier to collaborate on decisions related to your child.
Preparing for negotiations
Spouses must disclose all financial assets and liabilities.
You might need to consult an expert to get an accurate portrait of your finances. For example:
- An estate agent or a chartered surveyor to determine property value
- A forensic accountant to assess the value of a business
- An actuary for a report on pension funds
It’s possible to split the costs for these services with your spouse.
Create a written proposal to show your spouse what you believe is fair to help move negotiations along.
Once you’ve agreed, you’ll file your agreement with the court.
Your court-approved agreement goes into effect immediately. You’ll have the peace of mind that the financial parts of your divorce are settled.
Read more articles by Custody X Change.
About Zarira Love
Zarira Love has been researching and writing articles about child custody and parenting for nearly six years. She currently resides in New York City.
Zarira is a Writer / Researcher for Custody X Change.
About Custody X Change: This powerful tool helps divorced and single parents create parenting plans, track their custody schedules, manage expenses and more. Since 2005, we’ve helped over 60,000 parents ensure the best possible future for their children.