Fair Result - Page 6

131 result(s) found.

Pre-nuptial vs. Post-nuptial Agreements: Which One Do You Need?
Image by freepik

Pre-nuptial vs. Post-nuptial Agreements: Which One Do You Need?

Kaylee Justham
Kaylee Justham
Solicitor
Rainer Hughes

When approaching a milestone event such as a marriage or civil partnership, it is always a good time to reassess your financial position and put plans in place to protect yourself. This is particularly important if there is an imbalance in wealth between the two partners, such as one partner having business assets or a large inheritance. It is natural for that partner to wish to preserve or retain the wealth they have already accumulated, in the event of a future divorce or dissolution, particularly where there are children involved whose future needs are required to be considered. On the other hand, it is also sensible to plan ahead and determine how financial settlements should be arranged, in the event of a relationship breakdown, and this peace of mind is what a pre-nuptial and post-nuptial agreement provides. 

Pre-nuptial and post-nuptial agreements have previously been the domain of high-profile people and couples involved in a high net worth divorce or partnership dissolution, but they have become increasingly popular as people take sensible steps to avoid costly litigation in the event of a relationship breakdown, and at an already stressful time. 

What is a pre-nuptial agreement?

A pre-nuptial agreement is a formal agreement that a couple enter into prior to a marriage or a civil partnership. The agreement sets out how assets and financial arrangements will be divided in the event of the relationship ending, and therefore predetermines a financial settlement. This removes stress, provides clarity and avoids disputes which could result in costly court proceedings. A partner can use a pre-nuptial agreement to protect assets they have already accumulated from future claims, which UK laws might otherwise dictate are shared with the other partner. 

What is a post-nuptial agreement?

A post-nuptial agreement is very similar to a pre-nuptial agreement in terms of its contents and purpose, but this is an agreement entered into by two partners who are already married, or who are already in a civil partnership. A post-nuptial agreement also defines how assets and financial arrangements will be divided in the event of a relationship ending.  

The key differences between pre-nuptial and post-nuptial agreements

It is common for people to come to a decision that they wish to protect their own financial assets, and to provide clarity on how this is done, but this decision can be made at different times. Of course, these arrangements can be made before or after a wedding or civil partnership ceremony and therefore can be a pre- or post-nuptial agreement accordingly. However, there are other important differences in each arrangement which could suit certain people at certain times. 

  • Separation before divorce – A post-nuptial agreement can be useful in a scenario where a couple wish to separate, but have not yet decided that divorce or dissolution is the right conclusion. This could be due to various circumstances, including financial circumstances. In this event, a post-nuptial agreement acts as a holding position to define the current agreement, until such a time that a divorce or dissolution is decided upon and agreed to be the next course of action.  
  • Wealth accumulated during a marriage/civil partnership – It is also common for one partner to come into significant wealth during a marriage or civil partnership. This could be an inheritance, or through the sale of a business or a property owned prior to the marriage or civil partnership, for example. In this case, wealth protection is very important, and a post-nuptial agreement can clarify how this new wealth should be divided in the future.  
  • Condition – Although it is not considered a particularly romantic gesture and is considered by some to be putting a negative slant on an impending marriage or civil partnership, one partner may insist on a pre-nuptial agreement being put in place prior to the relationship becoming formal, and hence this becomes a condition that may even prevent the marriage or civil partnership going ahead. At the same time, it should be stressed that both partners have to enter into a pre- or post-nuptial agreement willingly and without pressure or duress, for it to be enforceable. 

The key difference is that a post-nuptial agreement can protect a partner in the event that circumstances change during a marriage or civil partnership, and these circumstances weren’t known prior to the marriage or civil partnership.  

What should pre- nuptial and post-nuptial agreements contain?

Common inclusions in a pre- or post-nuptial agreement are:

  • Property – Whether marital or non-marital
  • Bank accounts – Protecting individual income and savings and dividing joint accounts
  • Debts – Again, whether marital or non-marital
  • Maintenance – Arrangements for funding childcare 
  • Pensions – How these will be divided
  • Inheritance – Whether to keep separate and/or pass down to children
  • Valuable property – How items such as jewellery, artwork or valuable furniture is divided
  • Business interests – Dividing business assets and restricting sale or transfer if applicable

A pre- or post-nuptial agreement wouldn’t normally predetermine child arrangements, as these can change over time. It also wouldn’t include personal issues, such as clauses relating to lifestyle choices, household responsibilities or social media usage. 

What considerations should you make when preparing a pre- or post-nuptial agreement? 

A pre- or post-nuptial agreement is not yet a legally binding agreement in the UK, but they are usually given significant weighting by the courts in the event that certain conditions are met. These can include:

  • A pre-nuptial agreement should be entered into at least 28 days prior to a marriage or civil partnership, to avoid accusations that undue pressure or coercion was involved.
  • There should be full financial disclosure from both parties. 
  • Both partners were provided with independent legal and financial advice prior to formalising the agreement. 
  • The agreement is fair and reasonable for both parties and also prioritises the needs of any children involved in the relationship. 

Although a pre- or post-nuptial agreement requires both partners to look into the future and assess the likelihood of certain things happening, and many people might not like to do that, such agreements can provide an element of trust and peace of mind and prevents the possibility of disputes in the future. Ultimately, this can help to make the divorce, separation and dissolution process amicable and much less emotional.

About Kaylee Justham

Kaylee Justham joined Rainer Hughes Solicitors August 2023 as a Solicitor in the Family Department. Kaylee has over 10 years’ experience working in Family Law, starting off as a paralegal and Trainee Solicitor in which she qualified as a Solicitor in May 2018. Kaylee provides a wide range of services to her clients to include all aspects of family matters to include; matrimonial matters, cohabitation disputes and private children matters. Kaylee also has experience with drafting Wills, Legal Power of Attorneys and Deeds of Trusts.

Kaylee regularly represents her clients in Court and prides herself on her friendly, approachable, direct and forward-thinking manner. Kaylee understands the needs of her clients and strives to act in their best interests in helping them to achieve the best possible results.

Kaylee is considered an extremely safe pair of hands and is dedicated to listening to her clients and aiming to make the process as stress free as possible.

Why a Landmark Ruling Strengthens the Case for Pre-Nups
Photo by Cytonn Photography on Unsplash
/

Why a Landmark Ruling Strengthens the Case for Pre-Nups

Nicki Mitchell
Nicki Mitchell
Partner
Jones Myers

Sponsored post by Jones Myers.

A Supreme Court ruling on whether substantial assets transferred between spouses during marriage should be divided equally on divorce – has reignited the importance of pre-nups. 

The ‘big money case’ saw divorcee Anna Standish lose her legal case to keep almost £80 million which her affluent banker husband had given her in 2017 to put in offshore trusts for their children and to avoid inheritance tax. 

When their marriage fell apart in 2020, the money was still in her name, sparking a bitter, prolonged case which played out in the highest courts in the land.

The outcome is a reminder of the importance of pre-nups for all couples tying the knot, especially for high-net-worth individuals and families involved in estate and inheritance planning. 

Irrespective of a couple’s financial status, a pre-nup helps couples to avoid  the potential distress, acrimony, and expense of disentangling their finances if they split up. 

How to obtain a Pre-nup 

  • To enter into an agreement properly, the couple each need to obtain independent legal advice on the agreement
  • Both must also have disclosed their assets to each other – and the terms of the agreement must produce a result that is fair and reasonable and meets needs
  • The agreement should be negotiated and signed at least 28 days before the wedding. This allows both to obtain advice, have time to consider it, and make an informed decision on signing it

Do courts uphold Pre-nups?

Increasingly courts are upholding pre-nups on divorce if they  are satisfied that the agreement was entered into freely, without undue pressure  and with the benefit of full financial information and independent legal advice.

As the law stands, a court  still needs to approve  the settlement at the point of divorce, ensuring the agreement meets the needs of both parties. If it does not, a different order can be made but this is likely still to take the terms of the Pre-nup into account to some extent.

Are Pre-nups suitable for second marriages? 

Yes. The contracts can  work particularly well for couples marrying for the second time where a husband or wife seeks to retain their own wealth if they separate. They can also protect the interests of children from previous relationships

Taking the time to draw up a pre-nup before marriage can avoid financial and emotional heartache in a marriage breakdown. Jones Myers family law specialists are highly experienced in advising on pre-nups and post-nups. 

For queries on any aspect of family law, call Jones Myers at Leeds 0113 246 0055, Harrogate 01423 276104, or York 01904 202550. Visit www.jonesmyers.co.uk, email info@jonesmyers.co.uk or tweet @helpwithdivorce

Jones Myers blog is ranked 5th in the UK’s Best 25 family law blogs and websites to follow in 2025.

Read more articles by Nicki Mitchell.

Read more articles by Jones Myers.

About Nicki Mitchell

With over three decades of experience in family law, Nicki specialises in the financial aspects of relationship breakdown – and particularly complex cases involving family businesses, multiple properties, and complicated pension arrangements. 

A skilled Mediator, Child Inclusive Mediator and Collaborative Family Lawyer, Nicki champions Alternative Dispute Resolution processes which avoid a lengthy court process and can lead much more quickly and cost effectively to a successful resolution.

Her exceptional track record also includes advising clients on the more traditional methods of resolving issues surrounding family breakdowns. Nicki.mitchell@jonesmyers.co.uk  

Narcissistic Family Systems - A Staged Life
Image by wayhomestudio on Freepik
//

Narcissistic Family Systems – A Staged Life

Margaret Ward-Martin
Margaret Ward-Martin
Founder
The Grace Project

Here psychotherapist and Counsellor Margaret Ward-Martin examines narcissistic family systems and how to handle them. In such families, the narcissist, usually a parent or grandparent, demands that everyone meets their needs. They manipulate, shame, guilt trip, gaslight, and rage to maintain control. Narcissistic parents assign roles, control the narrative, and direct every action.

Roles in a Narcissistic Family System

  • The Narcissist: Rule maker.

  • The Enabler: Keeps the narcissist happy, consciously or unconsciously.

  • The Golden Child: Moulded to preserve the narcissist’s image.

  • The Scapegoat: The individual who speaks the truth or dissents is often labelled as ‘The Problem’. This scapegoat is more likely to experience adverse mental and physical health compared to others.

  • Understudies and Chorus: These are other children or family who step in when leading cast members are unavailable and cannot fulfil the narcissist’s needs. They are eager to assume these roles and, having observed from a distance, know their lines well.

Healthy families offer unconditional love, a supportive environment for growth, and validation. However, in a narcissistic family, children are seen as extensions of the narcissist and must conform to keep them satisfied. Disobedience, rebellion and any attempt to separate or become independent is likely to result in a narcissistic rage or exclusion. Maintaining the family’s image is paramount and the narcissist will dictate that.  The narcissist’s greatest fear is exposure and they will do anything to avoid this happening including harming (directly or indirectly) members of their own family.

Signs of a Narcissistic Family System

  • Control is often achieved by creating conflict between family members. For example, one sibling might be informed about a business deal while another is not, leading to distrust. This tactic, known as triangulation, is commonly used by narcissists to divide and conquer. They may also exert control by keeping adult children dependent, providing them with resources such as housing, employment, and financial support. This control may even extend to the regulation of food consumption, access to bathrooms, and the availability of heat and light within the home. Tracking or spyware may also be used in the guise of keeping family members safe.  It is really a tool for control but is being presented as a caring parent or partner. Manipulation may also be at play in family businesses or dynasties where the narcissist influences education, work, and social life. What appears to be closeness is often a pathological need for control.

  • All members should uphold the Perfect Family image to minimise conflict. This adaptive response arises from trauma bonding, making it hard to identify unacceptable behaviour until removed from the situation.  Additionally, inconsistent parenting creates controlled chaos, leaving children in chronic stress due to unpredictable moods.

  • Boundaries will be ignored by a narcissist; personal space may be invaded or a diary read. They may overshare personal information that a child is not emotionally mature enough to process.

  • Punishment is stern, with any dissent potentially resulting in anger, silent treatment, social isolation, and fear. It is important to acknowledge that children who are consistently afraid of their parents are, without exception, experiencing abuse.

  • Perfectionism is common in narcissistic families. Teachers may observe a child fearing low test scores, as nothing satisfies the narcissistic parent. This extends to decision-making; children capable of contributing are often denied this right because the narcissist believes they know best.

  • Deception: A narcissistic parent may selectively share information with their child, withholding it from the other parent or family members, thereby influencing family dynamics and perceptions. For example, if a narcissistic parent informs a child of an extramarital affair and instructs them to keep it their secret, this can lead to confusion and distress for the child, creating an environment where trust is compromised. Individuals with narcissistic tendencies may distort the truth, leading to misunderstandings about family dynamics. This can sometimes result in the non-narcissistic parent being incorrectly identified as the abuser.

  • Narcissists may use personal information strategically, recalling hopes, dreams, or fears shared with them and disclosing private details without consent. For instance, a partner’s confidential discussion about their sexual history could be disclosed to others without consent or potentially used to blackmail them or in divorce proceedings. The narcissist will use this information to address their feelings, showing no empathy towards the partner. While lacking empathy within the family, they present a different persona to the outside world.  In a divorce, personal data from intimate moments can be used as leverage to secure a favourable outcome.

The Legacy of Narcissistic Families

Children of parents with narcissistic traits may encounter personal challenges, which might include developing similar traits or personality disorders. They may also experience difficulties with trust, anger, attachment, codependency, and self-esteem. These early experiences can contribute to poor mental health or the development of addictions. Individuals may also experience confusion about the nature of a loving relationship, due to early exposure to an emotionally impoverished environment.  Getting help and finding the right support is a great way to begin recovery and healing.

Where to start

  • Acknowledge that your family of origin may not have acted in your best interests. This requires a period of adjustment and grieving and making the decision to cease these unacceptable relational patterns. It can end with you.

  • Engage in self-care activities such as therapy, meditation, spending time with supportive friends, and making healthy lifestyle choices.

  • Reflect on and reassess your relationship with your parents and family. While contact is not necessary, if you decide to maintain it, set clear boundaries and avoid manipulation. Understanding the situation can help with managing interactions.

  • Avoid rationalising or excusing the poor treatment from narcissistic parents. Compassion can be exploited by them to destabilise and confuse their children, so steer clear of situations where you may hear a sob story. Narcissists often present themselves as victims.  They are reluctant to take responsibility for their actions.  Instead, they will provide a diluted version of events.  One cunning ploy is to narrate a version of events with a grain of truth that explains and justifies their behaviour.  The child may well feel less hostile towards the parent and be more forgiving.  Narcissists are adept at exploiting blind spots.

  • Limit your partners’ or friends’ exposure to the narcissistic family’s charm, fake empathy, and information-gathering tactics.  These people may be used as fresh supply and your decision to set boundaries and reduce contact will protect them as well as you.

Narcissistic families are not confined to any particular demographic or societal group; they can be found across various levels of privilege, poverty, education, religion, and culture. While narcissistic abuse within these family systems may be challenging to identify, the insights provided by individuals who have experienced such situations allow us to recognize specific behaviours that clearly indicate the dynamics present in these families.  This offers those of us in supporting services a clearer understanding of the challenges we face, highlighting the importance of continually learning about this pathology whilst also attending to our own wellbeing.

Read more articles by Margaret Ward-Martin.

About Margaret Ward-Martin

BACP Counsellor and Psychotherapist Margaret Ward-Martin holds over 30 years’ experience in the mental health industry as a teacher, coach and therapist with a special interest in narcissistic abuse and coercive control survival, addiction and early childhood trauma. She founded The Grace Project (www.thegraceproject.co.uk) in 2021 to raise awareness about emotional and psychological abuse in the world in which we live. Margaret continues to advocate for better access to mental health services and for greater understanding and destigmatisation of diagnosis.

Divorce Month: What Happens When High Net Worth Individuals (HNWIs) Split?
Image by freepik

Divorce Month: What Happens When High Net Worth Individuals Split?

Alex Pugh
Alex Pugh
Chartered Financial Planner
Saltus Partners LLP
  • High net worth individuals (HNWIs) are less likely to be divorced than the general population
  • But 1 in 5 admit they have ‘delayed’ a planned divorce due to the cost
  • One in 50 HNWIs even say the cost of divorce is their ‘single biggest worry’ – above their health, their children’s wellbeing and overall financial security
  • Wealthy women are more likely to delay divorce than wealthy men

January has long been dubbed ‘Divorce Month’, and new research from wealth management firm Saltus reveals a striking surge in online searches related to ending a marriage over the festive period.

After exploring Google search trends, Saltus found that searches for ‘I want a divorce’ and ‘cheap divorce’ rose dramatically between December and January. With numbers for both terms indexed from 100 at their peak on January 4th, having climbed there from 0 on December 1st and 87 and 75 respectively on Christmas Day.

Similarly, ‘DIY divorce’ reached its peak search interest on New Year’s Day, and ‘quickie divorce’ peaked on New Year’s Eve (1). These statistics highlight how the stress of the festive season – and the promise of a fresh start in the New Year – can act as a tipping point for many couples.

But when it comes to high net worth individuals (HNWIs), the decision to divorce can become a lot more complicated – and data suggest they could be putting it off as a result.

HNWIs are five times less likely to be divorced.

According to ONS data, 7.1% of the general population are divorced – rising to 11% amongst over 45s (the average age for divorce). But amongst high net worth individuals this figure drops to just 1.3%, and 5% of over 45s.

The Saltus Wealth Index surveyed 2,000 people with assets of more than £250,000, and one in five married respondents said that they had delayed getting divorced due to the due to the cost of living crisis, while more than one in four (28%) say their family members have.

Amongst respondents who are already divorced, 27% say they ended their marriage later than planned as a direct result of the cost of living crisis, while 34% say at least one of their adult family members delayed their divorce for the same reason.

Furthermore, more than 1 in 50 HNWIs admit that their single biggest worry is ‘being able to afford a divorce’ – above their health, their children’s wellbeing and overall financial security.
Alex Pugh, Chartered Financial Planner at Saltus said: “High profile individuals face particularly complex challenges during divorce proceedings. With significant wealth at stake, there is an increased risk of hidden or concealed assets, as well as issues over what should and should not be included in a settlement, making it difficult to determine who is entitled to what, and creating what can be a very messy – and expensive – process.

“For example, around seven in ten of divorcing couples overlook sharing pensions, which, along with property, tend to be the most valuable asset. And it is often the woman that loses out.
“This is because in many cases the husband was the major breadwinner and has built up significantly more pension savings than the wife who has taken breaks and a cut in earnings to take on more family caring responsibilities. This is especially the case if the pension in question is a defined benefit scheme as their value within divorce proceedings is not just calculated on monetary value.

The data also suggest that while, overall, women are more likely to file for divorce than men – according to the ONS almost two thirds of petitions for divorce come from women. But amongst wealthy couples, women are more likely to delay divorce than men, with 21% saying they have held off initiating proceedings vs 19% of men.

“It is critically important to understand the emotional and financial challenges that accompany divorce, particularly for those with significant wealth. Over the years we have carried out countless pension sharing orders and are regularly called upon to help clients prepare for a fresh start. Getting the right advice on everything from the valuation of assets for settlement, understanding the tax implications of divorce or reviewing your investments and protection post-divorce is incredibly important to ensure the best possible, and fairest, outcome through a difficult period.”

Further information

About Saltus Wealth Index Report

  • The sixth iteration of the Saltus Wealth Index Report is released today (24th September 2024).
  • The research sampled 2,000 UK respondents (aged 18+) who have £250k+ of investable assets.
  • Research was conducted by Censuswide (Censuswide abides by and employs members of the Market Research Society, based on the ESOMAR principles).
  • This research was carried out online during August 2024.

(1) Day i want a divorce diy divorce quickie divorce cheap divorce high net worth divorce
01/12/2024 0 0 0 0 0
02/12/2024 0 0 0 0 0
03/12/2024 0 0 0 0 0
04/12/2024 0 0 0 0 0
05/12/2024 0 0 0 0 0
06/12/2024 0 0 0 0 0
07/12/2024 0 0 0 0 0
08/12/2024 0 0 0 0 0
09/12/2024 0 0 0 0 0
10/12/2024 0 0 0 0 0
11/12/2024 0 0 0 0 0
12/12/2024 0 0 0 0 0
13/12/2024 0 0 0 0 0
14/12/2024 0 0 0 0 0
15/12/2024 0 0 0 0 0
16/12/2024 0 0 0 0 0
17/12/2024 0 0 0 0 0
18/12/2024 0 0 0 0 0
19/12/2024 0 0 0 0 0
20/12/2024 0 0 0 0 0
21/12/2024 0 0 0 0 0
22/12/2024 0 0 0 0 0
23/12/2024 0 0 0 0 0
24/12/2024 66 0 0 0 0
25/12/2024 87 0 0 75 0
26/12/2024 64 0 0 58 0
27/12/2024 67 67 0 80 0
28/12/2024 76 71 0 0 100
29/12/2024 72 0 85 89 0
30/12/2024 57 86 97 79 0
31/12/2024 62 0 100 0 0
01/01/2025 73 100 0 89 0
02/01/2025 65 0 93 65 0
03/01/2025 57 0 98 80 0
04/01/2025 100 82 80 100 0
05/01/2025 76 75 0 91 0
06/01/2025 35 0 69 68 0
07/01/2025 59 0 0 0 0

About Alex Pugh

Alex has experience partnering with high net worth individuals, business owners and families interested in intergenerational planning. Seeking first to understand her clients’ aspirations to gain a deep understanding of what they hope to achieve, she designs tailored plans with her clients’ end goals at the forefront.

With expertise in cash flow modelling, Alex is adept at providing specialised advice to ensure her clients achieve their long term financial aims.

Her knowledge of investments, pensions, estate planning, and protection means she is well-versed in adapting plans over the course of her clients’ lives.

Alex has over a decade of experience working in finance, working for top tier institutions JP Morgan and HSBC. She has achieved the gold standard Chartered status and has completed the Certificate in Financial Wellbeing.

Navigating International Divorce – TDM Expert Interviews
Thumbnail for the YouTube Video "Navigating International Divorce: Challenges and Strategies - TDM Expert Interviews (EP. 12) Chloe O"
////

Navigating International Divorce – TDM Expert Interviews

chloe-o-contributor
Chloe O.
Alternative Dispute Resolution professional and Certified Divorce Coach
The Divorce and Separation Coach

Introducing the latest transcript blog featuring an insightful interview with Chloe O., an experienced divorce coach specialising in international divorce. In this insightful interview, Chloe shares her expert knowledge on what international divorces are, the unique challenges they pose, and how to navigate them effectively. From dealing with cultural differences and cross-border legal systems to managing emotional stress, Chloe offers invaluable advice on making the process as amicable as possible.

Join us as we explore the common issues that arise in international divorces and practical strategies to help individuals maintain clarity, focus, and resilience during this complex journey.

Read on for the full transcript of our interview, “Navigating International Divorce: Challenges and Strategies.”

 

[Music]

Hello everybody, thank you so much for joining us again on The Divorce Magazine YouTube channel or on the website if that’s where you’re watching it. My name is Dr Soila, I’m the founding editor of The Divorce Magazine, it’s been running for, over 10 years, let’s put it that way, and um, today we have Chloe and um, Chloe has contributed to The Divorce Magazine quite a bit so we like that. Um, really interesting, and extremely informative content that you have sent to us so, if you haven’t met Chloe, please look her up on The Divorce Magazine or, on her Instagram.

Anyway she’ll tell us where to find her at the end of this um, interview so, Chloe is a mum of two pre-teen girls, and has been helping people through divorce and separation for over a decade now since her own um, divorce. I’m introducing you Chloe, I hope that’s okay? She was born in Paris, to a French father and uh, an American mother, and she’s been living in the UK for the past 15 years and is a very active um, member of the expert community.

Um, she has personally experienced divorce twice, um, the first from her father, the father of her children after six years of marriage, and the second divorce was also from the father of her children but in a very different context, where he needed to move abroad suddenly, and um, and that brought up all other issues that that um, included financial issues and child arrangement seeing as they would be living in different countries so the whole thing, kind of was brought up again is that right Chloe? Yeah, and that was a second experience, so given this story um, it’s not surprising the direction that Chloe took, which is to become a non-court dispute resolution, res, resolution professional and a certified divorce coach.

She now dedicates her time as you will see here and in other context uh, she dedicates her time to something particularly purposeful to her, which is supporting others through one of the most difficult and stressful life transitions that they can ever experience in their lives. So welcome Chloe, and, thank you so much for having me, pleasure, for coming and being with us today.

So I’m going to do this a little bit differently than I do with, with other um, interviews. I’ll ask you, tell us about your work, and what it entails. Yeah, so divorce coaches are, are a fairly new um, profession in the UK. Quite established in the US, it really depends on where you are in the world. But basically we insert ourselves between the work of a therapist, and the work of a lawyer. Our, our objective is to support people through the journey of divorce, from one end to the other ideally, and to be there really as their thinking partner, because there are thousands and thousands of decisions that need to be made um, in the context of your divorce and they’re not necessarily legal decisions.

So I work a lot with expat, there’s decisions with regards to which country they want to live in after divorce um, how are they’re going to arrange um, for their children to see both parents if they’re in different countries um, all the questions are around whether the settlement discussions are working the way they want and whether they’re, they can accept the proposals that their ex is making for them, to them. So there’s a lot of different issues that come up and that require some proper thinking. And your friends and family can be really helpful, but they’re not professional, they’re not trained um, I bring that specific training specifically around conflict management and negotiation skills. So my objective is to help my clients to divorce out of court, to reach agreements amicably, doesn’t mean they’re best friends, it means they do it collaboratively. And so I coach them through communication methods, negotiation strategies, and overall how to limit the conflict, so that the divorce can be as fast, as cheap, and as conflict free as possible.

And that can’t be easy because we already know because I’ve been through divorce myself, and we already know just how emotional, people can get when they’re going through divorce and what emotions can, arise in them and how, that can just bring the whole process to unravel and become quite conflictual. Yeah. Absolutely and big part of my job is helping people to identify these emotions, recognise and accept them, but also to make sure that they don’t tint their decision-making.

So the processes around fact-based decisions, because those are decisions you’re going to have to live with for quite a while after your divorce um, you want to make sure that they’re not made in the spur of the moment based on, on short-term emotions, but that they’re really thought through, and that you’ve, you know, compared those decisions to your long-term objectives, and to your children’s wellbeing needs. Yeah, yeah.

So today we’re looking at international divorces um, yes, which actually is so important because the world has become so small, it’s not a big, big world where trouble was much more complicated now it’s so much easier to travel and to settle in different parts of the world.

What is the process when going through an international divorce?

So why don’t you talk us through what you, what you have found or what the process is when you’re working with people who are going through or might end up going through an international divorce. Yeah, well I mean I think in general, you know, an expatriation or a national marriage all amazing opportunities, you get to learn about someone else’s culture, you get to go live in a new country, and discover a whole new world of, of opportunities new ways of thinking. What it does do though, is it, it does take tend to create a strain on the couple, it can create an imbalance. A lot of my clients have been the ones following their spouse um, either to, to their home country or they travelled together before the spouse’s job, and so they have had to put their own career on the, on the back burner a little bit, they have had to leave their own friends and family behind to follow this romantic relationship um, and, and what happens that a lot of couples have a hard time finding a new balance, that that works for them in that new context.

So there’s a lot of thinking that needs to go into the decision to move abroad even before um, you know you’re anywhere near divorce but once you get to the stage of divorce, it is particularly difficult, when you’re in that situation. First of all you’re far away from your friends, your family, your support network um, sometimes you’re getting divorced in a country where you don’t even speak the language, or you don’t speak it very well. You don’t know how the how the legal system works there, none of your friends and family can tell you, you know share advice because they divorced in another country um, and then there’s a lot of kind of legal elements to it that become complicated that don’t arise in a local divorce, and so that’s where having somebody who’s specialised and who can really guide you through, um, all those different implications for the divorce, that your typical lawyer or typical divorce coach wouldn’t be informed about um, that value is, is, is tremendous because that avoids making really costly mistakes later on.

What is an international divorce?

Yeah, yeah can I, I just realise that what, what do we actually mean by an international divorce? I, I just thought to myself that some people might see think about it that um, okay so you’re having your wedding and you go and you have it in Barbados, and then you’re going through divorce, do you get divorced, is that an international divorce where you have to go to Barbados to get the divorced you have it here? Or is it where you have a divorce while you’re living in, you move, you know immigrate to Barbados and you’re living there and then you go through divorce while you’re there?

So that there are very complex rules around which country is eligible to deal with a divorce and I, I would let a, a lawyer answer that question because it will depend on the country and there’s a lot of different conventions that regulate that, but that is one of the biggest decisions that people have to make very early on, with regards to their divorce is, which country do we get divorced in, and if they have ties to different countries, um, if one of them’s from France and the other one’s from the UK um, it might be that both countries would recognise their right to, to rule on this divorce.

That being said, every country has very different rules, very different laws, different ways of approaching divorce, you know, in the UK we’ve, since 2022 we have No Fault Divorce so you don’t need to prove any wrongdoing as for a divorce, in some countries you do. So you’re not going to approach it the same way, so that decision of choosing the right place for you to divorce has a lot of implications it’s not you know some countries take a lot longer to get divorced and some are a lot more expensive just because legal fees are more expensive um, there’s all kinds of rules that come into play with regards to how long you might have been married, or how long you’ve been separated, to be able to divorce. So you need to spend time understanding all of those differences, so that you can make an informed decision, and that’s usually one of the ones that most of my, my clients struggle with very early on, it’s an important decision yeah, okay.

What advice would you give to a parent who wants to relocate as a result of getting a divorce?

So let’s take an example, of a couple living in the UK, and they’re both from, you know um, which country sh, shall we pick they’re both from Kenya. O kay, they come here, and they’re, they’re living here married um, have children, and then they start going through a divorce, yeah, and one partner wants to take, you know, the mum says for instance, well we are having a divorce, I don’t need to be here anymore, I’m moving back to Kenya with my children. Um, do you have any advice as to how to manage that because that can be so difficult for the children for the, um, dad, and for the mum you know, how any…

It’s one of the big challenges that comes up in international divorce especially, in the example I was stating of people following being the one who followed their spouse. They were there for that person, it often doesn’t make much sense for them to stay in that country if they’re no longer married. Plus, you know when you’re get divorced it’s tempting to go back to somewhere that’s familiar and where you have your friends and family, so relocation comes up a lot and when you’re bring the kids with you, it becomes very complex. Um, there’s a lot of rules that you know that prevent you taking your without permission of the other parents, you’re not allowed to kidnap the child even if you don’t see it as kidnapping, as you think it it’s just taking travelling abroad with your child, so you need to be really careful about how you do that and understand the local laws, with regards to that.

But in general it’s a very difficult thing to uh, to force the other person to do through the legal system which means that it is typically something that you want to negotiate. You want to sit down with your spouse and say listen this is why I think it’s in the best interest of the children for us to go back to Kenya in your example, this is how we would work, this is what I suggest, and really try as much as possible to bring them along on that journey and to get them to understand the value, of the children and to agree to all of the, the nitty gritty of how it’ll work.

So I have a template that I, I make available for free on my website, to help people plan long-distance co-parenting, because there’s a lot of things to think about. Who’s going to pay for the children’s flights back and forth, from what age can they go on their own, who takes care as of Visas, if there’s need for visas in one country or the other, who keeps the passports, um, how is contact maintained outside of those times of visitation, what does that mean in terms of devices you provide to the child, so the other parent can contact them. There, there’s just so many dimensions that you need to anticipate, and the more you can document those up front, the less conflict you get later on, because both parents are on the same page and have agreed as to how it’s going to work. So that’s something I spend a lot of time working with my clients because it’s very common that they, they want to go back to their home country. Yeah, yeah.

Have you experienced any cases where relocation is not possible post-divorce?

And do you know of any cases where, that had, you know, maybe the dad, or the mum, has wanted to relocate well I’ll come back to that one, but um, and the, the judges have said I’m sorry you can’t relocate, I know this is more like a legal issue but you know from, from the work that you do, have you met any families where the relocation has not been possible post-divorce?

There’s case where, there’s places where it goes, it goes to court, and you know it’s a bit of a Russian Roulette when you go to court, you never really know what the judge is going to decide. In general, it ends up with a very binary decision, you know, one parent has the, the children and the other doesn’t. The beauty of negotiating the agreement, is that you can round the edges a little bit, you know it’s always going to be binary you’re not going to send the child to school, you know, halfway between Kenya and the UK, but um, you can still make, make it happen in a way that allows parent who’s being left without the children, to feel like they’re still very involved in part of the children’s day-to-day life, and that’s where you need to really speak to each other, to find the best possible arrangements for you and for your children. Yeah.

Yeah, and I think that’s where the children really come into you know very child-centred, very child focussed, what’s the best thing for the children, especially, probably if one parent had, both parents have been very active in their lives and then they lose, the presence of one parent you know pretty much, you know as it was, then you know the distance grow not just geographical distance, but also, relational distance. The you know, the wellbeing and the best interest of the children are always the paramount priority for any court, so if it did go to court, that’s what they would look like and each parent would have to show, how it’s better for the children to be in X or Y country. Yeah, so you know whether it’s just having the conversation directly with your, your ex or if it’s through the courts, you need to be able to articulate why this is better for the children, and how it would work in practice. Show that you’re not trying to alienate the other parent, um, that there really is no ill intent there, it’s purely because it feels like the right thing to do for the children at this stage. Yeah, yeah, okay.

In your experience, what was it like when your ex-spouse decided to move countries? How did the dynamic change?

If I can use your example, your life’s example, for your life’s experience as an example, where you were, I’m assuming you were in the UK, and then your ex was the one who was going to, to leave. Um, and you had already come to some kind of agreement, and you know, and all of that so what, what changed what um, you see what I’m asking? Yes well a lot changed and partly because, the way we handled the first the actual divorce, versus the second uh, iteration was very different. So when we originally got divorced um, we got divorced very amicably, we prepared a lawyer which you were able to do and got divorced in France, you could do that at the time in France, and you know we spent a thousand pounds, three months of our life and that was it, it was sorted and he lived 10 doors down the street, saw the children very regularly, we weren’t best friends, but we got on, and we were able to co, to co- parent at least together um, and then you know several years down the line, things had changed, he had met somebody new, I actually had met somebody new too, but the influence of this new person in his life, led to him moving abroad. And that transition was not handled nearly as smoothly as the first one, um, partly because I wasn’t aware that he was moving abroad, it happened suddenly um, and so there was a long period of uncertainty I didn’t know where he was, before finally receiving a lawyer, a letter from a lawyer telling me that he’d moved abroad.

So the way it was handled and the fact that, we didn’t speak to each other directly at any point during that process, and it lasted about a year, the negotiation, and the court process, we did didn’t speak to each other because, he was intent on only communicating via lawyers, so it cost both of us a fortune it took a long… Yeah, I was just thinking how much that would have cost. Oh it goes so quickly, we were just talking about it the other day, we were reminiscing now we get on nicely but at the time, it was incredibly difficult for our relationship, I felt very betrayed by the fact that I had been blind, blindsided by his departure, um, I can’t speak for what he felt but, there was a lot of tension, and what the difference was, between our ability to co-parent originally, and after that happened, was night and day.

The collaboration, the communication, even the quality of the time of the, the transitions when, when the children were going from me to him, or him to me, um, you know originally we used to meet for coffee and just have coffee out together and then the children will go off with one of us. Um, for a long time after high conflict divorce, um, I couldn’t even look him in the eyes, the transition, were you know the handovers happened at the front door to about 8 seconds, and ended up with the door being shut in someone’s face, and you know that has a huge impact on the children. It’s horrible for the parents, but the children get to see their parents not even being able to speak to each other, and so the cost of that, is massive, and that’s where having those, those conversations early on about what would happen if one of us moved abroad, would have really helped prevent a lot of those issues.

How do you manage the child arrangements in an international divorce?

Yeah. Yeah. So how did you manage that child arrangement? Because as you was saying before the, the, the divorce before the, um, interview started, we’re just saying it’s already hard enough getting to an amicable or, an agreed child arrangement when you’re in the same city, or the same town, or the same village, um, compared to live alone being in the same country, how do you manage child arrangement?

The advantage we had, is that there was no um, there was no conflict about where the children were going to be living because he had um, left with so we weren’t fighting around, you know, the main residence of the children. Uh, but there was a lot of back and forth around the logistics for holidays um, and which countries they could travel to, who would come and pick them up and whether in this case he had to come pick him up in London, or whether I could bring him to wherever he was, um, notice periods, if things need to change, and how that would happen, and I think there’s a lot of things that in hindsight, I would have handled lot better uh, that now I think, now I have to live with these agreements and actually some bits of it don’t work for me, but we’ve put so much time and effort and pain, into reaching them that, we’re just kind of living with what, what we’ve got, but I’d like to share those lessons with people who are in those earlier stages of divorce, to make sure that they think through, what that feels like, what that looks like in practice when they agree to certain things.

So, so one example is, you know oftentimes somebody will want to take the children back to their home country, and they’ll tell the other spouse, or the ex-spouse, in exchange you can have the children for all school holidays. Which seems like as much as they can give right, it’s all the available time, but for the person who is taking the children with them, that means they will never again spend a school holiday with their children. That’s quite a big implication, it depends how old they are, but if they’re young, that could be 10 years, 15 years of never taking a holiday with your children. You have to think through these kind of proposals, and really make sure that it’s something you can live with in the long term, and that’s not going to cause problems down the line. Yeah, yeah because otherwise the one who’s not having holidays with their children they become, the strict parent, and the other one is a fun parent, which happens a lot.

How would you solve the issue of who is having the children and when?

Um, so that’s one thing so how would you solve that that issue for example, who’s having the children when, while one parent is in the UK for instance, and the other one is in Kenya? The issue is really individual for each family because it depends on their children, depends on how old they are, and how they react to change, how attached they are to each parent, how long they’ve been living in the country where they’re being taken from, so there’s a lot of different factors but, in, in general the best thing to do is to try and maintain as much regular contact as possible.

So people get very hung up about the holidays, and that makes sense because that’s when you get to actually see your child, but what creates a relationship, is that ongoing contact, and how do you make sure that the parent who’s far away, is still part of the children’s daily life, that they’re involved in health care decisions, education decisions, parent teacher meetings, all of those things how do you plan for that in a way that they can be put brought in on Zoom, or in some other way, and that they’re involved but really so they can stay close to their, their children, and then the other element is culture. I mean in your example both parents were from Kenya, but if you’ve got, you know, for example the father who’s British, and the mother is Kenyan, and she take children back to Kenya, it may be that the father’s worried and the children’s English is going to get less good, or that, they’re going to lose touch with their British culture, and so how do you build that into the children’s routine so that both parents remain, you know, part of their day-to-day life, and the influence of both parents remains part of their day-to-day life.

Yeah, and these days is so, there’s so many ways of keeping in touch like you’re saying, a parenting meeting you can call in for you know, on Zoom or on Teams or, you know, yeah, you can yes exactly, you just need to have your phone really with you, to plan ahead, to make sure that you’re thinking of time differences and, you know, letting the other person know as well about the times of the appointments. And I’m assuming that when you’re making those, you know, the structured co-parenting plan, um, that you keep in mind the ages of the children because now they’re two and four, but when they get to 14, they can fly on their own, you know, so what will that look like or, you know um.

That’s a big element Soila, because I think in general whether it’s an expat divorce or not, um, a lot of people tend to design their parenting plans based on today, and what the children need and, and do and, and they’re at today, and they forget to think about the future, and when they’re going to grow up, and things like at what age can they travel on their own, you know, if your children are two and four today, you probably don’t have that in mind at this stage you know it seems so far away, but really thinking about the long term and how that will work. What also happens if one of the two parents meet somebody new, how will that person be introduced, how will they be eased into the children’s lives. If you can anticipate all of that, at a time where you’re not in the heart of the storm, when you’re not living those events that can trigger a lot of emotions, you can anticipate, and look at them more cool-headedly, and make decisions that are actually in the best interest of the children, rather than based on emotions in in the moment of crisis. Yeah.

Oh there’s so much that is going on through my mind as you’re speaking, even when, when you started speaking about, what if they met somebody new, and I’m thinking okay, the parent who doesn’t live with their children, like um, the parent who’s left in the UK, who only sees the children, you know holiday time for instance, and the children are so excited to come and see their parent here, and then the parent has met somebody else, at what point do you introduce this person to them, the kids want to come and hang out with their parent and then oh, there’s this other person in the house, and where’s, I want my time with my mum or my dad and you know, so it can just cause so many other, um, so many things to think about.

So I’m assuming one of the things you’re saying is that make the plan as structured as possible but not set in stone. Well you know what I, I think there there’s two sides to that. Not set in stone in stone because life, and things change, and children grow, and circumstances change, so you can never sign a co-parenting agreement, you know, when your when your children are two and four and say that’s going to stand until they’re 18, the reality is will not let you do that, um, that being said, I think that it’s important to have a baseline, when having a discussion and documenting decisions you make as a couple, around how things will work, allows everybody to be on the same page.

It takes away a lot of the disagreements later on, because usually it’s the fine print that leads to conflict uh, so things around, if you need um, to have to get papers from the other parent to renew the children’s passports for example, how long ahead of time do you need to ask them, and what’s the timeline by which they need to provide those? That can cause, I’ve seen so many people have so much conflict around that because they’ve booked an appointment at the embassy they’re ready to go for the passports and the other parent hasn’t sent the documents, and they’re arguing, and this is a very small example, but it leads to so much back and forth and so much tension between the parents, and it’s just not necessary. If they just agreed, will, you know, any request will be made for weeks ahead and you have two weeks to provide them that’s it, everyone knows where they stand.

It doesn’t mean you can’t be flexible, if your ex is on holiday at that time and says I can’t send them right away it’ll be an extra week, it’s fine, but you have an agreed baseline, and I think that’s where the beauty of a documented arrangement is, is really live yeah, okay.

Thank you so much, but before we, how can people reach you Chloe,? Where can they find? So they can reach me by through my website, I have a link there to book a free discovery call, I always offer a free touch point, to get to know each other, to make sure that I’m the right person to help them, to make sure for them, to make sure that they’re comfortable speaking to me, and that I’m the right person for them, and just making sure it’s a good match. So they can book a free discovery call we have that informal chat, and they can decide at that stage whether they want to continue or not.

I do encourage people to check out my website because there are as you said earlier, a lot of free resources, I write blog articles, I have a podcast, I have a newsletter, do videos there’s a lot of information there, and I’m a very strong believer that information is key. It is really the power that allows you to handle your divorce properly. And you do have the free download? Yes everything is, is there for free it’s really a wealth of information, the idea is that people can gather that information and then we can work together to make sure that we’re tailoring the journey to their specific family. Yeah, okay. Thank you so much Chloe and um, thank you for having me, contact details at the you know at the bottom and people can contact you through that, and um, yeah, thank you and you know please keep sending your articles through, they’re amazing, well thank you so much, thank you, take care.

[Music]

Read more articles by Chloe O.

About Chloe O.

“My name is Chloe O., I am an Alternative Dispute Resolution (ADR) professional and a Certified Divorce Coach. I specialise in working with women to help them reduce conflict during and after divorce by improving their negotiation and communication skills with their spouse. The objective is to work towards an amicable divorce outcome in order to minimise the emotional and financial cost of divorce. I work with all types of clients but I have extensive experience in supporting expatriates and international families who are dealing with the unique situation of living abroad during and after their divorce, with limited local family support, language barriers and relocation considerations.”

For more information about my work and services (including my Podcastsnewslettermyth-buster videos…), you can visit my website and/or follow me on InstagramFacebook or LinkedIn.

Jones Myers Logo

Jones Myers

Jones Myers LogoJones Myers is widely acknowledged as an exceptional niche family law firm which consistently delivers excellence by getting to the heart of what matters most to you.

Our clients and peers regionally, nationally and internationally say we are ‘outstanding’ in our client care and our innovative and bespoke solutions which always put children’s best interests first. With headquarters in Leeds and offices in Harrogate and York, we are “The leading matrimonial finance firm in Yorkshire, with outstanding individuals and unparalleled strength and depth” (Legal 500, 2023).

Why choose Jones Myers Family Law?

Described as a ‘Northern Powerhouse’, Jones Myers attracts the best family lawyers who are acknowledged leaders in their field.

With extensive expertise in all aspects of relationship breakdown including divorce and separation, finances, children, and mediation, we treat every case and every client as unique. Succeeding with the most complex cases, we are at the forefront of new areas of law including Deprivation of a Child’s Liberty, an extremely complex and rapidly developing area.

Our bespoke, innovative and problem-solving approach, ensures we always seek the best solution for your individual situation.

Authors

By Nicki Mitchell

By Kate Banerjee

By Neil Dring

By Anthony Parrish

By Peter Jones

By Anna Sutcliffe

By Sarah Barr-Young

Website

https://www.jonesmyers.co.uk

Social Media

E-Mail

Telephone

Leeds Office0113 246 0055

Harrogate Office01423 276 104

York Office01904 202 550

Address

Leeds Office – Carlton Tower, 34 St Paul’s Street, Leeds, LS1 2QB

Harrogate Office – 5 Victoria Avenue, Harrogate, HG1 1EQ

York Office – The Quadrant, Bootham Row, York, YO30 7BP

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

Divorce and Private Equity: Hedge Funds & Headaches

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

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

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

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

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

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

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

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

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

Private Equity Fund Structure

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

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

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

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

Co-Invest and Carry Upon Divorce

Co-invest

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

Carry

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

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

Continuing involvement with the fund

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

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

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

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

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

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

Specialist Advice and Drafting

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

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

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

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

About Nicola Harries

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

LinkedIn:

Nicola Harries

Photo by James Orr on Unsplash

Why Pre-Nups Protect Assets and Peace of Mind

Nicki Mitchell
Nicki Mitchell
Partner
Jones Myers

Pre-nups are in headlines as Jennifer Lopez and Ben Affleck face a messy and complicated divorce amid reports that they tied the knot without one in 2022.

While the assets of the high-profile stars, who are jointly worth $550 million, are a far cry from those of most divorcing couples, pre-nups – which set out how finances will be resolved – continue to be on the rise.

This is because more couples embarking on marriage want to protect themselves and their assets, avoiding the potential distress, acrimony, and expense of disentangling their finances if they break up.

The growing popularity of pre-nups reflects how more couples want to protect their own futures and do ‘the right thing’ by each other – and by any children, whose interests should always come first.

Pre-nups can work particularly well for couples marrying for a second time who often want to make sure they can retain their own wealth in the event of a separation and protect the interests of children from previous relationships.

The agreements can also give reassurance in cases where a wealthier spouse agrees to provide for the other spouse if they separate.

How do you go about getting a pre-nup?

  • To enter into a pre-nuptial agreement properly, the couple each need to obtain independent legal advice on the agreement
  • Both must also have disclosed their assets to each other and the terms of the agreement must produce a result that is fair and reasonable
  • The agreement should be negotiated and signed at least 28 days before the wedding. This allows both to obtain advice, have time to consider it, and make an informed decision on signing it

Do courts uphold pre-nups?

Increasingly courts are upholding pre-nups on divorce as long as they  are satisfied that the agreement was entered into freely, without undue pressure  and with the benefit of full financial information and independent legal advice.

As the law stands, a court  still needs to approve  the settlement at the point of divorce, ensuring the agreement meets the needs of both parties. If it does not, a different order can be made but this is very likely still to take the terms of the pre-nup into account to some extent.

Taking the time to draw up a pre-nup before marriage can avoid financial and emotional heartache in a marriage breakdown.

Highly experienced family lawyers like Jones Myers can advise on pre-nups, post-nups or any aspect of family law.

Read more articles by Nicki Mitchell.

About Nicki Mitchell

With extensive experience in family law, Nicki specialises in the financial aspects of relationship breakdown – and particularly complex cases involving family businesses, multiple properties, and complicated pension arrangements.

A skilled mediator, child inclusive mediator and collaborative family lawyer Nicki champions Alternative Dispute Resolution processes which avoid a lengthy court process and can lead much more quickly and cost effectively to a successful resolution.

Her exceptional track record also includes advising clients on the more traditional methods of resolving issues surrounding family breakdowns. Direct Dial: 01904 202553 or email  Nicki.mitchell@jonesmyers.co.uk  www.jonesmyers.co.uk

Photo by Gonzalo Facello on Unsplash
/

Navigating the Division of Your Property During a Divorce

Tom Floyd
Tom Floyd
Marketing Director
Webuyanyhouse.co.uk

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

Understanding Your Legal Position

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

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

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

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

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

Joint Financial Commitments

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

Mortgage and Loan Solutions

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

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

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

Exploring Your Options

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

Selling the Family Home

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

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

Retaining the Property

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

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

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

Navigating the Property Division Process

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

Here are some strategies to help you handle the situation:

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

 Pricing Strategy

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

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

To Conclude

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

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

About Tom Floyd

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

Navigating Infidelity During Divorce
Photo by Sandy Millar on Unsplash.
/////

Navigating Infidelity During Divorce

Zoe Rose
Zoe Rose
Family Team Leader & Senior Associate
Hedges Law

Divorce is a complex process that involves legal, emotional, and social challenges. When infidelity enters the equation, it adds another layer to an already difficult situation. Infidelity fundamentally breaches the trust foundation of marital relationships. The discovery of infidelity often leads to a breakdown in communication and emotional connection between spouses. This can result in increased conflict during a separation and divorce.

The Emotional Impact

For the person who has discovered the infidelity, this revelation can cause feelings of betrayal and disillusionment. They may experience a loss of confidence in themselves and their ability to judge the character and motives of their partner. This can lead to a reassessment of their own needs and priorities, potentially shaping their approach to post-divorce life.

Children caught in the midst of infidelity during divorce may experience disruptions to their sense of stability and security. Witnessing parental conflict and emotional distress can impact their emotional well-being and may influence their attitudes towards relationships in the future. However, the extent of these effects can vary greatly from child to child depending on their age, temperament, and the level of conflict between parents.

Outside of the immediate family unit, infidelity can strain relationships with extended family members and mutual friends. Dividing loyalties and navigating interpersonal dynamics can create further tension and may lead to estrangements or fractures within social circles.

Despite the challenges posed by infidelity during divorce, there is room for resolution and growth. Couples who are willing to engage in open communication and seek support can find avenues for reconciliation or an amicable separation. Alternatively, individuals may use the experience of infidelity as an opportunity for self-reflection and personal development, leading to a more empowered approach to post-divorce life.

The Legal Impact

Whilst there is a clear emotional impact on divorce, there is no automatic impact to the legal processes or associated financial matters/arrangements for children.

Since the introduction of “no fault” divorce in April 2022, spouses can apply for a divorce on the ground that the marriage has broken down irretrievably without setting out any explanation. Whilst this means that either spouse could start divorce proceedings, to assist with the emotions that flow following the discovery of infidelity it is often helpful for the couple to agree that the spouse who has been cheated should start the divorce process. This can often help to provide closure.

In a similar way, whilst the infidelity in and of itself will not result in there being a different outcome when it comes to the appropriate division of the financial resources or the arrangements for the children, allowing time for the individuals involved to come to terms with what has happened can have a huge impact. The process of discussing and agreeing the practical implications following a separation are challenging enough, if people have not allowed themselves space to process the ending of their relationship this can lead to more acrimony.

If a decision is made to progress a relationship with the person that a spouse had an affair with, this can have wider implications, particularly in relation to financial matters. If they choose to live together then their ability to share outgoings will be taken into consideration, as will any potential of pooling assets (or mortgage capacities) to house themselves moving forward.

Similarly, their suitability to be around children will also be considered and could result in different arrangements if they are deemed to pose any risk to the children.

If this is something that you are concerned about it is important that you take early legal advice so that you can ensure that your separation does not become unnecessarily acrimonious.

About Zoe Rose

Zoe Rose is a Family Team Leader & Senior Associate at Hedges Law. She has specialised in family law supporting individuals and their families through periods of significant change for over 10 years. Zoe is committed to providing honest and concise advice so that her clients are clear on their position and all possible options from the outset.

How not to ‘hard launch’ your divorce
Photo by camilo jimenez on Unsplash
//////

How Not to ‘Hard Launch’ Your Divorce

Sarah Bunn
Sarah Bunn
Associate
Burgess Mee Family Law

In this digital age there is often a temptation to take to social media to record a landmark life event. Coupled with this, for many, there is also the desire to use social media to put the wrongs of the world to right – whether that is in relation to world politics or our personal lives.

In the context of divorce proceedings, from which financial and children proceedings can also follow, a solicitor’s headline advice is likely to be to avoid sharing information about one’s divorce on social media, or at least to err on the side of caution. We all remember Gwyneth Paltrow and Chris Martin’s ‘conscious uncoupling’ campaign. However, without a PR team behind you, any possible benefits seem to pale in comparison to the possible pitfalls.

Social media may appear to provide useful guidance and tips about navigating the divorce process but often this “advice” or anecdotal evidence is incorrect and could even be harmful. All families are different, and it follows that all divorce experience is different.

As a starting point, parties involved in family court proceedings are expected to uphold confidentiality. This means not sharing details about the case to third parties (unless in specific circumstances, such as when speaking to a legal representative or experts in a case). It also means that a party must not share documents relating to their case with third parties, including their entire social media network. In the context of divorce proceedings, which is largely an online process where spouses can usually avoid ever stepping into a court room, this can easily be forgotten. In financial and children proceedings, whilst attendance at court is more likely, reminders are often necessary.

Divorce, Confidentiality & Social Media

A breach of confidentiality in relation to family proceedings can have a negative impact on one’s case. Judges will be far from impressed and may say so, and in more extreme cases, the individual who is in breach of confidentiality can face fines and/or even a term of imprisonment.

It is important to be aware that even if one maintains confidentiality about the proceedings themselves, derogatory posts on social media about your spouse/child’s other parent can be used as evidence in a case. For example, social media posts about what a terrible person your (soon-to-be former) spouse/partner is or criticism of their parenting styles are often screenshotted and exhibited to narrative statements in order to evidence the conduct and entrenched views of one party about another.  More often than not, this will negatively impact a judge’s perception of the person posting such information, as opposed to the ‘postee’.

It is important to remember that judges are human and that they have a fairly wide discretion within the law. If they take against a particular party, this could impact the final decision which may be unappealable so keep them onside if you can.

Family, Social Media & Divorce

During family proceedings, it is often advisable to avoid social media altogether as what may be construed as positive posts can be used in a negative context, for example, during children proceedings where a party posts a photo of their new partner having a fun day out with children. If the other parent did not know that the children had been spending time with a new partner, such photos may be used as an example of a lack of positive co-parenting and joint decision-making.

Divorce, Finances & Social Media

In financial proceedings, constant updates about new relationships and time spent at each other’s home can be used as evidence of one of the parties’ cohabitation, or intention to cohabit with their new partner or even that claims of financial straits are untrue; “Just look at that 5-star hotel/business class flight/new handbag!”. This may impact financial provision made upon divorce. Even screenshots of CVs and comments found on a spouse’s professional profile can be used as evidence in relation to income and earning capacity.

As an aside, divorcing spouses should also be made aware, at the start of a case, about the move towards transparency in the family court. This development brings in a presumption that approved media and legal bloggers may attend most hearings in the family court and that they may report what they see, hear, and read, although usually the reporting will be anonymised first. This change in the ‘private’ nature of proceedings may result in an inevitable loss of control by parties to keep the details of their case private and shielded from mainstream media, even if they uphold their side of the confidentiality bargain.

Whilst media outlets will not construe every case as a matter of public interest, and there are limits to what can be reported, if you have concerns about this, it is important to have a discussion with your solicitor about whether the media may be interested in your case, and what steps you can take to keep details of your case private.

Some helpful guides about confidentiality in family court proceedings can be found on the government website:

Read more articles from Burgess Mee.

About Sarah Bunn

Sarah Bunn is an Associate at Burgess Mee. She specialises in complex financial remedy and private children law cases. She also advises clients in relation to nuptial agreements and cohabitation disputes.

pensions-in-divorce-settlements
Image by Freepik

Why pensions should not be disregarded in divorce settlements

Neil Dring
Senior Solicitor
Jones Myers

A recent study which found that just one firth of divorcing couples considered pensions when dividing their assets reinforces how their importance as a valuable asset in relationship breakdown remains overlooked.

Almost 30% of participants in the research from Legal & General said that they had actively waived their rights to the value of pensions, which can help to provide for separating parties in retirement.

Pensions, the second highest value asset in a divorce settlement after the family home, often make up on average 42% of the household wealth.

They are vital in the financial disclosure process of divorce which entails producing a full statement of the divorcing couples’ current earnings and assets. The disclosure includes full details of all pensions including state pensions, along with the value of each one.

The financial statement aims to ensure that detailed negotiations can take place and enable both ex-spouses to receive a fair settlement which could include a division of the pension benefit fund.

Pension sharing, the most popular method of reaching a divorce settlement, enables a clean break between parties in respect of capital claims. In most cases, the pension fund permits a transfer of a percentage of the pension to another pension provider.

The pension share is not compulsory. In some instances, a party may prefer to take a greater share of the family’s home or other capital, abandoning any claim against the other party’s pension.

It is important to assess how the parties’ finances will be in the years ahead to avoid any longer-term financial problems.    

Some divorces may involve several pension arrangements so it is important to consider which ones should be shared – and to what extent. Expert advice from an Independent Pensions Adviser will help with this along with a valuation and projected future incomes.

The pension share may be internal (when the recipient becomes a separate member of the same pension scheme) or external, with funds being transferred out of the main scheme to a different pension provider.

It must be invested in an existing or new arrangement of the receiving party and utmost care should be taken to obtain details of the cost of any transfer. The Court will look at the needs of the parties and what other assets are available for distribution.

Pensions can be a complex area in divorce, which is why This Pensions Advisory Group produced a Report in 2019 aiming to give clear guidance to individuals, lawyers, judges and courts on dealing with it.

While receiving widespread support which included leading Family Court judges, the reality is that pensions are considered in too few cases and are not properly understood.

A revised and updated second edition of the Report was published in January this year. The potential complexity of the wide-ranging issues involved is illustrated by the Report running to 192 pages!

Recent changes in divorce law have meant that the risk of pensions being ignored, resulting in future financial problems, has increased.

The newly introduced No-Fault Divorce process which enables people to apply for a divorce without using a lawyer is a welcome and long-overdue change.

At Jones Myers, we always recommend that couples in this situation seek expert advice from a lawyer regarding finances, and particularly pensions.

Doing so will avoid the risk of losing out on pension-sharing provisions that they should legally be entitled to – and have earned over the course of a long marriage.

Read more articles by Neil Dring

About Neil Dring 

Senior family law specialist, Neil Dring, has almost four decades of expertise in divorce and financial settlements arising from relationship breakdowns.

Neil’s strong track record in divorce and separation includes dealing with complex high-net-worth financial disputes and advocacy. He is also highly experienced in advising on pre-nuptial and post-nuptial agreements.

A champion of seeking to help clients resolve their relationship break up through alternative and less confrontational routes than going to court, Neil’s clients commend him for his clarity and common-sense approach to settlement along with his empathy, sensitivity and understanding.

1 4 5 6 7 8 11