clean break

What is Ancillary Relief or Application for a Financial Order

Published on
Daniel Rushton
Head of Family Law
Grindeys Solicitors

Technically, Ancillary Relief no longer exists.

It used to be the name of the application made by one party of a divorcing couple, asking the Court to resolve the financial issues relating to their marriage i.e. claims for capital, for spousal maintenance and against pensions.

This is now called an application for a financial order. People still refer to it as ancillary relief: ancillary meaning connected to divorce and relief as in to resolve the issues.

– More articles and definitions by Daniel Rushton here. –

ABOUT DANIEL

Daniel has over 20 years’ experience as a specialist family law solicitor. He is Head of the Family Law team at Grindeys Solicitors based in Stoke on Trent.

Daniel has a particular interest and experience in dealing with business owners, company directors and members of the medical profession in matrimonial situations. For this type of work a solicitor who understands your business accounts and business structure is vital to obtain the best financial settlement possible.

Recent cases include one involving an international business and extremely valuable assets and pensions, as well as property abroad. He has acted for numerous doctors and other medical professionals, council workers, police officers and serving members of the armed services. In twenty-three years, Daniel has dealt with all walks of life and will adopt a professional yet caring approach to your situation.

Email: daniel.rushton@grindeys.com

family-law-and-divorce.co.uk

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CHILD SUPPORT PAYMENT – DEFAULTERS BEWARE!

Child Support Payment – Defaulters Beware!

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Katie McCann
Katie McCann
Head of Family Law and in-house counsel at Kuits Solicitors

The case of Mr and Mrs Aly hit the headlines last week when HHJ Mark Rogers ordered Mr Aly to hand his family’s entire fortune (£550,000) over to his ex-wife following their divorce.

This ruling has shocked many, as it is so far removed from the distinguished ‘yardstick of equality’ concept that was introduced by Lord Nicholls in White v White.[1]

The basis of this theory is that, when dealing with financial division following divorce, the starting point should be to consider an equal distribution between the spouses. Whilst a slight departure from equality would not have raised eyebrows, digression from 50% to 100% is truly remarkable.

So how did the court reach such a decision?  Firstly, we must look at the facts surrounding the case.

Mr Aly is a 54-year-old anaesthetist whilst Mrs Aly, 46, is a GP. Therefore, it is likely that the court accepted they had both made equal contributions during their marriage of significant length (nine years). It is also likely that both spouses became accustomed to a similar standard of living during their marriage and that through continuing to work they would both be able to remain leading comfortable lifestyles.

The above facts suggest that the yardstick of equality would have been the perfect method by which to distribute matrimonial assets; however, the court assessed the behaviour of Mr Aly following the divorce and reached their decision on the basis that he had ‘abdicated responsibility’ of his ex-wife and children.

In 2012, a year after the couple had divorced, Mr Aly left the UK and moved to Bahrain, where he formed a new relationship and fathered another child.

Having been married to Mrs Aly for nine years and having had two children with her, Mr Aly left the country and stopped paying maintenance and child support to the family he left behind.

Child Support Payment - Defaulters beware!
Child Support Payment – Defaulters beware!

Mr Aly’s lawyers argued that the ruling was unfair, as it gave no consideration to his needs. They professed that, moving forward, he would be willing to pay £40 child support per week.

Unfortunately for Mr Aly, however, it was a case of too little too late.

A promise to start making payments was clearly too difficult to believe coming from a man that had not made a single contribution for several years. This, in addition to the fact that the Child Maintenance Service (CMS) would not be able to pursue Mr Aly whilst he lives abroad, means that his promise carried little weight.

As Lord Justice McFarlane explained: “There is no realistic expectation of getting any further amount of maintenance out of the husband.”

The court have seemingly used the case of Mr and Mrs Aly to highlight the significant responsibilities attached to marriage – responsibilities that can often continue long after a marriage has ended.

Rather than being seen as a flippant activity that can be undone at the flick of a switch, the case shows that marriage is serious commitment and anyone who thinks that they can up and leave their responsibilities behind once a marriage is over, now stands corrected.

Perhaps the case also highlights the growing importance of prenuptial agreements in today’s society.

In an age where there is seemingly a misunderstanding about post-divorce responsibility, a prenuptial agreement would allow both spouses to have a clear understanding of what they can expect to receive in the event of divorce.

Of course, pre-nuptial agreements will not allow one parent to abdicate responsibility in relation to their children. Such matters are considered to be public policy issues and therefore no agreement can permit non-payment towards a child.

This in itself shows the importance of child maintenance payments, and therefore if someone is willing to forgo making such payments for their children and they are not within reach of the CMS, then the courts may have no option but to transfer a substantial portion of the matrimonial assets to the caregiver to ensure that the child’s welfare is secure. Defaulters, you have been warned.

[1] [2000] UKHL 54

About Katie

Katie McCann is head of family law and in-house counsel at Kuits Solicitors in Manchester City Centre. She has a special interest in resolving high value relationship breakdown disputes.

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What is a Clean Break Divorce?

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Online Divorces
Jay Williams
Online Divorces

You may think that the financial ties that exist between a husband and a wife are severed permanently following a divorce, but this is not the case.

In fact, until a court order determining precisely how a couple’s assets are to be divided has been put in place, either party can make a claim on the other’s assets at any time – that’s why we have what are colloquially known as Clean Breaks.

Consent Orders, to call them their correct, legal name, are documents that describe precisely how various assets such as properties, cars, pensions, furnishings and other items of significant value are to be divided between the two parties. As the name implies, though, both parties must agree on this division in order for the courts to approve of the order.

It is possible to obtain a divorce without having such an order put in place, of course. It is also possible to finalise a divorce without requesting that the courts determine how assets should be divided. Should you do this, however, then, as discussed above, either party can make a claim against the other.

Now, many people will argue that a former spouse would be entitled to a substantial share of the winnings should the other win the lottery in order to argue the merits of such an order.

In spite of the fact that such an example is distinctively unrealistic, there are several infinitely more likely windfalls that divorcing couples would do well to remember: pay rises, inheritance and growing property values to name but a few. Provided an agreement can be reached, then it is always advisable that a Consent Order be obtained – if only for the peace of mind that it provides.

clean breakAs ever, though, a person should never be tempted to agree to such a division simply to prevent a future claim.

It is infinitely more important to ensure that the provisions afforded through the agreement are sufficient to support you for a reasonable period of time.

It may seem like a good idea to rush through an agreement in order to lower your stress levels but, as you’ll only find yourself feeling much more anxious if you later release that you’ve left yourself in a precarious financial situation this is little more than a false economy.

Should you feel that a Consent Order is something that you’d like to obtain, though, be warned: you’ll not only need to get the order itself prepared, but additional documents that clearly describe your current financial circumstances (i.e. your current earnings, savings, debts etc.) as will your spouse. These documents are needed as the courts must be provided with evidence to show that both parties are aware of the other’s financial position as they simply could not consent to an agreement concerning the division of their finances if they did not.

Yes, people can, and indeed have, falsified figures for these documents and unfair and unreasonable agreements have been approved as a result. Fortunately, this is also regularly discovered at a later date making the agreements null and void and bringing about expensive further legal proceedings.

Still, if you trust your soon-to-be former spouse and can agree on how to divide your assets in a way that suits both parties’ needs, then a Consent Order is a cost-effective way of getting the peace of mind that comes from knowing that a binding financial order is in place.

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Reduce the Cost of Divorce

How to Reduce the Cost of Divorce

Published on
Sheata Karim Grayfords Family Law
Sheata Karim
Grayfords Family Law

With over 40% of current marriages expected to end in divorce, most of us have or will experience the negative emotional and financial effects of divorce.

Family law solicitor and divorce expert, Sheata Karim, offers some insider tips on how to reduce the cost of divorce proceedings.

Divorce is a distressing process as not only must you cope with the emotional turmoil of a separation, but also the financial burdens that come with it through solicitor’s fees and court charges.

Many people turn to anonymous websites that claim to offer divorces for ludicrously low prices and then are stung with costly court hearings when issues regarding child contact or financial settlements arise.

If you wouldn’t let a cheap DIY website arrange your wedding, why would you let them have control of your divorce?

Family law solicitors are experts in all areas of divorce and separation and can guide you through the process to help you obtain the outcome you deserve – but such legal expertise comes at a price.

Read on to find out how you can obtain a legitimate and legally binding divorce, yet still making sure that you reduce the cost of divorce.

Avoid court trials

This is the first and most obvious tip as court cases can be both lengthy and costly affairs. There are a variety of out-of-court solutions – such as mediation or collaborative law – that will resolve disputes regarding child matters or financial issues, and will also save you the cost of court and barrister’s fees.

Be aware of your spend

How to reduce the cost of divorce
Avoid Court

All solicitors require ‘money on account’ before they begin work on your case. This is normal, but you should always stress that you wish to be notified when you are nearing the end of your credit. Some solicitors may continue working on your case and then you may be surprised with a larger-than-anticipated bill at the end.

Watch out for hidden costs

Should you have to go to court then you must remember to enquire about what court costs you will have to pay on top of the solicitor’s fees. All courts charge a fixed amount for every case, which is currently £410 for a divorce petition or £215 for Child Act applications (i.e. contact or residence).

Solicitor, not counsellor

Your solicitor is a trained professional who is there to support and defend you legally. This may seem a harsh statement, but they are not your counsellor so do not tell them your life story or seek emotional comfort from them – it will save you a lot of money in the long run.

You pay solicitors by the hour for their expertise so get the most out of your time by only focussing on the practicalities of your case. The sooner the legal process is finished, the sooner the healing process can start.

Do your own admin

Most solicitors will be happy for you to fill in some of your documentation yourself, which will save you money as you will only pay for the solicitor to check the forms and make recommendations. Some of the administration work for the divorce process can be time consuming but it can, therefore, also be a cost-effective measure to do it yourself.

Be your own private investigator

There are five grounds to divorce, some of which require evidence or proof. Your solicitor can hire a private investigator on your behalf but it can be much cheaper and quicker if you source your own evidence yourself in the form of a photograph, text conversation or voice recording, for example. You must be careful though, as stalking and secretly filming are illegal.

 

Sheata Karim is the Principal Solicitor and Founder of Grayfords, a family law firm based in central London.

After over a decade of working in family and niche law firms, Sheata used her expertise and specialist knowledge to start her own practice.

Sheata created her own firm so that she could instil her values of client care and satisfaction into every area of the business. Her motto is to envisage yourself in the perfect future, and that is what she will help you achieve.

With experience in all areas of English and international family law – including divorce, financial issues and child matters – Sheata really is an expert in her field.

www.grayfords.co.uk

 

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