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The Document That Could Decide Your Divorce: What You Need to Know About Mortgage Capacity Reports

Published on
Byrne Harris CeMAP
Mortgage Capacity Report Expert
RI at Cornerstone Finance
Founding Member of helpnetwork.co.uk
Affiliate of Resolution and the Expert Witness Institute.

Divorce is one of the most complex events most people will ever go through, and the list of forms and documents can feel overwhelming, but there is one document that often carries more weight in determining the financial outcome of a divorce than almost anything else.

The Mortgage Capacity Report – Understanding what it is, how it works, who can produce one — and crucially, how to challenge one — could make a significant difference to your settlement.

What Is a Mortgage Capacity Report?

A Mortgage Capacity Report sets out, in formal terms, how much each party in a divorce is realistically able to borrow as a mortgage in their own right. This sounds straightforward, but the implications are enormous.

When a court — or a mediation process — is deciding how to divide the matrimonial home and any other assets, it needs to know what each party can afford going forward. Can the spouse who wants to keep the family home genuinely raise the finance to buy the other out? Can the departing spouse afford to purchase a new home of their own? With a room for each dependent? The answers to these questions directly shape who gets what.

This is why the report is so powerful. It is not a vague estimate or a solicitor’s opinion — it is a formal, detailed assessment of borrowing capacity that courts and mediators treat as authoritative financial evidence. Get it right, and it supports your position. Get it wrong — or allow the other party’s report to go unchallenged — and it could shape your financial future for decades.

Only a Qualified Mortgage Professional Can Write One

This is one of the most important points to understand: a Mortgage Capacity Report cannot be produced by a solicitor, barrister, or any other legal professional. The law may be their domain, but mortgage lending is not.

The report must be written by someone holding a CeMAP qualification — the Certificate in Mortgage Advice and Practice, which is the industry-standard professional qualification for mortgage advisers in the UK. CeMAP-qualified professionals understand how lenders assess affordability, how income is stress-tested, how credit profiles affect borrowing limits, and what lenders will and won’t accept. That specialist knowledge is what gives the report its credibility and authority.

These Reports Are Not Beyond Challenge

Here is something that many divorcing individuals — and even some legal professionals — do not fully appreciate: Mortgage Capacity Reports are not regulated by the Financial Conduct Authority (FCA) in the same way that mortgage advice itself is. This matters for one very important reason: They can be challenged. In other words, if their final affordability seems far too low, speak up.

There are two distinct ways to question a report:

  1. The information that was provided to the report writer by your ex. A report is only as reliable as the data it is based on. If income figures are incomplete, if financial commitments are inflated or if the numbers are just wrong? — the conclusions drawn from that data will be flawed. Identifying what information went into the report, and questioning its accuracy or completeness, is a legitimate and often effective line of challenge to be directed at your ex.
  2. The conclusions the writer reached. Even with accurate data, two qualified professionals can reach different conclusions, i.e. optimistic or pessimistic, but if a report does not clearly explain why the assessed borrowing capacity falls below what the standard rule of thumb would suggest — typically 4.5 times gross annual income — then the methodology itself is open to scrutiny. A well-constructed report will walk through this reasoning explicitly: what an age over 47 will bring it down, how debt level and credit score can impact affordability, etc. If that explanation is absent or unconvincing, the report’s conclusions can be directly challenged. In addition, the writer must demonstrate that they had access to the whole market, state clearly that their primary duty is to the court, not the subject of the report, and include a ‘statement of truth’.

This is why the quality of a report matters as much as who wrote it. A good Mortgage Capacity Report is not just a number — it is a reasoned, evidenced analysis that can withstand scrutiny in a formal legal context.

You Can Commission a Report on the Other Party

Many people are surprised to learn this, but it is entirely legitimate to commission a Mortgage Capacity Report on your spouse or former partner — not just yourself. If the other party is claiming they cannot afford to buy you out or is arguing that their borrowing capacity is severely limited, you do not have to simply accept their report at face value.

Using the financial information disclosed in proceedings — which both parties are legally required to provide — a qualified mortgage professional can independently assess what the other party is genuinely capable of borrowing. If that assessment differs significantly from the one they have submitted, it becomes a powerful piece of counterevidence in your case.

This is not about gaming the system. It is about ensuring that the financial picture presented to the court or mediator is accurate, not artificially inflated or deflated to gain an advantage in the settlement.

What Does a Report Cost — and What Should You Expect?

The cost of a Mortgage Capacity Report varies considerably across the market. At the lower end, reports can be obtained from around £99. At the higher end, some providers charge upwards of £400. The price does not reflect the quality — what matters is whether the report is thorough, clearly reasoned, and written by someone with the right qualifications and genuine lending market knowledge.

  1. Ask whether the report will clearly explain any gap between the 4.5x income rule of thumb and the actual assessed capacity.
  2. Ask whether the writer has experience of producing reports for divorce proceedings specifically — this is a different exercise from standard mortgage advice, and experience in the legal context matters.
  3. Ask whether the report will hold up to the kind of scrutiny described above.
  4. If you really want to save time, ask them about Rule 25.3 of the Family Procedure Rules (FPR) 2010. If they can’t answer, hang up and find another supplier.

A report that is poorly constructed, light on reasoning, or based on incomplete data could harm your position. The investment worth making is in a report that is done properly — one that gives a court or mediator everything they need to understand and rely on the conclusions it reaches. A nice bonus is to have it formatted as a regular legal document.

Do Not Let This Document Be an Afterthought

Divorce proceedings involve a great deal of paperwork, and it is easy for individual documents to get lost in the noise. The Mortgage Capacity Report should not be one of them. It directly determines what each party can afford, shapes how property is divided, and carries real evidential weight in front of a judge.

It is a document that requires a qualified specialist to produce, that operates without the safety net of FCA oversight, and that can be challenged — and successfully challenged — if the information it contains or the conclusions it draws do not hold up to scrutiny.

Whether you need a report for yourself, want to commission one on the other party, or need to assess whether a report already in proceedings is as robust as it should be, taking this seriously is one of the most important financial steps you can take during your divorce.

About Byrne Harris CeMAP

Mortgage Capacity Report Expert, RI at Cornerstone Finance, founding member of helpnetwork.co.uk , affiliate of Resolution and the Expert Witness Institute.

After arranging mortgages exclusively for divorcees for many years, Byrne has become an expert on Mortgage Capacity Reports and understands what a critical tool they can be if produced, used and understood correctly.

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Transferring Property to Your Spouse: Tax Implications and Legal Considerations

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Lydia Wright
Lydia White
Outreach Assistant
Niche Inbound

Deciding to share ownership of a home is a major milestone for any couple. Whether you are adding a partner to the deeds of a primary residence or gifting an investment property, the process involves more than just updating a name. In the UK, these transactions carry specific tax rules and legal requirements that change depending on your marital status and the value of the property.

Navigating these rules helps you protect your assets and ensure you remain compliant with HM Revenue and Customs. This guide explains how the transfer works and what you should expect during the legal process.

Understanding the Legal Process of Transfer

A transfer of equity is the legal process of changing how a property is owned without a full sale. You’ll need a solicitor to draft a Transfer Deed, which both parties sign before it’s sent to the Land Registry. If there’s an existing mortgage, your lender must give consent and confirm the new owner meets their affordability criteria.

Because the legal title is changing, you must decide between being joint tenants or tenants in common. This decision is vital as it determines how your shares are divided and what happens to the home if one owner passes away. Making the right choice now ensures your long-term interests are fully protected.

Tax Implications of Property Transfers

One of the main reasons people choose to transfer property to spouse is the favourable tax treatment offered to married couples and civil partners. Unlike transfers to friends or siblings, gifts between spouses are usually exempt from Capital Gains Tax. This means you won’t face a large tax bill based on the increase in the property value since you bought it.

Stamp Duty Land Tax is another consideration. Generally, if you gift a property and there is no mortgage, no Stamp Duty is due. However, if there is a mortgage, the person receiving the share is taking on a portion of that debt. HMRC views this consideration as a payment. If the share of the mortgage being transferred exceeds certain thresholds, Stamp Duty might apply.

Income Tax also enters the frame if the property is rented out. By transferring a share of a buy to let property, you can potentially utilise both of your personal tax allowances. This can be a smart way to manage your household finances. You must report any changes in rental income distribution to HMRC to avoid penalties.

Key Steps to Complete the Transfer

The timeline for a transfer of equity can vary, but most cases take between four and six weeks. Ensuring you have all your documents ready can speed up the process. Your solicitor will handle the bulk of the communication with the Land Registry and your mortgage lender.

  1. Contact your mortgage provider to get a Letter of Consent.
  2. Instruct a conveyancing solicitor to handle the legal paperwork.
  3. Decide on the ownership structure (Joint Tenants or Tenants in Common).
  4. Sign the Transfer Deed in the presence of a witness.
  5. Pay any necessary Stamp Duty to HMRC.
  6. Wait for the Land Registry to confirm the update to the title deeds.

Common Pitfalls to Avoid

Couples often assume that because they are married, the law treats all transfers as automatic. This isn’t the case. Failing to inform a lender about a change in ownership can put you in breach of your mortgage contract. Always be transparent with your bank to ensure the debt is correctly secured against the new owners.

Another mistake is neglecting the Deed of Trust. If you are contributing different amounts to the mortgage or the equity, a Deed of Trust outlines exactly who owns what percentage. This document is vital for tenants in common. It provides a clear roadmap if the relationship ends or if the property is sold in the future.

Lastly, don’t forget about the impact on your will. Changing property ownership can change how your estate is handled. It’s a good idea to update your will at the same time you change your property deeds. This ensures that your wishes are still reflected in your legal documents.

Summary of Spouse Transfers

Changing the ownership of your home is a significant financial move that requires careful planning. While the tax benefits for married couples are generous, the legal steps remain strict. By involving a professional early, you can manage the mortgage requirements and tax filings without unnecessary stress.

Taking the time to understand the difference between ownership types and the potential for Stamp Duty charges will save you from surprises later. Proper legal advice ensures the transfer is handled correctly and your family’s future stays secure. Be sure to check your specific circumstances with a qualified expert before you begin the process.

About Niche Inbound

Niche Inbound is a leading UK-based inbound marketing agency. Renowned for her expertise and forward-thinking approach, Lydia is dedicated to helping brands thrive in the ever-evolving digital landscape. Outside of work, she enjoys outdoor adventures and spending time with loved ones.

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Cryptoassets and Divorce: Why Digital Assets Are Becoming a Critical Part of Financial Disclosure

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Louise Mackie
Louise Mackie
Tax Manager
Myna

Divorce proceedings are often financially complex. The increasing prevalence of cryptoassets is introducing an additional layer of difficulty for separating couples and their advisers.

As digital assets become more mainstream, they are appearing more frequently in financial settlements. Yet many individuals involved in divorce proceedings remain unfamiliar with how these assets are held, valued, or disclosed.

This lack of understanding can create a significant information gap. In some cases, one spouse may hold cryptoassets without the other fully appreciating what it is or how it works. In others, digital assets may simply be overlooked because they do not resemble traditional financial holdings such as bank accounts, pensions, or property.

For family lawyers and divorce practitioners, recognising when cryptoassets may form part of the financial landscape is becoming increasingly important.

Why crypto can be difficult to identify

Unlike traditional investments, cryptoassets are not always held through a centralised institution such as a bank or brokerage. Instead, it can be stored in digital wallets that are controlled directly by the owner. These wallets may exist as accounts on exchanges, mobile apps, hardware devices, or encrypted files that store cryptographic keys controlling the assets.

Because of this structure, digital assets may not appear clearly within standard financial documentation. Bank statements might show transfers to a cryptoasset exchange, but the assets themselves sit elsewhere. If an individual uses multiple exchanges or transfers assets between private wallets, tracing ownership can become more complex.

However, this does not mean cryptoassets are invisible. Most major blockchain networks record transactions permanently on a public ledger. The challenge is not that the information does not exist, but that it requires the right expertise to interpret it.

Indicators that digital assets may exist

In practice, there are often clues that cryptoasset holdings may be present. Transactions to well-known exchanges can appear on bank or credit card statements. References to trading platforms or crypto applications may also appear within financial records.

In some cases, individuals may disclose involvement in digital assets but underestimate or misunderstand the value of their holdings. Cryptoasset prices can fluctuate significantly, and assets acquired several years earlier may now be worth far more than originally expected.

For legal advisers, asking clear and direct questions about digital asset activity can be an important first step in ensuring that financial disclosure is complete.

Understanding how crypto is held

Cryptoassets can be stored in several ways. Many investors use exchanges that operate similarly to online trading platforms. Others move their assets into private wallets that they control directly. These wallets can exist as software applications or as physical devices designed to store cryptographic keys securely.

Transfers between wallets are common, and assets can move across different platforms quickly. As a result, reviewing the history of transactions is often necessary to understand where digital assets are currently held and how they have been managed over time.

This process may involve forensic accounting or specialist blockchain analysis in more complex cases.

Tax considerations in divorce settlements

When cryptoassets form part of a financial settlement, tax implications should not be overlooked. In the UK, cryptoassets are generally treated as property for tax purposes. Disposing of them, including selling, exchanging or transferring them in some circumstances, can trigger capital gains tax.

If one spouse transfers cryptoassets to the other as part of a divorce settlement, the timing and structure of that transfer can affect the tax outcome. In some situations, transfers between spouses or civil partners can often take place on a no gain, no loss basis for capital gains tax purposes. Since 2023, separating couples may have up to three tax years after separation to make such transfers.

Valuation is also important as cryptoasset prices can move quickly, agreeing on the value of digital assets at the time of settlement can be challenging.

Increasing transparency around digital assets

Regulatory reporting around cryptoassets is evolving rapidly. Exchanges are under increasing pressure to comply with anti-money laundering requirements and to share information with tax authorities. International initiatives such as the OECD Crypto-Asset Reporting Framework are designed to standardise how cryptoasset transactions are reported across jurisdictions. As these rules are implemented, tax authorities will gain greater visibility over digital asset activity held on regulated platforms.

While cryptoassets once carried a reputation for anonymity, the reality today is more nuanced. Blockchain technology creates permanent transaction records, and as regulatory frameworks develop, the ability to identify and analyse digital asset activity continues to improve.

A growing area of financial complexity

For many separating couples, cryptoassets will simply be one part of a broader financial picture. However, its presence can complicate disclosure and valuation if it is not properly understood.

The key for advisers and individuals alike is awareness and appropriate enquiry. Asking the right questions, recognising the signs that digital assets may exist, and seeking specialist

advice where necessary can help ensure that financial settlements are based on a complete and accurate view of the assets involved.

As digital assets continue to move into the financial mainstream, their role in divorce proceedings will likely become more common. Ensuring that both parties understand how these assets work is an important step toward achieving fair and transparent financial outcomes.

About Louise Mackie

Louise Mackie is a Tax Manager at Myna Accountants, where she leads the firm’s tax team and oversees the delivery of tax advisory and compliance services.

She works with a wide range of clients, including individuals and sole traders, with a particular focus on cryptoasset taxation.

Louise advises clients on the tax implications of digital asset transactions and investments, while also supporting those outside the crypto sector with personal and business tax planning, compliance, and practical guidance.

She is known for translating complex tax rules into clear, actionable advice, helping clients make informed financial decisions.

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What Business Owners Need to Know Before A Separation

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Mark Betteridge
Mark Betteridge
Family Law Solicitor
Woolley & Co Solicitors

Divorce is never easy and if you own a business, it does carry additional complexity. Over the past three decades, Mark Betteridge has advised many business owners considering separation. A common theme is that separation is approached with understandable anxiety: “Will I lose my business? “Will it have to be sold?” and “How do we value the business?” are common questions.

While every case is unique, there are some practical points worth understanding before taking any formal steps.

1.The court looks at fairness – not fault

In England and Wales, financial outcomes are driven by statutory principles of fairness. The starting point is full financial disclosure. The court will consider housing needs, income requirements, the welfare of any children, and the resources available to both parties.

For business owners, your business is usually treated as part of your marital assets, it includes business assets and ownership including shares, stakes or the full value of the business. Your business income and profits over the past three to five years (minimum) including your earnings, dividends, salaries and bonuses are all taken into account. Additionally, loans, overdrafts or other debts are factored in as well as your role in the business, whether you are an active director, partner or passive investor can all influence how income is assessed. Full disclosure is critical and there can be serious consequences for hiding assets.

2. Valuation is critical

Valuing a business for divorce purposes is not straightforward, and courts usually rely on independent expert valuations. There are several approaches that can be considered depending on the nature of the business.

A single joint expert (SJE) is commonly instructed to prepare a valuation report of the business to avoid disputes. The SJE will often be a forensic accountant, and they are appointed jointly by the divorcing parties to prepare an independent valuation to assist the court.

The asset-based method looks at what the business owns versus what it owes, essentially calculating its net assets. As the name suggests, this will be best for asset-heavy businesses such as those in manufacturing, construction, also businesses that are not profitable and for companies being liquidated.

The income-based method focuses on potential future earnings, estimating the present value of profits using industry-standard multipliers. This valuation is good for profitable businesses in professional practice or service-based businesses. This method reflects real earning power and is the most commonly used in divorce cases.

The market-based method compares your business to similar companies that have recently sold, providing a benchmark for its value.

Adjustments are often made to reflect practical realities. For example, illiquid assets, those that cannot easily be sold, may reduce the overall valuation. Courts are also mindful of the impact of selling a business, and protecting livelihoods of all concerned, see below.

3. Sale is not inevitable

One of the most persistent fears is a forced sale of the business. In reality, courts are generally reluctant to disrupt a viable business if there are alternative solutions. These may include structured settlements, deferred lump sums, offsetting against pensions or other assets, refinancing, or in some cases continued joint ownership for a period. Early legal advice often opens options that are not immediately obvious.

4. Partnership and company structures matter

Many businesses operate as partnerships or limited companies. The legal structure significantly affects how interests are assessed. Partnership agreements, company articles and trust arrangements should be reviewed at an early stage. Where documentation is outdated or informal, uncertainty increases, both commercially and emotionally.

It’s also important to clarify whether the business is marital or non-marital. Important issues include whether the business started before marriage and whether marital funds were used to grow it.

Other considerations are whether the non-owner spouse contributed (financially or otherwise) and if the business has increased in value during the marriage. Even if ownership predates marriage, the increase in value during the marriage may be divisible

5. Timing and communication are crucial

It is important to take advice before making financial decisions, transferring assets or agreeing informal arrangements. A measured, informed approach usually preserves more value, financially and personally, than a reactive one. Divorce involving a business demands sensitivity to both family and business realities. With the right professional input, it is often possible to achieve a fair outcome while safeguarding the future of the enterprise.

Mark offers a free initial 30-minute conversation for those who would like to understand their position before taking the next step. You can call on 01992 210779 or request a callback via the website.

About Mark Betteridge

Mark Betteridge is a family law solicitor with over 36 years’ experience, specialising in divorce, financial settlements, and contentious probate. He has handled high-net-worth cases and complex inheritance disputes, including assets exceeding £250 million, and has particular expertise in business, farming, and expat matters. Known for his calm, pragmatic approach, Mark balances robust representation with constructive, solution-focused guidance, supporting clients through both litigation and alternative dispute resolution.

Call 01992 210779 or request a callback via the website.
Follow Mark on LinkedIn

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How Hidden Assets Deny Fair Divorce Settlements, and What You Can Do
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How Hidden Assets Deny Fair Divorce Settlements, and What You Can Do

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George Simpson
George Simpson Director of Operations, Investigations and Regulation Services iSanctuary

Every year, thousands of people face unfair divorce settlements because their former partners hide or disguise their true wealth.  In this article, iSanctuary’s Director of Investigations, George Simpson, talks about how hidden assets can be uncovered, and what you can do to protect your financial future.

When the truth about money and assets are concealed

Divorce is often a hugely emotive and stressful event, where even seemingly amicable and open arrangements are later found to have been made in bad faith.  Too often, one party (more often, though not exclusively, women) faces the devastating reality of a partner concealing or obfuscating their wealth to the detriment of the other.

“We see time and again that hidden wealth isn’t always about vast fortunes, sometimes it’s the house that was unknowingly transferred, or the company shares ‘sold’ to a friend,” says George Simpson, an experienced financial crime investigator and Director of Operations at iSanctuary.  “What makes the difference is early identification of the issue, before the trail goes cold.”

Whether through offshore holdings, crypto assets, or conveniently “forgotten” investments, hidden assets can dramatically distort the outcome of a divorce.

The Growing Challenge of Hidden Assets

For those in the UK, the disclosure process is designed to ensure both parties reveal their full financial position.  Unfortunately, some individuals choose to conceal or misrepresent information during this stage, and without expert help, it can often go unnoticed.  Such actions can result in a drastically reduced settlement with potentially life changing consequences in terms of a spouses’ long-term financial stability.

In today’s globalised financial world, funds can be moved across borders instantly.  Crypto assets, offshore structures in opaque jurisdictions make tracing assets increasingly complex.

Women that paused their careers to raise families are disproportionately affected, often simply because they lack access to the full financial picture.

Red flags to watch for include:

  • Unexplained changes in business ownership or spending
  • Delays or evasions during Form E disclosure
  • Transfers to family members or new entities
  • A sudden interest in cryptocurrency or “foreign investments”.

“Every asset leaves a footprint, the challenge is following that footprint through layers of misdirection, and that’s where professional asset tracing becomes an indispensable.”

Practical Steps: Protecting What’s Rightfully Yours

If you suspect your spouse may be hiding wealth, here are five practical steps to safeguard your position:

  1. Act early: Raise your concerns as soon as possible; time is critical in preventing asset dissipation.
  2. Keep everything: Store copies of statements, tax returns, and even old emails, they may reveal inconsistencies.
  3. Engage professionals: Solicitors, forensic accountants, and investigators can collaborate effectively to expose concealed assets.
  4. Know your rights: Under UK family law, both parties are legally required to give full and frank disclosure.
  5. Ask about funding: If you’re financially restricted, specialist funding can help cover investigation and legal fees until your settlement is finalised.

How iSanctuary Can Help

At iSanctuary, our Divorce Asset Tracer service is designed to give clients clarity and control.

This fixed-price investigative service offers an initial assessment of a person’s global asset profile, helping uncover what’s missing from disclosure documents and providing the client with sufficient information to inform their decision making and develop a negotiation strategy.

For more complex cases, iSanctuary’s full-suite of investigative services combine traditional field expertise with advanced technology to trace crypto assets, reveal offshore holdings, and build robust evidence for court if required.

Our reports are legally defensible in UK proceedings, and our investigators, including George Simpson, are available to provide expert witness testimony.

“Our work isn’t about confrontation, it’s about restoring fairness and creating a level playing field.  We help clients see what’s really theirs and ensure settlements reflect reality, not manipulation.”

The Human Impact, and the Hope

Hidden assets don’t just skew numbers on a spreadsheet.  They determine whether someone can afford a safe home for their children, continue schooling without disruption, or simply move forward without financial anxiety.

“It’s powerful when we can give someone the evidence to walk into court with confidence, knowing they have the truth on their side.”

Take the First Step

If you believe your spouse or partner may be hiding assets, don’t delay.  Hidden wealth can be traced, but timing and expertise matter.

You can contact iSanctuary for a free, confidential consultation and learn how our Divorce Asset Tracer service can help you protect what’s rightfully yours.

Email Tim Gilkison in confidence at: tg@isanctuary.io

https://isanctuary.io/asset-tracer-divorce/

 

About George Simpson and iSanctuary

George Simpson is Director of Operations, Investigations and Regulation Services at iSanctuary.  He is a highly experienced professional with specialist knowledge and proven experience in law enforcement and financial services regulation in the context of a broad range of financial crime settings. George has worked in specialist departments within New Scotland Yard, precursor agencies of the National Crime Agency, and latterly the Financial Conduct Authority.  His expertise includes the investigation and successful prosecution of ground-breaking serious and complex fraud and money laundering cases.  George has extensive knowledge of the UK’s regulatory anti-money laundering and counter terrorist financing regime.

iSanctuary is a specialist intelligence and investigations firm uncovering hidden wealth and undisclosed assets worldwide.  With over $1 billion in assets identified, the company provides legally defensible investigations that help clients achieve fair and transparent financial outcomes in divorce and litigation.

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Potanina-v-Potanin: Divorce Experts Share their Views
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Potanina-v-Potanin: Divorce Experts Share their Views

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Sean Hilton
Sean Hilton
Sital Fontenelle
Sital Fontenelle
Peter Burgess
Peter Burgess

The recent Court of Appeal ruling in London has reignited global attention on one of the most high-value divorce cases in history. Natalia Potanina, ex-wife of Russian billionaire Vladimir Potanin, has won the right to pursue a multi-billion-dollar claim for 50% of his stake in Norilsk Nickel, along with dividends and a luxury Moscow property.

Having previously received less than 1% of marital assets following their 2014 divorce, Potanina’s successful appeal marks a significant shift in what has already become a closely watched case.

To unpack the potential implications of this ruling, we asked leading experts Peter Burgess, Sital Fontenelle and Sean Hilton for their views.

Peter Burgess, partner at Burgess Mee, says:

“Today’s ruling further cements London’s position as the divorce capital of the world. Mrs Potanina’s $6bn claim has been thrown a lifeline, by the Court of Appeal allowing the claim to proceed. For UHNW individuals who have been badly served abroad, this judgment will be very welcome. Aspiring “divorce tourists” may appreciate the opportunity to demonstrate connection to this country at the substantive hearing, rather than at an earlier stage. However, this particular long-running high-value dispute may still have some way to go as it remains open to Mr Potanin to seek a further appeal to the Supreme Court.”

Sital Fontenelle, Head of the Family Law team at Kingsley Napley LLP, comments:

“All lawyers to international HNWs have been watching this case, given it concerns the limits to divorce tourism and is the latest determined example of a wife testing England’s reputation for being a fair and generous forum.

The Court of Appeal has today granted Natalia Potanina’s application for leave to bring a Part III claim meaning she is permitted to bring a claim for financial remedies in this jurisdiction following a divorce and financial settlement decided after a long marriage in Russia.   

The Court of Appeal had little difficulty in concluding that Mrs Potanina has solid grounds to bring her application on the basis of her connections to this country and the ‘limited’ view of her husband’s assets that was taken in Russia. The Court even went so far as to note that it could be argued the size of her award in Russia meant her reasonable needs could not be met. It also observed she had only received a fraction of what she might have received in this country.   

This will no doubt be disappointing to her husband and will dismay those who feel our divorce courts should be dealing with more local and needy cases. As the Court of Appeal notes, this case has been running for nearly 7 years and has consumed substantial resources of the court.

Although today’s decision is, of course, fact specific, the key point is that the door is still open; it reinforces our reputation for being divorce capital of the world and importantly there was no narrowing of the test for other potential claimants who have the appetite to bring litigation here.  We will therefore remain an attractive jurisdiction for divorce cases. 

However, it is unlikely to be the end of the matter since Mr Potanin may still have the appetite to appeal further and request the Supreme Court considers the substance of this case (their original review was procedural).  

This is a blockbuster case in financial terms – with considerable £s at stake in the billions rather than millions – so we can expect it will continue to be hard fought for several years to come.”

Sean Hilton, Family Partner, Stevens & Bolton, commented:

“Today’s Court of Appeal decision in the Potanin case marks a significant moment for international divorce law in England. By allowing Natalia Potanina’s financial claims to proceed despite her divorce being finalised in Russia the court confirmed its ability to intervene where a spouse claims they have received insufficient provision from a foreign divorce. Mrs Potanina was found to have a real and meaningful connection to England – she held a UK investor visa, owned property here, and had been habitually resident for over a year. The Judge did not agree with Mr Potanin’s claim that his ex-wife was a ‘divorce tourist’.

“The court also commented that under the Russian divorce Mrs Potanina received a “tiny fraction” of the sum she would have received if she had divorced in England, and that this may be more significant when Mr Potanin is required to give disclosure of his assets here. In those circumstances the Judge commented that it would be appropriate for the court to make a further financial award to Mrs Potanina, the extent of which will need to be determined at a further hearing.   

“This decision may now open the door to a raft of applications that have been waiting in the wings for clarity. It is clear this ruling will shape how we advise international clients going forward. While the procedure for these applications has been tightened, the court have made clear that if jurisdiction is established and there’s a real prospect of success for a spouse with a meaningful connection to this country, claims may still proceed with a broad discretion afforded to Judges – perhaps supporting the view that England is the ‘divorce capital of the world’.”

Keep up to date with latest divorce news.

About Peter Burgess

Peter is one of the two founding partners at Burgess Mee Family Law.

Having trained at top family law firm Withers LLP, Peter founded Burgess Mee with in 2013, where he advises on the full spectrum of family law issues across the firm’s three offices. Peter is also an FMC accredited mediator.

Get in touch with Peter today:

  • Email
  • Call on – 0203 824 9952

About Sital Fontenelle

Sital Fontenelle is the Head of the Family & Divorce team at Kingsley Napley. She specialises in the complex financial aspects of a divorce, negotiating and drafting of nuptial agreements as well as private children law cases. She typically acts for high-net-worth individuals, often on cases involving an international dimension, offshore trusts, family businesses, inherited wealth or asset tracing. She is also highly experienced in complex children cases. Sital is an active member of the Resolution Cohabitation committee and regularly speaks at international conferences on wealth protection and trusts. She is a recognised leader in her field in legal directories, including the Chambers Ultra High Net Worth Guide, Legal 500 UK, Chambers UK (finance and children) and Spears. As well as being ‘Recommended’ in the Spear’s 2023 Family Law Index, she won silver in the Woman of the Year – Future Leaders (Partner) category at the Powerwomen Awards 2020.

About Sean Hilton

Sean assists clients on a broad spectrum of matters ranging from complex high-value financial proceedings following divorce, to disputes in relation to children. For instance, Sean advises unmarried families on the consequences of a relationship breakdown and is instructed on pre and post nuptial agreements, often with an international element. Sean is considered as a “Rising Star” by the Legal 500 Directory and in the Thompson Reuters Super Lawyers List, and has recently been shortlisted for Family Lawyer of the Year – Senior/Managing Associate in the CityWealth Future Leader Awards.

Sean’s Stevens & Bolton profile and contact details are available here:

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How Does the Supreme Court's Judgement in Standish Affect You?
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How Does the Supreme Court’s Judgement in Standish Affect You?

Published on
James Pirrie
James Pirrie
Director at
Family Law in Partnership

The short answer is that Standish affects things a bit – but it probably just confirms what a family solicitor would advise you to do anyway.

The longer answer is that highest court of the land has carried out one of its periodic reviews of how to deal with assets at the end of a marriage. Mr and Mrs Standish had considerable assets, much of it built up by Mr Standish before the marriage. They also had a plan to minimise inheritance tax for their children by putting a big slab of Mr Standish’s money in Mrs Standish’s name. When they split, questions were asked:

  1. Did she keep it? 
  2. Was it shared?
  3. Did Mr Standish get it back?

The answer was C.  

Mr Standish got the money back because it was considered to be his separate property and the intention was never that Mrs Standish should benefit from it. There was also enough marital property to meet Mrs Standish’s ongoing needs, such as accommodation and lifestyle. 

Would this be the same if there were more modest assets to share?

If you don’t have such substantial assets, it is less likely to be as simple as dividing marital property (sometimes referred to as the marital pot).  You may need to dip into each spouse’s separate property to meet needs.  Probably the right way now is: 

  1. First, to think carefully about whether an asset is one person’s “separate property”
  2. Secondly consider whether the assets have become shared – and this is all about intention – and now form part of the marital property
  3. Thirdly, you carry out a “needs” assessment, then adjust any division to ensure that children are provided for and that each spouse has a fair start on the road to independent living.

This approach makes clear that there is no simple “split it all 50:50”.

Looking at those 3 elements in turn:

1) Separate property

This is going to include: 

  • What one person owned before the marriage; or
  • What they were given during the marriage, such as an inheritance

This is different from marital property, which is everything built up by or during the relationship.

It is usually possible to clearly identify property/ assets as one or the other – separate or marital.  Although there are still uncertainties, for example where there have been personal injury awards or lottery wins. 

2) Intention to share formerly separate assets

The second stage is all about intention. You don’t just look at whose name an asset is held in, you focus on the intention.  If you went to Court, a Judge would consider “Do the dealings between you show that you intended to convert what was separate into something that was for you both?” If so, the separate assets are matrimonialised, which means they become joint assets and form part of the marital property. As such they are usually (but not inevitably) going to be shared equally.

This might happen over time because:

  • What was separate property is not really so significant after the passage of time, because other assets have built up and the fact that this asset was separately brought in is not such a big deal
  • These monies have been put into joint funds or otherwise scrambled together and over time that shows that they are intended to be relied on by both of you
  • The money has been put into the family home and lived in over a period of time – and what asset is more central to the marriage partnership than that?

There may be other reasons and some situations will be harder to call. For example, what about a pension or even an ISA – these are not assets that you can put in joint names and there may be disagreement over what was said and what was intended during the relationship. 

3) What is the needs assessment?

Needs is a bit like a picnic: you don’t focus so much on who brought what to the picnic, everyone needs to eat and if there is not enough to go around then you work a way to share what there is to make the best of the situation, usually prioritising younger children.

So here the marital property will be shared first, but if necessary the separate assets will also be shared. This can include future income.

What does this mean for the legal process?

Standish is simply telling us to be disciplined and take the steps in sequence to make sure that the right answer is reached.  We need to:

  1. think about whether an asset is really one person’s separate property or marital property; then
  2. consider whether dividing just the marital property will ensure that children are provided for and that each spouse has a fair start towards independent life

And if not:

  1. dip into the separate assets to meet those needs.

Ultimately the decision in Standish is intended to enable a fairer division of assets on divorce, but some things remain less clear. 

For example, imagine Jo who marries Les who has inherited a substantial 3 bed property. Otherwise, their resources are modest, they each earn well and at similar levels. Two years into the relationship, their marriage fails and they decide to divorce. Has the property that Les inherited become part of the marital pot?  What share of it does Jo get?  

If the main home is pretty much always marital property and if marital property is often divided equally, should Jo get half of the home after only 100 weeks of relationship that led to marriage and ended in divorce? We won’t know for sure until the guidance from the Supreme Court is put into practice in the day-to-day cases.

What does this mean for you?

I would suggest that when you are trying to find your solutions, it will almost always be worthwhile getting an “entitlements analysis” carried out by a legal professional.  This will give you a clear indication of what you may each be entitled to and indeed, need, to move forward with your lives. Some of these tests don’t come naturally and unusual situations will generate unusual answers. You are not usually stuck with the analysis, but it will help to know it before you start trying to agree how you are going to go forward: no-one wants to regret their choices years down the road.

Read more articles by James Pirrie.

Read more articles by Family Law in Partnership.

About James Pirrie

James Pirrie is a Director of Family Law in Partnership, a highly regarded law firm based in London, which specialises in de-escalating conflict in family law.  He is an Arbitrator, Family Solicitor and Mediator accredited in child-inclusive mediation.

James is driven to improve long term outcomes for families who are experiencing separation or divorce.  He is credited with introducing collaborative law to the UK and with changing how children’s needs are addressed during family breakdown through the Parenting after Parting initiative. 

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Money Grief After Divorce - The Loss No One Talks About
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Money Grief After Divorce – The Loss No One Talks About

Published on
Karen Omand BASoc BAThan CT
Karen Omand BASoc BAThan CT
Co-Founder
Divorceworkshop

When we think about grief after divorce, most people imagine the loss of love, trust, or family structure. But there’s another kind of grief that runs deep—and is rarely named: money grief.

One of my clients once said,

“I’m not grieving the loss of my ex, my identity, or our failed dreams. I’m grieving not seeing my children every day—and losing my beautiful house.”

In the divorce world, we often talk about grieving relationships, family routines, or personal identity. But there’s a quieter grief many people carry: I miss my house. I miss the lifestyle I once had.

Divorce often means a dramatic financial shift. Economically, things get harder, income is typically cut in half. But beyond the numbers lies a deeper emotional reckoning: the loss of financial stability, the unraveling of future plans, and the vanishing of a lifestyle that once defined you.

This grief doesn’t always cry out. It doesn’t get lasagne or sympathy cards. It happens quietly,in private moments, in budget spreadsheets, in smaller food shops, or in walking past a house you used to call home. And yet, few people talk about it.

The Hidden Financial Costs of Divorce

When people think about the financial side of divorce, they often focus on child maintenance, spousal support, or dividing assets. But there’s a deeper financial cost that often goes unmentioned: the actual price of the divorce process itself.

From the legal fees to mediation costs, divorce can quickly become expensive. Many people don’t realise just how costly it can be to separate a shared life,with solicitors, mediators, court fees, and the emotional toll all taking a significant chunk of resources.

The financial strain can feel overwhelming, especially when people are trying to rebuild their lives on a smaller budget. Yet these hidden costs are rarely addressed during the divorce process, leaving many feeling financially depleted long after the legal proceedings have ended.

This often leads to more hidden grief, as people mourn not just the life they built with their spouse, but the financial security that’s now out of reach.

Money Grief Is Real – But Disenfranchised

I talk about disenfranchised grief a lot in the divorce world. The term, coined by thanatologist Dr Kenneth Doka, describes grief that isn’t acknowledged by society, grief that isn’t openly validated or supported. He defines it as:

“Grief that persons experience when they incur a loss that is not or cannot be openly acknowledged, socially sanctioned, or publicly mourned.”

No one throws a “sorry you lost your pension” support circle. Like I stated above, you don’t get shepherd’s pie when you have to sell your home or move into a smaller flat. And if you do talk about money grief, you might be met with raised eyebrows or comments like, “Well you wanted out” or “Why didn’t you fight harder to keep it?”

But money grief after divorce is real, and painful. You may lose your financial stability, your dream home, the future you planned for, or the lifestyle that once shaped your identity. These are profound losses. But because they don’t fit the traditional mould of grief, they’re often minimised or dismissed.

That’s what makes this kind of grief disenfranchised: it’s invisible to others, even though it weighs heavily on you.

The Shame and Stigma of Financial Loss

This kind of grief is often hidden beneath a layer of shame.

I remember my aunt once warning someone whose marriage was on the rocks, “Well, look at Karen’s life, you don’t want that.” The implication was clear: losing financial status after divorce isn’t just painful, it’s something to be feared, even judged.

There’s a deep embarrassment many people feel when going through divorce, especially when it comes to money. In our culture, success is often measured by financial stability. Wealth is equated with worth. So when divorce disrupts that, the grief of financial loss can be wrapped in layers of shame.

You’re not just grieving the money, you’re questioning your identity, your value, and your place in the world.

Divorce already comes with financial hardship. Layer on shame and stigma, and many begin to feel like they’ve failed. That fear of judgement keeps people silent. Some don’t even recognise what they’re feeling as grief—they just know they feel hollow, anxious, and unsure of who they are now that the money picture has changed.

We Underestimate the Emotional Cost of Divorce

Yes, many people going through divorce expect lifestyle changes. But few understand just how emotionally destabilising those changes can be.

It’s not just about moving, it’s mourning the neighbourhood where your kids grew up, the memories held in the walls of your home, the dream of retiring early, or putting your child through university.

It’s realising that your identity may have been tied to being the provider, the planner, or the one who held it all together, and now you’re starting over. You may no longer be able to afford the things you once took for granted or pursue the future you had carefully built toward.

That kind of loss isn’t just about pounds and pence, it cuts deep into your sense of self, your stability, and your hopes.

The Invisible Cost of Gender Roles and Dependency

For many women, especially those who stepped out of the workforce to raise children or support a partner’s career, divorce can feel like falling into financial uncertainty.

Even if they receive spousal or child maintenance, the loss of long-term career potential and professional identity can bring intense feelings of grief, regret, and a sense of wasted time.

Studies show that women often face bigger financial setbacks after divorce compared to men. For example, one study found that women’s household incomes drop by 41% in the first year after a divorce, almost double the 21% drop men experience.

This difference is partly due to traditional gender roles, where women are often the primary caregivers. This can mean interruptions in their careers, leading to a wider pay gap. Plus, women are more likely to give up a portion of their partner’s pension in a divorce settlement, which only adds to their financial challenges.

Even with support, the emotional cost of financial insecurity is huge. Many women not only grieve the loss of their partner but also the loss of their financial independence and identity.

Comparison Silences the Grief

Divorce grief is deeply personal and can be incredibly complex. The support people receive during divorce can be just as subjective. You might hear well-meaning comments from friends, family, or even other divorced peers like:

  • “At least you got the house.”
  • “At least your ex pays child maintenance.”
  • “You seem to be doing okay.”

When faced with remarks like these, what are you supposed to say?

While these comments may come from a place of kindness, they can unintentionally make someone feel like they don’t have the space to grieve what they’ve truly lost. But here’s the truth: You can be grateful for what you have—and still grieve what you’ve lost.

If you were the one who left, you can acknowledge that the divorce was the right decision—and still mourn the cost it took on your life.

Naming the Loss Is the First Step to Healing

Money grief isn’t about greed, it’s about mourning the loss of stability, identity, and the future you once imagined. Recognising that truth is powerful.

Grief can show up in bank statements, in cancelled holidays, in the quiet ache of walking past your old home. But just because it’s invisible doesn’t mean it’s not real.

You deserve to name this loss. You deserve space to grieve it.

And most importantly, you deserve support, compassion, and the chance to rebuild a life that honours what you’ve been through and where you want to go next.

References

  • Doka, K. J. (2002). Disenfranchised Grief: New Directions, Challenges, and Strategies for Practice. Research Press.
  • Legal & General – The Divorce Gap: Women’s Household Income Drops Twice as Much as Men’s After Divorce

Read more articles by Karen Omand BASoc BAThan CT.

About Karen Omand BASoc BAThan CT

Karen Omand holds a rare university degree in Thanatology and a B.A. in Sociology. She is the co-author of the “Just Separated Divorce Workbook,” coming out this October, and co-founder of The Divorce Workshop. As a private counsellor and coach, Karen specialises in high-conflict cases, post-divorce abuse, grief, and divorce. Having navigated her own high-conflict divorce, she is also the mother of two lovely daughters.

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Breaking Up is Hard to Do: Separation, Finances and Children for LGBTQ+ Families
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Breaking Up is Hard to Do: Separation, Finances and Children for LGBTQ+ Families

Published on
Joe Ferguson
Joe Ferguson
Family Law Solicitor
Myerson Solicitors

The end of a relationship is never easy, but for LGBTQ+ couples, navigating the legal and emotional aspects of separation can come with distinct challenges. For LGBTQ+ families knowing your rights is vital – particularly if your family has been formed through surrogacy, adoption or other routes that can carry additional legal considerations.

In this article, we explore how separation works for same-sex and LGBTQ+ couples, how financial matters are resolved, and what options are available when children are involved.

Ending the relationship: divorce and civil partnership dissolution

LGBTQ+ couples have had the legal right to marry since 2013 in England and Wales, and civil partnerships continue to be recognised. Both marriage and civil partnerships can be formally ended through the family court – divorce or dissolution, respectively – and the process is now based on a no-fault system. This means that neither party needs to prove wrongdoing for the legal process to begin.

Whether it is a divorce or a dissolution the procedure is the same: an initial application, followed by a conditional order, and finally, a final order to formally end the marriage or civil partnership.

But while the legal framework is the same for all couples, LGBTQ+ individuals may face different questions when it comes to resolving finances and parenting arrangements, particularly when their relationship pre-dated legal recognition.

Financial matters: reaching a fair outcome

Financial settlements can be one of the most emotive and difficult topics to brooch following separation. Like opposite-sex couples, same-sex spouses and civil partners are entitled to a full range of financial remedies. These can include:

  • Lump sum payments
  • Spousal maintenance
  • Property transfers or sales
  • Pension orders
  • A clean break, ending future financial ties

The court will assess the financial resources, needs and contributions of each party amongst other factors, and aims to reach an outcome that is fair and meets the needs of the parties and any children involved.

However, there can be added complexity when considering assets that were acquired before marriage – especially for couples who lived together for many years. Determining whether these assets are “marital” or “non-marital” can become a key issue, particularly where significant property, pensions or savings are involved. Cohabitation alone does not automatically give rise to legal rights, though it is typically taken into account that any period of seamless cohabitation prior to the date of the marriage or civil partnership when determining the length of the marriage. Accordingly, timelines and clear evidence of cohabitation is often required. It should be noted of course that many LGBTQ+ couples were unable to enter into marriage or civil partnership previously owing to the lack of provision within the law for them. Accordingly, these arguments can be important as evidence of the enduring relationship between the parties. 

Children: supporting parenthood in all its forms

For LGBTQ+ families, parenting often involves a range of routes – from adoption and surrogacy to donor conception. These arrangements can create additional legal considerations during a separation.

The starting point is to establish parental responsibility: the legal authority to make decisions about a child’s health, education, and welfare. Biological and adoptive parents usually have parental responsibility automatically, but others (such as non-birth parents in a surrogacy arrangement) may need to apply for parental orders, declarations of parentage or child arrangements orders. 

If both parents are legally recognised, they may choose to agree parenting arrangements voluntarily. Options include:

  • Mediation: This process can help couples reach agreement on how children will be cared for, where they will live, and how contact will work. Mediation is not legally binding but can lead to a more amicable, cost-effective solution.
  • Collaborative law: This process enables separating couples to work together with trained professionals to resolve disputes without going to court. Everyone agrees to work together as a team to resolve disputes without going to court. 
  • Negotiation: working with solicitors, with the benefit of independent legal advice, to work out what would be best for their family, avoiding costly and potentially acrimonious court proceedings.

If agreement cannot be reached, the family court can make a Child Arrangement Order which is legally binding and sets out the child’s living and contact arrangements. The court’s priority is always the child’s welfare.

Planning ahead for a smoother separation

While the legal system provides equality on paper, LGBTQ+ families may still encounter unique issues when relationships end. The reality is that the law in this area is continues to evolve but has not caught up to the social realities of life as an LGBTQ+ person and the unique family dynamics which are increasingly commonplace. The key to navigating these challenges is early advice and a tailored, bespoke approach that reflects the structure of your family, the history of your relationship, and the complexities involved.

If you are an LGBTQ+ individual facing the challenges associated with separation and need assistance, the team at Myerson Solicitors are here to support you with clarity, empathy and practical expertise.

Read more articles by Myerson Solicitors.

About Joe Ferguson

Joe Ferguson is a solicitor in the Family Law team at Myerson Solicitors. He specialises in divorce, financial remedy proceedings, and complex children matters, with particular expertise in supporting LGBTQ+ clients through family law issues with sensitivity and pragmatism.

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Common Financial Mistakes to Avoid During and After Divorce
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Common Financial Mistakes to Avoid During and After Divorce

Published on
Nicki Mitchell
Nicki Mitchell
Partner
Jones Myers

Sponsored post by Jones Myers.

The fear of starting all over again and all the financial worry that can bring with it can understandably have a profound effect on many people going through divorce or separation.

This fear can be particularly acute for those who have not had to deal with financial practicalities such as tax, standing orders and direct debits during their relationship.

If you are going through divorce or contemplating it and are concerned about future finances, this article will help to keep you on the right financial track throughout your divorce and beyond.

Be Open and Honest

Not sharing financial information during a relationship can contribute to problems during divorce proceedings.

One spouse may have no idea where the budget line is – or even where it should be drawn – and may have unrealistic expectations of what they are entitled to, or what is a realistic and affordable.

One spouse may have hidden savings or income from the other or scrutinised the other’s spending without being transparent about their own. On divorce, there is nowhere to hide. It is fundamental that both spouses fully and frankly disclose everything they have to each other as a starting point for an informed negotiation.

The Importance of Financial Disclosure

In every divorce, separating couples must provide to the other full details of their assets, income, pension and liabilities.   This is known as financial disclosure.

Financial disclosure ensures that both spouses can make fully informed decisions about what they consider to be a fair settlement. A failure to disclose anything material to the settlement can in some cases lead to an agreement being set aside. Lawyers and judges know every trick in the book and will ask questions if they suspect that money has been concealed. They may even employ forensic accountants to track down missing assets.

Don’t be tempted to hide money in offshore banks. These still have to be disclosed.  If you do not provide everything that is necessary to understand the financial position, family courts have the power to question your accountant, your financial advisor and even your bank manager.

Setting up a new business shortly before separation may well be seen as suspicious or even a deliberate attempt to hide assets.  Taking steps designed to put money beyond the reach of your spouse could lead to injunctions being made against you, freezing assets, or ordering the return of monies from third parties.  In the long run, actions such as these are highly unlikely to succeed and will almost certainly damage your credibility in the eyes of the court.

The Penalties of Concealing Assets

If it later comes to light that you have withheld material financial information during the financial disclosure process, your spouse might be able to ask the court to set aside the Financial Consent Order and relook at what would be a fair order – taking into account all the assets, including those not previously disclosed.

The court can also make an order that you pay your ex’s legal costs. In the worst-case scenario, deliberately withholding financial information in breach of a court order can amount to a contempt of court for which a range of penalties (including ultimately imprisonment) could be imposed.

Include Pensions in Financial Settlements

Frequently overlooked in financial settlements, pensions are frequently one of the most valuable assets of a marriage. They often make up the second highest- value asset in a divorce settlement after the family home – or sometimes the highest.

It is key that information about pensions is made available in the financial disclosure process which must include details of all pensions, including state pensions – and the value of each one.

The most common way in which a disparity in pensions is addressed in a divorce settlement is pension sharing.  Pension sharing splits the pensions immediately and provides a clean break

As an alternative, in some cases ex-spouses prefer to take a greater share of the equity in the family home or other capital, as a trade-off for a share of the other’s pension.

Some divorces may involve several pension arrangements so it is important to consider which arrangements should be shared, and to what extent.  Pensions are complex and, save in very straightforward cases with pensions of limited value, it is important to get specialist advice about them before agreeing a settlement.

The pension share may be internal (when the recipient becomes a member of the scheme) or external when the share must be invested in an existing or new arrangement of the receiving party. Care should be taken to obtain details of the cost of any transfer.

In deciding what is best for them, the couple need to consider how their respective financial needs will be met and what other assets are available for distribution.

Consider Financial Planning

It can be helpful to have financial advice during settlement negotiations.  Many financial advisers use cashflow modelling, which can be a valuable way of how different settlement options might pan out in the future. In processes such as collaborative practice or mediation, it is quite common to bring a financial adviser into the process as a neutral to help the discussions.  Further financial advice can then be taken on an individual basis when settlement terms are clear.

Get a formal Financial Order

Once a financial settlement is agreed, it is almost always best for the terms agreed to be made final and binding in a court order. This is a legally binding document which details the main assets owned by divorcing couples and sets out the financial arrangements agreed between them. The terms of an order are binding and can be enforced through the courts if there are any problems putting those terms into effect.

It is important to understand that the divorce process itself does not dismiss financial claims which  can be pursued many years after the divorce has been finalised provided the person bringing the application has not remarried. Putting off the conversation at the time of separation can sometimes just be kicking the can down the road.

Try to avoid exceeding your budget

I am not a financial adviser, but these are some pointers which might be useful to think about:

  1. Create a ‘to do’ list of all things financial (bills etc) and an aspirational list to set goals for enjoyable things such as treats and breaks
  2. Consider having two bank accounts – one for day-to-day expenses for the house, food, car and associated expenses, direct debits, standing orders and credit card payment. The second is for setting aside some savings for exceptional expenses such non-essential clothing, holidays, and house repairs.
  3. Set out the absolute and exact payments needed every month for your house and family
  4. Know when your maintenance payments arrive and budget accordingly. Ensure standing orders don’t go out before your monthly payments are due in
  5. Apply to your Council for a 25% council tax discount. The concession applies if you are on your own or have younger children
  6. Expand your support network if you’re on your own or have children. Now is an ideal time as the country emerges from lockdown
  7. Take professional advice on preparing and budgeting for your own retirement
  8. Make a will. If you have a pension or life assurance, ensure it includes your chosen beneficiaries and is updated. Review it every few years.
  9. Stay healthy in body and spirit – try new things. You could also consider engaging a life or Divorce coach who specialises in helping people in your situation prepare for their new future

Spousal Maintenance and Child Maintenance

Remember that Spousal Maintenance will usually be paid for a period of time to enable you to adjust to financial independence or when your financial needs are reduced, for example, when your children finish school or university, or leave home.

Be aware that your spousal maintenance will stop if you remarry or enter into a civil partnership or if either of you dies. It could also be affected if you meet a new partner and move in together

It is also important to plan for when child maintenance – which is mandatory for both parents for children under sixteen and youngsters under twenty who are still in full time education – comes to an end.

As part of our holistic approach, Jones Myers advises and guides our clients through the stages of divorce during and after their divorce.

A champion of non-confrontational divorce and resolving issues in a spirit of collaboration and cooperation, our extensive expertise includes alternative to avoid courts which include mediation and collaborative family law.

Our pre-divorce and post- divorce support includes helping them to stay on the right financial track as they embark on the next chapter of their lives.

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. Website: www.jonesmyers.co.uk

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Investing After Divorce: Securing Your Future Financially
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Investing After Divorce: Securing Your Future Financially

Published on
Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

Divorce can have a significant financial impact, often leaving individuals feeling uncertain about their future. Taking control and focussing on long-term financial planning is crucial for recovery and stability. This blog aims to guide you through the process of investing as a vital component of your financial journey post-divorce.

Assessing Your Financial Position Post-Divorce

To begin, it’s essential to understand your current financial position. Assess your assets, savings, and income to build a clear picture of what you have. Reviewing your settlement, including pensions, property, and savings, is crucial. Additionally, knowing your monthly outgoings and setting a realistic budget will help you manage your finances effectively.

Why Investing is Key to Long-Term Security

Investing is a powerful tool for growing your money over time and securing long-term financial stability. Relying solely on a savings account is not enough to ensure financial growth. Investing can also be emotionally empowering, giving you confidence and a sense of control over your financial future.

Types of Investments

There are various investment options to consider, each with its own benefits and risks: a licensed financial advisor can give you more advice but here are some areas to consider.

  • Stocks, Bonds, and ISAs: These are common investment vehicles that can offer substantial returns.
  • Property Investment: If relevant to your situation, investing in property can be a lucrative option.
  • Pension Top-Ups: Consider consolidating your pensions or making additional contributions for future security.
  • Diversification: Spread your investments across different asset types to minimise risk.
  • Risk Levels: Choose investments that align with your personal comfort zone and risk tolerance.

Starting Small & Building Confidence

You don’t need a large lump sum to begin investing. Starting small can help you build confidence and understand the power of compound interest and consistency. Working with a financial advisor can provide personalised advice and support as you navigate the investment landscape.

Mistakes to Avoid

Avoid rushing into investments without proper research. It’s essential to make informed decisions rather than relying on advice from non-experts, such as friends or family. Taking the time to understand your options will help you avoid costly mistakes.

Where to Get Help

Speaking to a financial advisor or planner can offer valuable insights and guidance tailored to your unique situation. Fair Result‘s wider network of professional contacts can provide continued support beyond legal proceedings, ensuring you have access to the resources needed for successful financial planning. Please contact any member of the team on the link below and we can help point you in the direction you need to get the help you deserve after the stress of divorce. Whether that be financial advisors- mortgage advisors or phycological help we are here to assist. And it’s all done within our fixed fee divorce model, where you know your exposure to legal fees right at the outset, whether you case takes 2 weeks or 2 years.

Conclusion

Rebuilding financially after divorce is not only possible but achievable. With the right knowledge and support, you can secure your future and take charge of your financial destiny. Download our Divorce Guide available on our website or contact the team at Fair Result for additional assistance and resources.

Read more articles by Peter Marples.

About Peter Marples

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

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

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5 Tips for Managing Your Child's Expenses Post Divorce
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5 Tips for Managing Your Child’s Expenses Post Divorce

Published on
Zarira Love
Zarira Love
Writer / Researcher
Custody X Change

Divorce leads to major changes in your finances. You might pay thousands for solicitor and court fees. With one income leaving your home, you’ll likely incur new expenses like child care if a parent will no longer be at home to care for the children.

While your ex should shoulder some of the burden for the cost of raising your child, it might fall mostly on you if you provide the child’s primary residence.

It’s a lot to take on, but if you’re proactive, you can manage.

Tip #1: Create a monthly budget

A budget can help you stay within your means and figure out where you need to cut corners.

As you prepare for divorce, make a categorised list of all your bills (e.g., housing, electricity) and expected expenses (e.g., food, petrol), along with how much you expect to spend in each category.

While bills are straightforward, it can be a bit tricky to estimate expenses. Look at receipts, bank statements and other proofs of payment to help you figure out your average expenses. Keep in mind, this amount might vary month to month. The goal is to figure out how much you spend on average so you don’t spend more than you make.

You could do separate accounting for your child’s expenses (a sound idea if the other parent is expected to pay a portion) or keep it all together. Example expenses you might incur because of your child include:

  • Schooling (e.g., uniforms, tutoring, supplies)
  • Transport
  • Communications (e.g., TV, internet, mobile phone)
  • Clothing and footwear
  • Extra-curriculars
  • Recreation (e.g., eating out, going to concerts)
  • Child care
  • Medicine
  • Personal care

Add up your bills and expenses to get your total monthly spending.

Next, add up your earnings from work and other sources, like spousal or child maintenance if you’re receiving payments.

Subtract total bills and expenses from your earnings. You could allocate a portion of your residuals to savings. Include this in your budget as well.

If you’re left with zero or less, find ways to adjust your budget to suit your income. Your child might have a piano lesson once a week rather than twice. You might unsubscribe from a streaming service.

Keep track of your monthly spending to make sure you’re sticking to your budget. If you’re looking for a template for your budget, there are budget worksheets available online or you can create a spreadsheet. There are also finance apps that help you stay on top of spending.

Tip #2: Make a plan for shared co-parenting expenses

Co-parents often argue about how to sort out costs related to the children.

A good way to lessen headaches is to make a list of co-parenting shared expenses. Discuss with your co-parent how you’ll split each expense or whether one parent will cover the full cost.

You might split everything equally or split in relation to each parent’s income. You could keep track of these expenses and invoice one another for reimbursement at the end of the month.

Tip #3: Prioritise needs over wants

In the aftermath of divorce, you’ll feel some guilt that makes you want to spoil your kids.

It’s tough not being able to get your child everything they want. However, if you spoil them, they’ll expect that treatment all the time, which may not be possible with your budget.

Budget for gifts, entertainment and recreation last so they don’t get in the way of paying bills and buying necessities.

Tip #4: Teach your children financial responsibility

Help your children learn the value of money so their expectations become a bit more realistic.

One way to teach your children financial literacy is to give them pocket money. Assign chores for them to do to earn their money so they gain understanding of the work you put in to provide for them.

When your child asks for something pricey, encourage them to save up a portion of their pocket money until they can afford it so they learn the importance and benefits of saving.

If your child is mature enough, you could allow them to have their own bank account and debit card.

Tip #5: Seek help when needed

Newly divorced parents often feel the need to prove they can go it alone. While learning self-reliance is essential to moving on, there’s nothing wrong with getting help to benefit your child.

Professionals like financial advisers assist your transition to post-divorce life by advising you on your spending and how to save more. Plus, government resources are available. Reach out to family and friends for support as well. They can be especially important when it comes to saving on child care costs.

Read more articles by Zarira Love.

Read more articles by Custody X Change.

About Zarira Love

Zarira Love has been researching and writing articles about child custody and parenting for nearly six years. She currently resides in New York City.

Zarira is a Writer / Researcher for Custody X Change.

About Custody X Change: This powerful tool helps divorced and single parents create parenting plans, track their custody schedules, manage expenses and more. Since 2005, we’ve helped over 60,000 parents ensure the best possible future for their children.

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