When a couple gets divorced it is almost always an emotionally stressful and difficult time. Some spouses just want to have the whole episode ‘done and dusted’ as soon as possible and, largely due to the potential stress of the situation, ignore some very important points about their financial security.
Healys’ London divorce solicitors are here to help clients reach financial settlement on divorce in the least stressful manner possible. Whilst some spouses may not wish to undergo a long-drawn-out or acrimonious battle, it is unwise to agree a financial settlement without fully exploring future financial security following divorce.
To help clients understand some of the pitfalls associated with financial settlements on divorce, we have compiled a list of some of the most common mistakes and negated issues when agreeing the finances after divorce.
- 1. Ignoring certain assets and associated income from assets – First and foremost in all financial claims is the necessity for full and frank financial disclosure from both parties. All assets gained during the life of the marriage should be considered as part of the divorce settlement, along with any future income they may generate, such as rent from property, and interest and earnings from investments and bonds, etc. Where one spouse has managed to accrue a pension pot, this is also a matrimonial asset and should be considered for sharing as part of the settlement.
- 2. Emotional attachment to the family home– After a long marriage, or where there are children involved, it can be difficult to separate the financial value of the matrimonial home from its emotional place in the family. The main issue to consider is whether it is financially viable for one spouse to keep the house and whether its upkeep and mortgage payments can be maintained following divorce. Although it might be a very difficult decision, sometimes the property must be sold in order to generate enough capital for both parties to move on with their lives.
- 3. Underestimating your outgoings – It is a very easy to think that your income is definitely going to cover all your outgoings and often after divorce a single person will see their outgoings increase. So, it is a wise idea to sit down and carefully analyse all known outgoings and estimate new regular expenditure, such as rent, council tax etc.
- 4. Not understanding liability for unsecured debt– The bottom line is that credit card companies and banks won’t care who ran up the bill if it came from a joint account during a marriage which has now broken down. Liability for unsecured debt will be divided equally between the spouses if it was incurred during the marriage and both spouses will be expected to settle their share. Any debts should be disclosed by both spouses during the early stages of a financial settlement, and it is best to try to see them paid off before the divorce is finalised.
- 5. Failing to think long-term about financial security– Some spouses may just want to get all the hassle of divorce over and done with and may not wish to “take a penny” from their former spouse. However, this can be a very damaging attitude as once a financial agreement, such as a consent order, is signed by the spouses and agreed by a court, it could be very difficult or even impossible to alter it. By seeking expert legal advice from a family lawyer at the earliest opportunity a spouse can ensure that their future financial security is protected and what is rightfully theirs can be delivered to them through a court order.
Healys, London divorce solicitors to help you reach hassle-free settlement
Finding a divorce solicitor in London doesn’t need to be a challenge because the family law and matrimonial team at Healys are here to help. As members of Resolution we are committed to approaching divorce matters on a conciliatory and constructive basis.
We will do our utmost to ensure that negotiations for a financial settlement on divorce are made with as little emotional stress as possible, but when this approach is not viable we will use robust litigation methods to ensure our clients’ best interests are maintained,
To speak to a member of our team, please call 020 7822 4000 today.