Northern Family Law Support
Finances and Divorce
When you divorce it is very important to work out and agree how to separate out matrimonial assets such as property, pensions, savings, and investments. We can support you in agreeing this, either by consent or through contested court proceedings, in other to obtain a Financial Consent Order. Often we can obtain a Clean Break Order.
We can support you whether you are the Applicant or Respondent in Financial Remedy proceedings.
We cover the North East of England, including Tyne and Wear, County Durham, Teesside, Chester le Street, Washington, Consett, Stanley, Newcastle, Gateshead, Sunderland, Durham and Middlesbrough.
We offer a free initial 30 minute consultation.
We charge £100 per hour which is a fraction of the price charged by solicitors.
What share of assets might I get?
The share of assets you obtain in a Financial Consent Order depends on your individual circumstances. The usual starting point for the division of assets accrued during the marriage, called “matrimonial assets,” is an equal division, or a 50/50 division. However, a shift away from an equal division often happens, for example when one person has a greater housing need, or when one person has more earning capacity than the other.
Usually, the two most important matrimonial assets are the family home and pensions. The family home is usually considered a matrimonial asset even if owned or purchased by one party before the marriage. Likewise, other property or money held in one party’s name, but accrued during the marriage, is generally considered a matrimonial asset.
Anything that you or your partner owned before the marriage, or after the marriage, if purchased using entirely non-matrimonial funds, is treated as “non-matrimonial assets.” The exception to this is where non-matrimonial assets have been mixed in with matrimonial assets, for example, when an inheritance is used to pay off the mortgage on the family home.
Usually, non-matrimonial assets are excluded in a divorce settlement and a Financial Consent Order. However, this is not always the case, especially if the matrimonial assets are insufficient to meet the needs of both parties. In such situations, non-matrimonial assets may have to considered and may then form part of the overall financial settlement as documented in the Financial Consent Order.
Are assets split 50/50?
Whilst the starting point is to consider if both parties needs can be met by an equal 50/50 split, it is often the case that there is a departure from this meaning one party receives significantly more than 50% of the matrimonial assets.
Several factors must be considered in the Matrimonial Causes Act 1973 and the Civil Partnership Act 2004 when dividing assets upon divorce or dissolution.
These factors include the income and capital resources available to both parties, either existing or reasonably foreseeable, as well as the financial needs of each party. Other factors include the family’s standard of living, their ages, the length of the marriage, and any disabilities. The welfare of any children of the marriage is of great importance to court and meeting these welfare needs can often be a significant factor in one party receiving more than 50%. For example, if children live with one parent and not the other, then the parent with residency will have a greater housing need than the other with respect to the number of bedrooms required.
The desired outcome of the court in approving a Financial Consent Order is to achieve a clean break order between the parties, so they are no longer financially dependent on one another, meaning that each party is self-reliant based on their own income and share of assets. When a clean break order is not possible, the higher earner may need to pay ongoing spousal maintenance. Spousal maintenance usually ends once the receiving party remarries (or cohabits) or a further court order is made.
How does a Court decide what is right?
The court relies on legislation and case law in making their decision on how assets are split and whether maintenance payments are required if a clean break order is not possible when approving a Financial Consent Order.
However, it is not a prescribed process, which means each Judge has the flexibility to do what they believe to be right in each case. This means predicting the outcome of financial remedy proceedings as documented in a Financial Consent Order can be difficult.
The court has broad discretion to redistribute family assets as they see fit in approving a Financial Consent Order. For example, it can make lump sum orders, property adjustment orders, spousal maintenance orders for a specified period and/or pension sharing or adjustment orders. It can also order child maintenance in limited circumstances.
Some Financial Consent Orders may be varied later, such as spousal maintenance orders, where there has been a significant change in income.
Agreements made before or during the marriage, known as pre-nuptial and post-nuptial agreements, can have an impact on what the court decides.
Free initial 30 minute consultation
Where to find us:
Northern FLS Ltd,
11 Orchard Terrace,
Chester le Street,
DH3 3JU
Call Us:
+44 (0)7342 979477
Email Us:
help@northernfamilylawsupport.co.uk
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