Understanding Finances on Divorce
In this digital age when parties are now able to apply to do their own divorce on-line, Fiona Pawsey, Solicitor sets out a guide to finances on divorce.
I have found that many people assume that applying for a divorce online means that they will also settle your finances through the Court. This has come about I think due to the confusion with the renaming of the ‘Divorce Petition’ as an ‘Application’ and having a ‘Final Order’ at the end of the divorce rather than the ‘Decree Absolute’.
A lot of people are now coming to me often late in the day on their divorce requesting help to deal with finances on divorce, and drafting an Order having latterly realised, and possibly at that time being on the point of selling a family home, that they have no clear idea as to what they have agreed in terms of a division of assets.
In order to settle the financial assets of a marriage, you need to have full and frank disclosure of both parties’ finances as the Court need to know that you both know what each of you have and the full assets and liabilities of both parties. This is usually achieved through a Financial Statement Form E but, if you have limited assets, can sometimes be done with more limited disclosure. A good solicitor will advise you which is the best option.
Financial disclosure means information and documentation that covers property values, mortgages, bank accounts, investments, liabilities (debts), employment income, pensions, outgoings. This combined with details of mortgage capacity and information on potential properties that would suit either party can really help to make resolving and dividing the assets easier.
At Newnham & Jordan we like to encourage parties to be practical. To get the ‘pieces of the jigsaw puzzle’ together as if we have all the information, we can usually help parties to agree a compromise that enables them both to be able to move forward.
Whilst it can be scary to consider looking at your financial situation, doing this now means a brighter future and by being proactive and getting this information up front you can save money in the long run and potentially avoid the need for Court.
In addition, it is easy to seek to use alternative dispute resolution and that can be by way of Mediation. The Mediator is a Neutral Person and cannot give advice but facilitates discussions to try to achieve settlement and your family lawyer can advise you how to approach these discussions, look at the paperwork and guide you on what the law would consider to be a reasonable offer so that you can make best use of mediation to achieve a settlement.
Alternatively, we can also offer the ability to do a ‘round table’ meeting with your spouse and their solicitor once disclosure has occurred which often can help parties to find a way forward for the benefit of their family. If you have children, this is vitally important as you will need to maintain open conversation for their benefit going forward
So if you are considering what to do, pick up the phone and lets have a conversation….
