Finances in Divorce

Voluntary disclosure is an important aspect of the financial proceedings procedure in family law cases in the UK. It involves both parties providing a full and honest account of their financial circumstances, including income, assets, and liabilities, to the court and to each other. This is done to ensure that both parties have a complete understanding of the financial situation and to enable the court to make informed decisions about how to divide assets in a fair and equitable manner.

Voluntary disclosure is encouraged by the court, and parties are expected to provide this information without being prompted or compelled to do so. This approach helps to promote transparency and openness in financial proceedings, and it also enables parties to avoid unnecessary delays and costs that can result from incomplete or inaccurate information.

It is worth noting that failure to provide full and honest disclosure can have serious consequences, including financial penalties and even imprisonment. For this reason, it is important to seek the guidance of a family law specialist who can provide guidance and advice on the disclosure process and ensure that your interests are protected throughout. If you need advice in this area, then contact New Court Solicitors for a free 15 minute consultation.

Financial proceedings are a legal process that take place when a couple separates or divorces and need to divide their assets and financial responsibilities. The process can be complex and lengthy, and typically involves several stages. The following are the main stages of financial proceedings:

Disclosure: The first stage of financial proceedings involves both parties providing a full and frank disclosure of their financial assets and liabilities. This includes providing details of income, expenses, property, savings, investments, and pensions.

Negotiation: Once both parties have provided full disclosure, the next stage is to negotiate a settlement. This can involve negotiations between the parties themselves, or with the help of lawyers, mediators, or other professionals. The aim is to reach an agreement that is fair and reasonable for both parties.

Mediation: Mediation is a voluntary process where an impartial third party helps the parties to reach an agreement. Mediation can be a useful way to resolve disputes without going to court, and can often be quicker and less expensive than a court process.

Court proceedings: If the parties are unable to reach an agreement through negotiation or mediation, the case may proceed to court. Court proceedings can be expensive and time-consuming, and should be considered as a last resort. The court will consider all the evidence presented by both parties before making a final decision on how the assets should be divided.

Final order: Once an agreement has been reached or the court has made a final decision, a final order will be issued. This sets out the terms of the financial settlement, including how the assets are to be divided, who is responsible for any outstanding debts, and whether any ongoing financial support is to be provided. 

It is important to note that the stages of financial proceedings can vary depending on the specific circumstances of the case. Some cases may be resolved through negotiation or mediation without the need for court proceedings, while others may require multiple court hearings before a final order is made.

Maintenance pending suit is a legal term that refers to the interim financial support provided to a spouse during the pendency of divorce or separation proceedings. In financial proceedings, maintenance pending suit (MPS) is an order that can be made by a court to provide financial support to a spouse during the course of financial proceedings.

Financial proceedings are initiated when a couple decides to separate or divorce, and they need to divide their assets and financial responsibilities. These proceedings can be long and drawn-out, taking months or even years to resolve. During this time, one spouse may be left without any means of support, making it difficult for them to meet their day-to-day expenses.

To address this issue, a spouse can make an application for MPS, seeking financial support from the other spouse during the course of the financial proceedings. The court can make an order for MPS if it is satisfied that the spouse making the application has a genuine need for financial support and that the other spouse has the ability to pay.

The amount of MPS that can be awarded will depend on a number of factors, including the financial needs of the spouse making the application, the ability of the other spouse to pay, and the standard of living enjoyed by the couple during their marriage.

MPS can cover a range of expenses, including housing costs, utility bills, and other day-to-day expenses. It can also cover legal costs associated with the financial proceedings, which can be significant.

It is important to note that MPS is an interim measure and is intended to provide short-term support only. Once the financial proceedings have concluded, the court will make a final order on the division of assets and financial responsibilities between the spouses.

If you are going through a divorce or separation and are concerned about your financial situation, it is important to speak to a lawyer who can advise you on your rights and options.

Freezing injunctions can also be obtained in family courts in cases of divorce or separation. In family law, freezing injunctions are used to prevent a spouse from dissipating or disposing of their assets during financial proceedings. This is particularly important in cases where there is a risk that one spouse may attempt to hide or dispose of their assets in order to avoid their obligations to their former spouse. Freezing injunctions in family courts operate in a similar way to those in civil proceedings, with the court ordering that assets be frozen until a final order is made in the financial proceedings. The purpose of a freezing injunction in family courts is to ensure that both spouses are able to reach a fair and reasonable settlement based on a full and accurate disclosure of all assets.

Spousal maintenance is a form of financial support that is provided by one spouse to the other following a divorce or separation. Its purpose is to help ensure that both parties can maintain a reasonable standard of living, particularly where one spouse has been financially dependent on the other during the marriage.

In most cases, spousal maintenance is only paid for a limited period of time, often referred to as a 'term' or 'periodical' payment. The length of time for which spousal maintenance is paid will depend on a range of factors, including the length of the marriage, the age and health of both parties, and the earning capacity of each spouse.

The amount of spousal maintenance that is paid will depend on a range of factors, including the recipient's financial needs, the paying spouse's ability to pay, and the standard of living that the parties enjoyed during the marriage. In many cases, the amount of spousal maintenance will be negotiated between the parties or decided by a court.

It is important to note that spousal maintenance is separate from child support, which is paid to help cover the costs of raising any children of the marriage. Child support is usually paid by the non-resident parent to the resident parent, and is based on a set formula that takes into account factors such as the number of children and the income of both parents.

Overall, spousal maintenance can be an important source of financial support for those who have been financially dependent on their spouse during a marriage. It can help to ensure that both parties are able to maintain a reasonable standard of living following a divorce or separation.

Need further advice? then contact New Court Solicitors for a free 15 minute consultation.

Pension sharing orders are a type of financial order that can be made by a family court as part of divorce or separation proceedings. They allow for the division of a couple's pension assets, ensuring that both parties receive a fair share of the pension benefits earned during the marriage.

Under UK law, pensions are treated as a form of matrimonial property and are therefore subject to division in the same way as other assets such as property, savings, and investments. Pension sharing orders allow for a proportion of one spouse's pension to be transferred to the other spouse, creating two separate pension funds.

The amount of pension that is shared will depend on a range of factors, including the length of the marriage, the value of the pension fund, and the contributions made by each spouse during the marriage. In most cases, the pension sharing order will specify the percentage of the pension that is to be transferred to the other spouse, rather than a fixed monetary amount.

Once a pension sharing order has been made, the pension provider will be notified and will set up a new pension plan for the recipient spouse. The pension fund can then be invested and managed separately from the original pension plan. The spouse who receives the pension share will have full control over their own pension, including when they can access the funds and how they are invested.

It is important to note that pension sharing orders can be complex, and it is therefore important to seek professional advice before making any decisions. An independent financial advisor can help to assess the value of the pension fund and determine the best way to divide the assets in a fair and equitable way.

Overall, pension sharing orders are an important tool in ensuring that both parties are able to receive a fair share of the pension assets earned during a marriage. They can help to provide financial security and independence for both parties following a divorce or separation. Call New Court Solicitors, for a free 15 minutes consultation.

Inheritance and divorce can be complicated issues, as the treatment of inherited assets will depend on a range of factors, including the length of the marriage, the nature of the inheritance, and the specific circumstances of each case.

In general, inherited assets are treated as separate property, which means that they are not usually subject to division between the spouses in the event of a divorce. However, this can depend on a number of factors, including how the inheritance has been used during the marriage.

If the inherited assets have been used to benefit the marriage, for example by being used to purchase a family home or to pay off a joint debt, then they may be considered to be matrimonial property and subject to division between the spouses. In this case, the amount that is considered to be matrimonial property will depend on the specific circumstances of each case, and will need to be assessed on a case-by-case basis.

Another important factor to consider is whether the inheritance has been commingled with other assets during the marriage. For example, if an inheritance has been deposited into a joint bank account and used to pay for joint expenses, it may be difficult to distinguish between the inherited assets and other assets accumulated during the marriage. In this case, the inheritance may be considered to be part of the marital assets and subject to division.

Overall, inheritance and divorce can be complex issues, and it is important to seek professional advice to understand your rights and obligations. We can help to guide you through the process and ensure that your interests are protected, whether you are the recipient of an inheritance or facing a divorce.

Consent orders are legally binding agreements that are reached between divorcing or separating couples in relation to the division of their assets, finances, and other matters. These orders are made by the court and are based on the agreement that both parties have reached.

The purpose of a consent order is to provide a clear and enforceable legal agreement that sets out the terms of the separation. This can include arrangements for the division of property, the payment of maintenance or child support, and other financial matters. By obtaining a consent order, both parties can be assured that the terms of their separation are legally binding and enforceable.

To obtain a consent order, both parties must first reach an agreement on the terms of their separation. This agreement can be reached through negotiation, mediation, or other forms of dispute resolution. Once an agreement has been reached, the parties can apply to the court for a consent order.

The court will then review the agreement to ensure that it is fair and reasonable. If the court is satisfied that the agreement is fair, it will make the consent order. Once the consent order has been made, it becomes a legally binding document that both parties must comply with.

One of the benefits of obtaining a consent order is that it can provide certainty and finality to the separation process. Both parties can be assured that the terms of the separation are legally binding and that there will be no further disputes or disagreements regarding these matters in the future.

It is important to note that consent orders can be complex, and it is therefore important to seek professional advice before making any decisions. A family law solicitor can help to draft the agreement and guide you through the process of obtaining a consent order, ensuring that your interests are protected and that the agreement is fair and reasonable.