Financial Settlement on Divorce

To calculate a financial settlement, both parties need to provide full financial disclosure. This means detailing all assets, debts, incomes, and pensions. The process involves:

• Identifying and valuing each party’s assets, such as property, savings, investments, businesses and pensions.
• Considering ongoing financial needs, like living expenses or childcare costs.
• Assessing contributions to the marriage, including non-financial ones like homemaking or caregiving.

Our solicitors will offer practical advice, guiding you through every step and helping you collate the necessary information to make informed decisions about your financial future.

There are several ways to agree on a fair financial settlement during a divorce, depending on your situation and how amicable things are:

Negotiation

You and your ex-partner can negotiate directly or work through solicitors to come to an agreement. This is often the simplest, quickest, and least stressful option.

Non-Court Dispute Resolution (NCDR) or Alternative Dispute Resolution (ADR)

If direct negotiation isn’t working, there are other options to consider. These methods can provide structured, less adversarial ways to resolve disputes, including:

• • Mediation: A trained mediator helps you and your spouse find common ground by conducting joint meetings with you both.  Alongside the mediation process your solicitor will provide advice to assist you in negotiating the best outcome for yourself at mediation.

• • Arbitration: An independent arbitrator makes a binding decision for you both and your solicitor will prepare the case for an arbitration hearing and arrange a legal advocate to represent you in the arbitration hearing.

• • Collaborative law: Where both parties appoint specialist collaborative lawyers and commit to resolving matters outside of court using round table meetings.  The commitment is serious because both lawyers must step down if the process breaks down, meaning new legal representation and starting again – which everyone hopes to avoid.

• • Private Financial Dispute Resolution (FDR): An independent and private FDR “Judge” (usually a barrister or part-time/retired Judge) will hear submissions from each party’s legal representative and give an indication of how the court might decide, helping to steer negotiations.

• • Early Neutral Evaluation: An impartial barrister gives a professional opinion (usually written) on how the court might decide, again helping to steer negotiations.

• • Round Table Meetings: Where both parties and their solicitors meet in person (or virtually) to discuss and resolve issues directly.

We can guide you through each of these options, offering clear advice and support to help you choose the best approach for your situation.

When no agreement can be reached or in cases where NCDR options prove unsuitable, the court can step in to decide how your finances should be divided. This process involves full financial disclosure from both parties and may include hearings to resolve disputes.  It is a requirement that mediation is considered before any court application is made, unless exemptions apply.

While we always aim to resolve matters amicably, we are fully prepared to robustly advocate for your interests in court to achieve the best outcome for you.

Yes, you can go ahead with the divorce first. However, it’s wise not to let financial arrangements linger for too long and in some cases finalising the divorce with a final order before a financial settlement is made into an Order could be prejudicial to your financial position. The sooner you resolve financial matters, the better – it reduces the risk of disputes and helps both of you move forward with a clean slate. For this reason we always advise clients to obtain some early advice about the financial aspects of their divorce, even if you’re not quite ready to take that first step in commencing negotiations.

A fair financial settlement isn’t one-size-fits-all. It’s about carefully considering the unique circumstances of both individuals to reach an arrangement that feels balanced and reasonable for everyone involved. Several factors come into play, such as how long the marriage lasted, the ages and future earning potential of each spouse, and the contributions each person made during the relationship. These contributions might be financial – like income or property brought into the marriage – or non-financial, such as raising children or managing the home.  most importantly, there will always be consideration of what each party needs to continue living comfortably after the divorce, while reflecting on the standard of living enjoyed during the marriage.

Of course, if children are part of the picture, their welfare is always the top priority. Every decision will be made with their best interests at heart.

At Machins Solicitors, we pride ourselves on understanding the intricacies of each client’s situation. We work closely with you to craft a settlement that’s fair and tailored to your needs, aiming to secure the best possible outcome for your future.