What is a clean break financial settlement?
How is a divorce financial settlement arrived at?
Need Expert Advice? Contact Our Family Lawyers
Will I have to go to Court to reach a financial settlement?
Who pays the legal fees for a divorce financial settlement?
Am I entitled to maintenance from my ex-partner?
Financial settlement solicitors - Further information
All assets of the marriage are considered as part of the financial settlement, including business assets. This still applies even if one party has built the business with no direct involvement from their spouse.
As part of a negotiated settlement a business can be protected if enough assets are available to achieve a fair split. For example, one spouse may hold on to the business by giving up their entitlement to their share in other assets, such as the family home. This is called ‘off-setting’.
If capital assets do not exist to facilitate ‘off-setting’, but the business is generating enough income, it may also be possible to pay out the other spouse over a period of time with income from the business.
The pensions of both spouses are assets of the marriage and therefore will be taken into account during the divorce settlement. This is particularly relevant where one spouse has a large pension pot and the other has little or none, for example a stay at home mum.
If this is the case then the financial settlement may be achieved in a number of ways:
- The spouse with the pension pot could give up entitlement to other assets of the marriage to offset the pension entitlement
- Payment of a lump sum to the other spouse
- A pension sharing order – part of the pension pot can be taken out and put into a pension in the spouse’s name
The family home will normally be an asset of the marriage and will therefore be included in the financial negotiations.
Divorce settlement negotiations always start from the point of an equal division of assets between the spouses. If one spouse wants to retain the family home they will need to have enough other financial assets to be able to offset the value of their partners share of the home by transferring assets of that value to their former partner.
In cases involving children this can sometimes mean that one party can stay in the family home with the children. The Courts always place a high degree of importance on the needs of the children. The Courts will not, however, allow an unfair settlement to either party, so this form of arrangement will depend on the other spouse’s financial circumstances and their ability to afford a second home to live in. The spouse leaving the family home can still maintain a financial share of the home, which they will receive on the eventual sale of the property.
Contact our financial settlement solicitors
If your relationship breaks down, you need clear direction at the outset, especially where assets are involved. This is where our expert financial settlement solicitors can provide you with invaluable advice and legal representation.
At Child Law Partnership, we have a strong regional presence with seven offices located around Surrey, Berkshire, Hampshire & Wiltshire. To understand how we can help with your situation, please contact our specialist financial settlement solicitors today by calling 01256 630080.