The issue of money. Well, it is said talking about money can be difficult for many individuals. This is clearly much more difficult when the parties are separating and the disputes spread to the parties’ financial circumstances. There are no two ways about the fact that this is a difficult set of circumstances to face, however, it is very important that such matters are not overlooked with a sense of naivety that will lead to serious financial repercussions in the long-term.
The simple fact is that you need legal representatives who have a strong team of experts on hand to assist you with every aspect of your financial circumstances and ensure that you receive a fair settlement when taking into account all considerations.
We are here to assist you and there is no matter too small or too large. We will be on hand to support you through these difficult proceedings and will attempt to reduce unnecessary costs, proceedings and disputes. We have an impressive team to assist you with your matter and enjoy getting stuck into complex and high-value matters, including those with international elements.
Calculating Financial Provisions
We note that there are a lot of misunderstandings in respect of how the courts calculate financial provision upon separation. There is, in fact, no ‘standard’ formula and the courts may reach different outcomes on similar facts. We are on hand to guide you by relying on previous judgments to establish the possible outcomes based upon your specific facts.
The court will consider something referred to as the s.25 factors, which are:
- The existing (or reasonably foreseeable) capital and income resources available;
- The financial needs of the parties, including their ages, length of the marriage, any disabilities and the standard of living enjoyed during the marriage.
- There will also be a consideration to the contribution made by each of the parties, conduct and any benefits that would be lost following a divorce (i.e. pension).
It is important to remember that the starting point is for assets accrued during the marriage being divided 50%-50%. However, this is just a starting point and often either party can argue for the court to consider an unequal settlement due to the circumstances. The court will primarily consider the welfare of any children and other principles such as ‘needs’ and ‘compensation’ – whilst also considering the above factors. There can often be other attached issues such as inheritance, premarital assets, and arguments for stellar contribution whereby one party argues that there is a case for an uneven distribution of the assets in the financial settlement.
What Can the Court Award?
The court has various powers when distributing the parties’ assets and adjudicating upon a settlement. These include the following:
- Pensions – The court can order a pension sharing or pension attachment order. The pension sharing order will lead to the pension being split between the parties or being transferred to one party. The pension attachment order can lead to either a lump sum or maintenance being paid to one party through the other part’s pension.
- Properties – The court can order for a property to be transferred to another or for a sale of a property (with the proceeds divided in respect of the final settlement).
- Lump-Sum – The court can order a lump sum to be paid to either party and this can be by way of one sum or in installment payments.
- Maintenance – The court can order for either party to pay the other maintenance payments and this can be for a variety of periods, fixed or otherwise.
Each case of financial remedy proceedings is fact-specific and we will need us to have a chat in order to ascertain your circumstances and tailor the advice accordingly. We would strongly recommend that you contact our firm and we can assist and guide you through the process step by step.