Divorce and Finances: Top Tips to Help you Protect your Position

When going through a divorce, it is important to understand that ending the marriage and resolving financial matters are not the same thing.

Many people assume that once the divorce itself is finalised, their financial ties to their former spouse also come to an end. In reality, financial matters need to be dealt with separately. Without a financial order approved by the Court, your financial claims against each other may remain open in the future.

Here are some key points to keep in mind when dealing with divorce and finances.

Divorce proceedings do not resolve financial matters

Divorce proceedings legally end the marriage, but they do not automatically resolve the financial arrangements between you and your spouse.

To properly deal with the financial side of the divorce, you will usually need a separate financial consent order approved by the Court. This can record the agreement reached and, where appropriate, provide for a clean break so that future financial claims are brought to an end.

Without this, your finances may remain legally tied to each other, even after the divorce is complete.

Start the divorce and financial matters together where possible

It is often sensible to deal with divorce proceedings and financial matters at the same time.

Financial discussions can take longer than expected, especially where there are issues involving the family home, pensions, savings, debts or other assets. In many cases, the final divorce order may be delayed until the financial arrangements have been resolved.

Starting both processes early can help avoid unnecessary delay and give you a clearer understanding of what needs to be agreed.

Keep the option open to apply for a financial order

When completing the divorce application, you should tick the box confirming that you intend to apply for a financial order.

This does not mean that you are committing to a dispute or that an immediate Court application will necessarily be made. It simply keeps the option open to apply for a financial consent order in the future.

This is an important step, particularly if you are hoping to reach an agreement and have it formally approved by the Court.

Try to remain amicable where possible

Divorce can be emotional and difficult, but remaining amicable where possible can help the process move more smoothly.

It is also helpful to know your spouse’s current address or location, as this information may be needed to progress the divorce proceedings.

Where communication is difficult, legal advice can help you understand the steps available and how best to move matters forward.

You may be eligible for help with Court fees

Court fees can apply at different stages, including the divorce application fee and the consent order fee.

Depending on your financial circumstances, you may qualify for fee remission. This means that you may not have to pay the full Court fee, or you may not have to pay a Court fee at all.

Fee remission is usually available for people on a low income or certain benefits. However, you must apply separately at the time each fee becomes payable, so it is important to check your eligibility at each stage.

The Court will not automatically approve an unfair agreement

Even where both parties have reached an agreement, the Court will still consider whether the proposed financial order is fair and reasonable.

The Court is not required to approve an agreement simply because both people have signed it. It will look at the circumstances of the case and consider whether the agreement reflects the relevant legal principles.

This is one reason why specialist legal advice is important before signing or submitting any financial agreement.

A 50:50 split is only the starting point

When dealing with matrimonial assets, the starting point is often an equal division. However, this does not mean every case will result in a 50:50 split.

The Court can take into account a number of factors, including the needs of each person, the needs of any children, income, earning capacity, housing needs, pensions, the length of the marriage and the assets available.

Every case is different, so it is important to get advice tailored to your circumstances before agreeing how finances should be divided.

Getting advice about divorce and finances

Financial matters can be one of the most important parts of divorce, and decisions made during this process can affect your future security.

At TMJ Legal Services, our Family Law team can provide clear, practical advice about divorce, financial consent orders and reaching a fair financial settlement.

For advice about divorce and finances, contact our Family Law team.