Divorce Financial Settlements

Our leading team of divorce solicitors are on hand to answer your questions and guide you through the process of reaching a financial settlement with discretion and empathy.

Untangling marital assets is an important part of the divorce process. With emotions often running high, it is important to choose specialist divorce financial settlement solicitors who can guide you through each stage, who are also able to take a forensic approach to identifying, valuing and considering the assets involved.

Common questions you may have include:

• “What happens to the financial assets I brought into the relationship?”
• “What is a fair financial settlement?”
• “What am I entitled to?”
• “What happens to my pension?”

Achieving a fair divorce financial settlement

It is rarely as simple as dividing everything equally. Assets may be illiquid, subject to risk, required to meet housing needs, or comprise wealth that has yet to materialise. Achieving a fair outcome requires a careful assessment of the unique circumstances of each case. Our role is to help clients secure a financial settlement that reflects their needs, priorities and long-term financial security.

The law governing how a fair outcome is determined in a divorce financial settlement is set out in the Matrimonial Causes Act 1973. In deciding what orders to make the court must have regard to all the circumstances of the case. Where relevant, its first consideration will be the welfare of any minor children of the family. Thereafter the court will consider all of the following factors:

1. The income, earning capacity, property and other financial resources each party has now or is likely to have in the foreseeable future;
2. The financial needs, obligations and responsibilities each party has now or is likely to have in the foreseeable future;
3. The standard of living enjoyed by the family;
4. The age of each party and the length of the marriage;
5. Any physical or mental disability;
6. The contributions each party has made, or is likely to make in the foreseeable future, to the welfare of the family;
7. The parties’ conduct (only relevant if it would be inequitable to disregard it); and
8. The value of any benefit either party may lose the chance of acquiring as a result of the divorce.

Under the Matrimonial Causes Act 1973, the court has the power to make a range of orders in relation to the assets and finances of the marriage, including:

• Periodical payments, also known as maintenance, requiring one spouse to provide ongoing financial support to the other;
• A lump sum order requiring one spouse to pay the other a specified amount;
• Property adjustment orders (for example, transferring the ownership of property or ordering a sale);
• Pension orders, including sharing or attachment orders, requiring a percentage of a pension to be transferred to the other spouse; and
• A financial ‘clean break’, which severs financial ties with the other spouse as no further claims can be made against each other.

Understanding and navigating the law to achieve a fair distribution of marital assets also requires an appreciation of how specific asset classes are treated, and how decisions made by judges in leading cases are applied. Depending on your personal or corporate circumstances, our specialist team can advise you on distinct areas of asset protection, including:

• Matrimonial and non-matrimonial assets: determining which assets belong in the shared matrimonial pot, and which may be ring-fenced as inherited or pre-acquired wealth.
• Pensions: navigating complex pension sharing orders and offsetting strategies.
• Business assets: protecting commercial interests, private company shares and owner-managed business structures from disruption.
• Trusts: evaluating domestic and offshore trust structures to identify whether they constitute financial resources.
• Prenuptial agreements and postnuptial agreements: enforcing or challenging existing marital wealth agreements during settlement negotiations.
• Freezing orders: taking swift, emergency injunction action if you suspect a partner is hiding, transferring or dissipating wealth.

The process

When negotiating a financial settlement, both parties are required to provide a full, frank and transparent overview of their financial positions. Our family law solicitors use a structured approach to move your case from initial disclosure through to a legally binding conclusion. This involves:

1. Financial disclosure (Form E): both parties complete a comprehensive financial statement, known as Form E. This requires detailed evidence of all income, properties, bank accounts, business interests and pension valuations, usually covering the last 12 months.
2. Questionnaires and valuations: our team reviews your spouse’s disclosure carefully. If assets appear hidden, undervalued or missing, we can raise focused questionnaires and instruct independent experts to value properties, pensions or businesses.
3. Negotiation and dispute resolution: using the finalised asset pool, we enter voluntary negotiations. This can be handled through solicitor-led correspondence, collaborative law sessions, formal mediation or the use of private neutral evaluators to reach an amicable arrangement without court intervention.
4. As a last resort, litigation: if an agreement cannot be reached using non-court dispute resolution (NCDR) methods then litigation will be necessary. We will assist and advise you through each stage of the court process, formulating a strategy that has your priorities at the forefront.
5. Securing a consent order: either upon reaching an agreement or upon the conclusion of the litigation, the financial order is submitted to the court. A judge reviews it to ensure it is fair. If approved, it is sealed as a legally binding order, which can be enforced if require.

It is always advisable to obtain independent legal advice early on so that you are aware of your entitlements, the potential outcome and how your assets and interests can be best protected. You can contact our specialist matrimonial lawyers using the form below.