Financial Settlements

In most cases, the court seeks to achieve what is called a ‘clean break’. It tries to ensure that both parties are left in a position, after the settlement, where they are no longer financially dependent on each other and can move forward with their separate lives. It should be noted that there can never be a clean break in respect of children.

Maintenance may sometimes be ordered so as to try and enable parties to have a more equal split of finances, but this tends not to be done as much nowadays. When determining the level of maintenance to be awarded, the court should consider the payee’s needs and earning capacity, the standard of living as a couple, and the payer’s ability to pay.

Several factors are taken into account when formulating a Financial Settlement. This includes the parties’ ages and length of the marriage, the couple’s standard of living, and any disabilities – all of which help determine the financial needs of the parties involved. The contributions of each party, and at times their conduct towards one another and any benefits that might be lost as a result of the divorce, are also points that may come to be considered.

The court will consider the welfare of any children under the age of 18 when deciding on a Financial Settlement after divorce. It is important to note that Child Maintenance is a separate matter which is considered distinctly from the financial agreements reached by the couple. Nevertheless, Child Maintenance can still be agreed by the parties and be equally set out in a consent order.

More often than not, the Court does not have jurisdiction to impose a decision on Child Maintenance, except in cases that fall outside the remit of the Child Maintenance Service.

In most cases, parties are able to reach a Financial Settlement without court intervention. Parties may be able to reach an agreement on finances and submit it to the court in the form of a Consent Order. Those unable to reach such an agreement tend to take part in contested financial proceedings with the aim of reaching an agreement themselves. If that is not the case, proceedings might result in a decision being made and imposed by the Court.

As a specific type of Court Order, a Financial Order will set out how you and your ex-spouse should deal with the finances following divorce. They can also be put in place in proceedings aiming at dissolving a civil partnership, annulling a marriage or reaching judicial separation.

Financial Orders could include:

• Maintenance pending suit (maintenance paid on an interim basis until the split is concluded)
• Lump sum Orders
• Spousal periodic payments
• Pension sharing
• Property Adjustment Orders

Grayfords has successfully dealt with matters involving very different sorts of Financial Settlements. If you need more information or are looking for representation regarding any family law-related proceedings we would be happy to speak to you.

Yes. Our solicitors are experts in financial claims for children and can advise you on what your family is entitled to. We can successfully negotiate Child Maintenance on your behalf, helping you ensure that your child’s future is provided for.

Even if you were never married, having a child together may mean that you are entitled to make a financial claim against the other parent on the child’s behalf. By contacting one of our solicitors, we will be able to tell you if this applies to you.