Financial Divorce Package

The Beck Solicitors "Financial Divorce Package" has been developed to provide a cost-effective solution to resolving finances in divorce where the assets do not exceed £750k (excluding pensions values).

It is important to ensure that financial matters are finalised, otherwise there is a potential for your ex-spouse to make a claim in the future. The effects of marriage and divorce may continue until a final Court Order is made in respect of the divorce settlement.

The financial issues which you should consider are:-

Capital

The starting position for the split of capital in a divorce settlement is an equal division of assets in cases of a long marriage where assets exceed needs. However, the courts are quick to emphasize that each case is different and the duty of the court is to divide the assets so as to provide a fair settlement to both parties. For instance, the court may depart from a 50/50 split if there are children involved. If one parent has the responsibility of caring for the children, their needs will be considered first, and their capital needs may be greater as they will need a bigger property in order to house the children.

Maintenance

On marriage, a couple are financially responsible for maintaining each other. Where ever possible the court will seek to establish a CLEAN BREAK. A clean break is where all financial obligations cease. If this is not possible, the courts will take all income into account, including working tax and child tax credit, child benefit and entitlement to welfare benefit. The court will then look at each party's income needs and their ability to meet those needs. Where there is a shortfall the court will look to see whether the other party can meet that shortfall by way of a maintenance order.

Pensions

The law was changed in December 2000 to allow a PENSION SHARING ORDER. After the matrimonial home, the value of a pension is often the next largest asset in a marriage.

A Pension Sharing Order creates a separate fund and the recipient receives a pension in his or her own right. Pension Sharing Orders can be complex and will require the assistance of a solicitor and an experience IFA (Independent Financial Advisor).

Please ask for a copy of our information booklet or telephone us for more details.

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See Also: Divorce - How it works | Shortened Divorce Enquiry Form