Delaying dealing with finances can be a costly mistake…..
Most people hold the mistaken belief that once they get divorced, their ex-spouse cannot make any future financial claims against them. Not true. If you fail to sort out your financial agreement at the time of divorce, it could cost you lot of money, time and stress further down the line.
The recent Supreme Court Ruling in Wyatt Vs Vince graphically demonstrates the perils of divorcing without making sure your finances have been sorted out and a finance order approved by the divorce court.
MS Wyatt had been separated from Mr. Vince for over 30 years after a short marriage .They divorced over 20 years ago and never resolved finances because at that time, both were penniless travelers.
Mr. Vince went on to become a multi-millionaire after he set up a renewable energy company.
Seeing her opportunity, MS Wyatt decided she too wanted to enjoy the spoils of fortune accumulated by her ex-husband, despite the couple having been divorced for over two decades.
The case bounced backwards and forward between the Court of Appeal and the Supreme Court. Eventually, the Court allowed her permission to continue with her financial claim. This surprised many people, due to the time that had elapsed since the couple got divorced.
Family lawyers up and down the country are waiting to see what sum she eventually receives.
This case, although rare, does highlight the importance of making sure you sort out the money when you divorce. Otherwise, it could come back to haunt you.
We have handled a case where the couple divorced 8 years ago but never got an Order of the court on money. The Husband subsequently topped up his pension nearly doubling it in value. The Wife was now claiming a share of her Ex-husbands pension. The question was- should she be entitled to 50% of the pension value at the time of the divorce, or was she entitled to 50% of the current value.
Fortunately, neither party had the stomach for a battle in court, and, with some help from the lawyers, an out of court settlement was agreed and later approved by the judge. The couple finally had the financial closure they should have dealt with all those years ago. However, had things been sorted at the time of divorce, the couple would have saved themselves unnecessary legal fees and undue stress.
The moral of this sad tale is to take legal advice now on how best to get closure on your finances with your Ex, if you overlooked it at the time of divorcing.
It needn’t be expensive, especially if you can agree things first with your Ex. Your Lawyer will draft you a legally binding agreement and give a checklist of things you may not have thought about. The Agreement goes before the Judge and usually no one needs to attend court .The Judge approves the Order and both of you can heave a sigh of relief.
We can quote you a fixed fee to help achieve this.