When a relationship ends, many separating couples want the same thing:
- A fair outcome
- As little conflict as possible
- The chance to move on with their lives
If you can agree between yourselves how to divide your money, property and other assets, you may wonder why you need legal advice at all?
The answer is surprisingly simple. Agreeing a financial settlement is not the same as knowing whether that settlement is fair.
Research into financial settlements found that without lawyers, some people made decisions based on assumptions or misunderstandings about the law, rather than on the legal principles a court would use when looking at their case.
In this article, Family Law Expert Simon Immins looks at some of the common misunderstandings around divorce financial settlements and explains why getting legal advice before agreeing to your finances can be so important.
What does the law look at when deciding what is fair?
Most people will not get divorced often enough to understand the legal framework surrounding financial settlements.
People often start with what feels fair.
However, the law looks at a number of factors when considering a financial settlement. These can include:
- The housing needs of each person
- The needs of any children
- Each person’s income and ability to earn money
- Pensions
- Future financial needs and security
- Contributions made by each person during the marriage, both financial and non-financial.
Without legal advice, it can be easy to miss something important.
This can be particularly relevant if one person has usually dealt with the family finances, or if both are keen to reach an agreement quickly.
Is splitting everything 50/50 fair?
Sometimes but not always.
A common belief is that a fair divorce settlement always means dividing everything equally.
Sometimes a 50/50 split may be appropriate. But that is not always the case.
For example, one parent may continue to care for the children most of the time and may earn much less as a result.
An equal split might look fair on paper, but it may not be fair in practice if one parent cannot afford suitable housing or meet the children’s needs.
The research found that some people believed a 50/50 split was required by law, or that they could not ask for more than half.
That is not always the case. The right outcome will depend on the circumstances.
Legal advice can help you understand how the law may apply to your particular situation. Get in touch with one of our Family Law Experts to discuss your circumstances on 01202 499255 or by filling out the form.
You can find out more about what you’re entitled to in divorce in our dedicated article here.
If my partner earned the money, do they get to decide how our finances are divided?
No, just because your partner earned more money does not mean they get to decide how finances are split.
Another common misunderstanding is that the person who earned more money should have more say over how assets are divided.
In many marriages, one person may have focused on paid work while the other looked after the childcare, managed the home or supported their partner's career.
Family law recognises that a marriage is a partnership. Contributions are not measured solely by the size of a payslip.
The research found examples of people who didn’t take legal advice, allowing the higher earner to decide what should happen to their finances because they believed the money belonged to them.
The law often takes a much broader view of contribution than separating couples realise.
Our expert Family Law Solicitors can guide you through creating a fair financial settlement that takes into account financial and non-financial contributions. Get in touch on 01202 499255.
Why should pensions not be ignored?
Pensions are one of the areas most likely to be overlooked in a DIY financial settlement.
Some people assume that a pension belongs to the person whose name it is in, so they do not include it in discussion about finances.
This can be a costly mistake.
In some cases, a pension may be one of the most valuable assets a couple has, particularly where there is not much equity in the family home.
Pensions can also affect your financial position many years in the future.
Once a financial settlement has been agreed and put into effect, it may be difficult or impossible to change later. Therefore, it is important to ensure it is fair and meets both of your current and future needs. Get in touch with our experts on 01202 499255.
Find out more about what happens to your pension in divorce here.
We Wanted to Keep Things Amicable
Some people worry that seeking legal advice will make a friendly separation more difficult.
In our experience, the opposite is often true.
Taking legal advice does not mean going to court. It does not mean sending hostile letters or starting an argument.
It simply means understanding your legal position before making decisions that could affect you and your family for many years to come.
A family lawyer can help you understand your options, spot issues that may have been missed and help you work towards an agreement where possible.
Family mediation can also help separating couples work towards an agreement amicably without going to court. Get in touch with our expert Family Mediator on 01202 499255.
You can read more about what Family Mediation is and how it works in our article here.
Is legal advice worth the cost?
Cost is one reason some people decide not to speak to a solicitor.
That concern is understandable, particularly at a time when finances may already be stretched.
However, it is also important to think about the possible cost of getting the settlement wrong.
A pension that has been overlooked, a housing arrangement that is not affordable, or an agreement reached without full financial information can create problems long after the divorce has ended.
Taking legal advice is not always about trying to get more money.
Often, it is simply about understanding your options and knowing what the long-term effects of your decisions may be.
A Small Investment in Financial Security
Most people would think carefully before signing a mortgage, transferring a pension or entering into a major commercial contract without professional advice.
A divorce financial settlement is just as important.
Before agreeing to anything, it can be worth taking advice so that you understand your legal position and the options open to you.
You may decide that the agreement you have reached is fair and works for you.
However, if you decide to compromise, it should be because you understand the position and have made an informed choice, not because you were unaware of your options.
Expert Family Law Solicitors
If you are separating or divorcing and want advice about a financial settlement, our Specialist Family Law team can help you understand where you stand.
Getting advice does not mean there has to be a dispute. It can simply give you a clearer picture of your options before you make important financial decisions.
Get in touch with our experts on 01202 499255 or by filling out the form. We offer all new clients a FREE initial chat.
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