If you are going through a divorce, it is essential to deal with financial matters at the same time. Without a financial order in place, your former spouse could make a claim against you long into the future. At Crisp & Co, our experienced divorce financial settlement solicitors in London can represent you, ensuring you have the security you need for the future.
We deal solely with divorce and financial law, meaning we have the depth of expertise necessary to handle complex and high value cases. We always aim to resolve matters with minimal conflict, working to find an out-of-court solution wherever possible.
Our financial settlement solicitors have an excellent track record of success in achieving the strongest possible orders for our clients, and we are known for the outstanding client care we provide.
Get in touch with our expert divorce financial settlement solicitors at Crisp & Co today
If you are looking for legal advice and representation to enable you to obtain the best outcome, our expert divorce financial settlement solicitors are here to help.
You can give us a call on 020 8003 4216 or request a free call back by filling out the enquiry form on the right hand side of our home page.
Why you need financial settlement solicitors in London
Dealing with assets based in London can be onerous, with London property and asset portfolios making the separation of assets and liabilities complicated. Our London divorce solicitors are highly experienced in the sector, and are familiar with the complexities of handling high value properties, business assets, and the substantial other holdings that may make up your marital finances.
It is essential to have advice from genuine experts when dealing with a divorce in London, to ensure that you secure a fair result and that you have the financial security you need going forward.
What is a divorce financial settlement?
A financial settlement is the splitting of assets and liabilities on divorce. The split can either be agreed on between the parties, with the help of third parties where necessary, or, where necessary, by the court. If an agreement is reached, the court is asked to seal this, making a binding financial order. Similarly, if the court is asked to rule on matters, it will make an order at the end of the hearing process.
The financial remedy order is separate from the divorce application process, but should be dealt with at the same time.
A divorce without a financial settlement in the UK is highly inadvisable, as your spouse could make a claim against you many years into the future.
Our financial settlement services in London
Our team provide a full divorce and financial settlement service in London, and our solicitors have many years of experience in this specialist area. Our services include:
- Dealing with the valuation and disclosure of assets, to include checking the disclosures made by your spouse
- Negotiating to try to reach an agreement over the division of assets and liabilities
- Advice on alternative methods of dispute resolution
- Drafting consent orders
- Contested financial remedy proceedings
- Court hearings
- Enforcement of financial orders in divorce
How financial settlements work in the UK
A financial settlement is sealed by the court, making a binding financial order that both parties must comply with. The terms of the order can either be agreed upon by the parties, known as a consent order, or the court can be asked to rule on the matter.
If the court is asked to deal with matters, it will consider the factors set out in Section 25 of the Matrimonial Causes Act 1973 when making its decision. These are:
- The financial resources each party has, including income, both now and in the foreseeable future
- The financial needs, obligations and responsibilities of each party, both now and in the foreseeable future
- The standard of living enjoyed by the parties during the marriage
- The ages of the parties and the duration of the marriage
- Any physical or mental disability either party may have
- The contributions made by each party to the family’s welfare, including non-financial contributions such as childcare and caring for the home
- The conduct of the parties, where it would be inequitable to disregard this
- Any benefits that either party might lose as a result of the divorce
If there are children, then the court will prioritise their needs.
Assets covered in financial settlements
All of the parties’ assets and liabilities are taken into account when dealing with a divorce, including property, pensions, business, investments, savings, and debts. In some cases, assets may be considered to be non-matrimonial, but depending on the circumstances, the court may still decide to take these into account when considering the division of assets.
In some circumstances, assets may remain with the party who has title to them. For example, if someone owned an investment property before the marriage, it was always held in their name, the marriage was short, no children were involved, and the other party to the marriage could be fairly provided for, then the property could be excluded from asset division.
Dividing property in London divorces
It can be difficult to deal with matrimonial property, particularly in London. It is often a couple’s largest single asset, and it is not always possible for one party to buy the other party out.
If sufficient other assets are available, the party who does not have the property can be awarded a larger amount of other assets by way of compensation, for example, pension provisions and investments.
Where necessary, the property could be sold and the net sale proceeds split according to the court order; however, if the property is a family home for children, the court may decide that this is not appropriate, unless a smaller suitable property could be purchased.
The financial settlement process
The first step in obtaining a financial settlement is for both parties to fully disclose their financial situation. This is done by completing a lengthy form, known as Form E, which will include details of all assets, liabilities and obligations, to include information about income and responsibilities to children.
Negotiations can then be entered into to see if it is possible to reach an agreement on how everything will be split. If these are not successful, then the courts will usually require a couple to at least consider mediation.
Other forms of alternative dispute resolution are also available, including collaborative law and arbitration. These are generally faster and more cost-effective than asking the court to decide.
If it is not possible to reach an agreement, then the last resort is to ask the court to make an order.
What is a fair financial settlement in a divorce?
In deciding how to divide assets and liabilities, the courts will look at the needs of the parties and how best to meet these. It will consider the factors set out under Section 25 of the Matrimonial Causes Act and aim to give both parties a settlement that takes into account their situation.
If one party is in a weaker financial position, for example, because they have given up their career to raise children, then the court may award them a larger share of the available assets.
In some cases, spousal maintenance may be ordered. This is different from child maintenance. Spousal support might be for a specified period of time to allow the recipient to find or train for a job. Courts generally encourage parties to work towards financial independence whenever possible.
In many cases, a clean break order is made, where no spousal maintenance is paid.
How long does a financial settlement take and what are the costs?
The time taken to obtain a binding financial order on divorce can vary widely. If the parties are able to agree on how to split their assets, then it could potentially be completed within months. If alternative dispute resolution is required, then it is likely to take considerably longer.
When cases need to go to court, they can take a long time to resolve as the family courts are exceptionally busy and several hearings will usually be needed. If the case involves substantial or complex assets and is highly contested, it could take in excess of two years.
The costs of obtaining a financial order in divorce are closely linked to the length of time it takes to resolve matters. Information regarding our fees and paying for our service can be found here.
Alternatives to court for financial settlements
Mediation is often the first option that couples use if they are not able to agree on matters. A neutral mediator will help both parties to explore potential solutions, but no binding outcome is imposed on them.
For more information, see our mediation page.
Another option is arbitration, which is similar to court, but privately arranged, with an arbitrator whose decision will be binding. This is generally a much faster process than waiting for court hearing dates.
Collaborative law is a roundtable discussion between each party and their legal representative, and can be a relatively fast way of agreeing on issues.
For more information, see our collaborative family law page.
Protecting your financial interests in London
If you are divorcing in London, it is particularly important to have solicitors with experience of dealing with complex and high value assets. Clients often have a range of property, pensions, investments, business interests, personal possessions, and interests in trusts which need to be correctly valued.
For more information on our services, see our page on high net worth divorce solicitors in London.
Why choose our financial settlement solicitors in London?
At Crisp & Co, we understand how complex dealing with finances during divorce or separation can be. We will always approach your situation with care, tailoring our advice to your personal circumstances. We offer:
- A dedicated team of experienced divorce financial settlement solicitors
- In-depth understanding of how to obtain the best possible financial order
- Legal 500 and Chambers & Partners recommended firm
- Members of Resolution, committed to constructive, non-adversarial solutions
- Clear, practical advice without legal jargon
- Proven success in resolving even the most highly contested financial settlement cases
Frequently asked questions about financial remedy proceedings
Q: Can you get a divorce without a financial settlement?
A: You should always go through the divorce process alongside financial settlement proceedings. If you obtain a divorce final order before financial settlement issues are resolved, the process can be more complicated.
If you fail to obtain a final order in respect of finances, you could face a claim in the future. This could be inflated if you subsequently become wealthier.
The financial settlement after divorce time limit in the UK is unlimited, meaning you could hear from your spouse even many years after your divorce.
It is possible to obtain a financial settlement after divorce, if you already have a final order of divorce, and you are advised to speak to a solicitor to safeguard your position.
Q: How long does a divorce financial settlement take?
A: The time taken will usually depend on how highly contested matters are and how extensive and complex the assets and liabilities are. For high value divorces with a large range of assets, such as business interests and properties, the process could be lengthy, particularly if the case is contentious.
Where assets are relatively straightforward and the parties agree on the way forward, it is possible to obtain a final order within a year.
Q: What is a fair 50/50 split in divorce settlements?
A: The starting point for the courts is generally a 50/50 split of assets, however, if one party has higher financial needs than the other, or less earning potential, then the courts may award them a higher share of the matrimonial pot, particularly if they are caring for children or if the marriage was a lengthy one.
Q: Do I have to sell my house in a divorce settlement?
A: There are several ways of dealing with the matrimonial home on divorce. One party could receive the property, with the other having a larger share of other assets by way of compensation. If the party remaining in the property cannot afford to buy the other out, then the court may allow them to stay in the property until any children reach the age of 18. This is known as a Mesher order.
Q: What happens to pensions in a divorce financial settlement?
A: Pensions are valued for divorce purposes, and may be split if the court feels that this is necessary in order to adequately provide for one of the parties. This is usually done by way of a pension sharing order, which divides off part of one party’s pension and puts it into the other party’s name, so that it is under their control.
If you want to keep the whole of your pension, it may be possible to offset this with other assets, for example, by giving the other party a larger share of the matrimonial home.
For more information on how pensions are dealt with on divorce, see our pensions on divorce page.
Q: Can a financial settlement be changed after divorce?
A: Financial orders are rarely changed after they are made. This is only possible if one party has failed to fully disclose all of their assets, including where there has been fraud or misrepresentation.
If there is a new and unforeseen event that occurs shortly after the order is made and that changes the assumptions made at the time, then the court may set aside an order. This is known as a Barder event.
Q: What is Form E and why is it important?
A: Form E is a comprehensive form that each party will complete before negotiations begin. It includes details of all assets, liabilities, debts, income and financial needs, and forms the basis for the financial order.
For more information, see What is Form E and how do I complete it?
Q: How are business assets treated in London divorce settlements?
A: Business assets are valued and taken into account when assessing how to split finances on divorce. This means you need a solicitor with the expertise to handle complex business valuations and ensure that you have the settlement you need to protect your interests.
Q: Is there a time limit for financial settlement after divorce?
A: There is no time limit for requesting a financial settlement after divorce. This means that a claim can be made long into the future if matters are not finalised at the time of the divorce.
Get in touch with our expert divorce financial settlement solicitors London today
If you are going through a divorce and require help with obtaining a financial remedy order, call us today. We are here to guide you with clarity, care, and expertise.
You can give us a call on 020 8003 4216 or request a free call back by filling out the enquiry form on the right hand side of our home page.