Financial Settlements

A financial settlement is legally binding and will set out how you and your former partner will divide your assets.

When faced with divorce, you have to make difficult decisions about the division of your assets.

Your decision to divorce may have lasting implications for you and your children. At Specters we will provide you with advice and guidance tailored to you and your best interests.

A financial settlement will set out how you and your former partner divide your assets.

A financial settlement can cover the following:

Property in the UK and abroad
Savings
Businesses
Pensions
Debts

The aim of a financial settlement is to reach an agreement which would be considered fair. For any agreement to be legally binding, it first needs to be drafted into a court order (also known as a consent order), and its terms must be approved by the court. This protects you and your family and ensures that no further financial claims can be made. It is therefore helpful to have guidance from expert solicitors who will be able to advise you on what a court will deem fair.

In assessing what is fair, the courts will consider all the aspects of your marriage and the assets that exist within it.

The court will take into consideration various factors before reaching a financial settlement, including:

Your needs and those of your children
Income, earning capacity, property and other financial resources of each party
Financial needs and obligations of each party
Standard of living enjoyed by the family prior to the breakdown of the marriage
The age of each party
The length of your marriage
Your relative contributions
Physical or mental disabilities
Your conduct in proceedings

Within the jurisdiction of England and Wales, there is no unified code for division of assets, and as such, each case will be judged on its own facts. Our divorce solicitors will explain to you the elements that are relevant to you. Every marriage is different, and not all of the above factors will apply to your case.

Sometimes, it is not always possible to reach an amicable agreement with your partner, and if this is the case, a judge will have to decide on how your assets will be divided. For most divorces, an amicable agreement can be worked out without court hearings.

Our experienced team of solicitors will discuss all the details with you and advise you on a suitable strategy tailored to your situation.

If you are considering a financial settlement, our specialist family solicitors can help you. We offer competitive rates to deal with your matter. You may be eligible for our free initial 30 minute consultation as well as a second 30 minutes for £50.

To get in touch with the Specters team, submit an enquiry below or call us on 0300 303 3629.

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Finance & Divorce FAQs

My spouse and I have decided to divorce. How do we sort our finances?

Both you and your spouse will have financial claims against the other. The starting point will be the equal division of everything you both own including capital and income. Various other factors will then be taken into consideration to decide is an equal division of assets is a fair division based upon your circumstances. This includes:

Needs of your children
Income, earning capacity, property and other finance financial resources of each party
The age of each party
Any physical or mental disability to either party to the marriage
Contributions each party has made to the family or family home
The financial needs and obligations of each party
The standard of living enjoyed by the family prior to the breakdown of marriage
The conduct of each party

My spouse and I have been separated for a while and I do not know what their financial position is. How can I find this our and how will the court decide what is a fair settlement?

Both parties to the divorce have a duty to give the other full and frank financial disclosure using a financial form, ‘Form E’. The court will direct you both to complete and exchange a Form E which will include each party’s:

Assets including property
Savings
Income
Investments
Pensions
Bank accounts
Liabilities

Both parties will be obliged to provide supporting evidence to the other so that you have a clear picture of the other’s financial position.

My spouse and I have already reached an agreement about how we will divide our finances. Do we still need to make an application to the court?

It is advisable that you both seek independent legal advice upon making any agreements with your spouse.

You can set out any agreements you have made in a consent order and file this with the court. Both parties must sign this for the consideration of the judge. You will also need to complete a basic financial statement of information for the court’s consideration. The Judge will usually approve the consent order by sealing it. One an order is sealed by the court, it will be legally binding on the both of you. It will usually become effective from the final decrees of divorce is granted.

If you do not have your agreement sealed by the Court and approved by a Judge, your agreement will not be binding. Your financial claims against each other will continue in the future even after divorce.

What is a clean break?

A clean break order is an order which allows you to break all financial ties with your spouse. Once a clean break order has been made, all financial claims in the future are dismissed and neither spouse can make a claim for money or assets. This enables both parties to the divorce to move forward and be financially independent of one another.

Even if you do not have any assets at the time of your divorce, it is still vital to get a clean break. Your spouse’s ability to make a financial claim will continue to exist even after you have a divorce. In certain circumstances, a clean break may not be appropriate especially if there are children involved.

If a clean break is appropriate, you must make an application to the court and have the order sealed. Without this order, there is always a possibility that you could be faced with a financial claim in the future.