Marriage can dissolve for an array of reasons, and the entire process can prove to be gut-wrenching and emotional. What most people don’t know is that it is usually more difficult – and expensive – to get a divorce compared to getting married. You will be separating two lives that have been entwined for many years.
Splitting the assets can prove to be the most fraught and bitter part of the entire proceedings. However, if you are ending things on friendly terms or at the very least have neutral ground to stand on, the best thing you can do for both your sakes is to end matters on mutual agreement. If the petition will need to be forwarded to Court to aid with financial settlement during the divorce, the judge will have the final say when it comes to the legal aspect of things, but this will give the judge more power to decide who is entitled to get what.
What Is a Divorce Settlement Agreement?
This is a legal document stipulating the terms and conditions of your divorce. They have also shown to be very useful when it comes to handling kids. Generally, it encompasses such matters and controversial aspects of child custody, visitation rights, and alimony, in addition to splitting debts and assets.
If both of you have an amicable relationship and decide to get a divorce settlement arrangement, it’s likely that you will proceed without requiring the intervention of the court. Under these circumstances, a duration of negotiation and financial disclosure between the parties’ advocates can be sufficient to reach an accord.
In other instances, negotiations may not give way, and there are a range of reasons why divorce financial settlement negotiations may collapse. In instances when negotiations and mediation fail, the court will take up the case and make a resolution.
How are assets divided in a divorce?
Section 25 of the Matrimonial Causes Act 1973 stipulates how division of property will be done when it comes to dealing with divorce, and are guidelines the Court will stick to. This Act starts by looking at the most integral element to be given priority in a divorce case: if the separating couple have dependent children. If so, the section stipulates that the Court’s priority is to ensure the needs and well-being of the child(ren) are taken care of.
Going with this Law, section 25 outlines several factors that the Court may consider when exercising its mandate in the division of divorce assets, including:
a) Present and future financial assets: This piece of legislation stipulates that property, earning capacity, income and other financial resources each party has or is likely to possess in future will be taken into account.
These proceedings start with financial admission presented by both parties to the Court. Current assets will be appraised, and the Court will also regard how earning capacity may alter in the future; for instance, if one partner will need to decrease their working hours to cater for the needs of being a single caregiver for the child(ren).
b) Present and future financial requirements: Similarly to future earning capacity, the Court will try to tally future financial requirements every party will likely get.
Mostly this implies the cost of re-housing every party – Which will be especially integral for the party that gets primary care of the child. The Court will request an outline of estimated expenditures from every partner to assist them in accounting for this.
c) Each party’s age and the spell of the marriage: If the marriage didn’t last for long, pre-marriage contributions are considered. For separating young couples who have not yet sired children and have been together for a short period, the Court may, depending on requirements being satisfied, settle on a clean break order – this is an order that hinders either party from seeking a financial claim. For extended marriages, earning potential, child support, and pensions all come into the fold.
d) Standard of life before dissolution of the marriage: The courts are required to try and keep both parties in the same lifestyle enjoyed during the marriage. Sadly, when you decide to separate from your partner, it usually suggests that the standard of living with decline for both parties.
e) Any party’s mental or physical disability: This is usually not a pertinent issue when considering asset division during divorce proceedings, but the Court will need to see supporting medical reports provided by a consultant or GP.
f) The conduct of each party: This is seldom taken into consideration unless the Court deems that it is an exceptional situation in which it would be unjust to disregard the conduct put into question. This may include abuse, alcohol addiction, incarceration, etc.
g) Contributions each party has made to the well-being of the family: This can especially be a major point of contention between the separating partners. The Matrimonial Causes Act clearly stipulates what it considers contributions. This refers to any kind of contribution to the welfare and care of the family and home, which means that in circumstances where one partner had a day job and the other was in charge of homemaking, the Court will see them as equals.
Matters get murkier when one partner has brought in significant assets into the union, obtained inheritance, or accrued assets following separation. In these circumstances, the Court regards the needs of every partner, the duration of the marriage, if the assets have been entwined with matrimonial property and other pertinent factors.
h) Benefits any party is likely to lose after the divorce: This often refers to pensions. So how is a pension split? In prolonged marriages, the question of how the pension will be split becomes a matter of contention. The Court usually deals with pension arrangements in three ways.
1. Pension sharing: One partner is awarded a percentage portion of their spouse’s pension, which is allotted as a lump sum.
2. Pension offsetting: One partner remains with their pension, but as an alternative gives up claim to something the other spouse wants like the family home.
3. Pension attachment: Here, a part of the pension is paid regularly, the same as a maintenance payment.
So if you need assistance or advice handling divorce settlements, make sure to get in touch with experienced divorce law Solicitors. Call today for an enquiry!
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