Some things you didn’t know about your finances during a divorce

Guest family law blog post regarding finances and divorce.

Going through a divorce can be a difficult time emotionally never mind debating who is going to get the house, the car and even the cat. One of the most argued elements of a divorce will always be the finances regardless of how much or how little that couple had. Here are some things you might not have known when it comes to divorce proceedings and your finances.

First steps and temporary agreements                                                                                                                      

Self-divorce, divorce legal adviceNormally before any divorce proceedings take place there will be a separation period for both partners. During this time it can be difficult to support yourself, especially if your partner was the one bringing home the majority of the household earnings. You can apply to the court for interim maintenance or maintenance pending suit if you were married or in a civil partnership. This can be quite costly and the legal costs may be more than you are awarded so it is always worth talking to a legal advisor before making a decision on this. It may be that your partner is willing to make some kind of arrangement for maintenance payments before divorce proceedings go through.

Financial settlements

One of the most cost effective way to agree on a financial settlement is to do it between you and your partner, as opposed to involving mediators, lawyers or even going to court. If this can be done then you will find the break up to be a lot easier and also save you plenty of money on legal aid. If you make an agreement between the two of you then it is not necessarily legally binding. There are some ways to ensure that your financial settlement is more formal and would therefore stand up in court. Make sure that you write down the agreements that you have made together and take this to a solicitor for their advice. The solicitor can then send this agreement to a county court judge who will make a decision based on how fair they feel it is. As long as the outcome is ‘fair’ to both of you and you both have had independent legal advice then it is much more likely to be accepted.                                                                                                           

Lump sums                                                                                                           

In most divorce casMoney and divorcees there will be a maintenance payment and perhaps a lump sum of money from one partner to another. This could be to share the assets more fairly between partners, to enable one partner to purchase a house to live in or a lump sum to replace ongoing maintenance payments. A capital lump sum will tend to be paid in one go and can enable a ‘clean break’ so that partners no longer have to communicate. The best thing to do with a lump sum settlement is talk to an accountant who will be able to advise you further on investing the money wisely.

Hopefully this article will have touched upon some points that may have been unclear when you first start divorce proceedings. Remember to ask for legal help when needed and also seek the advice of an accountant if large sums of money are involved.

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Some things you didn’t know about your finances during a divorce

 

Going through a divorce can be a difficult time emotionally never mind debating who is going to get the house, the car and even the cat. One of the most argued elements of a divorce will always be the finances regardless of how much or how little that couple had. Here are some things you might not have known when it comes to divorce proceedings and your finances.

First steps and temporary agreements

Normally before any divorce proceedings take place there will be a separation period for both partners. During this time it can be difficult to support yourself, especially if your partner was the one bringing home the majority of the household earnings. You can apply to the court for interim maintenance or maintenance pending suit if you were married or in a civil partnership. This can be quite costly and the legal costs may be more than you are awarded so it is always worth talking to a legal advisor before making a decision on this. It may be that your partner is willing to make some kind of arrangement for maintenance payments before divorce proceedings go through.

Financial settlements

 

One of the most cost effective way to agree on a financial settlement is to do it between you and your partner, as opposed to involving mediators, lawyers or even going to court. If this can be done then you will find the break up to be a lot easier and also save you plenty of money on legal aid. If you make an agreement between the two of you then it is not necessarily legally binding. There are some ways to ensure that your financial settlement is more formal and would therefore stand up in court. Make sure that you write down the agreements that you have made together and take this to a solicitor for their advice. The solicitor can then send this agreement to a county court judge who will make a decision based on how fair they feel it is. As long as the outcome is ‘fair’ to both of you and you both have had independent legal advice then it is much more likely to be accepted.

                                                                                                           

Lump sums

                                                                                      

In most divorce cases there will be a maintenance payment and perhaps a lump sum of money from one partner to another. This could be to share the assets more fairly between partners, to enable one partner to purchase a house to live in or a lump sum to replace ongoing maintenance payments. A capital lump sum will tend to be paid in one go and can enable a ‘clean break’ so that partners no longer have to communicate. The best thing to do with a lump sum settlement is talk to an accountant who will be able to advise you further on investing the money wisely.

Hopefully this article will have touched upon some points that may have been unclear when you first start divorce proceedings. Remember to ask for legal help when needed and also seek the advice of an accountant if large sums of money are involved.

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