Going through a divorce can be very stressful and emotional and the financial side can cause a lot of friction in the process. Here we present some of the common financial questions around divorce and offer some advice on how to tackle them.

1. Setfords Legal Guides
For individuals
Guide to finances on divorce
T: 0845 450 6135
info@setfords.co.uk

2. Setfords Legal Guides
Guide to finances on divorce
Going through a divorce can be an incredibly stressful and hugely emotional time, particularly when there are
children involved. The financial side of the situation can prove difficult to resolve and can be the most complication
part of the precedings. There are always a number of initial questions that come to mind, and in this guide we have
tried to present some answers to some of the most common.
How much money will I be entitled to?
There is no simple answer with regard to how much 2. The financial needs, obligations and responsibilities
you are entitled to after your marriage breaks down. If which each spouse has or is likely to have in the
matters cannot be agreed between spouses, and the foreseeable future.
need arises to settle matters in court, the aim of the 3. The standard of living enjoyed by the family before
Court is to achieve fairness and a key factor is often the the breakdown of the marriage.
reasonable needs of each spouse. There are various 4. The ages of each spouse and the duration of the
factors which the Court will take into consideration when marriage.
making a financial order, their first consideration being 5. Any physical or mental disability of each spouse.
given to the welfare of any child of the family who has 6. The contributions which each spouse have made
not attained the age of 18. The Court will have regard, or is likely to make in the foreseeable future to the
particularly, to the following: welfare of the family, including any contribution by
looking after the home or caring for the family.
1. The income, earning capacity, property and other 7. The conduct of each spouse, if that conduct is
financial resources which each spouse has or is such that it would be, in the opinion of the Court,
likely to have in the foreseeable future including, inequitable to disregard.
in the case of earning capacity, any increase in that 8. The value to each spouse of any benefit which one
capacity which it would be, in the opinion of the spouse, because of the divorce, will lose the chance
Court, reasonable to expect a person to take steps to of acquiring.
acquire.
What financial claims can I make?
There are various financial claims that one can make the courts as they necessarily mean that one spouse
against the other spouse. From our experience, spouses, (frequently the husband) is unable to access his share of
frequently, are primarily concerned with the matrimonial the equity in the former matrimonial home until a date
home and what will happen to it once the parties in the future.
divorce. There are several options available, which are as
follows: It is important to note that the Court will not simply
divide the assets 50:50, rather they will have regard to
1. Immediate sale of the house and the proceeds to be all the circumstances of the case (as set out above) and
divided between the spouses. make an order dividing the assets as it sees fit.
2. Transfer of the house into the sole name of one
spouse. Either party can make a claim against the other in
3. Sale of the house is postponed until a specified date respect of any matrimonial assets whether they are
and the proceeds to be divided between the spouses held in sole or joint names. A spouse can make any of
on the sale. the following financial claims, in addition to that set out
above, by applying to the court for an Order for:
The latter (3) is what is known as a ‘Mesher order.’ This
preserves both spouses’ interest in the family home 1. Maintenance (i.e. Income Payments).
but postpones the sale until a certain specified event, 2. Lump sums (i.e. capital payments).
for example one may wish to sell the property once 3. Pension sharing/attachment orders.
the youngest child reaches 18 or completes full time 4. Property adjustment ( i.e. a transfer of property).
education. Mesher orders tend not to be attractive to
T: 0845 450 6135
info@setfords.co.uk

3. Setfords Legal Guides
I do not want to go to Court, and I think my wife/husband and I will agree the finances
between ourselves. What are my options?
If you and your husband/wife are able to come to an
agreement between yourselves, it is advisable to have
the agreement reflected in a Consent Order (effectively
an agreement made between the spouses) which will
then be sealed (i.e. stamped and approved) by the Court.
Ultimately, this means that once a consent order has
been entered into, neither spouse can deviate from the
agreement reached, save by consent or by a further
order of the court. The Court will however only make
this type of Order if it is satisfied that no other orders
should be made and that the parties have either had
independent advice or have been advised to take the
same and declined to so do.
T: 0845 450 6135
info@setfords.co.uk

4. Contact Us
For more information or further advice on the financial matters surrounding divorce please contact:
Esha Kalra
T: 01483 408 780
E: ekalra@setfords.co.uk
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info@setfords.co.uk