Divorce and Finances

Resolving a divorce and finances following separation can be one of the most unsettling aspects of breaking up – particularly if communication breaks down, one party has a better understanding of the family’s finances than the other, or both have very different ideas of what the right outcome should be. We can assist you in resolving the finances on divorce as amicably as possible, whilst getting the best outcome for you.

Finances Following Divorce or Separation

When faced with critical decisions regarding your divorce and finances, it’s crucial to seek reliable expert advice. The decisions that you make could have a significant impact on your financial future. Our experienced family law solicitors include specialists in dealing with the financial issues inherent in divorce, finances, and separation.

Our specialist team dealing with divorce and finances is highly experienced in handling complex court proceedings, alternative dispute resolution, and out of court settlements. Our specialist solicitors work with you to get the best possible outcome for you and your family.

We always explore ways of resolving family disputes away from the court in the first instance. This can potentially save considerable time, money and stress, and maintain relationships between parents – which also benefits any children involved. We are members of Resolution and take a constructive approach to resolving family disputes including in relation to divorce and finances.

We regularly adopt alternative avenues to court, including mediation, arbitration and private hearings, where we book an experienced retired Judge or barrister to act as a judge for the day and negotiate with their help. We can choose a judge with the right expertise and adequate time to dedicate towards facilitating settlement. We can also attend mediation with you in solicitor supported mediation, or assist you in the background, whichever is the right method and approach for you and your family.

However, avoiding litigation isn’t always possible. People can have very different ideas about what the best or correct outcome should be, or a spouse may be very reluctant to give full disclosure or engage in negotiations. In such cases, a court can be the only route to a fair outcome. If court proceedings are necessary, we take a robust approach to achieve the best outcomes for our clients.

Our family solicitors regularly support clients with:

• the division of property, savings, and investments
• spousal maintenance claims and their variation
• child maintenance
• pension issues including defined benefit and defined contribution schemes
• pre-marital and inherited wealth
• farming divorces or cases with a rural element
• complex corporate and business structures
• trusts (onshore and offshore)
• high-value family and business assets
• international and jurisdictional disputes
• freezing injunctions
• challenging the terms of pre/post nuptial agreements where appropriate.

As well as an overall resolution of your divorce and finances, our team can also advise you about what steps you should be taking immediately prior to or following separation. This can be action in relation to:

• joint bank accounts
• property owned solely in the name of your spouse
• property owned jointly depending on how it is held – joint tenants or tenants in common
• the importance of making a new Will
• powers of attorney and death benefit nominations
• changes you should make to try to secure access to your personal information by your spouse
• interim maintenance pending an overall agreement/order

Contact our specialist team today by phone: 0345 450 5558 or by email: enquiries@stephens-scown.co.uk

How Are Finances Dealt with During Divorce

There is no one solution fits all when it comes to the resolution of finances on divorce. The right approach will depend on you, your family, and how you want to approach the resolution of financial matters – you are our client. Whilst we can guide you, and advise you, ultimately the route to take is decided by you.

There are several options that our clients choose from when deciding how to proceed including:

1. Discussions direct with their spouse – If this is possible, this is often the most cost-effective and quick route to a resolution. However, it will not be suitable for all separating couples. Without a prior exchange of financial information, it may be that one spouse has assets or income that the other is not aware of – if so, this could render any agreement that is reached unfair.
2. Negotiations between solicitors – If both spouses are willing, an exchange of financial information on a voluntary basis between solicitors could be undertaken before negotiations in solicitor correspondence or as a round table meeting occurs. Often this approach will ensure that any settlement reached is based on both parties having the knowledge of the finances and on an amicable basis. However, it does require both parties to be open and honest with their financial disclosure and to be reasonable when negotiating.
3. Mediation – This can take the form of a client and their spouse attending sessions with a mediator with or without their solicitor. Advice can also be provided in the background between mediation sessions by a solicitor. If an agreement is reached, it will need to be drawn up into a consent order, which is then sent to the Court for consideration. Until a financial settlement is approved by the Court, it is not considered full, final and binding. Mediation, much like negotiations between solicitors, will require each of the spouses to be open and honest with their financial disclosure, and to be reasonable when negotiating.
4. One Couple, one lawyer – we offer a relatively new approach to the resolution of financial matters where both spouses can appoint the same solicitor. This method will only be appropriate in certain circumstances, as the couple will need to be able to work constructively together and feel comfortable voicing what they would like for themselves in joint meetings. Where appropriate, however, it provides the opportunity for amicable couples to resolve matters quicker, with less stress and greatly reducing the cost of divorce or separation.
5. Court proceedings – if one spouse is not being open and honest with their disclosure, or is not taking a reasonable approach in relation to settlement, court proceedings may be necessary. This does not mean that the Court will necessarily reach a decision on how the finances should be resolved for you. Court proceedings can be used as a tool to put pressure on the parties to act reasonably and reach an agreement before the Court imposes a decision on the separated couple.

The Court will set down a timetable for the exchange of financial information, and at a Court hearing known as a Financial Dispute Resolution Hearing will assist the parties in reaching an agreement by giving an indication of how they may decide the case if a settlement is not reached on an amicable basis. This can often result in the parties reaching an agreement at, or shortly after that hearing. Ultimately, if no agreement can be reached, the court will impose a decision on you both.

There are other options available which can be discussed with you including arbitration, collaborative law and private Financial Dispute Resolution Hearings. It is also possible to combine several of the options set out above. Much will depend on how you want to approach the divorce and resolution of the finances, but also the way in which your spouse likewise wants to resolve matters. Our experienced solicitors can discuss each of the options with you, and decide how to try to resolve matters in your best interests.

Our Professional Divorce Solicitors

We act for clients in the South West, all over the UK and those who are based overseas but are getting divorced in England. We can guide you expertly through the process and help achieve the best possible outcome for you and your children.

The divorce and finance team at Stephens Scown, based in Exeter, Truro and Taunton, are an award-winning specialist family law team, offering comprehensive services tailored to your specific needs. Chambers & Partners and The Legal 500, the two leading independent legal guides, have ranked the Stephens Scown Family Law team as top rated. We have also been ranked in Chambers & Partners’ High Net worth guide. We have legal advisors at all levels of qualification, and can match you with the best representative based on your circumstances.

Our divorce and finance solicitors are renowned for our expertise in handling divorce with sensitivity and efficiency. We have long-standing links with trusted professionals including: –

• financial advisors
• accountants
• actuaries
• surveyors
• farm consultants
• counsellors
• divorce coaches
• mediators, and many more.

Working with our contacts, we can assist you in identifying the most advantageous division of assets – no matter the complexity.

We offer clear, practical advice and robust representation, aiming to achieve the best possible outcomes while minimising conflict and legal costs. Our experience covers all aspects of divorce law, from the divorce application to final divorce order, and includes international jurisdictional issues when they arise.

Financial settlements are often one of the most contentious aspects of a divorce. Our divorce and finance solicitors excel in negotiating and finalising financial settlements that bring about the best financial solution possible to our clients. We provide a unique expertise in the South West focussed on simplifying complicated family law situations often involving business assets, pensions, offshore investments, trusts and inheritance. We work closely with other financial professionals to ensure no stone is left unturned in achieving tax efficient settlement solutions that are comprehensive and sustainable. Whether you are looking to reach a settlement through negotiation, mediation, or court proceedings, our family law solicitors are committed to securing a resolution that protects your financial future.

Stephens Scown’s divorce and finance team in Exeter, Truro and Taunton offers unparalleled expertise and a client-focused approach, making us the ideal choice for your divorce and finance needs.

Our divorce and finance solicitors’ recent experience includes:

• cases involving complex trust structures where the trustees had to be joined as parties to the proceedings
• cases where one party failed to provide full financial disclosure, and we achieved an order providing our client with all the known assets
• divorce cases involving shareholdings in private companies. We have significant experience of working with other professionals both internally and externally such as corporate solicitors and accountants to structure a divorce settlement in the most tax efficient way possible, such as share buybacks, or the creation of holding companies.
• financial negotiation and settlement where the parties jointly owned multiple properties
• arranging private negotiation ‘hearings’ (private Financial Dispute Resolution hearings) outside of the court process to speed up the financial resolution and maintain privacy
• situations involving fraudulent divorce proceedings issued overseas, resulting in the need for an injunction to allow the divorce to be dealt with in England
• cases where one party is resident overseas or has assets abroad
• cases involving significant sized generationally owned farms, retaining them for the benefit of the farmer and the wider family
• divorces where partnerships with third parties are involved
• cases where parties have received a disputed loan from family members, and those family members have become intervenors in the resolution of the divorce and finances
• a case where a spouse has transferred assets to a third party to avoid sharing them on divorce including seeking an injunction from the court to undo the transfer
• cases where significant pension assets are involved including those with defined benefit pensions.

Frequently asked questions:

Can finances be settled before divorce?

Whilst an agreement can be reached between a separating couple prior to a divorce, which can be recorded in a separation agreement, it is not full, final and binding until it has been approved by the Court. The Court does not have the power to consider a financial settlement until the conditional order has been made in a divorce.

Does Stephens Scown have experience in complex financial matters during divorce?

Yes. We have significant experience in dealing with complex financial matters on divorce. We are often instructed in cases involving business interests (companies, partnerships and sole traders), pensions (including SIPPs, SASS, final salary, Armed Forces, NHS, and Teachers pensions).

Are finances or custody resolved first during divorce?

Often the arrangements for children are resolved prior to the finances on divorce because the needs of the parties taking into consideration the arrangements for the children can often be relevant. However, this is not always the case and will depend on the specific circumstances in any divorce. Sometimes the resolution of financial matters on divorce, and discussions/proceedings to resolve the arrangements for the children will run concurrently. Alternatively, in some cases, we arrange for the two issues to be resolved simultaneously, which can involve combining the applications at Court.