Divorce and separation can be hugely stressful and costly enterprises. If you want to secure the best outcome for you and your money, then you’ll need to take steps to protect your finances – not just from your former partner, but from the lawyers and institutions involved in making your split a legal reality.
Let’s take a look at a few relevant measures and principles.
Understanding Your Financial Rights and Responsibilities
Getting a clear overview of your finances early on. For married couples, everything is factored into the final settlement, including joint accounts and individual savings. The goal is not necessarily a 50/50 split, but a fair outcome.
If you want everything to go as smoothly as possible, the involvement of specialised, experienced divorce and separation solicitors is highly advisable. Their input will allow you to avoid common pitfalls, and to ensure that the agreement you come to favours you.
This agreement can be reached out of court. Often, this can be cost-effective even if the agreement favours one party over another, as it allows the time and money involved in a courtroom to be avoided.
The Importance of Financial Orders and Legal Protection
After you’re granted a conditional order (a document that confirms that your divorce can proceed), a court may be able to grant you a financial order. This is a ruling that will set out how assets and maintenance shall be divided between the parties. Divorce alone does not settle finances, and so, if you want to be properly protected, you’ll need a separate agreement or court order.
Practical Steps to Safeguard Your Finances Early
Before you’re granted your financial order, you’ll need to assemble a few relevant documents. These might include bank statements, tax returns, and payslips. Try to thoroughly inventory all of the assets you own, and your liabilities, too.
You’ll need to complete Form E, which discloses your finances to the court. As we’ve mentioned, it’s vital that you’re honest about your finances. If you aren’t, then you could suffer financial penalties, and put any agreement you make in jeopardy.
Why Financial Planning Matters More Than Ever in the UK
Cost-of living pressures are making financial life in the UK increasingly difficult. As a result, more and more couples are seeking the security that comes with a formal settlement. Recent changes to the law around no-fault divorce are making this more straightforward.
