A family lawyer usually drafts out a financial settlement for a divorced couple if they so wish to have one. This is then approved by the courts.
The aim is to split the assets of the pair equally and fairly.
So, what’s taken into consideration?
This can include family homes, rented out properties, and any income with those, shares in any properties, valuable possessions, cars, vehicles, savings & Business assets.
The value of both person’s pensions will be taken into account and therefore the living standard of each will be taken into consideration. To make sure it is equal or of a basic standard for both parties without having to rely on the other, and as separate individuals.
Maintenance: The assets of both parties’ includes how much maintenance is paid by one parent to the other and the children. In most cases the maintenance is only for the children, however, if one of the parties is less financially stable then the other will have to pay maintenance.
Debt: Just as assets are split between the two parties so is debt that has been built through the marriage. This can lead to one of the two parties trying to sell off or invest all money so as not to have to share. However, this can be stopped by getting a freezing order. This freezes your spouse’s assets and ensures that all money will be taken into account.
First and foremost, the court takes into account the need to split the asset equally and fairly between both parties
The second principle that is taken into consideration is the need rule – this takes into consideration how much each spouse will need in order to maintain a similar standard of living.
The last principle is the principle of compensation is taken into account. This considers if one spouse was in some way hindered by the other – for example, if one stayed at home to raise children while the other pursued a career.
Financial settlements can be hard to get through, and it’s always a good idea to seek legal advice. Settlements put you at risk of losing money and assets that are hard earned. Lessen the risk by choosing to hire legal representation.
For legal advice and to speak to one of our team please call: 0116 2999 199