How to make sure you avoid a post-divorce financial claim
An incredible 40% of divorcing couples are failing to sort out the financial side of separation, according to the latest government statistics.
Out of 30,600 divorces, just 12,500 couples got as far as a financial order leaving 18,000 potentially at risk of their ex making a claim on their assets in the future.
That's why it's so important to remember that the legal ending of a marriage, however friendly, does not end the potential financial claims arising from it.
What exactly is a financial order?
A financial order details how all finances will be divided between you when you divorce. This can include agreements in relation to the sale or transfer of the marital home, ongoing maintenance, the division of pensions and lump sum payments.
A judge in the Family Court can then approve this and once this is done, neither of you - except in rare circumstances - can return to make a financial claim in the future. This is also known as a 'clean break' agreement.
What could happen if we divorce without a financial order?
Even if you are currently on fantastic terms with your ex, there's no guarantee that this will remain the case, especially if one of you does well financially and the other doesn't.
if your relationship deteriorates in the future - for example, your ex has a change of heart or fortune - they could still try to make a financial claim for financial provision or property adjustment.
This could happen many years down the line - even on assets accrued decades after you parted - and there are no time limits.
This could affect:
- Any inheritance you receive in the future;
- Any new-found wealth, for example setting up a successful business venture;
- Any pensions you have.
How do we make sure we you the financial side right?
Since 'no-fault' divorce was introduced this April (2022), there has been a 50% rise in the number of applications with many people opting for the new, DIY online option.
This means it's now possible to handle your divorce yourselves for a fee of £593. However, we can do this for you for a small, fixed fee in most cases.
Taking specialist legal advice at an early stage is always money well spent to ensure that you don't miss anything or make a mistake that could back to haunt you later.
Get in touch
Having an initial meeting with one of our specialist family lawyers can give you clarity on your position and help you decide what to do.
Wards Solicitors has seven family and divorce law legal specialists and 12 offices across Bristol, South Gloucestershire, Bath and North East Somerset and North Somerset.
Click here to book an initial meeting.