Financial Settlements in UK Divorce: What You Need to Know

Financial Settlements in UK Divorce: What You Need to Know

For most divorcing couples, sorting out the finances is harder than the divorce itself. The law gives judges a broad discretion in deciding how assets should be divided.

The Divorce and the Financial Settlement Are Separate

Getting a final divorce order does not sort out your finances. Unless financial claims are formally dismissed by a court order, they remain live indefinitely.

The Section 25 Factors

When deciding how assets should be divided, the court considers the financial resources and financial needs of each party, the standard of living enjoyed during the marriage, the ages of the parties and the duration of the marriage, any physical or mental disability, contributions made by each party including caring for children, conduct in cases where it would be inequitable to disregard it, and the value of any benefit such as a pension that either party will lose.

Pensions: The Most Commonly Overlooked Asset

Pension assets are frequently worth more than the family home, yet they are often given less attention in settlement negotiations. There are three ways to deal with pensions on divorce: pension sharing, pension offsetting, and pension attachment orders.

The Financial Dispute Resolution Hearing

A significant proportion of cases settle at or around the FDR. A barrister who is well prepared for this hearing can make a material difference to the outcome.

This article provides general legal information only. It is not formal legal advice and does not create a solicitor-client or barrister-client relationship. If you need advice specific to your circumstances, please consult a qualified legal professional.