Financial Issues On Divorce
Financial Issues on Divorce East Lothian
How to reach a financial settlement during a divorce depends on many factors, including the number and type of assets you have, if you have financially dependent children and, very importantly, whether you and your spouse can agree on how your money should be split.
No two situations are the same. Our Divorce lawyers will gain an in-depth understanding of your circumstances and work closely with you to negotiate a settlement that protects your finances now and in the future. Do contact us to discuss your needs with our team.
What is Matrimonial Property?
Financial settlements aim to divide all matrimonial property fairly. Matrimonial property is the assets you and your spouse have accumulated throughout your marriage. This can include property, cars, possessions, savings and investments. Anything you owned before you married or bought after you separated, and items gifted or inherited, are not included.
Your lawyer at Paris Steele will help you identify all matrimonial property and advise on how this could be fairly divided, according to the legal rules the court uses when negotiating settlements (covered in more detail below).
How Do I Negotiate a Financial Settlement with my Spouse?
In most cases, an out-of-court settlement is the fairest, least stressful and costly outcome for both parties. We will use negotiation and other dispute resolution techniques to work out all the details and resolve any disagreements.
If you can agree on how your assets should be split and if any one-off or ongoing payments should be made from one spouse to the other, the terms should be set out in a formal agreement. The court will consider this and, as long as it is fair, it will be accepted and your divorce can proceed more straightforwardly.
What if my Spouse and I Cannot Agree?
If you are having real difficulty working out the financial issues during your divorce, you may need to go to court, where decisions will be made for you. In this situation, we would robustly represent your position and interests before the court.
The court will take various factors into account when deciding on the financial aspects of your divorce.
- Fairness – In many cases, this may mean a 50/50 split of the total matrimonial property value, but if that is not considered fair in the circumstances, an unequal division may be ordered.
- Economic advantage and disadvantage – The court will look at whether either spouse has benefited or suffered financially during the marriage.
- Childcare costs – If the couple has children under the age of 16, the court will consider the financial burden on either spouse for their care.
- Adjustment for lack of support – If either spouse is financially dependent on the other, the court can order this support to continue for a certain period of time.
- Financial hardship – The court may instruct that maintenance or a one-off payment is made to one spouse from the other if they will experience significant financial hardship because of the divorce.
