We all can agree on the fact that divorce is truly difficult and an emotional process for any couple out there. However, the most challenging aspect of it is the division of assets and finances. If a separating couple is unable to reach a decision or an agreement on their own, they can follow a certain process to reach the divorce financial settlement. In this blog, we will be exploring the ins and outs of financial settlements in divorce and guide you on how to go through these complex negotiations.
What is a divorce financial settlement?
A divorce financial settlement is a legal agreement between two parties that provides outlines on how their assets and finances will be divided after their divorce. A couple can reach a decision by simply negotiating, with the help of divorce financial settlement solicitors or with Court intervention as the last resort.
Importance of Divorce Financial Settlement
Financial divorce settlement is quite important because it leads to a clear and fair division of assets and finances, making sure that both the parties secured rights and financial future as far as possible.
Divorce financial settlement is a very good way for couples to move on from their marriage and step into new beginnings independently. It provides a legal framework and structured debts, assets and finances between the people involved. By opting for a divorce financial settlement, both the parties can have peace of mind and closure regarding their financial rights after the divorce.
The Clean Break Concept
Eventually the outcome of a divorce financial settlement is a clean break. A clean break refers to a financial settlement where both parties willingly separate their finances and have no financial obligations alongside.
Moreover, it allows both parties to move forward with their lives without any financial ties. This provides a clear resolution to the financial aspects of divorce, without depending on financial support or obligations. However, a clean break is not suggested in cases where children are involved. In such cases spousal maintenance and child support may be considered.
Determination of Divorce Financial Settlement
Determining a financial settlement is a process that completely depends upon the circumstances of the divorce. Sometimes the couple agree to an agreement on their own, while in others, the Court intervenes to make a settlement.
Divorce financial settlement lawyers Negotiation
This process involves both parties and their divorce lawyers negotiating an agreement on how to divide the assets and finances. Using divorce lawyers to negotiate a divorce financial settlement can have multiple benefits:
1. Legal expertise
2. Objective perspective
3. Negotiation skills
4. Documentation and paperwork
5. Mediation and alternative dispute
6. Court representation
Factors Considered in a Divorce Financial Settlement
During the process of financial settlement, the Court will consider a variety of factors to provide a fair and equitable division of assets and finances. The factors are:
- Total time of the marriage
- Health and age of both partners
- The earning potential and income of each party
- The standard of living earlier in marriage
- The contributions of both partners to the marriage (non-financial and financial)
- The needs of children involved (if applicable)
- Existence of post-nuptial and prenuptial agreement
- Existing prenuptial agreements in place
The court’s main objective in a divorce financial settlement is to make sure that there are fair and equitable divisions of finances and assets between both parties.
Moreover, when determining a financial settlement, the court considers all the factors outlined above. For example, if one of the partners has a lower income, the court may award a larger portion of the finances in order to meet their basic needs ensuring to be fair and square. Similarly, if there are children involved in the case, the court will prioritize their financial needs, such as education and healthcare, and then allocate them accordingly.
The needs-based approach is there to provide a reasonable standard of living post-divorce and to ensure that crucial expenses are met. It pretty much helps in achieving a fair and balanced divorce financial settlement that considers certain needs and circumstances of both the parties.
It is an important element of negotiations, to have divorce lawyers, who have the experience to outline your needs for a fair outcome.
Assets included in a financial settlement
There are a wide range of assets, including:
property
- Investments
- Personal belongings
- Debts
- Business interests
Note that all assets, regardless of when they were acquired, are counted as marital property and are subject to division in a divorce.
Are you seeking legal advice for a divorce financial settlement?
It is important to seek legal advice from divorce financial settlement solicitors, which is why you no longer need to search for ‘divorce solicitors near me, as Farani Taylor Solicitors provides you with the best legal advice and focus completely on your rights and a secure future. We have three offices in the UK, so get in touch with us today and let us help you.