Family Law Articles & Advice

If you have separated from your partner or you are mid-way through divorce proceedings, the most important thing to sort out is the childcare arrangements for your children. As parents, you need to decide whether your children will be co-parented, parallel parented, or if one parent will be the primary parent, looking after the children full-time, with the other parent spending time with them. Whatever child care arrangement you choose, a parenting plan can help both parents understand the ground rules and reduce the risk of disputes and court applications for child arrangement orders. For specialist family law advice on parenting plans and child arrangement orders, call Evolve Family Law or complete our online enquiry form.   Children law solicitor, Louise Halford, answers your frequently asked questions on parenting plans: What is a parenting plan? How do I agree on a parenting plan? What should be included in a parenting plan? How do you change a parenting plan?  What is a parenting plan? A parenting plan is a document created by parents to outline the parenting arrangements for a child or children following a separation or divorce. Parents can agree upon a parenting plan, or it can be made after children's court proceedings for a: Child arrangement order. Specific issue order. Prohibited steps order. Relocation order. How do I agree on a parenting plan? There are many ways that parents can agree on a parenting plan. You can use a template and prepare one yourself. Sometimes, that is a bad idea, as ‘going it alone’ may lead to arguing with your ex-partner and polarising your positions. With the help of a children's law solicitor or family mediator, you may be able to discuss child care arrangements and reach a compromise. At Evolve Family Law, our solicitors are committed to helping parents reach an agreement on post-separation parenting arrangements for their children without needing to apply to court for a child arrangement order. We can do this through: Solicitor negotiations. Family mediation with our family law mediator. Family arbitration. Using our amicable divorce one lawyer service. Sometimes, a parent has no choice but to apply to the court for a child arrangement order. For example, if one parent is not able to provide a satisfactory level of care or if they fear the other parent will take the child overseas to live. To understand your options, book a consultation with one of our specialist family law solicitors. What should go into a parenting plan? Every child and family is different, so your parenting plan should be tailored to your individual needs and those of your child. The fact that a family member, a neighbour, or a friend has a parenting plan should not influence what should go into your parenting plan. That is because your parenting plan needs to outline the best agreement for your family, taking into account your family's circumstances and personal preferences. For example, some parents share care of their children, with the children spending an equal amount of time with each parent. Other parents prefer their children to have one home base during the week and to share quality time on weekends and school holidays. Neither option is the ‘best’ or the right one, as so much depends on your family and each parent’s work commitments and the distance between the two homes. Every parenting plan should consider including what has been agreed on, such as: Home base– unless parenting is to be shared equally. Contact or shared parenting arrangements, such as the agreed-upon times for collection and return, drop-off points, and who will do the collections and returns. The practical points on shared care and regular contact, such as the washing and return of school uniforms, the supervision of homework or who is responsible for clothes and shoes shopping or haircuts. Whether phone contact is to take placebetween parent and child, and, if so, the frequency of phone calls so that they do not become too restrictive or intrusive for a parent with the care of a younger child. Special contact(child and parents' birthdays, Mother’s Day, Father’s Day, as well as Christmas and religious observance days) and holidays. Best method of communication between parentsif contact or other arrangements need to be changed. For example, mobile, text or email. Communication may be necessary to cancel a visit or to agree on a coordinated approach to buying birthday presents. Who is responsible for medical and dental appointments, and communication about appointments, or to say if a child is ill or hospitalised. How will you deal with parent evenings at school, or attendance at school plays, or sports days? How will you address the introduction of new partners and their children, and the communication of the information to your ex-partner? This type of information is helpful so that the other parent does not find out about new relationships or remarriage through the child. Whilst you may not want to communicate this type of personal information or receive the news about your ex-partner’s new relationship, a significant reason for child care arrangement breakdown is non-communication over adult issues that also affect your child. Holiday plans– if you plan to go on holiday during your holiday contact time, is it agreed that you need to inform the other parent about your planned trips overseas or to a destination in the UK and give agreed key information such as flight times and numbers and hotel details and who else who will be accompanying the child on holiday. For example, a new partner and their children. Parenting plan changes– how you will agree to make changes to the parenting plan.   You might also be interested in [related_posts] How do you change a parenting plan? Children's wants and needs change over time. What are the appropriate parenting arrangements for a two-year-old who is not in school may be completely different from those for an eleven-year-old. By the time a child is in their teenage years, the arrangements will need to change again. Add to the mix that your circumstances may change with a new job, house, or relationship, and the arrival of additional children or stepchildren. Likewise, your ex-partner’s circumstances are likely to change, necessitating a review of the parenting plan. The fact that a parenting plan needs to be changed should not be a sign of defeat. For example, your five-year-old may struggle to cope with equal co-parenting, even if their cousin or other children in their class can manage it. Some children are just more adaptable than others. Alternatively, a parenting plan may need changing or tweaking because the only reason that a child is struggling with co-parenting or parallel parenting is different parenting regimes in the two households and two parenting styles that are confusing to the child because as soon as a child has got used to one routine they move to their other parent’s home. Agreeing to a change in the parenting plan A parenting plan can be changed by email, or you may prefer a meeting; alternatively, you can set up an annual review to discuss how things are working. The best thing is that if anything about the child care arrangements is ‘bugging you’, you do not let things fester, so they do not become acrimonious or even lead to children's law court proceedings. Instead, it is preferable to agree to review the parenting plan, perhaps with the help of a children's law solicitor or family mediator, before the arrangements break down or positions are polarised. It is also helpful to remember that as children get older, they will want to have a say in the parenting plan. For example, the ten o’clock Saturday contact start time may work for you, but your teenager may want to stay in bed until noon or go out with their mates on a Saturday night. The key point with a parenting plan is that it should evolve with you and your family. Just because something worked in the past doesn’t mean it's necessarily the best approach for your child or your ex-partner now. How can a children's law solicitor at Evolve Family Law help? If you are struggling to agree on child care arrangements after your separation or divorce, or you want to change your parenting plan and your ex-partner is resisting, Evolve Family Law can help you to reach an agreement or secure a child arrangement order. We are North West and Online Children Law Solicitors: For expert family law advice, call us now or complete our online enquiry form.

A Guide to What Assets will be Shared in Divorce Proceedings and how Couples and Their Financial Advisors can Safeguard Family Wealth From Being Shared in Divorce Financial Proceedings Standish v Standish [2025] UKSC 26. On 2 July 2025, the Supreme Court ruled on the classification of assets in divorce financial proceedings, specifically whether matrimonial assets and non-matrimonial assets should be shared when the court makes a financial order. The decision in the Supreme Court case of Standish is important because it emphasises how crucial it is to work with your family law solicitors and financial advisors to ensure family wealth and non-matrimonial property is protected. At Evolve Family Law, our specialist family lawyers can advise you on wealth protection strategies and advise you in financial settlement negotiations and court proceedings. For expert family law advice, call our team of specialist family lawyers or complete our online enquiry form. The Supreme Court decision in Standish v Standish You can read the full court ruling here. Supreme Court rulings in family cases are rare due to the high cost and litigation risk associated with appealing from the original decision to the Court of Appeal and then to the Supreme Court. The decision in Standish radically alters the size of the financial award to Mrs Standish, but it also: Explains how the sharing principle in dividing matrimonial assets should work. Says that the sharing principle does not apply if the asset is a non-matrimonial asset unless it is a needs case. Offers guidance on when a non-matrimonial asset can convert to a matrimonial asset and therefore be subject to the sharing principle. Matrimonial assets and non-matrimonial assets Depending on the extent of your family's wealth, categorising assets into separate pots can be helpful. They are: Matrimonial assets or family assets, and Non-matrimonial assets or non-family assets If all your assets are matrimonial assets, they will be shared with your spouse. The starting point is an equal division of assets, but the court can order a different outcome after considering the factors in Section 23 of the Matrimonial Causes Act 1973. These include the needs of dependent children, the duration of the marriage, and other relevant factors, such as housing requirements and earning capacity. The court will only share an asset classified as a non-matrimonial asset if the sharing of the matrimonial assets does not meet one spouse’s reasonable needs. Ownership and the classification of matrimonial assets and non-matrimonial assets Some people believe that if an asset is jointly owned, it is considered a matrimonial asset, whereas if it is held in a spouse’s sole name, it is deemed a non-matrimonial asset. The law is more complicated than that. The judgment in Standish confirms that matrimonial assets are ‘’the fruits of the marriage’’. However, the fruits do not need to be owned jointly to be classed as marital assets. If a husband and wife cannot agree on whether an asset is a matrimonial asset or a non-matrimonial asset, the court can rule on the issue. This is what the Supreme Court did in the Standish case. Family lawyers recommend the use of prenuptial agreements and postnuptial agreements if you want to reduce the risk of a dispute over whether an asset is a matrimonial asset or a non-matrimonial asset. You might also be interested in [related_posts] How a non-matrimonial asset can convert into a matrimonial asset The Standish case involved an argument that the husband’s non-matrimonial assets had converted into matrimonial assets when he transferred millions to his wife, to enable her to place the funds in a trust as a tax mitigation strategy for the benefit of the children. The money was not placed in a trust, and the wife argued that the transfer of the funds from her husband's sole name into her name converted the money from a non-matrimonial asset to a matrimonial asset. The Supreme Court disagreed. While the Supreme Court said assets could change category by a concept referred to as ‘’Matrimonialisation’’, it had not occurred when Mr Standish transferred funds to his wife. The concept of Matrimonialisation If a non-matrimonial asset is matrimonialised, it becomes a family asset. That’s a crucial transformation as under the family court principles, a matrimonial asset is available for sharing between the husband and wife. The court will start on the premise that all matrimonial assets should be shared equally between the husband and wife, unless there is a reason to depart from this principle of equality. If you have family wealth or are a financial advisor, accountant or tax advisor, you need to understand the Standish principles of matrimonialisation and how to avoid it. In Standish, the Supreme Court said: Matrimonialisation occurs where there is intention by the contributor to share non-marital property, coupled with treatment by the parties of this non-marital property as shared over time. The Standish Matrimonialisation principles can be summarised as: Matrimonialisation will not be applied narrowly or widely by the court. When deciding if a non-matrimonial asset has become a matrimonial asset, what is important is how the husband and wife have dealt with the non-matrimonial assets and whether their course of dealing shows that, over time, the husband and wife have matrimonialised the non-matrimonial asset into a matrimonial asset. If a husband or wife wants a share of a non-matrimonial asset, they need to be able to demonstrate that the other spouse intended to use or treat the assets as matrimonial assets despite their initial treatment as non-matrimonial assets. The longer an asset is shared or treated as shared by spouses, the stronger the evidence that the asset has become a matrimonial asset. Financial lawyers should advise on the proportionality of arguing whether an asset is a matrimonial asset or a non-matrimonial asset, or if a non-family asset has been matrimonialised.   The facts in the case of Mr and Mrs Standish Every family law case is decided on its facts. As every family is different, it is hard to say that a family situation is an exact match to an earlier court decision. In the case of Mr and Mrs Standish, Mr Standish kept his wealth separate from his wife, except for some accounts and a jointly owned family home. In 2017, he transferred £80 million to his wife as part of a tax mitigation strategy. Instead of transferring the assets into a trust, Mrs Standish separated from her husband and started divorce proceedings. She argued in the Supreme Court that the transfer of funds into her name converted her husband's non-matrimonial asset into a matrimonial asset. The Supreme Court disagreed because it held that there was ‘no Matrimonialisation’ of the assets because the transfer was to save tax and was for the benefit of the children not the wife and therefore the money was not being treated by the husband and wife for any period of time as an asset that was shared between them. Accordingly, the wife’s financial award was limited to £25 million, representing her share of the matrimonial assets. Classifying assets as non-matrimonial assets and avoiding Matrimonialisation You may not be as wealthy as Mr. or Mrs Standish, but it is essential to understand how family wealth and pre-marital assets can and should be protected. Here are some examples of where family wealth or pre-marriage assets may require protection: Money inherited from extended family. Parents gifting substantial sums as part of their inheritance tax strategy. Pre-marriage owned family business. Second marriage and a desire to protect family wealth for the benefit of children from a first marriage. Substantial civil compensation damages. Pension fund to which pension contributions were made prior to the relationship. The best way to ensure that there is no dispute over whether a particular asset or account is a matrimonial asset or non-matrimonial asset is to: Sign a prenuptial agreement to categorise specific assets as non-matrimonial assets. Review the prenuptial agreement if circumstances change. Speak to a family law solicitor when wealth or financial planning to ensure that non-matrimonial assets are not being matrimonialised by wealth planning strategies. Sign a postnuptial agreement if you come into unexpected wealth that you want treated as a non-matrimonial asset, such as an inheritance, the gift of money from a parent, the transfer of shares in a multi-generational family business or the release of capital or income from a trust fund. If you have connections to more than one country, as you or your spouse is from overseas, speak to a family lawyer with international family law expertise who can advise on jurisdictional issues and the impact on your prenuptial agreement or postnuptial agreement. Speak to Evolve Family Law At Evolve Family Law, our specialist prenuptial agreement solicitors collaborate with accountants, tax advisors, wealth planners, and trustees to help families understand decisions such as Standish v Standish and how to best plan their financial futures. For expert family law advice, call our team of specialist family lawyers or complete our online enquiry form.    

If you are getting divorced, there are reasons why you need a financial court order, regardless of your current financial circumstances. In this blog, our divorce solicitors explain why you need a financial order, the types of court orders and how to obtain one.  For expert family law advice, call our team of specialist divorce lawyers or complete our online enquiry form. Does a divorce end financial ties between a husband and wife? Initiating divorce proceedings does not sever the financial ties between spouses. When you secure a final divorce order, the marriage is legally at an end, but former spouses can apply for a financial court order. There is no time limit to make a financial claim. That’s why you need a financial court order if you don’t want to risk a financial application years after your separation. The consequences of divorcing without a financial court order Getting divorced without a financial court order increases the risk of future complicated court proceedings to determine the value of assets at the date of separation and to argue about the impact of delay on the size of the financial award. If you divorce without a financial court order, your former spouse could claim a share of your assets even if they bring their claim 5,10 or 20 years after the separation. If your assets could increase in value, it is in your interests to ask the court to make a financial court order when you divorce. Assets that may substantially increase in value include: Pensions, especially if you continue to make pension contributions. Shares in a family business. Equity in the family home or other property. These assets can be considered by the court even if they are owned in one spouse’s sole name. Although the court considers delay when determining what constitutes a fair financial settlement, it also takes into account the individual's needs. If there is a small amount of equity in the family home at the date of separation, and you have a pension with a nominal value, that may not be the case in ten years. Alternatively, your former spouse may have had a well-paid job at the date of separation, but five years later, is unable to work due to ill health. Do separation agreements end financial ties between husband and wife? Some couples sign a separation agreement when they split up. The agreement may or may not end financial ties – it depends on what was negotiated at the time of separation. Family lawyers always recommend that a separation agreement is converted into a binding financial consent order. This can be achieved through a consent application. There is no need to attend a court hearing to obtain a consent order. Does a prenuptial agreement stop financial ties between husband and wife? If you signed a prenuptial agreement before your marriage, or a postnuptial agreement after your marriage, you may think you don’t need a financial consent order because your family agreement prevents or limits financial claims. You still need a financial consent order, even if you have an existing family agreement in place. A prenuptial or postnuptial agreement is not legally binding in the UK. It can carry significant weight if safeguards were put in place when it was prepared, and it meets the reasonable needs of your spouse. Ideally, a spouse will agree to convert the terms of the agreement into a binding financial consent order. If they won't do that, it is better to ask the court to make a financial court order in the same terms as the prenuptial or postnuptial agreement, rather than wait and face a financial application by your former spouse at a date chosen by them. For example, when the value of your investments or the shares in a family business has quadrupled in value in ten years. Does death end financial ties between a former husband and wife? The death of a former spouse does not end potential financial claims unless there is a financial court order that says explicitly that all claims are over. Without this type of order, a surviving former spouse can claim a share of the deceased spouse’s estate. This can be complicated and awkward in situations where the deceased spouse had children or had remarried. When you separate or divorce, you also need to review the provisions in your Will and take advice from a Will solicitor on how to avoid a claim against your estate. [related_posts] Does a financial consent order end financial ties between a husband and wife? Whether a financial consent order ends financial ties and stops future financial claims by an ex-husband or wife depends on its contents. There are three types of financial consent orders: Clean break – ending financial ties and claims. Deferred clean break – ending financial ties at a specified future date. Non-clean break. You may question why you should accept a financial consent order that only gives you a deferred clean break or no clean break. Your divorce solicitors will negotiate the best financial settlement possible for you. In your situation, that may involve you paying or receiving spousal maintenance for life or on a time-limited basis. Lawyers and courts always strive to achieve a clean break to provide finality and avoid further court proceedings to increase or terminate spousal maintenance or to capitalise spousal maintenance. This may not be possible where there is a significant income disparity between the husband and wife, justifying the payment of spousal maintenance, but with limited equity in the family home, nominal savings, or small pension funds. Where there are substantial family assets, the spouse with the reduced income can accept more of the capital assets (such as the equity in the family home) in consideration for giving up spousal maintenance claims and agreeing to a financial clean break order. What is a clean break financial order? A full clean break financial court order prevents all future financial claims. A clean break means there is no risk that a former spouse will ask a family judge for more because your financial situation has improved unexpectedly or theirs has worsened. The only exception to this rule is if the financial court order was made without providing complete and frank financial disclosure. For example, saying your business was worth 3 million when you had received an offer for 30 million. In some family situations, it isn’t possible to end financial ties either immediately or in the long term. For example: To provide a home for the children, the family home will remain in joint names until the children have finished school or reached the age of 18. Financial ties will be severed when the family home is sold. If there was a long marriage with substantial income disparity and insufficient capital to buy off the spousal maintenance claim, spousal maintenance may be ordered for the life of the receiving ex-spouse or until their remarriage. What is a deferred clean break financial order? A deferred capital clean break ends financial claims when an event occurs, such as the sale of the jointly owned family home. A deferred income clean break provides an immediate capital clean break, so a spouse cannot request additional funds, such as money from the family home or a larger percentage of a pension. However, the order maintains income ties until, for example, spousal maintenance payments cease. The court order could stipulate that spousal maintenance payments will cease after three years, with the clean break taking effect automatically upon completion of this period, as the court ruled that the spouse receiving spousal maintenance is not entitled to apply for an extension of the maintenance period. Is a financial consent order worthwhile if it does not contain a clean break? It may be impossible to obtain a clean break financial consent order due to your personal or financial circumstances. A financial consent order without an immediate clean break leaves you at risk of further court proceedings. For example, an application to increase spousal maintenance or to capitalise the spousal maintenance payments. However, if you do not have a financial court order, you are at risk of your spouse asking for an order that they get a share of your capital assets. These could include the equity in the property you own, shares in a listed company, your family business, or your pension. Therefore, whilst a deferred clean break financial consent order or a non-clean break financial consent order is not ideal, it is infinitely better than having no financial order. How to end financial ties with an ex-husband or wife To end financial ties with a former spouse, you need a clean break financial court order. If you cannot achieve this, it is still preferable to obtain a financial court order, even if it leaves open the potential for an ex-spouse to make a further court application. Take the example of a restaurant diner. Without a financial court order, the diner can request a three-course meal. With a non-clean break order, the diner may be limited to ordering dessert or after-dinner drinks. How to obtain a financial court order Most financial court orders are obtained by agreement. The court approves a draft order submitted by family law solicitors. There is no need to attend a court hearing. There are several ways you can reach a financial settlement, including: Solicitor negotiations. One lawyer divorce. Family mediation. Family arbitration. If you cannot reach an agreement, either of you can apply to the court for a financial court order. The court will order financial disclosure, and after a series of court hearings, it will hear evidence and make a financial court order to divide the assets. Our divorce solicitors can help you obtain a no-fault divorce and reach an agreed financial settlement or convert an agreement reached in family mediation into a binding court order. If you can't reach an agreement, our financial lawyers can represent you in a financial application to help you achieve a financial court order that meets your needs.   For expert family law advice, call our team of specialist divorce lawyers or complete our online enquiry form.

Couples struggling to achieve parenthood can look to international surrogacy to achieve their dream. Our family lawyers advise on international surrogacy arrangements, provide preliminary advice on matters to consider before embarking on international surrogacy, and represent parents in parental order applications. Call Evolve Family Law or complete our online enquiry form for international surrogacy advice. International surrogacy and the law Under UK law, a surrogate mother is the legal mother of a child born through surrogacy. That is the case even where there is a genetic link between the baby and the intended mother or father. This UK law applies even if the baby is born through international surrogacy. International surrogacy can throw up complicated family law issues as well as immigration and nationality issues for the baby. However, many families still opt to use international surrogacy because: The availability of overseas surrogates compared to the UK. Heritage reasons, as one or both parents originated from the surrogate's country of birth. Intended parents don’t realise how complicated international surrogacy and immigration law is. Often, intended parents choose international surrogacy for a combination of all three reasons. At Evolve Family Law, our specialist surrogacy solicitors provide expert international surrogacy advice so parents have a clearer understanding of the legal requirements and the timescale to return to the UK with their child. International surrogacy contracts In the UK, surrogacy arrangements are not enforceable as a contract between the surrogate mother and the intended parents. Different laws apply to surrogacy agreements in other countries. However, even if a surrogacy agreement is legally enforceable in the country where the surrogate mother lives, the intended parents cannot bring court proceedings to enforce it in the UK. International surrogacy and immigration     If a child is born to a surrogate mother who is not a British citizen, then complex surrogacy and immigration law will determine the nationality of the child. Those rules will also determine if and how the child can enter the UK. The child’s nationality and immigration status may depend on whether the intended father is genetically linked to the child and whether the surrogate mother is legally married or not. If you are contemplating international surrogacy, it is vital that you take expert legal advice from children and surrogacy law solicitors, as well as advice from immigration law experts. [related_posts] International surrogacy and parental orders Under UK children law, a child born to a surrogate mother is the legal child of the surrogate mother. Intended parents can apply to the family court for a parental order. This order extinguishes the legal rights of the surrogate mother and makes the intended parents the child’s legal parents. Once the parental order is made, the intended parents have parental responsibility for the child. Requirements for a parental order The Human Fertilisation & Embryology Act 2008 sets out the requirements for a parental order: The child must be carried by a surrogate who is not an intended parent. The surrogate (and her spouse, where relevant) must consent to the order. The consent must be unconditional and given at least six weeks after the child’s birth. The surrogate can only have received reasonable expenses for acting as a surrogate. At least one of the intended parents must have a genetic link to the child. The parental order applicants must be at least 18 years old. The application must be made within six months of the child’s birth. The child must have a home with the applicants at the time of the parental order application. One or both applicants must be UK domiciled. The law now says that applicants for a parental order can be single or couples. Joint applicants must be married, in a civil partnership, or in an enduring family relationship. The court defines enduring relationships broadly. Questions about parental order requirements Many intended parents have questions about the parental order requirements, such as: Can I be domiciled in the UK if I am not a British citizen? Can I apply for a parental order in the UK if I have Indefinite Leave to Remain or settled status under the EU Settlement Scheme? Can parental consent be dispensed with? When is a surrogate mother’s spouse’s consent required for the making of a parental order? What does the child having a home with the parental order applicants mean? How does that apply to situations where the baby has been living overseas and is awaiting UK entry clearance? What happens if the baby is over six months old at the parental order application date? What are reasonable expenses for a surrogate? What happens if the court thinks the payments made to the surrogate were excessive? Our UK surrogacy lawyers can answer your questions on surrogacy law and parental order requirements. Although the Act sets out the requirements, our family solicitors' advice is based on extensive caselaw, where family judges have widely interpreted the meaning of a home or enduring family relationship or dispensed with the requirement that the baby must be under the age of six months at the date of the application. Reasonable expenses have also been the subject of judicial caselaw. Expenses can include loss of earnings during the surrogate’s pregnancy, medical costs, pregnancy-related purchases, and expenditures related to the pregnancy, such as extra travel or dietary costs. Call Evolve Family Law or complete our online enquiry form for international surrogacy advice. Special considerations in international surrogacy arrangements There have been several parental order applications that have come before the court, where it has been evident to the family judge that the applicants had not taken expert advice before going ahead with the surrogacy arrangement. This led to all sorts of complexities with surrogacy law in the overseas country, the nationality of the baby, entry clearance and British nationality for the child, as well as the process taking substantially longer and being more complicated than the intended parents had contemplated. Concerns about intended parents not realising what they are getting themselves into have led to judges in three court cases drawing up a list of things for intended parents to consider when contemplating international surrogacy. The fact that the list now runs to 21 points emphasises how many issues there are for intended parents to consider when contemplating international surrogacy. The simplified 21 points from the three court cases are: What is the relevant legal framework in the country where the surrogacy arrangement is due to take place and where the child is to be born? Is surrogacy legal in the overseas country? When the child is born, will the intended parents be recognised as parents in the overseas country? Is that through the law in the country, or will the intended parents need to take legal steps before or after the child's birth? What is the surrogate mother’s legal status to the child at birth? If the surrogate is married at the time of the embryo transfer and/or when the child is born, what is her spouse’s legal status in relation to the child? If an agency is involved, what role will it play in matching the surrogate with the intended parents? What information, preparation or support has the surrogate had about the proposed surrogacy arrangement? Does the surrogate speak or read English? If not, what arrangements are in place to enable her to understand the surrogacy agreement? Will the intended parents and the surrogate have contact before deciding whether to proceed with a surrogacy arrangement? When will the agreement between the intended parents and surrogate be made, before or after the embryo transfer, and what are the reasons for it being at that time? What arrangements are proposed for contact between the intended parents and the surrogate during the pregnancy and/or after the birth? Which jurisdiction will the embryo transfer occur in, and which jurisdiction will the surrogate live in during pregnancy? Can the jurisdiction where the child is to be born be changed at any stage? If so, by whom and in what circumstances? What nationality will the child have at birth? What steps will need to be taken for the child to travel to the UK? What travel paperwork will be required, and how long will it take to get it? Do the intended parents need immigration advice on getting UK entry clearance for the child so the baby can enter the UK? What is the child’s immigration status after arriving in the UK? Will the intended parents keep a diary of chronological events and relevant documents to help with the parental order application and provide information about the child’s background and identity? Will discussions need to take place with departments such as the Home Department (HD), Department of Education (DfE) and/or Department of Health and Social Care (DHSC)? If proceedings are issued in the family court, should the HD, DfE, and/or DHSC be added as a party to the parental order application? What estate planning steps have been taken by the intended parents (before and after a parental order is made) regarding the child's future welfare? What steps have been taken by the intended parents regarding future care and financial arrangements for the child in the event of the incapacity of one (or both) of the intended parents? What steps have been taken by the intended parents in respect of future care and financial arrangements for the child in the event of the death of one (or both) of the intended parents? You may think that the final three questions about international surrogacy jar with the first 18 questions. That’s because those final three points were raised in the case of K & Anor v Z & Anor [2025], where estate planning and the child’s future care were welfare issues for consideration as the applicants were 72 years of age when applying for a parental order following a Californian surrogacy arrangement. If you want to read all three court cases and the full judicial wording of the 21 issues for consideration, the court cases are: Re Z (Foreign Surrogacy) [2024] EWFC 304 and Re Z (Unlawful Foreign Surrogacy: Adoption) [2025] EWHC 339 (Fam) K & Anor v Z & Anor [2025] EWHC 927 (Fam) (16 April 2025) Evolve Family Law Evolve Family Law is a niche firm of family law solicitors with substantial expertise in children and surrogacy law. If you are contemplating a surrogacy arrangement, either in the UK or abroad, our experts can advise you on your options and help you apply for a parental order. Call Evolve Family Law or complete our online enquiry form for international surrogacy advice.

It’s bad enough to separate or divorce, but even harder to go through a shareholder dispute as well. Northwest divorce lawyers recognise that if you are in business with your husband or wife, you may face a shareholder dispute and financial proceedings over your divorce settlement. In this article, financial solicitor Robin Charrot answers your questions on shareholder disputes with your former partner during divorce proceedings. Robin can help you reach a financial agreement over how your family assets are divided and specialises in financial settlements involving family businesses. For expert family law advice, call our team of specialist divorce lawyers or complete our online enquiry form. Your frequently asked questions on family businesses in financial  proceedings Whether you own shares in a family business, jointly operate the business with your spouse, or rely on the income generated from the business without playing a part in it, you will have questions about the business if you and your spouse separate, such as: Are business assets relevant to divorce proceedings? What happens if business assets are not disclosed in financial proceedings? What happens when spouses are shareholders in a family business? Can a divorced couple agree to continue in business together? Can I ringfence business assets so they are irrelevant in divorce proceedings? Role of a shareholder agreement in divorce proceedings Valuing a business in a shareholder dispute or divorce proceedings At Evolve Family Law, our family lawyers have acted for spouses in a wide range of financial proceedings involving family businesses, from start-ups to multi-generational firms. We have the experience to help you whether you are the majority shareholder, minority shareholder,  employed by the business, or not involved in the company. Financial settlements involving a family business can be complicated as they raise complex issues, such as whether the business is a family asset, how it is valued or whether its current income stream is maintainable. Our legal experts have the expertise to guide you through financial proceedings involving a family business with all the complicating corporate, employment, and tax issues. Are business assets relevant to divorce proceedings? Business assets are potentially relevant to a financial settlement. They must therefore be disclosed in your financial disclosure. The rules on financial disclosure of business assets in divorce apply to all types of businesses, including: Companies Partnerships Limited liability partnerships. Sole traders. If you own shares in a family business, are a partner in a partnership or LLP or are a sole trader, you must disclose your business interests as part of your financial disclosure. Your finance solicitor can then make the case for you to say that your business is irrelevant to the financial settlement and its value should be ignored. Arguing that a business is not a family asset can be based on these arguments: Your prenuptial agreement said the value of your business would be ignored in any financial settlement. The marriage was of very short duration. You inherited, purchased, or developed the business before marriage. Your spouse signed a postnuptial agreement that said the business would not be considered in the financial settlement. Shares are held in a discretionary trust, and you are one of several beneficiaries. Whatever argument your divorce solicitor recommends is put forward on your behalf, providing complete and frank financial disclosure of all personal and business assets is crucial. A finance lawyer will prepare your Form E financial disclosure and advise on how best to present your disclosure and your best case to argue that your business should be ring-fenced and excluded from the negotiated financial settlement or financial court order. What happens if business assets are not disclosed in financial proceedings? You need to disclose your business assets, whether you are involved in financial court proceedings or negotiating a settlement through: Direct discussions with your spouse. Solicitor negotiations. Roundtable meeting. Family mediation. Family arbitration. If you do not disclose business assets and they are discovered after a financial court order is made by agreement or after a court hearing, your spouse can ask the court to reopen the case and award them a share of the business assets or more of the non-business assets. Failure to disclose or inadequate financial disclosure leaves you open to: Risk of further court proceedings. Costs orders. Ending up paying your former spouse more than they would have been given at the final hearing of a financial application. For example, if the business substantially increases in value after the conclusion of the divorce proceedings. If your spouse or their divorce lawyer discovers the existence of a business or other asset during the court-imposed financial disclosure process, this can lead to: Your spouse asking the court to order additional financial disclosure. The extra disclosure may not have been ordered if you had not raised suspicion by failing to provide financial disclosure. Your spouse asking the court to order that a forensic accountant be instructed to forensically consider the accounts and advise on a business valuation and liquidity. Your spouse asking the court to draw inferences about your honesty because of your business non-disclosure. Your spouse asking the court to order that a third party, such as the company or the trustees of a discretionary trust, be joined as an intervenor in the proceedings. What happens when spouses are shareholders in a family business? Divorce financial settlement solicitors say family law trumps company or corporate law because even if your husband or wife owns a 50% shareholding in the company, the family court can order the sale or transfer of shares in the financial proceedings. Working in the same business environment can be particularly tough if you are getting divorced. It’s best to keep business and private stuff separate, if possible, so the business isn’t affected by your separation. It’s unlikely to be in either of your interests for the business to suffer if you struggle to work together until a financial settlement is reached. [related_posts] Can a divorced couple agree to continue in business together? A divorcing couple can decide to remain in business together after their divorce. The marriage may have ended, but you may be good business partners. To reduce the risk of conflict and litigation (either family or corporate), you need: A financial court order in financial proceedings. A shareholder agreement if your business is a company. A partnership or LLP agreement if you are in business as a partnership. You should not rely on pre-separation corporate documents, as changes may be necessary. For example: A new dividend policy so your former spouse cannot stop your dividend income unless clearly defined circumstances are met. A new shareholder agreement to set out revised share voting or other rights. These documents can ensure the success of your future business relationship with your former spouse. For example, the agreement could say that if your spouse remains employed by the company as the managing director, he cannot, as the majority shareholder, increase his salary from £60,000 to £200,000. The effect of this salary decision could change the amount of dividend income you receive. Can I ringfence business assets so they are irrelevant in divorce proceedings? You can try to ringfence your business assets so they are irrelevant to the financial proceedings by signing a prenuptial or postnuptial agreement. The weight given to this type of family agreement will depend on a variety of factors, including whether: There was financial disclosure of the business as part of the prenuptial or postnuptial agreement process. Your spouse’s reasonable needs can be met through a financial settlement from the available family assets. For example, suppose the family assets are 12 million, and your spouse says their reasonable needs are 7 million after a short, childless, high-net-worth marriage. In that case, you can argue that your business assets, with an additional value of 15 million, should be ringfenced and ignored. Why? Even if the court agrees that your spouse needs 7 million, the money can be found from the available family assets that have been valued at 12 million. Role of a shareholder agreement in divorce proceedings If you divorce, your shareholder agreement may say your husband or wife must transfer their shares to you for £1. That does not mean your spouse will not get a fair financial settlement or a proportion of the family business. If you want to protect your business after marriage, you need a postnuptial agreement consistent with your shareholder agreement's wording.  If you are unmarried but plan to do so, you need a prenuptial agreement. Our prenuptial agreement and postnuptial agreement lawyers can work with your corporate solicitors and business advisors to ensure that the family agreement tries to ringfence your business assets and is consistent with your new shareholder agreement. Valuing a business in a shareholder dispute or divorce proceedings Valuing a business in a shareholder dispute or financial proceedings usually involves the instruction of a forensic accountant. The accountant is typically asked to consider: The value of your shareholding or partnership. The net value after the tax implications of a sale or transfer. The potential income stream if you continue holding business shares. The fact that a family court orders a business valuation doesn’t mean that the court will order the sale of the business. In most cases, the court will want to know the net value of the shareholding so it has an idea of the total extent of the family assets and any non-family assets. The court can then use that information to make a financial court order after weighing all the statutory factors to reach what the court considers a fair financial settlement. Contact Evolve Family Law for expert family law advice.

When you are divorcing and you or your spouse runs a business or has shares in a family firm, you need to know if the business is relevant to the divorce settlement and how it will be valued. Our North West divorce solicitors specialise in negotiating financial settlements where one or both spouses own a family business. In this blog, we answer your questions on business assets in divorce proceedings and how you value company shares in divorce. For expert family law advice, call our team of specialist divorce lawyers or complete our online enquiry form. Your frequently asked questions on business assets in divorce proceedings   Divorcing couples ask these questions when they or their spouse has business assets: Can the divorce court decide what happens to a business? Will company law and the shareholder agreement determine what happens to the shares in a family business? Are business assets relevant to divorce proceedings? How are businesses valued in divorce proceedings? Can the company accountant value the business in divorce proceedings? Is the book value of a business an acceptable valuation of a business asset in divorce proceedings? How are minority interests in family companies valued in divorce proceedings? What is the relevant date to value a company shareholding? Can a shareholder in a family business be forced to sell their shares as part of a financial court order? What happens to a family business when both spouses are shareholders in a family business?  At Evolve Family Law, our family lawyers can answer all your business-related financial settlement questions, whether you own a family business or are married to someone who is either a sole trader, in partnership or a majority or minority shareholder in a family business. Can the divorce court decide what happens to a business? The divorce court can decide what happens to business assets in a divorce. The court will consider: Is the business a family asset? What is the value of the business? What is a fair financial settlement? If the spouse’s shareholding is not classed as a family asset, the court will only include it in the financial court order if necessary to meet the needs of a spouse. If a spouse’s reasonable needs can be met without reference to the business asset, its value will be ignored. In divorce proceedings concerning a family business, the judge can order: The spouse who owns the business asset retains it as part of their share of the family wealth. The shares in a family company are sold, and the sale proceeds are divided in the proportions ordered by the judge. The shares in the family company are transferred from one spouse to the other.  If one spouse is the only one actively involved in the family business, the court will normally order that the spouse retain ownership of their shares. However, the other spouse may receive all the equity in the family home, a lump sum payment, spousal maintenance, or a combination of these. If one spouse is a minority shareholder and the other a majority shareholder, the court may order the minority shareholder to transfer their shares in the company to their spouse. If the divorcing couple can still work together in the business and want to continue joint ownership, the court could leave both spouses with shares in the company. This scenario is unusual unless the couple asks the divorce court to make an agreed financial consent order. Will company law and the shareholder agreement determine what happens to the shares in a family business? Spouses sometimes assume that the divorce court lacks jurisdiction to decide what happens to a business in divorce proceedings. For example, if a husband and wife are the major and minor shareholders in a company and are in a shareholder dispute. Logically, you would assume that the dispute is a matter of corporate law. It is and it isn't. If one spouse starts proceedings in the commercial court under the Companies Act 2006, the judge has jurisdiction to resolve the corporate dispute.  However, if the husband or wife initiates financial proceedings because they cannot reach a divorce settlement, the family court has wide-ranging discretion to make orders, including orders over business assets. Therefore, it wastes time and money for a shareholder dispute between a divorcing husband and wife to be litigated first in the commercial court using corporate law principles when the family court can decide how to divide assets, including the business, using the principles contained in Section 25 of the Matrimonial Causes Act 1973. Are business assets relevant to divorce proceedings? Business assets are relevant to divorce proceedings. The judge will decide if they are: A matrimonial or family asset, or A non-matrimonial or non-family asset. If deemed a family asset, the business is relevant to the divorce settlement. If it is classed as a non-matrimonial asset, its value could be considered if it is necessary to do so to meet the reasonable needs of the spouse who does not own the business. How are businesses valued in divorce proceedings? Business assets must be disclosed as part of the Form E financial disclosure process. In Form E, a spouse is asked to value their business and other assets. The other spouse may agree on the valuation. If so, an accountant doesn’t need to carry out a valuation. A business valuation may be agreed in scenarios such as: The spouse works freelance and their earnings are paid into their company account. There are no valuable business assets and no goodwill value. The business is valued at the amount of cash in the bank. The husband and wife are shareholders in a company, and an offer for purchase has been accepted from a third party unconnected to either spouse. In other situations, the court may be asked to order an independent valuation of a sole trader's business, a partnership interest, or a company shareholding. The court typically orders the instruction of a forensic joint accountant as a single joint expert. Both parties instruct the expert and agree to the terms of the letter of instruction. The court will typically specify the scope of the expert's report, for example, whether the expert is to assess company liquidity in addition to providing a valuation. Can the company accountant value the business in divorce proceedings? A company accountant can provide the Form E value for the business. If additional information is necessary, the court may be persuaded that a detailed valuation by the company accountant is more appropriate than the instruction of a forensic accountant with no prior knowledge of the business. The approach taken by the court will depend on the size and structure of the company, as well as the representations made on behalf of both spouses. For example, one spouse may claim that the majority shareholder heavily influences the company's accountants. You might also be interested in [relate_posts] Is the book value of a business an acceptable valuation of a business asset in divorce proceedings? The book value of a business can be an acceptable valuation for certain types of small businesses, such as a company set up by a freelancer to channel their income through, and the business has no goodwill value or significant assets. A divorce solicitor can explain the valuation options and why you may need a more detailed valuation of your spouse’s shareholding or partnership interest. How are minority interests in family companies valued in divorce proceedings? If a spouse is a minority shareholder in a family business, special consideration needs to be given to the value of the shares. The shares may not be attractive to a third party, who would be buying shares in a business where they have no control or power to veto.  The professional conducting the valuation will generally apply a discount to a minority shareholding, depending on the percentage shareholding and the degree of control, if any, the minority shareholder has. The value of a minority shareholding should be examined carefully. For example, minority shareholding may not be heavily discounted in a company with significant cash reserves. What is the relevant date to value a company shareholding? Sometimes, spouses and their lawyers argue about the date to be used for valuing the shares in a company, as the fairness of the financial settlement may depend on the valuation date. For example, a forensic accountant may be asked to value company shares at: The date of separation, and The date of cohabitation or marriage, and The date the company shares were transferred or gifted to a husband or wife. The importance of business asset valuation dates was explored in the Court of Appeal case of Martin v Martin (Rev 1) [2018] EWCA Civ 2866. The Martin case illustrates the complexity of valuing shares in a non-listed company. A high court judge awarded Mrs Martin 40% of the 182 million family fortune. Mrs Martin appealed, saying she should have got 50%. Mr Martin counter-appealed, arguing that his ex-wife should have received less than 40% of the assets. The crux of the appeal was the relevance of the value of Mr Martin's shares when the couple began to live together. The court concluded that it was fair to assess the value of the shares at the date of cohabitation and, therefore, ringfence the value of the husband's pre-marriage-acquired shares. This resulted in Mrs Martin receiving 40% rather than an equal division of the family assets. The court said that a financial settlement ‘’ involves a holistic, necessarily retrospective, appraisal of all the facts and then the application of a subjective conception of fairness, overlaid by a legal analysis.’’ That subjective approach makes it even more critical for spouses to seek early specialist legal advice from divorce solicitors experienced in divorces involving family businesses and in assessing what a court is likely to determine as a fair financial settlement. Consult Evolve Family Law for advice on divorce and business assets The specialist divorce lawyers, led by Robin Charrot, have substantial experience representing spouses, civil partners, business owners and non-business owners in financial proceedings involving businesses ranging from SMEs to listed companies. With many years of experience advising on business assets in divorce, our team is well-equipped to hone in on the key aspects. That could be tracing vital financial disclosure, analysing company accounts or instructing a shadow accountant to assess the relevance of the transfer of business assets into a SIPP pension and leaseback at an overvalue to the company, impacting company profitability at the time of the divorce proceedings, or spotting unusual movements or discrepancies in director loan accounts. Alternatively, when acting for a majority shareholder, it could be robustly arguing against fishing expeditions for excessive financial disclosure or arguing for the instruction of the single joint expert to be limited to current issues rather than their remit extending to a historical trawl of company transactions. At Evolve, we combine expertise with a personal touch, providing strategic advice tailored to your family and business circumstances, as well as robust court representation. For expert family law advice, call our team of specialist divorce lawyers or complete our online enquiry form.

Our North West divorce solicitors can help you cope with your divorce and advise you on the legal issues that come with a separation. In this article, we look at divorce coping strategies. Contact our specialist family lawyers for a consultation on your separation. The challenges faced with a separation or divorce Divorce not only presents emotional challenges but also financial and practical ones. They can be hard to deal with when your emotions are all over the place or you are struggling to cope with your child's or your parents’ reaction to your decision to separate and start divorce proceedings. Some divorce challenges are: Coping with the emotions of a separation when your ex-partner announces the relationship is over, having spent months planning their exit and then wondering why you aren’t coping as well as they are. Children viewing things very rigidly, thinking you are to blame for them not seeing Dad and not realising why staying together as a couple is not tenable. Worrying about parenting arrangements and whether you will get to see the children. Concern about how finances will work post-separation, as you jointly agreed that you would be a stay-at-home parent, and your career prospects have suffered. Feeling brow-beaten about matters such as agreeing to put the family home up for sale when you need time to acclimatise to the news that your spouse wants to end the marriage. Facing the challenges of divorce Government statistics show us that you are not alone in having to cope with the traumas involved in separation and divorce. In 2024 alone, 108,657 divorce applications were made, and 105,449 final divorce orders were granted. These figures come from the Family Court Statistics Quarterly: October to December 2024, updated in April 2025. Strategies to cope with divorce Coping with divorce involves finding strategies that work for you and your family. We have compiled tips gathered over the 30-plus years that some of our divorce lawyers have been advising separating couples. It isn’t a case of following the list and you will cope – some may not be appropriate for you or your family, and others may need to be tweaked to fit your situation. Here are the top ten Evolve Family Law strategies to cope with divorce: Tell people what’s happening; they can't help unless they know. Don’t be wary of getting professional or medical help if needed. Telling your employer that you are getting divorced isn't necessarily a bad thing. Don’t focus so much on what your children need that there is nothing left in the tank to help you cope. Talk to a divorce solicitor to understand your rights and options, but don’t feel pressurised into starting divorce proceedings until you are ready to do so. Get organised so you know what you need to do. Prioritise the crucial bits, like your safety, rather than attempting to do everything at once. Take your own counsel and don’t be influenced by what friends and family think you should do. Reflect on what you and your children need and want rather than rushing into decision-making. Reality test your post-separation plans. [related_posts] Tell people what's happening If you split up and your ex leaves the family home, the children may act up, and you may no longer have help from your ex-partner with child care. School may be able to support the children, and friends and family can rally round if you tell people what is happening. Get medical help Whether it is a referral for counselling as a family, couple or solo, or a short dose of medication, medical help is not something to avoid as it can help you as a family or as an individual cope with the separation and its aftermath. Talk to your employer. An employer may be worried that you are planning to leave because your performance has dipped, but if you explain your change in circumstances, they may be more understanding of the reasons why you are temporarily struggling to concentrate at work or agree to requests for flexible working. Focus on your needs as well as the needs of your children Dealing with your child’s emotions or sorting out the practical aspects of your separation can leave you with little or no time to grieve the loss of your relationship and the implications for you. Moving to life as a single parent is a significant life change, even if friends and family are supportive, so you need to factor in some ‘me time’ for yourself. Consult a divorce solicitor. Talking to a divorce solicitor in an initial consultation does not commit you to proceeding with divorce proceedings, but it will give you an idea of your rights and obligations as well as your options. For example, even if your name isn't on the title deeds to the family home, a divorce lawyer is likely to recommend that you stay at the property while they negotiate a financial settlement for you. Get organised A family lawyer will explain the paperwork you need to obtain to help them advise you on the type of financial settlement to expect. For example, they will need details of all previous employers and personal pension schemes. The important bits The aspects of your separation that require prioritisation will depend on your circumstances. Ideally, you will be able to start no-fault divorce proceedings using our one-lawyer amicable divorce service. However, you may need urgent injunction advice to keep you safe or a prohibited steps order to protect your children from being taken overseas by their other parent. Take your own counsel Friends and family can be great at getting you through the traumatic early days of your separation, but remember that your views are important when it comes to matters such as whether you should try to stay in the family home or agree to co-parenting arrangements that broadly suit your needs and those of your children. Reflect rather than rush It is possible to have such a thing as a good divorce. Basically, that’s a divorce where you work together to sort out child parenting arrangements and the practical aspects of your separation, such as whether your ex will continue to pay the mortgage if they rent while the property is on the market. Taking a measured approach to negotiations can help you navigate a financial settlement without asking a judge to make a child arrangement order or a contested financial court order. Reality testing You may be sure that you want the children to have alternate weekend contact or want to stay in the family home, but it's best to spend the time to reality test your plans. For example, with limited co-parenting, most of the childcare will fall to you, limiting your work options. Child maintenance rules may not provide the financial support you need if your priority is to stay in the family home rather than downsize. Looking critically at the potential for mortgage rates to rise and outgoings to increase, is staying at the family home a viable option? Divorce support from a North West divorce lawyer Coping with divorce can be made easier with the right help and support. That can be provided through a combination of friends and family and professionals such as therapists, your doctor or your divorce solicitor to help you navigate the emotional, practical and legal aspects of your separation and divorce. Contact our specialist family lawyers for a consultation on your separation. Evolve Family Law offices are in Whitefield, North Manchester, and Holmes Chapel, Cheshire, but we also offer remote meetings by appointment via video call or telephone.  

If a member of the extended family gives money to a husband or wife during their relationship, the money is undoubtedly very welcome at the time of the gift or loan. When a couple splits up, family gifts or loans can complicate things. There may be a dispute over whether the money was a gift or a loan and how the gift or loan should be treated in the divorce and financial proceedings. Our North West divorce solicitors provide specialist advice on the treatment of loans in divorce and financial proceedings. Contact our specialist family lawyers for a consultation on your divorce and financial settlement. What is a family loan in divorce financial proceedings? A family loan is typically an informal loan between a family member and one of the divorcing spouses. It could be verbal or written, but if it is written, it could have been prepared without the benefit of legal advice, and the terms of the agreement may not be clearly defined. Often, the spouse who received money from their side of the family will say it was a loan, while the other spouse will say it was a gift. If agreement cannot be reached on whether the money received was a loan or a gift, the family court can be asked to decide the issue in financial proceedings brought by either the husband or the wife. The person who lent the money can also apply to intervene in the financial proceedings so they can make their case and have legal representation. If the court says the money is a hard loan, it will affect the asset pot available to be distributed between the husband and wife. The size of a loan and its classification could substantially impact the financial court order. In this sequence, the court must decide: Was the family money a gift or a loan? If it was a loan, was it a hard loan or a soft loan? In light of the court's finding on the loan status, what is the extent of the family assets available for distribution by the judge? What is a fair financial settlement for the husband and wife? Family loans and reaching a financial settlement in mediation If you are trying to reach a financial agreement in mediation, you may need specialist legal advice on complex points, such as: Whether the court would be likely to say a loan was hard or soft, and the impact on the financial settlement. The value of complicated assets, such as pensions or shares in a family business. The relevance of specific factors, such as pre-marriage owned property, gifts or inheritances. Family law solicitors can advise you on specific queries to help you reach an agreement in mediation and can provide mediation support to help you convert your mediated agreement into a binding financial court order. Family loans in financial proceedings In divorce financial proceedings, there can be disputes about: Whether money from friends or family members was a gift or a loan. Whether the gift was to the husband or wife or the couple jointly. If the money was a loan, the repayment terms. If the money was a loan, whether the debt should be included as a debt in the asset schedule. If the money has been repaid to the extended family member because of the divorce, whether the funds transferred to the relative should be added back into the asset schedule. Whether the extended family member should intervene in the financial court proceedings. Things can get very acrimonious when family money is in issue, with one party saying the money was a gift and the other a loan. Treatment of family loans in divorce and financial proceedings The case of P v Q (Financial Remedies) [2022] EWFC B9 (10 February 2022) clarified how the court should treat family loans in financial proceedings after a divorce. The case emphasises the importance of extended family members taking legal advice before making a payment to a married family member to ensure it is clear if the money is a loan, a joint gift, or a gift to one spouse, with the money ring-fenced in the case of separation or divorce. The case of P v Q (Financial Remedies) [2022] EWFC B9 The case of P v Q involved an international family based in the UK and Germany. The wife was German, living in England, and the husband was English, living in Germany with the couple’s two children. The case had many unusual points, including the value and liquidity of company shares, as the case was heard when Russian forces were massing at the Ukraine border and there were expectations of share price volatility. Divorce and financial proceedings were started in the UK. The wife said the husband had given his mother £150,000 to reduce the family assets and to reduce the amount the husband would be ordered to pay her as a financial settlement. The husband said he had repaid his mother the £150,000 loan, and the money should not be added to the asset schedule. The husband’s mother had given each of her three children £150,000 to help them with housing. No loan documentation was drawn up, and there was no evidence that the mother had gifted the money as part of an estate planning strategy. No demand was ever made for repayment of the £150,000, and there was no discussion about the circumstances when repayment was required. In evidence, the mother said she hoped the family would repay the money to her if she needed it. The husband repaid the £150,000 to his mother without his mother asking her son for the money. The wife argued the transfer was a device to remove £150,000 from the asset schedule, so she lost £75,000, using the sharing principle of a 50:50 split if £150,000 was added back into the asset schedule. The judge had to consider whether the £150,000 (and other family monies) were gifts or loans. The judge held that for money to amount to a gift, there must be an intention to give away with no expectation of repayment. Accordingly, the judge held that the £150,000 payment was a loan. The arguments didn’t stop there. Using case law, the judge had to consider whether the loan was a hard or soft loan to determine whether the £150,000 should be added back into the asset schedule. The judge concluded the loan was a soft loan. This meant the loan monies were added back into the asset schedule, thus increasing the amount to be shared between the husband and wife by £150,000 and increasing the size of the wife’s award. [related_posts] The law and the treatment of family loans in financial proceedings The judge in the case of P v Q said he had to consider the factors set out in Section 25 of the Matrimonial Causes Act 1973, together with any relevant case law, to decide: How to treat the loan and How to split the assets. Section 25 Matrimonial Causes Act 1973 broadly says it is the duty of the court when making a financial court order to have regard to all the circumstances of the case, first consideration being given to the welfare while a minor of any child of the family who has not attained the age of eighteen. Amongst other things, and of relevance to family money and loans, the court should pay particular regard to: The income, earning capacity, property and other financial resources which each of the parties to the marriage has or is likely to have in the foreseeable future, including in the case of earning capacity any increase in that capacity which it would in the opinion of the court be reasonable to expect a party to the marriage to take steps to acquire, and The financial needs, obligations, and responsibilities that each of the parties to the marriage has or is likely to have in the foreseeable future. Is a family loan a soft loan? A loan can be classed as hard or soft. The definition is important because a soft loan will not carry as much weight in divorce financial proceedings as a hard loan. A hard loan is more like a commercial or contractual agreement, while a soft loan is an arrangement between family members without too much formality. In P v Q, the judge said that when looking at the treatment of loans in financial proceedings, the court needs to consider: If there is a contractually binding obligation by a party to the marriage towards a third party, the court should consider whether the obligation is a hard obligation debt or a soft debt. There is no set test to decide if a loan amounts to a hard or soft debt. A common feature of family loan analysis in financial proceedings is determining whether the obligation to repay will be enforced. The court should consider common factors that point toward a hard or soft loan. Evidence that a loan is a hard loan in financial proceedings Factors that point to a loan being classed by a judge as a hard loan include: The terms of the obligation feel like a normal commercial arrangement. There is a written loan agreement and a written demand for payment. There is a threat of litigation or intervention in the financial settlement proceedings. There was no delay in enforcing the debt. The amount of money owed is such that it would be less likely for a creditor to waive the obligation to pay. Evidence that a loan is a soft loan in financial proceedings Factors that point to a loan being classed by a judge as a soft loan include: The debt is owed to a friend or family member who remains on good terms. The loan is informal without a commercial arrangement feel to the loan. There has been no written demand for payment despite the loan repayment date having passed. There has been a delay in enforcing repayment. The amount of the money is such that it would be more likely for the creditor to be likely to waive the obligation to repay. Divorce and private client considerations when making or receiving family loans If you are thinking about making a gift or loan to a family member, it is sensible to take private client advice to: Understand estate planning and ensure your gift is tax-efficient for inheritance tax purposes, and Ring-fenced and protected in case the family member gets divorced. This can be achieved through a formal loan document, preferably combined with a prenuptial agreement or postnuptial agreement. Specialist divorce and financial advice on the treatment of loans in divorce proceedings Our expert divorce solicitors can help you if you are: Disputing a payment made by a family member was a loan and not a gift. Arguing that the money given by your family to you individually or as a couple was a loan. The loan maker who needs advice on intervening in the financial proceedings to protect your loan and financial interests. Our divorce lawyers will: Give an unbiased view of whether the court will likely say the money is a gift or a loan. Whilst you may not like the opinion about the treatment of the family money, you don’t want to waste time or money on an argument that you are not likely to win. Look at the additional legal costs of arguing whether the family money was a gift or loan, as you don’t want to spend more on legal costs arguing the point if the costs will be more than the amount to be gained in your likely financial award. Our family law solicitors can also help prepare prenuptial and postnuptial agreements, and our private client lawyers can advise on estate planning, gifting, and family loans. Contact our specialist family lawyers for a consultation on your divorce and financial settlement.