Financial Settlement

The ONS figures reveal that the average age at marriage for men is around 38 years and 35 years for women. These statistics continue the rise in the average age of marriage since the 1970s. Marriage in the under the 20s has fallen whilst marriage for the over 65s has risen sharply. With those figures, it isn’t surprising that family lawyers are increasingly finding that arguments in divorce financial settlements centre on whether a husband or wife should keep their property owned before marriage in the divorce financial settlement or if the assets should be shared. In this article, family law solicitor, Robin Charrot, discusses how the divorce court treats pre-marriage assets. For expert divorce and family lawyers call our team of specialist divorce lawyers or complete our online enquiry form. What is a pre-marriage asset? A pre-marriage asset is anything owned by a husband or wife before their marriage. Whilst a couple could have bought an asset together, disputes in divorce financial settlement proceedings focus on assets bought by a husband or wife in their sole name before the date of their marriage. A pre-marriage asset can be anything of value as family solicitors warn that it is not worth arguing over the relevance of pre-marriage owned assets if their value will be outweighed by the additional costs of a longer financial settlement court hearing or the investigative costs of tracing and valuing the asset. Typically, pre-marriage asset disputes relate to: Property – this could be a property bought by one party to the marriage that has become the family home or a buy-to-let property or second home Family business – if a husband or wife set up a family business or inherited shares in the business before their marriage Investments- this could be a share portfolio, cash savings, or cryptocurrency Pension – the pension could be a final salary scheme pension that was started pre-marriage with a current or former employer, a private pension scheme, or a business-related pension scheme [related_posts] Do pre-marriage assets need to be disclosed in divorce financial settlement negotiations or court proceedings? Pre-marriage assets need to be disclosed in divorce financial settlement negotiations and court proceedings. That’s the case whether you are engaged in: Direct discussions Family solicitor negotiations Family mediation Family arbitration Divorce financial settlement court proceedings with an agreed financial consent order or where a financial court order is made after a contested hearing The law says you need to provide full and frank financial disclosure of all your assets. If an asset was bought before your marriage, you should disclose it but you can argue that the value of the asset should be ignored when negotiating a divorce financial settlement or in contested financial court proceedings. If you do not disclose the existence of a pre-marriage-owned asset and the court finds out about the asset the court can draw inferences about the honesty of the spouse who concealed the property. If the existence of the pre-marriage asset comes to light after a financial court order is made then your ex-husband or ex-wife could ask the court to reopen a financial court order made without disclosure of the asset, involving additional time and expense. Do pre-marriage assets need to be valued in divorce financial settlement proceedings? The court decides if assets need to be valued in divorce financial settlement court proceedings and will normally order a valuation by a jointly appointed independent expert. The fact that the court has ordered the valuation of a pre-marriage-owned asset doesn’t mean the court will decide that the value of the asset is taken into account when making a financial court order. The court often says it needs to know the total value of all assets owned before it can decide if pre-marriage assets are relevant or should be shared as part of the divorce financial settlement. Are pre-marriage assets ignored if you sign a prenuptial agreement? Divorce lawyers advise that the best way to protect pre-marriage-owned assets is to sign a prenuptial agreement to ringfence the assets. If you didn’t sign a prenup, then signing a postnuptial agreement is another option. Prenuptial agreements can either be comprehensive in scope or the agreement can say that a particular asset should be ignored (or ring-fenced) in a divorce financial settlement. Whether the pre-marriage asset will be ignored depends on the circumstances in which the prenuptial agreement was signed and other factors. For example, was financial disclosure provided as part of the prenuptial agreement discussions, were you coerced into signing the agreement, did you both take independent legal advice, and was the agreement signed at least 28 days before the marriage? If you meet all the tests for a prenuptial agreement to be found to be binding on both spouses, the pre-marriage asset can still be taken into account if a fair divorce financial settlement cannot be made without recourse to the property because the reasonable needs of the husband and wife can't be met without taking into account the value of the disputed asset. Take the case of a 40-year-old man who owned property before his marriage. The property became the family home when he married and he subsequently had 3 children with his wife. The couple doesn’t have any other significant assets and if the value of the family home isn’t taken into account in the divorce financial settlement the wife will end up with very little and will be unable to rehouse herself and the children. The outcome might be very different in a short marriage without children and where the wife had a good income and mortgage capacity. How does the court decide if pre-marriage-owned assets should be kept by the asset owner? In divorce financial settlement proceedings, the court makes a financial court order after assessing a range of statutory factors (referred to by family law solicitors as the ‘’section 25 factors’’) and exercising discretion. The court will ask itself a series of questions: Is the asset a pre-marriage asset- there may be a dispute over the date of purchase or, if the couple were cohabiting at the time of purchase, it could be argued that the cohabitation (assuming the relationship moved seamlessly into marriage) means the asset wasn’t acquired ‘’pre-marriage’’ Is there a prenuptial agreement and does the agreement meet all the relevant tests, such as the agreement was freely entered into, without coercion? What are the reasonable needs of any children and the husband and wife? What factors are relevant to the pre-marriage assets? For example, the length of the marriage or the fact that the pre-marriage asset was used as the family home for years may make it less likely that the asset owner can argue that the value of their pre-marriage asset should be ignored What are the family assets and can a fair and reasonable financial settlement be ordered without recourse to the pre-marriage-owned asset? A family solicitor will ask the same sorts of questions to help you and your spouse reach a divorce financial settlement involving pre-marriage-owned assets to try to avoid a contested divorce financial settlement hearing. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form.

When it comes to divorce you don’t immediately think of tax. After all it is reasonable to assume that separation and divorce should be one aspect of your life that is tax free. However, our Manchester divorce solicitors will tell you that divorce isn’t tax free. In this blog we look at divorce and tax. Taxing divorce When it comes to separation and divorce there are obvious and hidden tax consequences. For example: Child support – the parent that pays child support for the children will pay the child support out of their net income and the parent who receives the child support won't pay income tax on the child support. It is important to factor in the net effect of child support payments when looking at issues such as mortgage capacity and affordability of mortgage payments or the likelihood of the court ordering spousal maintenance in addition to child support Spousal maintenance – if the court orders that spousal maintenance is payable then the spouse paying the spousal maintenance will pay it out of their net income and the spouse receiving the money won't pay income tax on the spousal maintenance. If the receiving spouse did then it would be double taxation Pensions - if a couple agree to the making of a pension sharing order then it is important to look at the tax consequences of taking the cash out of the pension fund, if that is the plan. If the tax effects of withdrawing the money from the pension aren’t considered then one or both spouses may end up with a far smaller financial settlement than envisaged or paying too much tax than they would have done if they had taken expert financial and pension advice The family home – if the family home is going to be sold then it is important to factor in stamp duty costs on rehousing when looking at the housing needs of the husband and wife. If the family home is going to be retained in both spouses names until a future date then capital gains tax may be payable by one spouse when the property is eventually sold, for example, when the youngest child is age 18 The sale or transfer of assets – if assets such as shares in a family business or an investment portfolio are sold or transferred then capital gains tax may be payable. There is the potential to avoid payment of capital gains tax if the transfer of assets takes place in the tax year of separation. That is why it is best to take early specialist legal and financial advice if you are a business owner getting divorced or you have other assets that may be liable to capital gains tax on sale or transfer, such as a buy to let property portfolio International tax- if a couple own property abroad, such as a second home, then there may be significant tax issues in the overseas country if the property is sold or transferred Tax issues on divorce – if a spouse makes allegations in financial court proceedings that their husband or wife has not declared income for tax purposes (and there is evidence to support this) or evidence of other tax irregularities (such as a sham trust) a family judge can order disclosure of the judgement to HMRC. [related_posts] Divorce, tax and HMRC It is accurate to say that some divorce and financial court proceedings can open up ‘’a can of worms’’ for a husband or wife when it comes to their tax affairs.   In a recent court case a judge said that the £12 million divorce financial court proceedings could potentially end up in a HMRC investigation, subject to the findings at the final hearing of the financial settlement case.   The case concerns a shipping business and a family home worth an estimated £4.5 million. The couple enjoyed a luxurious standard of living during their marriage but when the relationship broke down there was an acrimonious separation that led to financial court proceedings initiated by the wife.   A court of appeal judge, Lord Justice Males,  warned that should the wife establish her case against the husband then both could both be implicated in a 'criminal conspiracy...to evade tax properly due' on their earnings. The judge’s comments were made when the court heard an appeal to reinstate a freezing order injunction to prevent the husband from disposing of assets that the wife says are family assets and the husband says aren’t beneficially owned by him. The husband disputes ownership or any wrongdoing asserting that the multi-million shipping fleet were legitimately and properly transferred and thus there was no tax evasion and the ships or their value can't form part of the financial settlement.   The court of appeal judge was clear that he made no findings but was equally transparent in saying that if a court at the final hearing of the financial settlement case concluded that the ships were not genuinely transferred to a third party this could potentially result in investigations by tax authorities.   Divorce, tax and legal advice When it comes to divorce and tax, specialist Whitefield divorce solicitors work with expert accountants and financial advisors so that a divorcing husband and wife know where they stand both legally and financially and can make informed financial settlement decisions, understanding the tax implications of their divorce and financial settlement. Our Manchester Divorce Solicitors Whitefield, North Manchester and Holmes Chapel, Cheshire Evolve Family Law divorce experts cover all aspects of family law, divorce and financial settlements. To speak to a specialist Whitefield divorce solicitor call us or complete our online enquiry form. Appointments are available face to face, via video conferencing, Skype or by telephone appointment.

Do you suspect your ex is hiding assets from you in your divorce proceedings? If your ex is hiding assets there is a real risk you won't achieve a fair financial settlement. If you suspect your ex is hiding assets there is also a strong possibility that you won't be able to reach an agreed financial settlement because of your suspicions. That’s why if you think your ex is hiding assets in divorce proceedings it is best to get expert family law advice on your options. For expert Divorce and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form. Is my ex hiding assets in divorce proceedings? Divorce solicitors will tell you that a husband and wife are under a duty to provide full and frank financial disclosure of their assets when negotiating a financial settlement. That’s the case whether you are negotiating through: Direct discussions Solicitor negotiations Family mediation Family arbitration Financial Court proceedings If things are amicable, or your finances are straight forward, you may not want to see reams of paperwork going back years but every family situation is different. You probably know if your ex has hidden stuff from you throughout your marriage or you may suspect that they started to do so when they met someone else or when the marriage got into difficulties and the relationship started to drift apart. If your ex is very keen to reach a financial settlement without providing any paperwork and wants to get an agreed clean break Financial Court Order as soon as possible this may raise a red flag for you or your divorce solicitor as you need some minimum paperwork to check things out. If you feel that you are being pressurised into accepting no or very limited financial disclosure documents, and into accepting your ex’s word for everything, talk to a financial settlement solicitor before agreeing to a division of assets. That’s because whilst your ex might be totally honest and just wanting to ‘cut to the chase’ and get an agreement, you are entitled to see supporting paperwork. It’s important to do so as any financial settlement you reach by agreement can't easily and quickly be unravelled if it turns out that you were right to have your suspicions about your ex hiding assets from you. [related_posts] Why is my ex hiding assets? There are many reasons why an ex may try to hide assets. Divorce solicitors come across these common excuses: It is inherited money It is savings from my income The new house is owned by my new partner so it isn’t really my asset even though the deposit came from me There is no need to get a business or pension or other asset valued as you can take my word for the value Money was owed to a family member and was not transferred to them to hide assets Cash that was put into additional bank accounts was forgotten Property owned abroad or owned before marriage doesn’t count towards the financial settlement so wasn’t disclosed as it isn’t relevant ( in the ex’s opinion) These are all excuses and should not be used as a reason to not provide full and frank financial disclosure. Sometimes an ex will try to hide money that might not be relevant to the financial settlement but you will both spend time and money arguing over the financial disclosure. However, if the asset had been disclosed at the outset your financial settlement solicitor could have advised you about its overall relevance to the financial settlement. For example, a pension accrued before a short marriage with a cash equivalent transfer value of £10,000 may not be of significance and your ex is wasting their time and money by trying to hide an asset that may be of limited relevance because of the duration of your marriage or your ages. However, by failing to disclose the pension, you and the Court may be far more sceptical about how honest their other financial disclosure is, such as, the extent of your ex’s declared self-employed income or the reason they have transferred money to a sibling or new partner. What can you do about an ex hiding assets? If you are separated or getting divorced and you believe your ex is hiding assets you may need urgent financial settlement and injunction representation. That’s because if your ex is hiding assets with the intention of reducing your financial settlement you may need an injunction order to stop them. Examples of when you may require a financial injunction include: Your ex is transferring money or property to a third party Your ex is putting their pension in payment and taking the maximum tax free cash sum to put the money out of your reach Your ex is syphoning money out of the family business by paying a family member for false invoices with a view to making sure the family business has a lower value placed on it as profits will be down Your ex is buying property overseas or transferring assets abroad Your ex is moving money out of joint bank accounts and putting it into cryptocurrency An injunction is a temporary measure to stop your ex from hiding or disposing of assets. It is best to consider a section 37 injunction application rather than assume that in financial settlement Court proceedings a new partner, parent or sibling can be joined into the financial application to try to unravel the transfer of assets. Whilst that is possible it is normally best to stop the transfer taking place in the first place by securing a freezing injunction. If you have not already done so, a divorce solicitor will also advise you to start financial Court proceedings for a Financial  Court Order. Within the financial settlement application, the Court can make financial disclosure orders that your ex will need to comply with. If your ex does not comply with the financial disclosure orders then you can ask the Court to enforce the disclosure orders against your ex or ask the Court to draw inferences. For example, if the Court ordered disclosure of historical bank statements to reveal what happened to the £100,000 after the sale of a buy to let property and your ex flouts the disclosure order you can ask the Court to draw inferences as to why and ask the Court to add back in the £100,000 so you get a greater share of the other family assets. Financial proceedings and ex hiding assets If you have started financial proceedings and you are not satisfied with your ex’s Form E financial disclosure then a specialist family solicitor can review the financial disclosure with you and draw up a list of additional questions and request for extra non-standard paperwork . For example, if your ex is the director and shareholder in a family business and you suspect they have been syphoning money off to their new partner by creative accounting or use of the director loan account, you can ask for a forensic accountant to value the business and look at your accounting concerns as well as asking for an order that your ex disclose statements for their DLA. Alternatively, you can ask the Court to make financial disclosure orders to help you investigate if: Your ex is self-employed and the family lifestyle does not match their declared earnings Your ex has withdrawn significant sums from a business or personal account and that is not their usual pattern of spending Your ex previously mentioned an asset that they said would be a rainy day asset or pension but there is no mention of the asset in their financial disclosure There are lots of ways a tenacious divorce solicitor can ‘get to the bottom’ of financial disclosure, with the assistance of your background information and knowledge of your ex, combined with seeking the right injunction, financial disclosure orders and valuations. For expert Divorce and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form

Getting divorced and reaching a financial settlement can be hard, even where there are only two of you involved in reaching a financial settlement and securing a Financial Court Order. It can be even harder when family members have given or loaned money, with disputes over whether the money was a gift or a loan and how the loan should be treated in the divorce and financial settlement proceedings. For expert Divorce and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form. The recent financial settlement Court case of P v Q (Financial Remedies) [2022] EWFC B9 (10 February 2022) has confirmed how the Courts should treat family loans in a divorce. The case emphasises the importance of extended family members taking legal advice if they intend the transfer of money to be a loan or want a gift to be ring-fenced in the case of separation or divorce. Family loans in financial settlement proceedings If a member of the extended family gives money to a husband or wife during their relationship then undoubtedly at the time of the gift or loan the money is very welcome. When a couple split up, family loans can complicate things where there is a dispute about: Whether the money was a gift or loan. Whether the gift was to the husband or wife or to 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 money transferred to the relative should be added back into the asset schedule. Whether the extended family member should intervene in the financial settlement 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. Expert divorce and financial settlement solicitors say it is best to: Get help from an experienced divorce and financial settlement solicitor. They will give you an unbiased view on whether the family Court will say the money is a gift or a loan. Whilst you may not like their 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 cost of arguing whether the family money was a gift or loan as you don’t want to spend more in legal costs arguing the point if the costs will be more than the amount to be gained in your likely financial settlement. [related_posts] 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. 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, particularly as the case was heard at a time when Russian forces were massing at the Ukraine border and there were expectations of share price volatility because the shares were held in an energy company. Divorce and financial settlement proceedings were started in the UK. The wife said the husband had given his mother £150,000 to reduce the amount the wife would receive as a financial settlement. The husband said he had given his mother the £150,000 to repay a loan and that the money should not be added back into the asset schedule. The judge acknowledged he had to consider the factors set out in Section 25 and Section 25A Matrimonial Causes Act 1973 together with any relevant case law when deciding how to split the assets and how to treat the family loan money. 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 particular relevance to family money and loans, the Court should have 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. The financial needs, obligations and responsibilities which each of the parties to the marriage has or is likely to have in the foreseeable future. In the case of P and Q , the husband’s mother gave each of her three children the sum of £150,000 to help them with housing. No loan documentation was drawn up. There was no evidence that the husband's 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 was in need. The husband repaid the £150,000 to his mother without his mother asking for the money. The wife argued the transfer was a device to remove £150,000 from the asset schedule so she lost out, using the sharing principle of a 50:50 split, of £75,000. The judge had to consider if 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 £150,000 was a loan. The arguments didn’t stop there as the judge, using case law, then had to go on to consider the nature of the hard or soft loan to determine if the £150,000 should be added back into the asset schedule. When looking at the treatment of loans in financial settlement proceedings, the judge said the family Court needs to consider: If a judge concludes there is a contractually binding obligation by a party to the marriage towards a third party, the Court should then 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 settlement proceedings is to consider if the obligation to repay will be enforced. Factors pointing to a hard loan include that the terms of the obligation feel like a normal commercial arrangement, there is a written loan agreement and a written demand for payment, a threat of litigation or intervention in the financial settlement proceedings, there hasn’t been a delay in enforcing the debt and the amount of money owed is such that it would be less likely for a creditor to waive the obligation to pay. Factors pointing to a soft loan include that 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, and 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. Using these principles and looking at the facts of the husband's loan from his mother, the judge concluded the loan fell into the ‘soft’ category of loan. For the financial settlement, that 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. 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 try to ensure your gift is either tax efficient for inheritance tax purposes or ring fenced and protected in case of divorce through the use of a loan document, preferably combined with a prenuptial agreement or postnuptial agreement. For expert Divorce and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form.

The Impact of Domestic Violence On A Divorce Financial Award In this blog divorce financial settlement solicitor, Robin Charrot, looks at a recent court case involving divorce financial settlement claims and allegations of domestic violence to see how divorce settlements work and how the court treat domestic abuse allegations when making financial settlement decisions. The financial settlement A wife, age 55, separated from her husband. They could not reach a financial settlement by agreement and financial  court proceedings were started. Sadly, the scenario of a husband and wife splitting up and going to court to get a financial court order isn’t unusual but what marks this case out is that the wife was a barrister and had a property portfolio in her name, acquired through her earnings during the eleven-year marriage. The husband, age 58, wasn’t working and had not worked independently of the wife throughout the marriage. Again, there isn’t anything unusual about this save for the situation not complying with the unusual gender stereotype. However, the wife said that as well as her being the bread winner in the marriage, the husband had been violent to her on two separate occasions. The wife said that meant the husband should get nothing by way of financial award. The husband argued that wasn’t fair. The domestic violence allegation The financial court looked at the domestic violence allegations. The husband had been prosecuted but was acquitted so had no criminal conviction for domestic abuse. None the less the family court said it could take the allegations of domestic violence into account because the family court had made findings about the domestic abuse. A husband or wife should therefore not assume that just because a spouse did not report domestic abuse to the police that the family court will disregard domestic violence. However, the court also made it clear that just because there has been domestic violence in a relationship that does not mean that the perpetrator of the domestic abuse should end up with nothing. The financial court proceedings The family court ordered the wife to pay the husband £625,000 as a financial court order but the wife disagreed and appealed. She thought the ruling was unfair. The second judge said that £200,000 of the £625,000 award should be a charge to the wife, repayable by the husband’s estate on his death or repayable by the husband to the wife if the husband were to remarry or live with a new partner. The wife asked the court to reduce the lump sum payment to £425,000. On appeal, the court kept the payment at £625,000 and cancelled the charge. This means the wife has to pay the full £625,000. The court calculated that £625,000 was necessary to enable the husband to buy a new house with a budget of £400,000, with £25,000 to buy a car and pay living expenses and £200,000 to cover costs. The appeal judges concluded that the domestic violence findings did not mean there should be no financial  award or a charge back of some of the financial settlement. The appeal judges favoured a clean break financial settlement with no ongoing financial ties between husband and wife.  The costs of not agreeing a financial settlement When determining the appeal, the judge said the family financial  proceedings had become ‘an exercise in self-destruction' because the legal costs had become disproportionate to the family assets so it was hard to achieve a financial settlement that either husband or wife thought was fair. As the appeal court concluded that the findings of domestic abuse made against the husband do not justify making what would otherwise be an inappropriate order the £200,000 charge was removed giving him a lump sum of £625,000. [related_posts] The lessons from the court case The lessons from the court case are that arguing over principles doesn’t always pay as whilst the wife was the breadwinner the husband was nonetheless entitled to a financial  award to meet his needs. Those needs were not extinguished by the finding of domestic violence in the relationship by the family court although it is fair to say that the award is smaller than if no domestic violence allegations had been made. It is therefore important to raise allegations of domestic violence but not to expect that the court will make no award or an award that is lower than an amount that meets the perpetrators basic needs if the other party has his or her needs met. In this case the wife was not only a barrister, she specialised in family law. What that tells us is that it is important to get independent and impartial expert family law legal advice as early as possible. Whilst you may not like the legal advice it may save you a lot in legal costs if that legal advice enables you to reach a pragmatic financial settlement. Evolve Family Law are North West and Online Family and Divorce Solicitors For legal help and advice on divorce and family law call us or complete our online enquiry form.

When you take the decision to separate you may not realise just how big an impact your divorce may have on your future income. The financial services company, Legal and General has revealed that women’s income falls by a third and men’s income by 18% on divorce.  In this blog we look at the impact of divorce on your income. The divorce statistics You may be shocked by the divorce statistics and question why a woman’s income on divorce should reduce by more than men’s income.   The Legal and General research suggests that there are several factors behind the statistics, such as: The reality is that many women earn less than their male counterparts during the marriage because of career choices and childcare In divorce financial settlements women are more likely to ask her for and get a financial settlement that includes the family home or more than half the equity in the sale proceeds of the family home. If you get a greater share or all the equity in the property, then you are less likely to be awarded spousal maintenance or to receive a share of their husband's pension fund and the making of a pension sharing order. [related_posts] Will a divorce impact on my income? When a couple separate it is usual to go from a two-income household to a one-income household with a consequent reduction in income.   If a reduced income means that you can’t manage to pay your reasonable outgoings, the court can make an order that the other party to the marriage pay spousal maintenance. The payment of spousal maintenance can continue indefinitely until terminated by death, re-marriage of the receiving party or further order. Alternatively, the court can order that spousal maintenance is paid on a time limited basis.   What amounts to reasonable outgoings will depend on the standard of living enjoyed during the marriage as well as the affordability of the current outgoings considering: The ability of one spouse to afford to pay spousal maintenance and still meet their own reasonable outgoings and The ability of the other party to the marriage to either find work or increase their earnings capacity so they can meet all or a greater proportion of their own reasonable outgoings.   Divorce solicitors will tell you that when it comes to income on divorce and whether your respective incomes will be shared (through a spousal maintenance order) comes down to a range of factors, such as: Whether you have young children to support and whether the care of children impacts on your earnings capacity Whether any disability or age impacts on your ability to seek employment or increase your income Your income and earnings capacity The extent of your reasonable outgoings The length of the marriage Other factors, such as the existence of a prenuptial agreement that sets out whether and how long spousal maintenance should be payable on separation and divorce.   Perhaps, just as importantly, parity of income on divorce can come down to a question of priorities. You may want to forgo a pension sharing order on divorce as your priority isn’t income on retirement but instead getting the equity in the family home so you can rehouse yourself without a mortgage. Alternatively, you may want the capitalisation of your spousal maintenance payments so that you get a cash lump sum instead of ongoing monthly payments.   Whatever your priorities it is best on separation or divorce to take legal advice from a specialist divorce solicitor so you can understand the range of options for your financial settlement and work out which one is best for you and your family. Without expert legal and financial advice, you may not appreciate the value of the pension fund belonging to your spouse and how a pension sharing order could be to your financial advantage.   The divorce solicitors at Evolve Family Law will not only look at your financial settlement options but they will also reality test them with you. For example, if your priority is to keep the family home and you are willing to forgo a pension sharing order or spousal maintenance to keep the property then this may not be a realistic or best option if you can’t afford to pay your reasonable outgoings on the property as you aren’t getting spousal maintenance or a pension sharing order. Our Manchester and Cheshire Divorce Solicitors Evolve Family Law specialise in separation and divorce proceedings and resolving financial settlements .Call us or complete our online enquiry form for expert legal assistance with your financial settlement. Evolve Family Law have offices in Whitefield, North Manchester and Holmes Chapel, Cheshire but our family law solicitors are also experienced in working remotely and offer meetings by telephone appointment or video call.

Did you know that almost forty percent of people questioned admit to keeping money secrets from their partner? That information comes from a survey conducted by the Money & Pensions Service. In this blog we look at keeping money secrets during a separation or divorce. What the Money & Pensions Service Survey Reveals About Us The Money and Pensions Service survey questioned 5,200 people across the country about their financial habits and personal finances. The key findings are: Those in the age range 25-34 are the most secretive age group, with three in five not revealing financial details to loved ones Whilst nearly twenty five percent of those surveyed thought their husband, wife or partner was hiding financial things the reality is that nearly half said that they had hidden things themselves It is most common to hide credit cards and credit card debt – nearly forty percent of those replying to the survey had done so Undisclosed loans are the second most popular thing to hide from family with just over twenty per cent of those surveyed doing so Around twenty percent of those responding to the survey had a secret savings account.   As the Money and Pensions Service acknowledged there are many reasons why someone might hide money or not reveal their financial situation whilst in a relationship, such as: Wanting to build up a safety net of savings that their partner won't spend. That way there is a rainy day savings fund in case of redundancy or a large unforeseen bill, such as replacing the boiler Feeling the need to save money so that there is an escape route from an abusive relationship where the partner secreting the money is afraid that without hidden money if it will be impossible to leave their controlling partner  Hiding credit card debt or loans because you know that your partner will worry about the debts Feelings of embarrassment of having incurred debt, sometimes the debt was incurred before the new relationship and it now feels ‘too late’ to mention it.   The Money and Pensions Service encourages people to talk about their finances as, by doing so, it can make money worries more manageable, especially when you are concerned about other matters such as redundancy or the impact of Covid-19 on the prospects of your getting a 2020 bonus from your employer. [related_posts] Financial secrets and separation and divorce   As Manchester divorce solicitors we have to ask about financial matters so we can give the best advice on financial settlement options. Sometimes people are reluctant to mention undisclosed credit card debts or loans as their husband or wife doesn’t know about them. However, it is important that you do so as those debts may affect your ability to take over the mortgage on the family home or to secure another mortgage to buy a new property.    In cases where there is debt then in financial settlement court proceedings the court rarely wants to undertake a forensic exercise into how the debt was incurred and whether, for example, you should have bought the shoes or motorbike but instead will ask: Is the debt family debt – in other words whilst the debt was hidden from a husband or wife was the loan or credit card money used for the benefit of the family. For example, a credit card was used to clothe the family or to pay for family holidays or a family car What impact does the debt have? The court will want to know if the debt will stop a husband or wife from being able to buy another house or stay in the family home or meet their other needs.   In addition to debt and divorce, when it comes to financial disclosure on separation or divorce there is an obligation to provide what is referred to as full and frank financial disclosure of all your assets. That includes secret bank accounts that your husband or wife doesn’t know anything about or money given to a family member to ‘hold’ for you or cash that you keep.    Failure to provide full and frank financial disclosure may mean you are less likely to reach a financial settlement by agreement as your husband or wife probably won't believe your financial disclosure or a court drawing inferences or making findings against you in a financial settlement court hearing. For example, if your family business generates cash but according to your accounts you receive an income that amounts to less than your essential outgoings (mortgage payments, utility bills or other known expenditure) then the court could make inferences or findings against you.   Therefore, whilst there may be many reasons why you would want to keep things secret during a relationship, when it comes to a separation or divorce there is a court imposed obligation to be both ‘full and frank’ in your financial disclosure. We are Manchester and Cheshire Divorce and Financial Settlement Solicitors Evolve Family Law specialises in family law and divorce and financial settlements. If you have questions and need advice on your divorce and financial settlement options call Evolve Family Lawor complete our online enquiry form. We offer face to face appointments, remote meetings by appointment by video call or telephone.

As Manchester divorce and family finance solicitors advising separated couples, we think getting divorced and trying to sell your family home during a global pandemic is a lot to expect of anyone. It isn’t therefore surprising that many of the calls that we’re currently receiving are from husbands or wives concerned about if or how they can get divorced and sell the family home. In this blog we look at the issues and your best options when it comes to divorce and selling the family home. Online Family Law Divorce and Financial Settlement Solicitors Manchester and Cheshire based Evolve Family Law solicitors specialise in divorce and financial settlements. If you need advice about a financial settlement and the family home or any other aspect of family law call Evolve Family Law on 0345 222 8 222 or complete our online enquiry form to set up a video conference or telephone appointment.Should I sell the family home? Sadly, some divorcing couples don’t have a choice: the family home has to be sold. For others you can make the financial or personal choice to either sell up, transfer the property to your husband or wife or keep the property yourself.   Often people have a strong knee jerk reaction that they must keep the family home at all costs whilst others are equally adamant that they don’t want to stay in the family home because of the memories associated with it. Undoubtedly selling a family home and moving involves hassle but it is best to consider all your options and the practicalities of a move, such as: How much is the family home worth and how much would I need to spend to buy a suitable new property? If I stay at the family home would the mortgage company agree to transfer the mortgage into my name? If I sell and buy another property what is the maximum mortgage that I could get? Can I afford the monthly mortgage payments on the family home after taking into account any spousal maintenance or child support paid or received? Is it better to make a fresh start and take advantage of the stamp duty holiday? Will my husband or wife agree to the sale of the family home?   The effect of Covid-19 on your decision to sell the family home Experienced family law solicitors encourage separating couples to look at whether they should sell the family home or not from a short and long term perspective so that you make the right decision for you and your family. However, it is inevitable that Covid-19 may have some influence on your decision making process because: You are worried about house prices and achieving your sale price You are concerned about getting the mortgage on the family home transferred to you or taking out a mortgage on a new property if you don’t feel that your job is secure or you are worried that your husband or wife is at risk of being made redundant and redundancy will affect their ability to pay you child support and spousal maintenance You want to take advantage of the stamp duty holiday as you think that it will be easier to sell the family home during the period of the stamp duty holiday and you will save money on your purchase.   With or without the pressures of Covid-19 the decision to sell the family home, or resolving which one of you should stay at the family home, is always a stressful decision. That is why it is best to take time over your decision and not be too influenced by the views of teenage children who may be leaving home to go to university soon leaving you with a house that is too large for you and without sufficient money to pay for life’s luxuries such as holidays. Alternatively, you could end up with the family home but the trade-off is that you don’t get a share of your husband or wife's pension so you eventually have to sell the family home to fund your retirement. However, the released equity on the sale of the family home won't necessarily give you the same income return that a pension sharing order would have done.   Manchester divorce lawyers recognise that with the news all about Covid-19 and reports of localised Manchester and North West lockdowns it is tempting to decide what to do about your family home and your financial affairs based on your Covid-19 concerns. Family lawyers can help you look at all your options and factor in Covid-19 as just one consideration in your deliberations about what to do about your divorce and the family home.   The best way to divorce and sell the family home If you are getting divorced and thinking about selling the family home here are our tips on selling the family home whilst separating from a partner or getting divorced: Is it realistic for you both to live at the family home until it is sold bearing in mind that once the property is sold it will take time for the conveyancing process to reach completion? It is advisable to always take legal advice before leaving the family home as doing so may make your husband or wife less keen to achieve a sale. However, if the atmosphere at home is affecting you, then one option would be for one of you to rent a property or stay with family until the family home is sold Consult with your husband or wife over the sale price and choice of estate agent and make sure that the estate agent keeps you both informed about viewings and the feedback from prospective buyers. That way if the estate agent recommends a reduction in the sale price your spouse is more likely to be willing to consider this Get your paperwork in order as requests for documents from your buyer’s solicitor can delay the sale of the family home. If you have had work carried out at the property you need to locate your planning and building regulation documents, electrical, gas and FENSA certificates or organise duplicate paperwork Agree how you will divide the household contents as the last thing that you are likely to want to do is try and sort out household contents at the date of the sale. It is best to list the household contents and both sign the agreed schedule and the division of contents between the two of you and highlight what items, if any, will be sold with the house Think about whether you want to sell the family home if you haven’t reached a financial settlement with your husband or wife. It is common for a sale of the family home to be achieved before you reach a full financial settlement including how pensions, business assets and investments are split as well as whether spousal maintenance should be paid and for how long. If you are happy with the sale price of the family home and fear that you will risk losing your buyer if you delay beyond the end of the stamp duty holiday you could agree with your husband or wife that the net proceeds of sale of the family home (after discharging the mortgage, conveyancing solicitor and estate agent fees) are kept in a joint account or by a solicitor until agreement is reached or a financial court order is made. In some situations you can agree to the release of some extra money to allow you to buy your planned new property or to discharge family debts If your spouse won't agree to a sale of the family home get a court order. If you are certain that the family home has to be sold as it isn’t financially possible for either of you to take it on because the mortgage company won't transfer the existing mortgage into one of your names or you won't be able to afford the mortgage on one salary then speak to a divorce and financial settlement solicitor about starting financial proceedings for an order for sale of the family home. If your husband or wife won't cooperate with the sale of the property then a family judge has the power to make orders about the sale price, the choice of estate agent and can even sign the paperwork to sell the property if your ex-partner refuses to sign the contract to sell the house or the deed of transfer. How can Evolve Family Law solicitors help? Following the tips on how to sell your family home during a separation or divorce may make the sale process a bit easier but Manchester divorce and financial settlement solicitors recognise that taking the decision to separate and sell up is hard, especially in such troubled and turbulent times. For advice on any aspect of family law or information on your financial settlement options call Evolve Family Law on 0345 222 8 222 or complete our online enquiry form to set up a video conference or telephone appointment.Latest From Our Divorce Blog: