Divorce

You would be right to think that the simple question ‘how much does a divorce cost?’ deserves a straightforward reply. However, very few law firms publish price information on their websites. Evolve Family Law was one of the first law firms to publish fixed family law and divorce fees so clients get an idea of costs before calling or emailing us. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form. The cost of no-fault divorce proceedings If you are applying for a no-fault divorce as a single applicant the cost of the divorce proceedings can be found here. At Evolve Family Law we believe in keeping things simple so our fixed fee no-fault divorce quote includes: Our legal fees VAT on our fees The court fee payable to the family court when the divorce proceedings are issued at the court What our fixed fee divorce package does not include is: Relationship breakdown comprehensive legal review Children arrangements advice and applying to the court for a child arrangement order Divorce financial settlement advice and applying to the court for a divorce financial settlement or asking the court to convert a financial agreement into a financial consent order We offer a fixed-fee relationship breakdown review and a range of fixed fees for converting a financial agreement into a court order. For work where we can't offer a fixed fee because we don’t know how much work is involved, we publish the hourly charge out rates of our family law solicitors. We also discuss the potential issues or complexities of any contested children law application (such as an application for a relocation order or for a prohibited steps order) or the complicated features of a financial dispute (such as the existence of a family business or an argument over pre-marriage contributions or the relevance of an international prenuptial agreement) so we can give you a bespoke quote and an idea of timescales. Are all divorce proceedings fixed fee? On rare occasions we can't offer a fixed fee divorce package but, on those occasions, we can provide you with a quote so you understand our fees and the reasons why you need a bespoke quote. Examples of when you may need a bespoke divorce quote include: You do not know where your husband or wife is living so service of the divorce paperwork is not straightforward Your husband or wife is living outside the UK There is a dispute about which country you should get divorced in as there is potentially a choice of divorce jurisdictions You want to ask the court to make a divorce costs order – this type of application is rare in no-fault divorce proceedings [related_posts] Transparency and fees When Evolve Family Law was set up in 2015 by founders Robin Charrot and Louise Halford, they didn’t want to create just another law firm. They knew they wanted Evolve to be different with a vision to put clients (and not the fees) at the heart of what their family law solicitors do by being trusted legal advisors, and charging a fair and transparent level of fees. What that means is that whatever the nature of your family law query you get bespoke advice tailored to your personal situation at a cost that you can understand. What do we mean by that? To give examples: Robin Charrot met someone who was thinking about starting divorce proceedings. After talking through their circumstances, we realised that he didn’t actually want a divorce and there was no legal or financial reason to push ahead with one. Better for the client to wait until he was ready, whether that is in a few weeks, or a couple of years.  The answer might have been different if the client had been a business owner with an expanding company or other assets that could increase substantially in value meaning that delay was financially prejudicial to him A lady was clear she wanted a divorce. She knew from the outset that her divorce costs would be a set fixed fee. That meant she could budget for the costs, without worrying about how much her divorce legal costs might add up to Every divorce is different but our fixed fees and pricing guide are available online to give you an idea of the costs involved so that you can contact us with confidence. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form.

As divorce solicitors, we are bound to say that yes you need a divorce solicitor if you are separating or planning on starting divorce proceedings. That’s because using a good divorce solicitor makes the legal process of separation and divorce less stressful than going it alone and the lawyer will ensure you understand your children law rights and help you achieve a fair divorce financial settlement. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form. Choosing your divorce solicitor Choosing the right divorce solicitor for you is the key to a successful working relationship between you and your lawyer. It is a difficult question to ask but what do you want from your divorce solicitors? Expert legal advice is a given but what else? There should be an element of trust as you are putting negotiating the parenting arrangements for your children and your financial future in your lawyer’s hands. When your divorce solicitor tells you that the divorce financial settlement you have discussed in family mediation is a fair one that should be agreed upon and converted into a binding financial court order in the divorce proceedings you need to be able to trust your lawyer’s judgment and experience and know that they have your best interests at heart. [related_posts] Working with your divorce solicitor If you don’t like your lawyer, or if you don’t trust them to always do the right thing for you, it is hard to place confidence in the legal advice they give you. Unlike any other area of law, the relationship between a family lawyer and their client is fundamental to the outcome of a case.   It is an unfortunate reality that many people have a deep set distrust of the legal profession based on the stereotypical fat cat solicitor who is only interested in maximising legal fees, who makes money out of other people’s misery, costs a fortune and who has an ego the size of a house. That couldn’t be further from the ethos at Evolve Family Law. Founders, Robin Charrot and Louise Halford have many years of legal experience in large commercial law firms and so sadly recognise the stereotypical ‘fat cat‘ lawyer image. It was precisely those experiences that led to them opening a family law firm that was a bit different. The focus is on helping clients and building trusted relationships between divorce solicitor and client that can last well beyond their ‘case’. Evolve Family Law opened in 2015 with the vision of being the most trusted and first-choice legal advisor for people going through relationship changes. At Evolve, clients are at the heart of all our divorce solicitors do. The focus is on listening, understanding, helping, and giving practical, strong, sensitive, and commercial legal advice. Our divorce lawyers don’t tell our clients what they want to hear, we tell them what they need to hear. If that legal assistance means we lose fees, we are fine with that. It is this approach to getting the best outcome for clients whilst offering value for money and transparency that has enabled Evolve to grow, with the vast majority of new work coming from existing or former clients, or their friends and contacts. If you are going through a divorce or relationship breakdown, ask yourself whether your divorce lawyer truly thinks as we do at Evolve. If you aren’t sure, then maybe Evolve Family Law a call. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form.

You may question why you would remarry your ex but remarrying your former husband or wife is a growing trend. Some unkindly refer to it as yo-yo or boomerang marriages but as divorce solicitors, we understand that what attracted you to a person in the first place can reignite despite your separation and divorce. For expert help with divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form. The legal implications of remarrying your ex Once you get divorced your legal relationship is at an end although some financial ties may remain unless you obtained a clean break divorce financial court order. This type of divorce financial settlement severs any financial obligations. On remarriage, you are husband and wife again with the same marital legal relationship as the first time around. That marriage relationship brings with it financial obligations. Those obligations are not covered in your financial court order obtained after your first marriage and subsequent divorce. What that means for you is that if you remarry your ex and it does not work out the second time around either of you can apply to the family court for a financial court order. The size of the financial award will depend on several factors, including the length of your second marriage and your respective needs. [related_posts] The importance of a prenuptial agreement when remarrying your ex It is understandable to be a bit wary about getting remarried, especially if you went through an acrimonious divorce financial settlement first time around. Even if you were able to reach an agreed financial consent order after the end of your first marriage you are right to be cautious about getting remarried to your ex and the financial implications for you. This is especially true when you are in a financially stronger position than the ex you are re-marrying, perhaps because you were more careful with your share of the assets from your first divorce financial settlement. How can you protect yourself financially whilst still enjoying a second marriage with your ex? The answer is a prenuptial agreement tailored to your circumstances. That’s because on re-marriage it is as if you are back to square one, with all the financial claims that a husband or wife can bring on a second divorce. For some couples that means that they are both more comfortable with living together in a cohabiting relationship with a cohabitation agreement in place to sort out and record their agreed property and financial arrangements. Others prefer the security of marriage but with a prenup agreement drawn up prior to their second wedding. There isn’t one legal solution that’s right for everyone who decides to get back together with an ex-spouse. Normally there are legal pros and cons to the options of living together without remarriage or marrying for the second time, with a prenuptial agreement in place. Putting romance and family feelings aside, for inheritance tax reasons, a couple’s adult children might well thank their parent’s decision to remarry rather than cohabit with one another but there is a wealth of legal and financial considerations with each option. The legal advice will all depend on what the couple agreed on the first time around about property ownership and the split of pensions and their current financial circumstances. Most couples who are marrying a second time around see a lot of sense in signing a prenup agreement. The document means that there is less risk of acrimonious and expensive second divorce proceedings. The beauty and practicality of a prenup agreement are that it can be as detailed or as broad as the couple requires provided that certain legal requirements are met. For those preferring to cohabit together, it is just as important to draw up a cohabitation agreement as few couples realise that even if they don’t remarry and don’t jointly own a house together that property claims can still be made if a relationship breaks down. For expert help with divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form.

Concerns about the impact of living with a new partner and how it will impact your divorce financial settlement are not unusual. As divorce solicitors, we help answer your questions on how your planned cohabitation with a new partner or your ex-spouse’s decision to spend a large proportion of their week with their new partner will affect the divorce financial settlement. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form. Does forming a new relationship affect the divorce financial settlement? Forming a new relationship may affect your divorce financial settlement. It isn’t possible for divorce solicitors to give a definitive answer without more information about your personal and financial circumstances and those of your ex-spouse. Although it is commonly assumed that the presence of a ‘’third party’’ will make a massive difference to a financial settlement that isn’t necessarily correct. That’s why it is best to speak to a divorce solicitor about your situation, and that of your ex-spouse, and to make sure that you don’t let the presence of a new partner adversely affect your judgment. If you do then it can be harder to set your feelings and emotions aside to focus on reaching a reasonable split of the family assets. It is especially hard to come to terms with an ex-spouse meeting a new partner when the ex-partner has hidden the new relationship from you and you have found out about the new boyfriend or girlfriend through the backdoor. For example, from children, family friends, or, as is often the case, from posts and pictures on social media or from disclosure and questions within financial settlement court proceedings. Is your ex-spouse cohabiting with a new partner? If there is a new partner on the scene the first question, from a family law solicitors’ point of view, is whether the spouse is living with his or her new partner or if they are at an early stage of a new relationship and not cohabiting. Sometimes there are disputes about whether a couple are living together or not because: Of the financial consequences of cohabiting and The ex-spouse and their new partner are not living together on a full-time basis as they each keep a separate home base although they spend a lot of their week together and present as a couple Working out if an ex-spouse is cohabiting with a new partner is important because if cohabitation can be established: Your ex-spouse may find it a lot more difficult to ask for spousal maintenance for themselves If there is already a financial court order in place you may be able to apply back to the family court to stop the spousal maintenance or to reduce the amount you pay If you are negotiating a divorce financial settlement, or you are involved in court proceedings, your ex-spouse may find it harder to argue that they need the same amount of money to rehouse themselves [related_posts] Proving that your ex-spouse is cohabiting with a new partner It is not uncommon for there to be a dispute about whether an ex-spouse and their new partner are living together as a cohabiting couple. Whether you are negotiating a divorce financial settlement by agreement or involved in divorce financial settlement court proceedings you and your ex-spouse are both under an obligation to provide full and frank financial disclosure. This includes disclosing your relationship status and the impact of your relationship on your housing and outgoings. For example, if you are living with a new partner are they sharing the rent and other outgoings? For example, if you plan to buy a new house with your partner does their savings and earnings capacity affect your ability to secure a bigger mortgage? Financial disclosure and new relationships The requirement to provide information about new relationships is contained in the court document (called a Form E) that needs to be completed by both a husband and wife in divorce financial settlement proceedings. Most family law solicitors also ask you to complete a Form E if you are negotiating a divorce financial settlement. In addition to disclosing the existence of a new partner that you are living with (or plan to do so), you also need to provide details about the new partner’s financial circumstances. This requirement can be a cause for concern especially if a new relationship is in its early stages or a new partner is unwilling to provide information that may be used against them or may result in them being drawn further into acrimonious divorce financial settlement proceedings. Non-disclosure of relevant personal matters or financial non-disclosure could be a basis for setting aside a financial agreement or a financial court order. If the non-disclosure is discovered during negotiations then trust can be lost making it harder to reach a divorce financial settlement. If the non-disclosure is revealed through questions asked during financial court proceedings the judge could draw adverse inferences against the person who hasn’t provided full and frank disclosure. The relevance of a new relationship to a divorce financial settlement There is often an argument that two homes are being maintained by the spouse and the new partner. It is then a case of establishing if, despite the two physical homes, the couple is in reality cohabiting because of the amount of time spent together and the financial links between the two of them. In some situations, it can be in the financial interests of a spouse to say that they do have a new partner they are living with and have taken on financial responsibility for. That is because that may mean they have larger outgoings and therefore an argument to say that they can’t afford to pay as much spousal maintenance each month or they need to spend more on rehousing. It is important to take objective family law legal advice on the relevance of an ex-spouse forming a new relationship when sorting out the financial division of property and assets. That’s because a lot of emotional and financial time and energy can be spent on exploring whether a separated spouse is in a new relationship and then whether, in reality, they are cohabiting together. The job of a family finance solicitor is to quickly assess whether a new relationship will have an impact on the financial settlement or the financial court proceedings. Although a new partner can be a hot topic it can either be a red herring or one of the key factors in your negotiations or in the family court deciding how money and assets are divided. The relevance of a new partner all depends on individual family financial and personal circumstances. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form.

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.

For many young couples it is a real struggle to get on the property ladder. The combination of rising house prices and stagnate salaries has made the ambition of property ownership an uphill battle for the majority of young married couples. However, many of their parents are sitting on wealth tied up in large family homes. At some distant point, there may be a large inheritance. When you are getting divorced one of the stumbling blocks to reaching an agreed divorce financial settlement can be when either a husband or wife has received an inheritance or is likely to receive a substantial legacy in the future. Family solicitor, Robin Charrot, looks at the topic of divorce and inheritance and offers advice on how the court sorts out divorce financial settlements involving inheritances. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form. Protecting inheritance from divorce There are ways to protect an inheritance from divorce if you have not already received an inheritance. Examples include: Signing a prenuptial agreement – a prenuptial agreement only works if you are engaged and have not yet got married Signing a postnuptial agreement – the agreement can ringfence the inheritance or can be comprehensive and set out your agreed divorce financial settlement in the event of a separation. A postnuptial agreement only works if there are safeguards in place to protect both husband and wife, such as financial disclosure and the taking of independent legal advice The creation of a discretionary trust – this is only effective if you have not yet received your inheritance and requires specialist private client and estate planning advice Keeping an inheritance separate – if you have received an inheritance then one way of trying to keep it out of any future divorce financial settlement is to not share the money. This does not always work as it will depend on the extent of your other assets, the length of your marriage, and several other factors. Keeping the inheritance separate means retaining the money in a sole account and not putting it into a joint account or using it to pay off the mortgage on the family home or to invest in the family business. The court may decide to treat a non-shared inheritance as a non-marital asset. This means that the court will not share the inheritance as part of the divorce financial settlement unless it is necessary to do so because otherwise needs cannot be met Family law solicitors recognise that keeping an inheritance separate may conflict with financial advice or tax advice. For example, financially it may be best to pay off the mortgage on the family home rather than keep your inheritance in an account or in investments in your sole name. Alternatively, from a tax point of view, it may be best to make use of your ISA allowance and the ISA allowance of your husband or wife. The legal and financial and tax advice is all correct but it looks at the issue from different angles. Professional help can then assist you to work out the option that best suits your needs and priorities. [related_posts] Inheritance and divorce financial settlement financial disclosure In divorce financial settlement negotiations and court proceedings, there is often an assumption that inherited money or inheritance and trust prospects do not need to be disclosed to your spouse or to the court. They normally do as you are required to provide full and frank financial disclosure. If you do not disclose an inheritance this can result in: Your spouse is suspicious about other financial aspects, such as the value of the family business or the extent of your income, so it makes it less likely that you can reach an agreed divorce financial settlement In divorce financial proceedings the court is asked to make inferences about your honesty and about whether you have other assets because you did not initially disclose the existence of an inheritance or a trust If a financial court order is made and it subsequently comes to light that you received an inheritance or were a discretionary beneficiary of a trust your spouse can ask the court to review the order and make a new one based on the argument that the court would not have made the original order if you had disclosed the existence of the inheritance or the trust Family solicitors recommend that if you have received an inheritance or if you are named in a Will or a trust you discuss your financial disclosure with a specialist divorce financial settlement solicitor before you start financial settlement negotiations, attend family mediation, or complete Form E financial disclosure as part of the divorce financial settlement court process. Even if the advice is that you must disclose the inheritance you can still argue that the inheritance should not be considered in the divorce financial settlement. For example, because you have not received the legacy yet and the testator may change their Will or because although the inheritance has been received the inherited money did not become marital property because of the existence of a prenuptial agreement or as a result of the money being kept separate. Many future inheritances can be safely ignored and will be disregarded by the court. For example, if you are getting divorced in your 20s and your parents have named you as a beneficiary of their Wills but they are in their 60s and fit and healthy. Why? Firstly, you may not inherit for another 30 or 40 years, and secondly, by the date of their death, they may have spent your legacy or decided to leave it to a charity. The situation may be different if you and your spouse are in your 60s and you are divorcing after 30 years of marriage and there is an imminent inheritance and not enough equity in the family home to rehouse you both or to meet your retirement needs. The inheritance could mean your spouse gets more of the equity or pension share than would have been the case if you were not due to imminently receive a substantial inheritance or had recently received it. Divorce and inheritance can be a very emotional topic as invariably people want to protect an inheritance because of their strong belief that the inheritance was family money left to them and that their relative would not want their estate shared with their ex-husband or wife. Divorce financial settlement solicitors and estate planning lawyers can guide you and your family on your options. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form.

There was a time when few of us had heard of digital assets and cryptocurrency but when you are separating in an age where almost everything is carried out electronically and online it is important that your divorce solicitors understand the range of assets that your husband, wife or civil partner may hold and how to trace them. In this article, divorce financial settlement solicitor, Robin Charrot, answers your questions on divorce and digital assets such as cryptocurrency. For expert Divorce and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form. What are digital assets in divorce proceedings? There is no definition of a digital asset in divorce proceedings. That is probably sensible because the world of digital assets can change so fast with the latest developments in tech and online options. Divorce solicitors find it best to outline the type of digital assets that you or your spouse might own to trigger a discussion about what you or your husband or wife might hold digitally. It is important to do that as whilst you may not forget about the existence of a holiday home, a collection of watches, or your partner’s shares in the family business, you may easily forget about an online bank account or the cryptocurrency that your spouse told you seemed like a good investment at the time. Digital assets can include: Cryptocurrency Bitcoin Online share dealing account PayPal account Air miles Online gaming and betting accounts Income-generating social media accounts Sentimental assets such as some types of social media accounts and photo libraries [related_posts] Is cryptocurrency relevant to divorce financial settlements? Digital assets such as cryptocurrency can be family assets in the same way as a property, pension or business can be. Just because something is online and not physical does not mean that it is not relevant to your divorce financial settlement. Reaching a fair divorce financial settlement involves: Working out what assets a husband and wife own individually or jointly or with a third party Tracing assets where there are valid suspicions that assets have not been fully disclosed by the other party to the marriage Getting the assets accurately valued Understanding if the assets should be treated as family assets – even if the asset is not a family asset the court can have recourse to it if it is necessary to do so to meet a husband or wife's needs Negotiating a divorce financial settlement and if that is not possible representation in divorce financial settlement court proceedings Dealing with cryptocurrency in divorce proceedings A good divorce solicitor combines bloodhound tracing skills with technical knowledge and a large dose of pragmatism. For example, an eBay account may not sound significant but it is if it is the prime source of sales in a family business or if a spouse has been squirreling money away by keeping it in a PayPal account. Likewise, everyone talks of cryptocurrency but you need to track down the information to find the investment or be able to show the discrepancies between disclosed assets and lifestyle. Whilst some digital assets, like photos or the dog’s Instagram account, may only have sentimental value they still are important to you so need to be sorted out fairly but without racking up massive legal bills. It is a question of knowing when a forensic digital expert is needed to help track down digital assets and when pragmatism and common sense is the best option to sort out sentimental digital belongings. When dealing with digital assets in divorce proceedings it is important to consider: Drawing up a digital inventory – what you know that you or your spouse holds as digital assets What you suspect and why you suspect it – was the talk of bitcoin hot air or is there a basis to trace assets or gather evidence of their existence Are the digital assets capable of being shared and if not, who will keep them The fairness of one spouse keeping the digital assets and the other keeping non-digital assets. That consideration may be relevant where there is a large online share dealing account subject to stock market fluctuations but an equally uncertain property market if the other spouse is keeping the family home For expert Divorce and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form.