Divorce

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.

Many parents who are thinking about a separation or divorce want to make a fresh start overseas with their child. In this article, specialist family law solicitor Louise Halford shares her experience in helping parents apply to move abroad with their children and advising parents on how best to oppose child relocation applications. For expert Divorce and Children Law advice call our team of specialist divorce lawyers or complete our online enquiry form. Moving overseas with a child after separation or divorce Evolve Family Law has seen an increase in inquiries from parents about moving out of the UK with their children. The inquiries are not just from parents currently based in Cheshire and the North West of England, but from across the UK. The increase in children law inquiries is down to the following trends: The world becoming a smaller place with people meeting and marrying partners from other countries The number of overseas families who came to the UK on work visas and dependant visas and who settle in the UK by securing indefinite leave to remain or British citizenship but, after a separation or divorce, one parent wants to return to their country of origin Emigrating for work as opportunities for working abroad increase International parenting after separation or divorce It is said that being a parent is one of the hardest jobs in the world. That is particularly true for any parent who is involved in ‘international parenting’ as a result of one parent moving abroad with the child. Most parents find it hard enough to let their child go off for the weekend with their ex-partner, let alone accept that their child should get on a plane to another country to see their mum or dad. Prior to committing emotionally or financially to an overseas move, many parents don’t fully appreciate that if they are successful in relocating abroad with their child that the family court will often order that the child should spend long chunks of time during holidays with the parent who is not moving abroad and who will be missing their weekend contact. It is often said that there are ‘no winners, only losers’ when one parent moves to another country with their child, whether that be back to a parent’s country of origin or as a result of a new job or relationship. However, with communication and imaginative contact arrangements, even airport handovers, can work. If it is a relocation to Spain then the flight from Manchester or Liverpool airport and the child’s handover may be a lot easier than navigating a motorway trip from Cheshire to Cornwall or Guildford. [related_posts] The law on international child relocation Some parents are well-researched on the law on child relocation but for others, it is a whole new arena. The basic principle is that if a child is habitually resident in the UK the child can’t move abroad with either parent unless the other parent agrees to the move or the family court makes an order granting permission to relocate. The law on child relocation and moving abroad with your child can be hard for a parent to get to grips with. If, for example, both parents originate from the US but currently live in the UK with their children this may mean that their children are classed as habitually resident in the UK. Therefore, although all the family members are American citizens, if one parent wants to return ‘home’ to the US with the children, permission still has to be obtained from an English court.  Without specialist legal advice on child relocation law, many parents don’t realise the implications of booking their flight home. The legal and personal costs of not knowing the law on international parenting can have a devastating impact on a parent and their chances of successfully getting a court order to let them take their child abroad or a child arrangement order. Contact arrangements if a child moves overseas As part of one parent agreeing to give permission, or the court making an order allowing the other parent to relocate, the contact arrangements should be recorded. If a court order to relocate is made the court will normally also make a child arrangements order setting out how often the child should see the other parent. The court order can include written contact, Skype, and face-to-face contact. An agreement should be reached and recorded on specific details such as The agreed travel arrangements Who, if anyone, will accompany the child Who should pay for the costs of flights Extended family and grandparent’s ability to travel, time differences with Skype, the child’s ‘best friend’, and key dates such as Thanksgiving and grandad’s 80th birthday should not be forgotten. ‘Small’ details such as these can impact on whether arrangements work for a child. Compromise is also a key factor as if grandparents can’t make a long-haul flight to Australia for Christmas could both parents split the travel and meet in Dubai? It is often those small points that make all the difference in whether international parenting will work for a family or not. Legal advice on child relocation overseas It is always tough to answer a query on whether a mum or dad will get permission to move abroad. That is not just because the law on this subject is so complex but also down to international parenting being one of the hardest things for any parent to contemplate, and therefore for their family law solicitor, to guide a parent through. Invariably a parent is already emotionally, if not financially, committed to their move abroad before they take the step of getting advice and so it is always worth getting an assessment of your family situation and your options before you commit to a move. For expert Divorce and Children Law advice call our team of specialist divorce lawyers or complete our online enquiry form.

Tax is not normally something that is on your mind when you are thinking about a separation or divorce but divorce solicitors say that capital gains tax has to be considered when negotiating a divorce financial settlement. The government has announced changes to the way capital gains tax is calculated on separation or divorce. In this article, divorce financial settlement solicitor, Robin Charrot, looks at the planned changes and explains the importance of checking out tax on divorce before you agree to your divorce financial settlement. For expert Divorce and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form. Tax on divorce   Many people who decide to separate do not realise that the timing of their separation, or their decision to transfer assets to the other spouse or to sell assets, can create tax implications. That is why it is important that a divorce financial settlement solicitor checks any proposed financial agreement to both reality test the financial settlement and to check the net effect of the financial deal. Without legal input, what you think is an equal split may not be a 50:50 division of assets if one spouse is going to end up paying a large tax bill in the future, whilst the other spouse escapes from tax liability. The financial agreement may still be a fair financial settlement but both husband and wife must understand the net effect so they are both comfortable with the deal or can negotiate a financial settlement that does achieve equality if that is their objective.   The current tax rules on separation and divorce   Under the current tax rules, a husband and wife can transfer assets between one another without the transfer is taxable. That’s because the transfer of an asset takes place on a no gain and a no loss basis so the spouse acquiring the asset gets the item at the base cost of the spouse who is transferring the asset to them. In other words, a spouse transfer does not crystalise a gain or loss. The issue with the current tax rules for separating couples is that these capital gains tax rules only give these concessions in the tax year of separation.   That may not sound like a big problem but it is. Take the example of a couple with an investment portfolio or a buy-to-rent property. They may conclude that if the wife is to stay in the family home, then the fair financial settlement is for the wife to transfer her share of the investments or buy to let property to the husband. If the couple decides to split in late March they only have until the end of the tax year in early April to sort out the transfers. If they don’t then one of them could face an unexpected and large capital gains tax bill that they would be solely responsible for.   Even if a couple decides to separate in May (so they have almost a full tax year) they can get caught out if they do not take early legal or accountancy advice. For example, the couple could start no-fault divorce proceedings in June but not start thinking about their divorce financial settlement until many months later giving them insufficient time to give notice to transfer investments or to sort out a new mortgage on the buy-to-rent property before the end of the tax year of separation. The government has acknowledged that tight timeframes on various tax aspects arising from separation or divorce can create difficulties and complexities so the proposed new tax regime is more generous and less restrictive. [related_posts] The changes to tax on divorce or separation   With effect from the 6 April 2023, there will be a new tax regime for separating or divorcing couples. If you transfer assets between spouses on or after the 6 April 2023 the no loss and no gain principle will apply to transfers that take place up to 3 years after the end of the tax year of separation. Furthermore, if the transfer takes place as part of a financial court order there is no time limit for the no loss and no gain principle.   The changes to tax on divorce or separation and the family home   If you sell or transfer a family home as a married couple there is no capital gains tax payable because of principal private residence relief. However, principal private residence can be lost resulting in unexpected tax bills.   The complexities of capital gains tax mean you both need to think carefully through the ramifications of agreeing to a mesher order on the family home. For example, a husband and wife may agree that the family home should stay in joint names until their youngest child is 18 as the spouse staying in the family home can't afford to take out a mortgage in their sole name so cannot get the house transferred to them. In reaching this type of mesher agreement the spouse who leaves the family home can, in some circumstances, lose their principal private residence relief.   The government is planning to make it simpler for couples to agree to mesher orders because the non-occupying husband or wife's share of the property will not be subject to CGT when the family home is eventually sold under the terms of the mesher order. The proposed changes may make mesher-type orders more attractive to some families, especially where there isn’t enough equity to rehouse two families or there is a particular need to delay selling the family home until the children have completed their exams. Capital gains tax and divorce in the future   Even after the new rules come into force capital gains tax will still be payable in some scenarios when a couple separates or divorces. If you are concerned about reaching a divorce financial settlement and the tax implications it is best to get early specialist advice on your family law options.   For expert Divorce and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form

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

When you're getting divorced you can come across a lot of legal jargon and terms you’re not familiar with. Many people feel embarrassed about asking their divorce solicitor questions ( they shouldn’t) but in this blog our divorce solicitors explain what a divorce coach is and how they can work with your divorce solicitor to help you.   For divorce advice call our team of specialist divorce lawyers or complete our online enquiry form.   What is divorce coaching?   Divorce coaching gives you the chance to think and make decisions about your separation or divorce as well as process your feelings in an impartial and non-judgemental setting. It allows you to express and work through all the fears, thoughts, and anxieties that you may not feel ready to talk to those around you about. It can help you navigate the divorce process, empowering you to make decisions and take the action that’s right for you.   It can also allow you to explore how you would like this next chapter of your life to be post-divorce, helping you to see the possibilities and feel confident, positive, and optimistic about the future.   Why do I need a divorce coach if I have a divorce solicitor?   You may have a great divorce solicitor that you trust and feel comfortable talking to but a divorce lawyer is there to give you legal advice and explain your legal options. However good their legal advice is and however supportive they are you can still feel overwhelmed by the decisions you have to make. For example, over the timing of your divorce proceedings, whether you should agree a proposed financial settlement or the proposed post separation parenting arrangements for your children.   A divorce coach works with you so you have more confidence in the divorce, financial and children decisions you are making. With greater confidence you are likely to be better able to either reach compromises or cope with the stress of financial or children law proceedings that may be necessary. For example, if your ex-spouse is refusing financial disclosure or your ex is refusing you contact with the children.   Working with a divorce coach   A divorce coach has a client-centric point of view and works with you, not you and your partner. Coaching sessions are one to one and are confidential. They are usually conducted either at the private office of the coach, or via a platform such as Zoom.   You are your own expert on your life and what is most important to you as you move forward. A divorce coach though can act as a thinking partner and sounding board for you, helping you to make sure you can communicate what you want clearly, whether that is to your ex, your family, your divorce solicitor or your family mediator.   A divorce coach helps you to explore your views about possible options, enabling you to consider different choices. In this self-discovery process you can sometimes discover that there are gaps in your knowledge or gaps in your skills. Together you and your coach can develop a plan on how to close these gaps so that you can be confident not only in the decisions and agreements you are making as part of your divorce. But also, beyond it to help you to build strong foundations for a life post-divorce filled with optimism, potential, security, and excitement.   What are the benefits of talking to a divorce coach?   There are many benefits of divorce coaching, such as:   Reducing feelings of turmoil - getting divorced requires a lot of paperwork and organization — tasks that can feel overwhelming when you’re going through emotional turmoil. A divorce coach help you make sure you have everything you need to get it done so that when you meet with your divorce solicitor you are ready and prepared, meaning your meetings can be as cost effective as possible. Saving you money - working with a divorce coach during your divorce can actually save you money by ensuring that your meetings with your divorce solicitor focus purely on the legal process and decisions that need to be made. It is completely understandable that you want to talk through how you are feeling and work through all your emotions about your divorce. But doing this every time you meet with your divorce solicitor may increase your legal fees without actually moving you forward emotionally. A divorce coach will help you manage your emotions so that you can make decisions that are not clouded by how you are feeling about your ex-partner.   What will a divorce coach talk to me about?   The following isn't an exhaustive list, but does give you a general overview of the sorts of things a coach can work with you on:   You're so fearful about your future that you can't make decisions You are feeling overwhelmed by all the paperwork getting divorced involves You have no idea what you're going to do when the divorce is final You're very angry and are trying to use your children to get revenge You're not familiar with the legal process and feel overwhelmed You're not thinking clearly and it's making it very hard to make any decisions You are struggling to figure out a parenting plan that's going to work You are struggling to figure out how you will co-parent [related_posts] What should I look for in a divorce coach?   When looking for a divorce coach your divorce solicitor will be able to help with a referral but you should be checking that any divorce coach you approach is:   Properly qualified with a recognised qualification in coaching A member of a recognised coaching body such as the Association for Coaching, or the International Coaching Federation. This confirms that they are committed to working ethically and responsibly with you and are appropriately qualified A good fit for you as coaching is a very personal experience and it’s important that you feel comfortable with your divorce coach and that you can work well together. So, check that any coach you contact offers a chance to have a free, no obligation 15- 30 minute consultation with them so that you can ensure they are the right person for you   Final thoughts on divorce coaching   Divorce can be a lonely, stressful, and unsettling time, having a coach to help you navigate through, be on your team and ultimately help you flourish after your divorce is complete is definitely something worth considering.   For divorce 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.

A look at all you need to know about no-fault divorce Divorce law is changing. It is a big deal to divorce solicitors as they are interested in divorce law but, if you are thinking about a  divorce, you don’t want to know all about the old divorce law, the rationale for divorce reform, and the interesting quirks in the new divorce legislation. You just want to know if you can get divorced and, just as importantly, if you can get custody or contact with the children and what will happen to the house and other assets. For expert Divorce, Children and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form. At Evolve Family Law, our divorce solicitors believe in keeping things simple, so divorce and financial settlement solicitor, Robin Charrot, provides a quick guide to no-fault divorce. Your divorce questions answered on: What is no-fault divorce? What are the grounds for a no-fault divorce? Who can apply for a no-fault divorce? The no-fault divorce Court process How long does a no-fault divorce take? No-fault divorce and child custody and contact No-fault divorce and financial settlements What is no-fault divorce? No-fault divorce is the name for the new divorce law. As you can probably guess from the name, fault has been removed from divorce proceedings so you can no longer start divorce proceedings based on your husband or wife's adultery or unreasonable behaviour. What are the grounds for a no-fault divorce? To apply for a no-fault divorce, you need to file a divorce application and state that your marriage has irretrievably broken down. You do not need to say why and you don’t need to have been separated for a specified period. As the grounds are simplified it is no longer possible to contest or oppose a divorce other than in very unusual circumstances. Who can apply for a no-fault divorce? With a no-fault divorce application, you have three options: You and your spouse can apply jointly for a no-fault divorce or You can apply on your own for the divorce or Your husband or wife can make the divorce application Whether you apply jointly or individually, it is a similar divorce process. If you apply together you are referred to as applicant one and applicant two. If you make the application, you will be the applicant and your husband or wife will be the respondent. From a divorce solicitor perspective, we would probably prefer you to either make the application jointly or to make the application yourself, just so you are in control of the divorce process and so that it does not get stalled if you want to get your no-fault divorce as quickly as possible. [related_posts] The no-fault divorce Court process The no-fault divorce process consists of four steps: You apply for a divorce – this could be a joint application or an application made by one of you. The applicant confirms they want to go ahead with the divorce. The Court makes a conditional Order – this used to be called the decree nisi of divorce. After a wait of six weeks, the applicant can apply for the final Order – this used to be called the decree absolute of divorce. In between steps one and two there needs to be a twenty week wait. That period can't be shortened as it is part of the new no-fault divorce law. How long does a no-fault divorce take? Divorce solicitors say no-fault divorces will take about six months from start of the divorce proceedings to final divorce Order but the timescales could be a bit longer if there are delays between the four stages. For example, because you want extra time to reflect or because you don’t want to progress the divorce proceedings over the Christmas period. A no-fault divorce is therefore not a quickie divorce but it does have advantages. For example, as there is no need to blame your husband or wife for the marriage breakdown, a no-fault divorce may reduce acrimony and help you reach an agreement on child custody and contact or the financial settlement. No-fault divorce and child custody and contact In a no-fault divorce, the Court is not asked to decide on the residence and contact arrangements for your children after your divorce. Ideally you will be able to agree the parenting arrangements either direct, through help from family law solicitors, or in family mediation. If you can't do so then either you or your husband or wife can make a separate application for a child arrangement Order. This Order will say if the care of the children is shared and will specify the residence and contact arrangements. If you are concerned about child abduction or you want to move overseas with your children after your divorce then you can apply to Court for a prohibited steps Order or relocation Order. No-fault divorce and financial settlements In a no-fault divorce the Court is not asked to decide who gets what assets in a financial settlement unless either you or your husband or wife ask the Court to do so. If you are able to reach a financial settlement by agreement you can jointly ask the Court to approve a financial consent Order. If you can't reach a financial settlement by agreement either one of you can file a document, called a form A, to start financial proceedings. There is then a series of Court hearings to ensure that financial disclosure takes place and assets are valued before a judge holds a final hearing to decide on the financial settlement and make a financial court Order. At any stage in the financial  proceedings, you can reach an agreement and ask the Court to approve a financial consent Order. The fact that divorce proceedings are based on no fault will not affect the amount you receive as a financial settlement because if a husband or wife has behaved very badly you can refer to this in the financial  proceedings. However, behaviour has to be very extreme to affect a financial settlement and the behaviour needs to be linked to financial matters. For example, allegations of domestic violence may be relevant to the financial settlement if the victim of domestic abuse cannot work and needs spousal maintenance for a period of time because of the physical or emotional impact of the domestic violence on their ability to work. If you have questions about the no-fault divorce Court process or need advice on children or financial settlement issues the divorce solicitors at Evolve Family Law are here to help.     For expert Divorce, Children and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form.