Divorce Financial Settlement – Legal Process

Reaching a financial settlement on divorce: the legal process

Our team of divorce solicitors can provide legal advice on all aspects of the financial settlement procedure, ensuring you reach an agreeable compromise with your former partner over the division of assets, child support and maintenance payments.

Here is a brief explanation of the various options which are possible in a divorce financial settlement. If you would like to discuss any of the options available with a divorce solicitor please call 0800 840 4929.

Voluntary disclosure

In most divorces an agreement can be reached, with the help of family law solicitors, in which both parties agree to voluntarily disclose financial information. It is usually necessary for both the husband and wife to provide full details of their finances, including such items as bank statements, payslips, P60s and pension valuations.

Once financial documents have been exchanged, it is usually possible to reach a negotiated settlement through solicitors. Once a settlement has been agreed it can be converted into a court order. Only an order made by the court during divorce proceedings constitutes a final and binding agreement. Orders can be made by the court without the need for any attendance at the court itself.

Court procedure

In some divorces one or both of the parties involved are not willing to voluntarily disclose their financial details. In such cases an application can be made to the court to timetable the financial process. This is known as an application for a 'financial remedy'.

The court process is slow, and can take at least 12 months to go from beginning to end. If a prompt agreement cannot be reached the court process at least guarantees that progress will be made. Negotiations usually continue throughout the court process and as soon as an agreement is reached, a court order can be made and the court timetable is automatically brought to an end.

Collaborative law and mediation

Collaborative law is a relatively new process to the UK. The idea is that the husband, wife and their solicitors enter into a binding agreement that commits them to reaching a financial settlement, at the same time preventing them from applying to the court. Negotiations are carried out in four-way meetings with the husband, wife and their solicitors present. The negotiations should focus upon the wishes and needs of the couple and their children. For more information on this process see our collaborative law section. Once a settlement has been agreed through collaborative law or mediation it can be converted into a court order. Only an order made by the court during divorce proceedings constitutes a final and binding agreement. Orders can be made by the court without the need for any attendance at the court itself.

Interim financial arrangements

If one spouse is failing to financially support the other, an emergency application can be made to the court for an order for 'maintenance pending suit'. This is a court order, requiring one spouse to pay the other a fixed monthly sum until the divorce is brought to a conclusion. Such a remedy may be necessary where, for example, the mortgage is not being regularly paid.

Where there is a risk that one spouse may be trying to hide or dispose of assets, the court can also make orders for injunctions, freezing assets until the divorce has been concluded. The court will however, only make injunction orders where there is good reason to do so.

Family law solicitors

To arrange a discussion with a family law solicitor click here or call us on 0800 840 4929. We are available to take your call 24 hours a day, seven days a week.