A financial agreement after divorce is a documented order about the fair division of finances and assets between two parties of a marriage.
You can reach an agreement on finances after divorce which can keep costs down or you can seek professional advice if you can’t come to an amicable agreement.
When you are looking at your finances after divorce you must both disclose all financial details whether they are assets or debts. This will allow a fair division taking into account current and future financial responsibilities.
If you cannot reach an amicable financial agreement after divorce then you may want to consider appointing a mediator who will offer independent non-biased advice.
Finances differ from family to family but you may want to consider the following when you are sorting out money after divorce.
While pursuing your divorce and a financial settlement, you should focus on being able to maintain your financial obligations without going into debt. If you were previously support by your partner who was the financially stronger party of the marriage then you may wish to agree spousal maintenance payments. This is something that you would consider within a financial settlement.
Although it is difficult during such an emotional time, sitting down together and discussing these issues can ease the stress that you will already be feeling.
When you have sorted out your immediate financial concerns then the next step would be to consider long-term finances after divorce.
If you cannot agree for on-going costs to be shared between you and your partner then you may wish to consult with a family lawyer to explore your options.
Child maintenance and childcare arrangements should also be considered when looking at your money after divorce.
In some cases parents can come to an amicable agreement between themselves regarding the amount of financial support the children and the main carer will need. It’s not necessarily important on the split between the two as the main focus should be what support the household needs as a whole. If you cannot reach an agreement and depending the level of financial support, the CSA may be able to assist.
The family home is considered to be the capital resource of a family therefore it is usually one of the first things to sort out. When resolving your finances after divorce your key focus is usually your home and living arrangements.
The family home will be a primary concern to maintain where children are involved and if there are sufficient finances to support this.
Where there are little or few assets of low value and a short marriage then the matrimonial home is usually considered to be sold with the division of equity being split.
Where there are more assets and of high value with children involved then the matrimonial home would usually look to be retained with specific financial provisions to support the children regardless of the length of marriage.
When you are looking at your finances after divorce remember that your savings, investments assets and also your debts will be a considerable factor.
There are many different types of savings ranging from instant accessible cash to more complex saving accounts which will need to be given careful attention. It is useful for you to gather and retain your bank statements dating back as long as possible.
If you cash in some investments early you may incur a financial penalty for a withdrawal so it is important to understand your position when looking at your financial agreement after divorce.
If you are unsure then you may want to seek advice a bank or independent financial advisor.
As for debts it is important to establish what the debts are and whether they are being paid regularly as you don’t want the debts to spiral out of control. You would also want to consider whether they are matrimonial debts and if so consider including as part of your financial settlement.
The division of pensions depend on a number of factors relating to personal circumstances and the marriage such as age, length of marriage, financial position of parties, pre-martial acquisition ect.
Here are a few factors which may be taken into account depending on the terms of your pension:
When do you intend to retire?
What is the earliest date you can take your pension?
What is the income each of you will be able to get from your current pension?
How much expenditure do you think you will have after you retire, therefore how much will you need?
Do you have any other savings that can be used when you retire?
Your pension is liquid which means it is subject to a value fluctuation and also not accessible in the same way as cash in the bank or sale of property.
It is important to obtain the latest cash equivalent transaction value of your pension so you can have this to hand when you obtain advice from a divorce lawyer in respect of being included within a financial settlement.
If you want help and advice during your financial settlement agreement we can help. Our team of specialist family lawyers have helped hundreds of couples reach a financial settlement which is tailored to reach your needs both now and in the future.
Did you know that we have family lawyers in Harrogate as well as nationally across York, Manchester, Oldham and London so we are never too far from you if you need to pop in for a chat.