Getting Your Finances In Order For Divorce

If you are thinking about divorcing, part of the process will usually involve providing financial resources, such as property and other assets. This can be a challenging process, and getting your financial information in order will help it to go more smoothly.

Many people are unaware that they and their spouse can make financial claims against the other, including transfer of a property, the payment of spousal maintenance and pension sharing, even after their marriage or civil partnership has been dissolved.

In the same way that a court order is needed to dissolve the marriage, you also need a court order (known as a Financial Remedy Order) to record the terms of your financial separation and to dismiss future financial claims.

Financial Agreement on Divorce

It is preferable to deal with matters by negotiation, if you can; either by talking directly with your ex via a solicitor or mediator – if you cannot reach an agreement this way, it may be necessary to make an application to the Family Court. The court has the power to make orders for redistribution of capital, income and pensions between people who have been married or have formed a civil partnership. Whether or not you go to court , however, you will usually need to start by fully disclosing to each other your financial circumstances, including bank accounts, property, investments, pension valuations and any debts to your spouse’s solicitor.

There is a lengthy form to fill in, known as a Form E. This will be a requirement of the court, if your case goes that far, but it is also often used on a voluntarily basis, so that couples can clearly understand the extent of the financial resources that are shared between them.

Getting Your Records Ready

The following information is required to complete Form E, so you can start compiling this now to give you and your solicitor or mediator a head start:

• Details of any child maintenance payments that have been agreed or alternatively an estimate of the child maintenance payments that will be payable under the Child Support Act 1991.
• Details of any court cases you are involved in
• Details of any property you own and the current market value
• Details of any mortgages, to include how much is outstanding and any potential penalties for early repayment.
• A list of your bank, including building society and National Savings accounts and the balances held.
• Details of investments such as PEPs, ISAs, stocks and unit trusts and their value.
• A list of any life insurance policies and endowment policies and their value.
• Details of any money that is owed to you.
• Valuations in respect of cars and valuable items such as jewellery.
• Liabilities and debts such as money owed on credit cards, bank loans and hire purchase agreements.
• Business interests, to include their value and the amount owed to you.
• Details of your pensions to include the type of scheme and a valuation.
• Other assets, such as share options, trust interests and assets that you are likely to receive in the foreseeable future.
• Details of the income you earn from employment, your business and from your investments and any benefits you receive.

This information needs to be supported by supporting documentation. Some of these documents can take a while to obtain, in particular public sector pension valuations, which are currently subject to delays of many months. If you are employed in the armed forces, police or as a teacher, for example, we recommend you request a Cash Equivalent Transfer Value for your pension(s) as soon as possible. Your annual benefits statement does not provide an overall valuation of this type of pension.

By requesting this information straight away, you can avoid delays later on when you are ready to start negotiating a settlement.

Following financial disclosure, it is important that you seek specialist advice in order for you to understand what a fair outcome might look like in your case.

Contact Us

To speak to one of our expert family lawyers, call 01392 477983 or email FamilyNewEnquiries@everys.co.uk