Financial Settlements

An important aspect of any divorce or dissolution is establishing how the parties’ financial resources should be distributed.  It is therefore understandable that this is one of the most common areas of dispute.  A careful balancing act is needed to create a fair and reasonable outcome that is acceptable to both parties.

No two cases are ever the same and what is appropriate in one case is not always necessarily the same in another, regardless of how similar the facts.  What is imperative is that if an agreement is reached between the parties, it is recorded in a document referred to as a ‘Minutes of Consent Order’ which on approval by a Judge becomes a binding Consent Order.

Over the years mediation has emerged as a useful tool to assist couples in resolving their financial issues.  Mediation is a process whereby both parties engage with a Mediator who is independent and will attempt to facilitate an agreement.

When people are unable to agree a financial settlement, with or without the assistance of mediation, the court has the power to make various Orders.  These can include one or more of the following:

• Periodical payments – also referred to as ‘maintenance’
• Secured provision – to ‘secure’ that payment against an asset (this is a very rare Order and often only rises in cases where the paying party lives abroad but has assets in the UK)
• Lump sum payments – ie a cash payment
• Property adjustment – transferring all or part of one spouse’s interest in an asset
• Orders relating pensions

Except where there is an agreement, the Court rarely makes order for child maintenance as this is usually dealt with by the Child Support Agency.  Consent Orders for child maintenance are frequently made and the best interests of any minor children of the family are always the Court’s paramount concern.

Before starting Court proceedings the parties must attend a ‘Mediation Information and Assessment Meeting’ unless one of several exemptions applies.  The purpose of this meeting is to establish whether your case is suitable for mediation and whether you are both prepared to engaged in mediation in an attempt to resolve your finances.

In some cases, it will be possible reach a settlement that encompasses a complete separation of the parties’ capital and income.  This is more commonly referred to as a ‘clean break’ and the Court is under a duty in each case to consider whether this is appropriate.  Much, however, depends on the particular facts of each case.

There are a vast array of possible settlements that may be available to the parties. Each will require careful consideration whilst taking into account the various factors and finances of each party.  Our specialists are experienced and skilling in negotiating settlements on behalf of our clients and will be happy to help should you require any further advice or assistance.

To make an appointment with one of our specialist team for a free initial consultation, telephone 01245 228108, complete our Enquiry Form or email paynes@gepp.co.uk.