Navigating Divorce: What You Need to Know About Finances and Property

Relationships do not always work out. Marriages end and divorces happen. But, before closing this chapter, there are financial and legal considerations to keep in mind. Separating shared assets, deciding on maintenance payments and planning for the future can be overwhelming, to say the least.

Because every decision made during this process has lasting consequences. This is why we encourage clients to always approach divorce settlements with financial clarity and legal expertise.

At Lyons Bowe Solicitors, we guide clients through the complexities of divorce settlements, providing practical advice and support during this process. With a better understanding of where you stand financially and legally, you can make informed decisions to protect and secure your future.

Dividing Up Assets in a Cordial Manner

In England and Wales, divorce settlements do not automatically equate to a 50/50 split. The courts base their decision on multiple factors, like the length of the marriage, financial contributions, future earning potential, and the needs of any minor children involved.

This decision is made as a fair resolution to the ending of the marriage. It is not made on a rigid division of separating assets which can include the family home, pensions, savings, and investments. Additionally, inherited wealth or pre-marriage assets can also form a part of this decision, depending on how they were used throughout the marriage.

Deciding The Fate of The Family Home

The family home is often the most contentious point of a divorce because it holds so much value to each party. Both financially and emotionally. Deciding on who gets to keep it can often lead to tensions rising, making it a challenging part of the process.

More importantly, courts will prioritise the welfare of children when making property-related decisions. Their stability and well-being take precedence over financial fairness or divisions.

Some of the legal options available to you and your ex-partner can include:

• One of you buying out the other’s share of the family home.
• Selling the property and splitting the proceeds between both parties.
• Postponing the sale of the family home until children reach adulthood.
• Transferring ownership of the family home to one spouse in exchange for a greater share of other assets.

Figuring Out Your Joint Finances (and Debts)

There is more to separating finances than just splitting it at face value. Joint accounts need to be closed, savings will be divided and shared debts need to be finalised.

Additionally, if both names are on a mortgage, both parties are still responsible for payments until a formal agreement is reached through the legal process.

Unfortunately, financial obligations do not automatically disappear after divorce. Reviewing credit reports and updating financial arrangements early on can help prevent unexpected surprises and liabilities later on in life.

Working Out Your Future Pensions Amicably

One of the most critical and overlooked aspects of finalising a divorce is pensions. These are significant assets with long-term effects but are often underestimated.

Courts can decide to separate pensions in one of the following ways:

• Pensions Sharing Order, where a percentage of one spouse’s pension is transferred to the other.
• Pension Offsetting, where one spouse retains the pension while the other receives a greater share of the other assets available on the table.
• Pension Attachment Order, where a portion of the pension is paid to the former spouse upon retirement.

Leaving out pensions during the settlement process is likely to leave either of the parties at a serious financial disadvantage in the future.

Prioritising Spousal and Child Maintenance

Financial support after divorce depends on individual circumstances. Spousal maintenance is awarded based on income disparity, career prospects, and childcare responsibilities. Courts do not always guarantee this and if they do, it can be time-limited. On the other hand, child maintenance is arranged and handled through the CMS (Child Maintenance Services).

Both types of maintenance are designed to prioritise the financial well-being of minor children involved or spouses who have provided significant childcare over the years.

Settle Your Divorce with Expert Legal Support

The end of a marriage is rarely just a legal process. It marks the closing of a significant chapter in your life, one filled with shared memories, commitments, and dreams that may have changed over time.

Be it mutual or a personal decision, the financial and legal aspects of divorce add an extra layer of stress. It goes beyond simply separating shared assets, deciding on maintenance payments, and planning for the future—they can also bring up deep emotions, from relief and hope to uncertainty and anxiety.

Because divorces are highly emotional, bad, poorly made decisions are all too common.

But it does not have to be this way. With proactive measures and expert legal support, you can divide your assets in a way that secures your financial independence. This is an opportunity to update your Will, review your insurance policies and adjust your finances for the future. Settling a divorce with the right team behind you prevents financial and legal uncertainty in the future.

At Lyons Bowe Solicitors, we understand how overwhelming the divorce process can be. We will help you navigate your way through the legal and financial complexities of a divorce for a fair outcome so that you can go forward with your own life.

Our tailored legal advice will protect you and secure your future today. Get in touch with us at Lyons Bowe Solicitors today to settle your divorce with expert legal support that you can count on.