When considering separation or divorce, most people want to know what their options are financially. Depending on your circumstances and the status quo between you and your ex-partner there are several ways to deal with finances during a divorce and after separation.

Separation Agreement

If you haven’t already started divorce proceedings and divorce is not something you wish to initiate immediately, then you can have a separation agreement drafted for both you and your spouse to sign with the intention that the terms within are followed until such a time that you are ready to divorce. This agreement can include all arrangements that are relevant to your circumstances, ranging from property to household contents to maintenance and child arrangements. The downside to this option is however, that a separation agreement is not legally binding which does bring risks to both parties.

Financial Consent Order

If you are in the process of divorce or are about to initiate divorce proceedings and you and your spouse have been able to agree the terms of a financial settlement between you then you are able to have this agreement formalised as Financial Consent Order which will bring about a legally binding financial settlement once approved by the Court. The Financial Consent Order can be submitted to the Court for approval once your Conditional Order (previously Decree Nisi) has been granted and a financial form called a Statement of Information for a Consent Order (D81 Form) must also be submitted with the court alongside the Financial Consent Order so that the Court can assess whether the agreement being proposed is fair and reasonable to both parties in the particular circumstances of your case.If you have not reached an agreement with your spouse then voluntary negotiations can take place with a view to reaching an agreement and formalising that by way of a Financial Consent Order. These negotiations can take place between solicitors or at mediation depending on your individual circumstances. Often, the negotiation process is assisted by an exchange of financial disclosure to ensure that both parties are fully aware of the financial position of the other. Once an agreement has been reached a Financial Consent Order can be prepared as set out above.

Financial Remedy Proceedings

If you find yourself unable to reach a financial agreement with your spouse then you may need to issue Financial Remedy Proceedings in order that the Court can assist you in reaching an agreement. If an agreement is not possible during the course of proceedings the Court will convene a Final Hearing at which the Judge will make a decision as to the division of the marital assets. Once court proceedings are issued full and frank disclosure is exchange by way of a Form E Financial Statement. This is the first step in the Court process and usually takes place before any hearings. Financial Remedy Proceedings are usually a three hearing process and the duty of financial disclosure continues throughout the proceedings in order that the court is aware of any change of circumstances. The court process encourages negotiation and settlement as the proceedings progress but with the back stop of a final hearing if an agreement is not possible.We are here to help you navigate the various options to resolve your finances following the breakdown of your marriage or your separation.