Even if you have kept your finances separate during your marriage or civil partnership, you will still need to reach a formal financial settlement after you divorce. We are here to help you handle the division of assets including property and pensions as successfully as possible.
Our leading team of divorce and financial settlement solicitors have supported hundreds of clients across the UK and have a significant amount of expertise
A divorce financial settlement is an agreement reached between two divorcing partners that sets out how their financial and martial assets should be divided. It can also address any requirements for ongoing financial support, such as child support or spousal maintenance.
Once you and your ex-partner have reached an agreement, you will need to apply to the court for a consent order to make the financial settlement legally binding.
The court will need to review your agreement before granting a consent order to ensure that the details of the settlement does not disadvantage either you or your ex-partner. If the courts believe one of you is being disadvantaged, they may instruct you to renegotiate.
What is the process of divorce financial settlement?
The process of reaching a divorce financial settlement involves several steps, including full financial disclosure and negotiating the terms of the settlement with your ex-partner. Your specialist divorce lawyer will support you through each step, ensuring that you understand your legal responsibilities, rights, and entitlements, and representing you at each stage, working to secure the best possible outcome for you.
Making a financial disclosure
Both you and your ex-partner will need to make a full and honest financial disclosure, which means providing a full and complete record of your income, assets, liabilities, and financial requirements. This is usually completed using a Form E financial settlement, along with supporting evidence like pay slips and bank statements.
It is important to be completely transparent in your financial disclosure. Failure to do so can not only make it harder to reach an agreement with your ex-partner, but it can also lead to any agreement you do reach being rejected by the courts.
Mediation and negotiation
The next step is negotiating the terms of the divorce financial settlement with your ex-partner. This might involve attending mediation – the court will usually expect you to have at least attended an assessment session, known as a Mediation Information Assessment Meeting (MIAM).
Your divorce solicitor will work closely with you to determine the best approach during negotiations, providing expert legal insight and tailored guidance as well as advocating for you during meetings with the other party.
Applying to the court
Once you’ve reached an agreement, you will need to apply to the court for a consent order. Your solicitor can draft the order for you, confirming the terms of your agreement and explaining how you intend to divide your assets. This will then need approved by the court, at which point it becomes legally binding.
If you have not been able to reach an agreement with your ex-partner, you can ask the courts to decide how your finances should be separated for you. This is known as making a financial order, sometimes also referred to as the contested route.
You will need to attend multiple appointments before a judge finalises your financial order, including an initial hearing with the judge to discuss your application, at least one financial dispute resolution (FDR) appointment to try and resolve the agreement without the need for a final hearing, and a final hearing, during which the judge will rule on the terms of your financial settlement.
What assets are included in a divorce financial settlement?
A divorce financial settlement should include all assets regarded as martial assets, including income, property, possessions, and liabilities (or debts). Keep in mind that ‘marital assets’ does not necessarily mean only those obtained or accrued during your marriage – your pension is also considered a martial asset, for instance.
For many couples, marital assets will include:
Any income you generate
Property, such as the family home and other real estate, including any property held overseas
Vehicles, including cars, boats, or other vehicles
Any businesses you own or have shares in
High-value personal possessions, such as furniture, jewellery or art
Any pension pots you have
Some assets that you acquired before your marriage may be considered pre-martial assets and therefore not included within your financial settlement. This can include things like an inheritance or any property purchased before you were married.
Whether these assets are considered pre-martial or martial will depend on your circumstances, and you’ll have to request that the court exclude them from consideration.
If you’re unsure of what should be included in a financial settlement, speak to our specialist divorce lawyers on 0330 041 5869 or get in touch online to request a call back.
How is a financial settlement calculated in a divorce?
There is no one rule for calculating a financial settlement in a divorce, as it will largely depend upon the martial assets you have and the individual circumstances of both you and your ex-partner.
It may be that you start on the basis of a 50/50 split, then adjust for factors such as income, living expenses, childcare, and housing requirements. The aim should be fairness, ensuring that both parties have their needs met and neither is put at an unfair disadvantage.
The courts follow the guidelines set out in Section 25 Matrimonial Causes Act 1973 to determine the fairest financial settlements. These factors are discretionary, and the court must consider all circumstances in each case before reaching a decision.
The resources each of you have, including your future earning potential
Your needs and responsibilities, such as any disability you have that may mean you require additional resources or any children under your care
Your age and the duration of the marriage (a young couple with a short marriage will likely find it easier to earn further income after marriage than an elderly couple with a lengthy marriage)
The contributions each party has made to the family, including any time spent out of work to care for the home and the family
Any potential financial losses incurred because of the divorce, such as a loss of pension rights
The conduct of both parties and how to best safeguard the standard of living as much as possible
Where children are under the age of 18, the court’s first consideration must be the needs and welfare of the children, including access to a home, clothes, food, and other necessities.
What if we can't agree a divorce financial settlement?
In cases where you and your spouse or civil partner can't agree on a fair division of assets or arrangements for continued financial support, our expert lawyers will suggest mediation to help you agree a deal.
Where this still doesn't lead to a divorce financial settlement being agreed, you will have to apply to the court to put a settlement in place, which involves assessing factors such as:
Your respective ages
Your future earnings potential
How much property and cash you both own
Whether you were the breadwinner or a stay-at-home parent
It's also important to bear in mind that the court will always put the interests of any children first when making a ruling on a divorce financial settlement, as the court will wish to ensure that proper housing and financial support are available to them after their parents' divorce.
Speak to our divorce financial settlement solicitors today
The best solicitors to fight your corner! I struggled with a nasty unmarried couple dispute alone for over a year before biting the bullet and paying for proper legal support. I had one previous experience with a cheaper less well known solicitor and I just felt completely let down and not a priority. But with S&G - from start to finish, I felt supported 100% and valued.
B L (family and personal matters case)
Matters were dealt with efficiently with a view to keeping costs to a realistic level and I am well satisfied with the final settlement she managed to achieve on my behalf.
J B (family and personal matters case)
For anyone needing help with family issues I could not recommend Slater and Gordon highly enough. I always had the feeling I had the best looking after my interests and they certainly didn't disappoint.
C I (family and personal matters case)
How can a lawyer help with a divorce financial settlement?
Getting the support of a specialist divorce lawyer during financial settlement agreements can be crucial to securing your entitlements and the best possible outcome for you.
By providing tailored advice driven by specialist legal expertise, a financial settlement solicitor can help you to:
Manage the process of financial disclosure, ensuring all relevant assets are included
Negotiate a fair financial settlement agreement with the other side, protecting your rights and entitlements throughout
Draft the necessary documentation for a consent order from the courts, making your financial settlement legally binding
Representing you in court where needed, taking you through the process step-by-step so you’re never unprepared or at a disadvantage
To learn more about how we could support you, speak to our industry-leading financial settlement solicitors on 0330 041 5869 or get in touch online.
Why choose Slater and Gordon's divorce financial settlement solicitors?
Even the most amicable divorces can be fraught with worry and uncertainty; and you both need to be able to carry on with your lives once the marriage has legally ended.
Our divorce lawyers have the experience and the understanding you need to help you deal with this difficult time in your life and to reach a fair and equitable divorce financial settlement. We offer an initial consultation for just £150.
We are ranked in the independent legal directory Chambers and Partners and in the Legal 500, showcasing our dedication to providing outstanding family law services
Many members of our family law team have also been individually recognised in the Legal 500
We are Lexcel accredited, which was introduced by The Law Society as a quality mark for client cases, practice management and legal compliance
We pride ourselves on finding amicable solutions where possible, while ensuring your rights and interests are protected throughout the legal process to achieve the best outcome for you and your family
We’re proud members of Resolution, an organisation of family justice professionals committed to promoting a constructive approach to family issues that considers the needs of the whole family
We have dedicated family offices nationally, including Manchester, Wirral, Liverpool and London, bringing national expertise to your doorstep.
We're an award-winning law firm and have a dedicated team of family solicitors to advise and guide you – no matter how complex your situation might be.
Affordability and advice
We offer affordable, expert legal advice on divorce and child arrangements. Book a consultation for clear guidance and next steps. Consultations are charged at £150 for 45 minutes.
Tailored advice
We understand that family situations differ – so we provide tailored advice and guidance around divorce and children to suit your individual needs.
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We're a national law firm, with legal experts available locally across the UK. Meetings can be arranged via telephone or video call, to suit your requirements.
Yes, you can. It is not a legal requirement to reach an agreement for a financial settlement.
However, divorce on its own does not end your financial obligations to your ex-spouse or civil partner in the eyes of the law. This means that they could try and make a financial claim against you in the future.
Therefore, we strongly recommend that you reach an agreement and have a consent order in place, even if you don't share assets like pensions or savings.
To speak to a specialist divorce lawyer about how to best protect your entitlements in a financial settlement, call us on 0330 041 5869 or get in touch online to request a call back.
Can you divorce before a financial settlement is finalised?
Yes, you can get a divorce before your financial settlement is finalised, but it is strongly recommended that you hold off until your finances are agreed. This is because, even though your marriage would be legally ended, your financial obligations to one another would continue.
This means your ex-spouse would be able to legally make a claim against any income, assets or pensions you may receive, even after your marriage has ended.
For this reason, it is generally recommended that you agree a financial settlement with your ex-spouse and set the terms out in a legally binding consent order, giving you both a ‘clean break’ and preventing either party from claiming against the other in future.
If you’re struggling to reach an agreement with your ex-spouse, or are worried about the financial settlement process, you can speak to our friendly divorce team today on 0330 041 5869 or get in touch online today to request a callback.
How long does a divorce financial settlement take?
There is no set timeline for long how a divorce financial settlement can take as it will depend upon how quickly you and your ex-partner can reach an agreement. On average, a financial settlement can be achieved within six to twelve months, though where disputes cannot be resolved, the process can take much longer.
Some of the factors that can influence how long a divorce financial settlement takes include:
how easily information is shared
the cooperation between both sides
how difficult it is to obtain full financial disclosure
how complex your circumstances are (for instance, how many financial or business assets you have)
whether an agreement can be reached through mediation or court hearings are required
As a rule, financial settlements reached through mediation and negotiation between both parties and their legal representatives proceed much more quickly than when disputes are raised with the courts to resolve.
Do I need a consent order if our settlement is amicable?
While it's always best if you and your spouse or civil partner can reach an amicable divorce agreement, you still need to obtain a consent order from the court to make your financial settlement legally binding.
This is because the court must ensure that the settlement is reasonable and that one party isn't being treated unfairly. The consent order also ensures that both parties must keep to their agreement, protecting you from the other party reneging on an agreement.
Can a consent order prevent future financial claims?
Yes, it can. A consent order is specifically designed to provide both parties in a divorce a ‘clean break’, setting out how assets and pensions should be divided and how spousal or child maintenance should be paid, where relevant. The agreement becomes legally binding, preventing either side from making a claim in future, even where circumstances change.
In some cases, a consent order may allow for variation in the future, though this must be clearly specified within the terms of the agreement.
As a consent order can prevent future financial claims, it is strongly recommended that you obtain one regardless of your current circumstances. Even if you and your ex-partner do not have any martial assets to divide, without a consent order in place, your ex could make a future claim against you if your circumstances were to change.
Can a divorce financial settlement be reopened?
In rare circumstances, a divorce financial settlement could be reopened by the court, but you will need strong evidence to prove why doing so is necessary.
The reasons why a court may agree to reopen a financial settlement include:
Fraud or non-disclosure: for example, your ex-spouse did not include all their relevant assets and income in their financial disclosure
Undue influence: meaning you were put under pressure to agree to a settlement that was not in your best interest
A fundamental change in circumstances that renders the original agreement unworkable: such as long-term or serious illness, or the loss of a pension asset
Can financial settlements be changed if circumstances with children change?
Yes, a financial settlement could be altered where circumstances involving children change, but you will need to be able to prove that this present a significant and fundamental change that means the original court order is no longer workable or appropriate.
This must be a significant and unforeseen change, usually involving a loss of income, long-term or serious illness that means you are unable to work or care for children, or a significant change in the child’s living arrangements.
If you’re circumstances have changed and you are unsure about whether your current financial settlement should be altered as a result, you can speak to our friendly legal advisers on 0330 041 5869 today or get in touch online to request a call back.
How are property and savings split during divorce?
As discussed above, the way in which any property or savings are split during a divorce will depend upon the individual circumstances of your or your partner.
Property or savings held by you and/or your partner at the time of your divorce will be considered martial assets, which means they will be included within your financial settlement. The exact nature of the division of these assets will depend on several factors, including the housing needs of any children.
Will my pension become part of our divorce financial settlement?
All the assets of a marriage, including money, property and pension funds, must be considered when drafting a divorce financial settlement. This is particularly important when one partner has been able to amass a considerable fund, while the other party has very little in the way of a pension (for example, if they were a stay-at-home parent and spent a considerable period out of work).
Including assets like pension pots in martial assets ensures that the final financial settlement does not unfairly disadvantage one party and meets the requirements for both sides in terms of income, housing, and welfare.
How are businesses handled during a divorce?
Any businesses or business shares that you or your partner own at the time of your divorce are considered martial assets and so will be included within your financial settlement and split between both parties.
Usually, this involves offsetting – the ‘owner’ of the asset will be allowed to keep the business or business shares, while the other party receives a larger share of other martial assets to the valuation of their share of the business.
However, in some cases, it may involve sharing any income from the business or selling the business and splitting the profit.
Will a financial settlement take overseas assets into account?
Yes. Simply put, any assets that are held overseas are treated the same way as assets held in the UK. They must be included within your financial disclosure and will need to be valued and split accordingly between you and your partner.
A failure to disclosure any assets held overseas can result in severe penalties from the court, including orders to freeze or transfer assets, or offset shares.
Handling overseas assets during a financial settlement can be complex, as enforcing orders from UK courts in foreign jurisdictions can pose several challenges and can sometimes require legal support from foreign experts.
If you have assets held overseas and wish to understand how this could impact your financial settlement, speak to our specialist divorce lawyers for more information on 0330 041 5869 or get in touch online.
Does the court consider debts in a financial settlement?
Yes, any debts will be considered as part of a financial settlement in divorce. Debts are treated as a martial asset in the same way as other financial assets such as income, savings, or investments.
The courts will consider both individual and joint debts, considering things like individual financial resources, needs, and responsibilities when determining how to split the liability to ensure a fair and just outcome for both parties.
The best solicitors to fight your corner! I struggled with a nasty unmarried couple dispute alone for over a year before biting the bullet and paying for proper legal support. I had one previous experience with a cheaper less well known solicitor and I just felt completely let down and not a priority. But with S&G - from start to finish, I felt supported 100% and valued. B L (family and personal matters case)
Matters were dealt with efficiently with a view to keeping costs to a realistic level and I am well satisfied with the final settlement she managed to achieve on my behalf. J B (family and personal matters case)
For anyone needing help with family issues I could not recommend Slater and Gordon highly enough. I always had the feeling I had the best looking after my interests and they certainly didn't disappoint. C I (family and personal matters case)