Personal Legal Services

Financial Matters

When a couple separate and they cannot agree between themselves how to deal with finances or do not know where to start it is helpful to speak to a solicitor.

The legal options available as to how any disagreements in relation to parties’ finances can be dealt with will depend on the parties’ relationship status; whether they are married, living together as co-habitants, or partners under a civil partnership agreement. There are significant legal differences in the position of co-habiting couples and an unmarried family in comparison to the position of parties to a marriage or a civil partnership.

Co-habitants

There is no such thing as a “common law marriage”. In relation to property disputes co-habitants can only rely on trust principles in relation to disputes to do with their houses as at present there is not a specific law to assist them, unlike the position with married parties. There is no legal assistance in relation to disagreements involving cohabitants and their pensions and business assets. To clarify their respective positions, co-habitants can enter into co-habitation agreements to establish each party’s financial position.

Click here for more information on Co-habitation agreements.

Married couples

If separating spouses can reach an agreement as to how to deal with their finances, this agreement can be drawn up into a Consent Order within Divorce proceedings.  We are able to assist with the preparation of a Consent Order to record the settlement which is then sent to the Court to request a Judge’s approval and subsequent sealing.  The separating parties are then bound by the Court Consent Order. 

If parties to a marriage cannot agree how to deal with finances they may seek the assistance of the Court and commence ancillary relief proceedings.  Ancillary relief orders are orders of the court that deal with income payments (maintenance), adjustment of property ownership, other capital assets (such as lump sum payments) and pensions provisions

Mediation

A very useful tool that parties use when an agreement cannot be reached either between themselves or via solicitors, is Mediation.  Mediation is a process where both parties attend with an independent Mediator, who is trained and experienced in family law, and they can assist the parties to discuss and try to reach agreement on issues.  If parties can reach mutual decisions at mediation, a Mediation Agreement can be drawn up encompassing the agreed terms.  This Mediation Agreement is not legally binding but may be of persuasive evidence if either party does not abide by the agreement and the court action is later sought because the agreement has broken down.  Mediation is a process that can save both party’s money, stress and the time that court proceedings may take to resolve financial issues.

Mediation can also be helpful for parties when there are disagreements in relation to children (contact and residence) as well as finances and the process of mediation is of course open to parties irrespective of their relationship status.