Financial Claims on Divorce

Disputes about money and financial claims are often referred to as “ancillary relief”. This is because the power of the court to make orders about money only arises – is ancillary to – the power of the court to grant a divorce. This is why the court does not have the power to make financial orders when unmarried couples separate.

There are often reports in the newspaper sensationalizing the “bitter divorce battles” and “huge financial awards” made, usually to wives, by the English courts. In recent times a number of very high profile cases have also hit the headlines as the Court of Appeal and House of Lords have attempted to clarify the way in which financial awards are to be determined. Confusion arises because the guiding principle behind the law is that the courts must retain a wide discretion to do what they think is just in all the circumstances of each case. This means that there is not one right answer for each case.

The financial claims of both parties are assessed in accordance with the criteria set out in the Matrimonial Causes Act 1973. Reported cases illustrate how a judge might apply those criteria to a particular set of facts. Whilst it is vital that your legal advisors keep abreast with developing case law, and the principles emerging from those cases, those principles may have little relevance to you if the facts of your case differ. Contrary to popular belief, the answer to the question “how much will I get?” is often not “half of everything”, particularly where the marriage is short or children are involved.

If you are facing divorce or separation it is essential that you are made aware of both the general legal principles and the case law that is relevant to you so that you understand what can be achieved on your behalf.

The other vital ingredient to settlement discussions is that you know accurately what there is to divide, that is, there has been full and frank financial disclosure by both of you. We have years of experience in this area and will ensure that information is gathered efficiently and cost effectively putting you in a position to negotiate a settlement at the earliest opportunity.

Financial disputes can prove to be the most costly part of a marriage breakdown. Obviously, the more areas in dispute, the more time must be spent with you and the greater your legal costs will be. If court proceedings prove necessary to achieve an agreement a fixed schedule of disclosure and court hearings aims to reduce the areas of dispute between you and, therefore, your legal fees. Ultimately, co-operation on both sides is the key to keeping legal costs to a minimum.

In the vast majority of cases it should be possible to reach an agreement at or before the first court hearing (typically three – six months from the beginning of the process) or, failing that, the second (nine to twelve months from the beginning of the process). In the unusual event that an agreement is not reached by then a full hearing (trial) may be necessary. In these circumstances a judge will decide who gets what on the basis of the evidence put before him (or her). A trial may take place up to eighteen months from the beginning of the proceedings and will often be the most costly element of the whole process. However, it is not until trial that a judge can make orders affecting the ownership of property. Until then assets can only be divided by agreement.

The settlement of a financial claim can be very complicated, regardless of the total amount of assets in dispute. Drawing upon their substantial expertise we can advise in relation to:

• financial arrangements during separation;
• the process of gathering information for financial disclosure;
• the valuation of pensions, business interests, trusts and property;
• the presentation of financial disclosure; and
• possible terms of settlement including division of assets (whether immediate or in the future) and claims for income (maintenance).

The potential cost of legal advice and litigation can be an obstacle to some. We are able to provide quality advice at an affordable rate enabling a broad range of clients to manage the process effectively.