Seeking advice from Moloney Family Law can help to navigate you in the right direction. Tracey Moloney from Moloney Family Law shares some insights.
£ Cost of the legal side
One of the biggest considerations when facing a divorce is the cost of legal advice and representation. In light of the complexities of divorce, having a knowledgeable and friendly solicitor will give you peace of mind. You need to ensure your agreement is drafted correctly into a Consent Order and filed with the Court to be legally binding.
Consequently, you could face costs associated with mediation, court fees and actual representation in the Court, where proceedings are issued. You may also consider using the services of a financial expert if you have significant assets and liabilities.
|Division of Assets
The division of assets can be a contentious aspect of any divorce. Information about the finances of each other must be disclosed to each other and to the Court. If an agreement is not achieved, you may need to make an application to the Court for financial proceedings. Your solicitor can help you with this aspect.
In order to reach a settlement outcome, the needs of each other and any children will need to be considered. Whilst assets which have been acquired during the marriage may be split 50/50, a change from equity in favour of one party could happen. Other considerations could include the age and earnings of each person and their ability to find alternative accommodation. In brief, the allocation and settlement may not be equal but should always be based on what is the fair outcome.
The distribution of assets can be distributed in a number of ways which include a lump sum payment, the transfers of property, the sharing of pensions, maintenance or the off-setting of assets.
This can be problematic if one person handled the finances, and the other person does not have a firm grasp on the financial situation. It can be difficult also to value certain assets such as shares, businesses, pensions and property. This can lead to further delays. Having a specialist family law solicitor to take you through the process and ensure fair settlement terms can give you peace of mind.
Impact on income
Sadly a divorce can significantly affect your income, particularly if you are reliant on your partners earnings. Moving from a two income home to a single income home can require wholesale changes. Where one person has a lower income, it may prevent them from applying for a mortgage and lump sum orders may be awarded to assist the person with regard to their rehousing.
Child maintenance can be a significant financial contribution. The parent who needs to pay this could find that a sizeable part of their income is given to the other parent, and will need to budget carefully.
Impact on Retirement
Divorce can have implications for retirement. Amongst the largest assets to be divided are pension plans and they need to be calculated to provide for both parties. You may wish to take the advice of a pension expert to evaluate the pensions of both people. They will be able to offer advice on projections of future fund valuation. Following advice, the terms of any share of pension should be drafted into a pension-sharing financial order which will seek the Court’s agreement. Following this, it can then be implemented by the pension fund provider. When this is put in place, it is very likely to reduce the retirement savings of one or more persons. The person who is receiving part of their partner’s pension may consider taking professional advice regarding the transfer into an appropriate pension fund in their sole name.
Summary
Sadly a divorce is a life changing event which brings with it often challenging financial implications. By employing a family law solicitor, you will have the support of an expert who can guide you each step of the way. You will be better placed to move on with a solid foundation for your future years.
Need some further advice? Please contact Tracey Moloney – Tracey@moloneyfamilylaw.com or telephone 01249 704420.