When you separate from your spouse or civil partner, you are probably keen to make a clean break and move on. However, if neither of you holds significant assets, reaching a financial settlement may be low down on your priority list. This approach can be misguided since a financial settlement after divorce has no time limit in the UK. Accordingly, unless you reach a binding settlement when your separation is finalised, you run the risk of your ex-partner claiming financial assets from you at any point in the future.
Our family law solicitors have extensive experience in all aspects of family law and procedure, including financial settlements following a divorce or civil partnership dissolution. They offer clear, straightforward advice with a personal touch and will guide you through the legal processes with care and understanding.
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What Is A Financial Settlement After Divorce?
When you separate from your spouse or civil partner, one of the most challenging issues that must be resolved is how your assets should be split. Separating couples are actively encouraged by the Courts to reach an agreement between themselves on the division of their assets without resorting to litigation. Reaching an amicable agreement has many benefits, including preserving your relationship with your ex-partner insofar as possible, reducing your legal costs and, crucially, minimising the impact of your split on any children.
If you and your partner cannot reach an agreement, there are many dispute resolution methods designed to assist you in doing so that do not involve Court proceedings, such as mediation. In a family mediation, an impartial third party, known as the mediator, works with the parties to find common ground and reach a settlement that is acceptable to them both. Family mediators are highly trained professionals with vast experience in helping divorcing couples resolve the issues arising from their separation. Mediators can come from a variety of backgrounds, including family law, social work, and counselling, and you can choose the mediator you believe is best suited to your case.
If you reach an agreement through mediation, it is not automatically binding, but our family law solicitors can make it so by turning it into a Court Order.
If you cannot reach an agreement any other way than through litigation, either party can apply to Court for a Financial Order. When deciding on the terms of the Order, the Judge will take various factors into account, including the parties’ respective earning potential and, most importantly, the welfare of any children.
What Are The Potential Consequences Of There Being No Financial Settlement After Divorce Time Limit UK?
Many of our family law clients are surprised to learn that, in the absence of a binding ‘clean break’ financial settlement that prevents the parties from making further financial claims against each other, their ex-partner can return and claim a share of their assets decades after they separated. Accordingly, whilst addressing your finances on separation may appear of little importance if neither of you has many assets at the date of separation, you must nevertheless do so to ensure your separation constitutes the clean break you intend.
Are There Any Exceptions To There Being No Financial Settlement After Divorce Time Limit UK?
Yes, the so-called ‘remarriage trap’ can prevent you from seeking your portion of the assets you shared with your ex-partner. The effects of the ‘remarriage trap’ can be severe, so it’s crucial that you are aware of them and seek legal advice on your position.
Simply put, if you remarry without first resolving the financial issues arising from your previous marriage, you cannot subsequently apply for financial provision from your ex-partner, save insofar as your application is for a pension sharing order. Clearly, the potential consequences of this rule, which is rigorously enforced by the Courts, can be disastrous, resulting in you losing your entitlement to the assets you had helped to accumulate during your previous marriage.
How We Can Help With Your Financial Settlement After Divorce
Finalising the financial aspects of your divorce or civil partnership dissolution as soon as possible after your separation is crucial in allowing you and your ex-partner to move on with peace of mind that neither of you will be able to revisit the issue years or even decades later. Since there is no such thing as a ‘typical’ financial settlement, expert legal advice from family law solicitors like ours is crucial in understanding what you are entitled to and ensuring you receive everything you deserve when your relationship ends.
Please call us now on 01603 672222 for a no-obligation conversation today or Click Here To Make An Online Enquiry.
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