ADVICE ON OBTAINING A DIVORCE FINANCIAL SETTLEMENT AND MAINTENANCE
In divorce proceedings, either spouse (husband or wife) has the ability to make a claim against the other for a financial settlement. This type of claim is called ancillary relief proceedings. There is no time limit for making such a financial claim, unless you remarry before making a financial claim. Private settlements between spouses do not bind the court.
The court has the power to make four main types of order:-
Periodical Payments
The payment of regular amounts of money to the other spouse (normally paid weekly or monthly). These payments are often referred to as maintenance or in the USA as alimony.
Lump Sum Order
A one-off payment of money from one spouse to the other.
Property Adjustment Order
An order that property (such as a family home) can be either transferred to the other spouse or sold.
Pension Sharing Order
The court can order that a certain percentage from one spouse’s pension can be used to create a separate pension fund for the other spouse.
Often people believe that it is unnecessary to obtain a formal court order setting out a financial settlement when they divorce. However, circumstances can change as you may receive an inheritance or if you are extremely lucky win the lottery or you could be promoted with a larger salary or your spouse may lose their job. This may then result in a financial claim being made against you, which would not have been possible if you had already entered into a “clean break” settlement.
In a clean break consent order the parties set out a financial agreement that is then approved by the court and this formally dismisses the right for either spouse to ask for more money from each other in the future. A clean break consent order is likely to be granted if the terms agreed between the parties seem fair and reasonable to the court. Of course a clean break order may not be suitable for you if you believe that your spouse may become wealthier in the future.
It is also important to consider potential claims under the Inheritance (Provision for Family and Dependants) Act 1975, as a former spouse even after you have divorced (obtained a decree absolute) may have a claim against your estate. Therefore such a potential claim should be dealt with in the drafting of the court order in order to defeat such a claim.
It is extremely important to remember that the family courts have wide discretion when dealing with ancillary relief financial applications. As the saying goes – there is more than one way to skin a cat! Thus the judgements of family courts can vary significantly from one particular case to another in order to deal with particular circumstances involved.
Please contact Andrew Veitch to discuss any family law, divorce or ancillary relief matters you may wish to obtain advice upon:
Tel: 020 7935 1095
E-mail: andrew@guyclapham.com
Blog:
www.andrewveitchsolicitor.blogspot.com
This blog provides basic general legal information to help people understand their legal rights, but is not a substitute for personal legal advice from a solicitor. By the very nature of a blog the information published in blog posts on this site may be out of date. Therefore this blog is subject to our following disclaimer and conditions of use: Where no personal consultation has taken place with Andrew Veitch or the partners or employees of Guy Clapham & Co under no circumstances will Andrew Veitch or the partners of Guy Clapham & Co be responsible for (1) any information contained in, omitted or received from this site, (2) any persons reliance on any such information, whether or not the information is correct, current or complete, (3) the consequences of any action you or any other person takes or fails to take, whether or not based on information provided (4)
