Money Matters on Divorce – ‘Clean Break’ & Other Options
Getting divorced is relatively straight forward, although at best the divorce process currently takes up to about 6 months from the start by ‘issuing a Petition’ to the end with the ’grant of Decree Absolute’. There is a set process and Harold G Walker’s Family Team can offer a fixed fee when acting for a client on a routine ‘undefended’ divorce.
However, sorting out money matters on divorce is more complicated, because there are often several different legal options available, which mean a divorcing couple can find it harder to reach a financial agreement.
It is enshrined in law, that the financial obligations between a couple should be ended as soon after the divorce as is considered ‘just and reasonable’. This means that a separated couple should aim to be financially independent of each other with a ‘clean break’ as soon as possible when they get divorced.
Therefore, a legally binding financial agreement, recorded within a ‘consent order’ can be a one-off solution to how all capital and pension assets are distributed, with no ongoing maintenance payments.
But, an immediate clean break is harder to achieve when a couple has children. As a result, other options might need to be considered, including:
- Maintenance paid for a specific period (‘a fixed term’) so that the receiving party has some limited financial support to avoid ‘undue hardship’ whilst they work towards becoming financially independent
- ‘School Fees’ orders, if a child attends a privately funded school
- ‘Capitalisation’ of maintenance. i.e. a larger lump sum which the party receiving payment can then drawdown overtime to supplement their income
Harold G Walker Solicitors offer a FREE 30-minutes consultation to review all family matters.