Divorce and Financial Settlement Solicitors

Reaching a financial settlement is one of the most important parts of a divorce or civil partnership dissolution. It determines how property, savings, pensions, business interests and other assets will be dealt with, and can provide certainty about your financial position for the future.

At JMW, our divorce and financial settlement solicitors advise on the full range of financial matters arising from separation. We act in cases involving straightforward financial arrangements as well as substantial and complex assets, including family businesses, property portfolios, investments, inherited wealth, pensions, trusts and international assets.

Our family law team will help you understand your legal position, establish the full financial picture and work towards a fair financial settlement that reflects your circumstances and priorities. Whatever the scale of the financial arrangements, our focus is on reaching a workable outcome that protects your long-term financial position.

If you would like to discuss your circumstances with one of our financial settlement solicitors, call 0345 872 6666 or complete our online enquiry form to arrange a call at a time that suits you.

If you need advice on ending the marriage itself, visit our divorce solicitors page.

How JMW Can Help

A divorce financial settlement can involve several interconnected issues, from establishing what each person owns to deciding how property, pensions and other assets should be divided. Our family law team provides clear legal advice from the outset, helping you understand your financial position and the options available for reaching an agreement.

We can advise you on:

• Identifying matrimonial assets and other financial resources
• Assessing inherited and other non-matrimonial assets
• Managing the financial disclosure process
• Negotiating a financial settlement through solicitor-led discussions
• Using mediation and other forms of non-court dispute resolution
• Dealing with incomplete financial disclosure or suspected hidden assets
• Dividing property, savings, investments and pensions
• Dealing with family businesses, company interests and other business assets
• Advising on trusts, offshore assets and international financial arrangements
• Spousal maintenance and lump sum payments
• Preparing a financial consent order once terms have been agreed
• Applying for a financial order where agreement cannot be reached
• Representing you during financial remedy proceedings
• Protecting your position against future financial claims
• Enforcing an existing financial court order where necessary

We will consider the assets available, your financial needs and priorities, and the outcome that is realistically achievable before developing a strategy for your case.

We can also act quickly where urgent issues arise, including concerns about assets being transferred or dissipated, or where financial support is needed while proceedings are ongoing.

JMW has more than 40 specialist family lawyers based in Manchester, Liverpool and London, acting for clients nationally and internationally. Our family law team includes specialists recognised by leading legal directories including the Legal 500 and Chambers & Partners for work involving high-value and complex family law matters.

Our depth of experience means we can draw on specialists across JMW where a divorce financial settlement involves trusts, businesses or wider private wealth issues. This allows us to address the financial arrangements as a whole rather than treating each asset in isolation.

You can read more about the experiences of our family law clients, or visit our dedicated page on financial orders to understand how an agreement can be formalised.

Meet Our Team

Our dedicated family law team provides expert advice and compassionate support on financial settlements. We are here to help you understand your legal rights when dividing assets, to secure a fair outcome for your future.

Case Studies

What Is a Financial Settlement in Divorce?

A financial settlement sets out how the financial matters arising from a divorce will be resolved. This can include deciding what happens to property, savings, pensions, business interests, debts and ongoing financial support.

Divorce itself does not automatically end the financial claims that former spouses can make against one another. The divorce process and financial settlement process are legally separate, which means financial ties can remain after the marriage has ended unless they are dealt with properly.

The same principles apply following the dissolution of a civil partnership. You can find further information about this process on our civil partnership lawyers page.

A financial settlement arising from divorce may deal with:

• The family home, including whether it should be sold, transferred or retained by one person
• Other property, including second homes, investment properties and overseas real estate
• Savings, bank accounts and investments
• Business interests, partnerships and company shareholdings
• Pensions and retirement provision, including pension sharing
• Inherited assets and other non-matrimonial assets
• Debts and other liabilities
• Lump sum payments
• Ongoing spousal maintenance
• Child maintenance and other financial provision for children
• School fees
• Insurance policies, mortgages and other ongoing financial arrangements

The right settlement will depend on your individual financial circumstances. A couple with limited assets may principally need to decide what happens to their home and pensions, while a high-value case could involve businesses, trusts, international property and complex investment structures.

The purpose is to reach a fair outcome and, where assets allow, provide long-term financial security for both parties. GOV.UK also provides an overview of money and property arrangements when you divorce or separate.

Does a financial settlement have to be 50/50?

A financial settlement does not automatically have to divide everything equally between the parties.

An equal division of matrimonial assets may be appropriate in some cases, but the court's objective is fairness rather than applying a fixed mathematical formula. Financial needs can result in one person receiving a greater share of the available assets.

For example, childcare responsibilities, differences in earning capacity or housing requirements may affect the outcome. The treatment of significant inherited or pre-marital assets can also change the overall division.

Where both parties' needs can comfortably be met, arguments about which assets are matrimonial or non-matrimonial may become more significant.

Video: Does the court take pre-marital assets into account?

[EXISTING ELSPETH KINDER PRE-MARITAL ASSETS VIDEO AND TRANSCRIPT – RETAIN UNCHANGED]

For more information on this issue, read our article explaining how age and the length of a marriage can affect a divorce financial settlement.

How Can You Reach a Financial Settlement?

Most financial settlements are reached by agreement rather than through a contested court process..

The right approach will depend on your circumstances and the relationship between you and your former spouse or civil partner. Options can include:

• Direct discussions between you, supported by separate legal advice
• Solicitor-led negotiation
• Mediation
• Arbitration, private FDR and other forms of non-court dispute resolution
• Negotiation during financial remedy proceedings

Reaching an agreement before a court hearing becomes necessary can give you greater control over the outcome. It can also allow more flexibility when dealing with arrangements involving property, pensions, businesses or ongoing support.

JMW's non-court dispute resolution team advises on mediation, arbitration, collaborative law, private FDRs and other methods of resolving financial disputes without relying on a judge to impose the final outcome.

GOV.UK also provides information about using mediation to agree how money and property should be divided.

However, where an agreement is reached outside of the court process, it still needs to be considered carefully. Before advising you to accept a proposed financial settlement, we will assess the financial disclosure, the legal principles that apply and how the agreement is likely to affect your longer-term financial position.

Where an agreement cannot be reached, applying to the family court can provide a structured process for resolving the financial dispute.

How Do You Make a Financial Settlement Legally Binding?

A financial agreement reached between you and your former partner is not usually the final step. To give the settlement legal effect, the terms should be recorded in a financial order approved by the court.

Where you have reached an agreement, this will usually take the form of a financial consent order. The document sets out the terms agreed between you and is submitted to the court for approval.

A financial order can cover matters such as:

• Lump sum payments
• The sale or transfer of property
• Pension sharing
• Spousal maintenance
• Other financial arrangements
• The dismissal of future financial claims

Where appropriate, a clean break order can bring financial ties between former spouses to an end and prevent future financial claims.

Without an appropriate financial order, potential financial claims can remain open even after the divorce has been completed. This is why formalising the financial settlement is an important part of bringing the financial aspects of a marriage to an end.

GOV.UK explains the process for making an agreed financial settlement legally binding through a consent order.

For more detail on the different types of orders available and when they are needed, read our guide to financial orders following divorce.

What Happens if You Cannot Agree on a Financial Settlement?

If negotiations do not produce an agreement, either party can ask the family court to determine the financial issues through financial remedy proceedings.

Starting court proceedings does not mean that a judge will immediately decide how the assets should be divided. The court process creates a timetable for disclosure, evidence and negotiation, with several opportunities to reach a settlement before a final hearing.

Proceedings will usually involve:

• Full and frank financial disclosure
• Identifying the areas that remain in dispute
• Requests for any further financial information required
• Valuations or expert reports where necessary
• Negotiation between the parties
• Court hearings designed to progress the case and encourage settlement

Expert evidence may be needed in cases involving businesses, property portfolios, pensions or other high-value assets.

GOV.UK provides an overview of the court process for deciding financial arrangements after divorce, including the First Appointment, financial dispute resolution hearing and final hearing.

What is a Financial Dispute Resolution hearing?

The Financial Dispute Resolution hearing, usually referred to as the FDR, is an important stage of financial remedy proceedings.

Both parties put forward their positions and a judge considers the available financial information. The judge will usually give an indication of how they believe the case might be resolved if it went to a final hearing.

The FDR is conducted on a without prejudice basis. This means that, if no settlement is reached, offers, concessions and the judge’s indication cannot usually be referred to at the final hearing. This is intended to encourage negotiation and give both parties an opportunity to consider the indication and try to reach their own financial settlement.

In suitable cases, a private FDR can provide an alternative route to obtaining an indication and pursuing settlement outside the standard court timetable.

What happens at a final hearing?

If the financial dispute cannot be resolved, the case can proceed to a final hearing.

The judge will consider the evidence and arguments before deciding how the financial matters should be resolved. This may involve orders dealing with property, lump sum payments, pensions or ongoing maintenance.

The judge will take account of factors such as financial resources, earning capacity, financial needs, contributions and the needs of dependent children when reaching a fair outcome.

Our financial settlement solicitors represent clients throughout the court process, from preparing the initial application and financial disclosure through to negotiation, the FDR and final hearing where necessary.

How Are Assets Divided in a Financial Settlement?

Assets are divided according to what is fair in the circumstances rather than through an automatic formula.

The first step is to establish what assets and liabilities exist. This can include the family home, other properties, savings, investments, pensions, business assets and assets held internationally.

The court will then consider the overall financial circumstances and the needs of both parties. Particular attention will be given to the housing and financial needs of dependent children.

Pensions can be especially important. Depending on the circumstances, a pension sharing order can transfer a percentage of one person's pension benefits into pension provision for the other person. Other pension arrangements, including pension attachment orders, may be relevant in particular cases.

Business assets also require careful consideration. The aim will generally be to reach a fair settlement without unnecessarily damaging a viable business, although the approach will depend on its ownership, value and role within the family's finances. Read more about  dividing business assets in divorce.

Where assets are located overseas or held through more complex arrangements, specialist advice may be required. Our financial settlement solicitors regularly work on cases involving offshore assets and trusts in divorce, coordinating advice where different structures or jurisdictions are involved.

How Are Pre-Marital and Inherited Assets Treated in Divorce?

Assets owned before the marriage or received through inheritance may be treated differently from wealth built up during the relationship, but they are not automatically excluded from a divorce financial settlement.

The court may distinguish between matrimonial assets i.e assets generated during the marriage and non-matrimonial assets from another source.

How far that distinction affects the settlement will depend on the circumstances. Important considerations can include:

• When and how the asset was acquired
• Whether it has remained separate from the family's finances
• Whether it has been used during the marriage
• The length of the relationship
• The overall value of the matrimonial assets
• Whether both parties' financial needs can be met without using the non-matrimonial property

Where the available matrimonial assets are not sufficient to meet reasonable financial needs, the court can take other resources into account.

This can be especially significant in high-value cases involving inherited businesses, family trusts or wealth accumulated before the relationship.

Q

How is a financial settlement calculated?

A

There is no fixed calculation for a divorce financial settlement.

The court considers the full financial circumstances and applies statutory factors to decide what is fair. These include the assets and income available, each person's earning capacity and financial needs, the length of the marriage and the welfare of dependent children.

Fairness does not automatically mean an equal division. One person may need a greater share of the available capital, for example because they have primary childcare responsibilities, lower earning capacity or greater housing needs.

The treatment of inherited or pre-marital assets, pensions, businesses and other significant assets can also affect the final outcome.

Q

How long does a divorce financial settlement take?

A

There is no set timescale for reaching a financial settlement. How long it takes will depend on the complexity of the finances, how quickly full financial disclosure is provided and whether you and your former spouse or civil partner can reach an agreement.

Where an agreement can be reached through negotiation or mediation, the process may be completed more quickly. If financial remedy proceedings are needed, a divorce financial settlement can commonly take around nine to 12 months to finalise, and complex cases may take longer if extensive disclosure, expert valuations or a final hearing are required.

Once terms of settlement have been agreed, they will need to be recorded in a financial consent order and approved by the court before the settlement becomes legally binding.

Q

Does the length of a marriage affect a financial settlement?

A

Yes. The length of the marriage or civil partnership is one of the factors considered by the court when deciding a financial settlement.

In a longer marriage, finances are often more closely integrated and the parties may have built up property, pensions, savings or business interests together over many years. The focus will usually be on achieving a fair division while meeting both parties' financial needs.

In a shorter marriage, there may be greater scope to distinguish assets brought into the relationship from assets built up together. However, this does not create a fixed rule. Dependent children, financial needs and differences in earning capacity can still have a significant effect.

Where a couple lived together continuously before marrying or entering a civil partnership, that period may also be relevant when looking at the overall length of the relationship.

For a more detailed explanation, read our guide to how age and length of marriage can affect a divorce financial settlement.

Q

Can a final order be granted without a financial settlement?

A

Yes. A divorce can reach the final order stage before the financial settlement has been completed, because the divorce and financial proceedings are separate.

However, the timing needs careful consideration. Bringing the legal marriage or civil partnership to an end can affect rights connected with pensions and other benefits.

This can be particularly important where a pension sharing order is being considered. If either person were to die before the finances had been resolved, the position could also change significantly.

For this reason, you should take legal advice before applying for the final order where financial matters remain outstanding. You can learn more about the divorce stage itself in our guide to the final order in divorce.

Q

Do I need a solicitor for a financial settlement?

A

You are not required to have a solicitor simply to discuss financial arrangements with your former partner, but independent legal advice can be important before you agree to a financial settlement.

A family law solicitor can explain how the law applies to your financial circumstances, assess whether sufficient financial disclosure has been provided and advise whether the proposed settlement falls within a reasonable range.

Your solicitor can also prepare the financial consent order needed to ask the court to make the agreement legally binding.

Legal advice becomes particularly important where the financial arrangements involve pensions, businesses, trusts, inherited assets, property portfolios, significant differences in income or concerns about financial disclosure. Each person should take their own independent advice rather than using the same solicitor to advise both sides of a financial dispute.