Full disclosure of your financial situation is a legal requirement during divorce, and if it later comes out that the value of your business increased after you separated, and you did not disclose this, it may invalidate the settlement. Conversely, if you have hit a run of bad luck in your business and the value has gone down, you will want to ensure that this too is taken into account so you will not be paying over-the-odds.

However, the significance of any such fluctuations will be limited if the overall value of the business is low, and therefore unlikely to make a meaningful difference to the overall settlement and to meeting each partner’s reasonable financial needs. In that situation, the family courts may take a greater interest in any assets acquired or businesses started during the period between separation and the start of the divorce, in order to ensure that reasonable financial provision is made for each party.

The family courts often also take into account how much effort the business owner or operator has made to keep the business afloat and increase its value or profitability during the period of separation. If such efforts can be demonstrated, and this has resulted in the value of the business increasing, this may mean that the other partner will receive a smaller share in the value of the firm since the increase in value was clearly not because of their efforts or contributions during the marriage.

Why this matters

When spouses separate and proceed toward divorce, the valuation of business assets can become one of the most complex and contentious aspects of their financial settlement. A common issue arises when the value of a business changes between the point of separation and the eventual divorce proceedings. Understanding how such shifts are treated in law requires a closer look at how the courts assess assets, what factors influence valuation timing, and how fairness is interpreted in relation to business interests.

When couples divorce, their assets are divided – either by mutual agreement, mediation or (occasionally) the intervention of a family court judge. This will, of course, include any businesses wholly or partly owned by one – or both – of the spouses. A revenue-generating business is a valuable asset. But it is more complicated one than a bank account or a house because its value relies on it continuing to operate and generate profit.

During the divorce, the value of any businesses owned will be carefully assessed, and a decision made regarding a fair course of action. Although exceptions are made, the starting point for divorce in England and Wales is an equal division of assets – although a clear contribution to the success of the business by a non-owner will count in their favour.

Dividing the value of a business could be done in several ways – for example:

• Allotting shares in the firm to the other spouse
• Via an agreed sale
• Using revenue from the business to support the other spouse
• One partner buying out the other

The particular course of action chosen will depend on the individual circumstances of each couple. The last option above is the usual approach for businesses that are jointly owned by a divorcing couple. This approach may also be appropriate on some occasions when the partners in a business are not married to each other but one is divorcing and needs to liquidate their interest in the company.

How is a business valued in divorce?

Both parties are legally required to make full and frank financial disclosure, and this includes providing up-to-date information about any business interests. This disclosure isn’t static. If a business significantly increases or decreases in value after separation, both parties have a continuing obligation to reveal that development, even if it complicates earlier assumptions. Courts place considerable weight on transparency, and failure to disclose updated valuations can lead to prior settlements being reopened.

One of the core issues is the date at which the business is to be valued. There isn’t a hard-and-fast rule dictating whether the date of separation or the date of divorce should be used as the valuation point. While the date of separation often serves as a logical starting point—since it marks the end of the matrimonial partnership—it may not be fair or practical if a long time has passed. In those cases, the court may look at updated business valuations to reflect the present-day reality, particularly if the value has substantially shifted.

Increases and decreases in valuation

When a business increases in value after separation, the court’s approach largely depends on why the value has grown. If the increase results from broader market forces or trends—such as a sector-wide boom or general economic upswing—that growth is often deemed “passive” and remains part of the matrimonial assets to be shared. The logic here is that neither spouse specifically caused the growth, and both should benefit from the increase, even if they have stopped living together.

However, if the value of the business has increased because of the direct efforts or decisions of one spouse after separation—perhaps through restructuring, innovation, or securing new investments—that gain may be seen as “active” and attributable to that person’s individual post-separation contribution. In such cases, the court may decide to exclude this added value from the matrimonial pot. Essentially, the spouse who drove the improvement may be entitled to retain the fruits of that labour, as the increase is seen as a result of post-separation effort rather than joint matrimonial enterprise.

At the other end of the spectrum, a business may experience a downturn between separation and divorce. When this happens, the court will seek to identify the underlying cause. If the decline is because of external factors beyond either party’s control—such as inflation, recession, or industry disruption—then the fall in value is generally accepted as part of the shared financial consequences of divorce. In this scenario, both spouses bear the impact equally. But if the fall in value stems from one spouse’s mismanagement or reckless decisions made after separation, the court may adjust the settlement to reflect the avoidable loss. There have been cases where a judge has effectively re-inflated a diminished asset to its previous value (a process sometimes referred to as “adding back”) in order to prevent one party from being unfairly disadvantaged by the other’s conduct.

If a party delays proceedings or manipulates the timing to capture gains or losses strategically, the court has wide discretion to correct for that. Judges have commented in various cases that they will not allow gamesmanship or opportunism to skew equitable outcomes.

Experts used to value businesses

In these cases, the method and timing of business valuation are vital. In most situations involving business assets, the court will rely on the expertise of a forensic accountant or valuation expert, often jointly instructed by both parties. The expert will produce a valuation report using appropriate methodologies, which could include assessing income, net assets, or comparisons to similar businesses. If the parties cannot agree on the date of valuation or which changes in value should count, the expert may be asked to provide valuations for multiple time points—typically one at separation and one more current—so that the court can determine the most appropriate benchmark for dividing assets.

Business valuations are rarely straightforward. Experts must consider the company’s liquidity, growth prospects, and risk exposure. When one spouse is expected to retain a business that is difficult to sell or speculative in nature, a discount is sometimes applied to reflect that reality. The court is careful not to overestimate what that business is “worth” if, in practice, it can’t be turned into cash or easily sold. For example, if someone holds a minority stake in a private company, their ability to realise the paper value of that stake may be extremely limited, and this has to be accounted for in the settlement.

Can we sell the business?

While selling the business outright and dividing the proceeds can be a clean solution, it is often not realistic. Businesses may be illiquid or dependent on the owner’s personal involvement, making them unsellable in the short term. Instead, the court may award the business to one spouse—typically the one most involved in its operation—and compensate the other through a larger share of liquid assets, such as savings, property equity, or pension rights. This offsetting approach aims to balance fairness while keeping the business intact and viable.

In some rare instances, divorced spouses may retain joint ownership of a business post-divorce. This requires a particularly high level of trust and cooperation and is typically only viable in amicable divorces or where the business functions best as a partnership. However, more commonly, arrangements are structured so that one spouse exits the business entirely.

Pre and post-nuptial agreements

Some couples take steps before or during their marriage to regulate how business interests will be treated in the event of divorce. Prenuptial and postnuptial agreements can be used to ring-fence business assets or specify how future gains or losses will be handled. While such agreements are not legally binding in the UK, courts increasingly give them considerable weight if they are entered into voluntarily and meet the fairness criteria, including making adequate provision for the other party’s needs.

Contributions to the business

The court will look at the roles each spouse played in the business over the course of the marriage. A spouse who worked unpaid in the business, or managed household responsibilities to free the other to focus on business development, may be deemed to have made significant contributions. The court’s ultimate aim is to reflect both direct and indirect efforts fairly in the asset division.

Ultimately, fairness is the overriding principle. This doesn’t necessarily mean an equal split, especially where one spouse has contributed more, taken more risk, or will be left with a less stable asset base. The court considers needs, contributions, and the specific context of the marriage. If one party walks away with an appreciating business while the other receives cash or a house, the court may factor in the risk being carried and adjust the division accordingly.

What happens after the divorce?

At the conclusion of the divorce process, when the ‘consent’ order specifying the division of assets is agreed, signed and ratified by a judge, that is usually that. The division has been agreed, and it is not usually possible for either spouse to reopen a claim against the other. In order to do so, it is generally necessary to demonstrate ‘material non-disclosure’ by the other spouse – i.e. a meaningful failure to fully disclose all financial assets and information during the divorce negotiations. If, for example, a business owner had reason to believe that their company was likely to increase in value at a defined point in time – because of a buyout for example – but they did not reveal this during the divorce negotiations, that could constitute material non-disclosure and become the basis for a fresh claim in the divorce courts by their former spouse.

If you or your spouse has business interests and you would like advice on how these interests might be handled in the event of divorce, contact us today for a free consultation.

The post What happens if the value of my business increases or decreases between separation and divorce? appeared first on Major Family Law.

Helping the children

In the emotional fallout of divorce and separation, children are the innocent bystanders. Even very young children may be acutely aware of tension and unhappiness in the home, and most will struggle to make sense of the unsettling ways in which their family is changing. It’s palpable and yet deeply confusing if you’re too young to understand.

Children draw their sense of security from their parents and will naturally look to them for answers. It’s your job as Mum or Dad to protect your children and make the separation as easy and stress-free as you can. Sadly, some parents become so caught up in their own dramas, they fail at this task.

Centre the child’s welfare as your number one consideration

Under the Children Act 1989, the court must always place your child’s welfare as the foremost priority—this is known as the welfare principle. Section 1(3) includes a checklist: the child’s wishes and feelings (in light of age and understanding), emotional, educational, and physical needs, likely effect of change, harm suffered or risked, and each parent’s ability to meet those needs.

Your watchwords should be:

• Communication
• Reassurance

All but the oldest and most emotionally aware youngsters will have little understanding of the problems that have driven their parents apart: all they will know is that parents they loved are no longer everyday figures in their lives. Their home, their centre of their world, has come apart. The reassuring duopoly of Mum and Dad is no more.

Explain what is happening in an age-appropriate way. This will help your children to manage their own emotions and anxieties about the situation. In the absence of clarity, children often turn to their vivid imaginations to interpret the behaviour of their divorcing parents. Many youngsters worry that the separation is somehow their fault – that they caused it, somehow, by not being good enough. Others will worry about their new living arrangements, or about when and where they will see the parent who has moved out. Does that parent even still love them?

What you can do:

• Frame all proposals around your child’s routine and emotional stability
• Emphasise continuity—school, extracurriculars, close family links—and how proposed arrangements minimise upheaval
• When legal advice is sought, ask your solicitor to use wording and structure that aligns with the welfare checklist

Developing a detailed, child‑centred parenting plan

A parenting plan lets both parents agree on weekly contact schedules, responsibilities, extracurricular logistics, holidays, and rules for electronic communication.

• Include contingency plans: What if one parent is late or contact is cancelled?
• Avoid using children as messengers or middle‑people—explicitly state this in the plan.
• Agree not to undermine the other parent in front of your child, and keep negative comments out of earshot.

Use mediation to reach agreements outside court

Family mediation is a voluntary, impartial process that helps parents settle child arrangements and other issues without litigation.

Key advantages include:

• If you attend a MIAM (Mediation Information and Assessment Meeting), this often fulfils pre‑court requirements and avoids court delays or extra hearings.
• Mediation can be quicker, cheaper, and less adversarial, reducing emotional strain on children.
• It’s more flexible: decisions can be tailored to your family’s needs rather than imposed by a judge.

Minimise children’s exposure to conflict

High‑conflict divorce has documented negative effects on children’s mental health. Family law guidance strongly emphasises shielding children from parental disputes.

Practical steps:

• Schedule difficult discussions away from children; don’t argue in their presence.
• Use communication tools or parenting apps designed to keep exchanges neutral.
• Agree boundaries: for instance, no negative comments about the other parent—even indirectly—during handovers or around children.

Shared residency, where a child lives part‑time with each parent, has been associated with better health, wellbeing, and fewer behavioural issues compared to the child living with only one of their parents.

Factors to consider include:

• Court approval is often contingent on stability, suitability of both homes, and parents’ ability to cooperate. If domestic abuse was present during the relationship, or one party was controlled by the other, the court is less likely to make an order for shared care.
• Even if not equal time, consistent involvement by both parents is encouraged in CAOs – when in the child’s best interest.
• If one parent obstructs contact, the courts may intervene with specific orders or even supervised contact provisions.

Safeguarding emotional well‑being with professional support

Children may experience anxiety, guilt, or confusion during a divorce, but emotional resilience can be fostered through reassurance, routine, and external support. Various support options are available to help children navigate this difficult period. Organisations like Childline and the NSPCC offer counselling services and helplines specifically tailored for children in distress.

It can also be helpful to inform the child’s school, enabling staff to monitor any behavioural changes and provide additional safeguarding where needed. Additionally, professional therapists or dedicated support groups for children of separated parents can provide a safe and structured environment for children to express and process their emotions.

Secure financial stability through maintenance planning

Securing financial stability through proper maintenance planning is a vital part of protecting your child during a divorce. Under UK law, child maintenance—distinct from the division of matrimonial assets—must be arranged either through a private agreement, the Child Maintenance Service (CMS), or a legally binding Consent Order, although the last option, in the majority of cases,  is rarely used.

You may decide to use the CMS online calculator which helps parents estimate appropriate payment levels based on factors such as income and shared care arrangements.

However, it is important to be aware that the government is introducing major reforms to the CMS, set to take effect in the financial year 2027–28. One of the central changes is the abolition of the “Direct Pay” system, where parents currently transfer money between themselves without CMS involvement. This system will be replaced with a streamlined, single statutory service based on the existing “Collect and Pay” model. Going forward, parents will either be encouraged to establish private, family-based arrangements (with support) or be placed under the Collect and Pay system.

The reformed service will include a revised fee structure. Currently, Direct Pay users pay no fee, while Collect and Pay users are charged 4% if they are the receiving parent and 20% if they are the paying parent. Under the new model, compliant users of the service will be charged a flat 2% fee on both sides—paying and receiving. For those who are non-compliant, the 20% surcharge for paying parents will remain as a deterrent for missed or late payments.

Another major improvement aims at reducing the time it takes to enforce missed payments. At present, enforcement can take up to six months, but the government plans to cut this to around six weeks to ensure faster, more efficient compliance. These reforms are designed not only to streamline payment systems but also to reduce child poverty. The Department for Work and Pensions estimates that around 20,000 fewer children will live in relative poverty (after housing costs) if the changes are successful.

The reforms follow a consultation that concluded in July 2025, with the government publishing its response in June 2025. By replacing the dual-option model with a single, more efficient statutory service and introducing faster enforcement alongside fairer fees, the government aims to increase regular, reliable child maintenance payments, improving financial stability for many separated families across the UK.

With these changes in mind, where possible, parents should agree on a family-based arrangement. Although if either parent’s financial situation changes, you may decide to use the CMS to review and adjust the amount as this can prevent disputes and maintain consistency, avoiding reliance on informal or inconsistent arrangements.

In high‑conflict or safeguarding cases, take immediate legal steps

If child safety is at risk (domestic abuse, neglect), you can make an application to court under Section 8 or Part IV of the Children Act:

• Prohibited Steps Order to restrict a parent’s decision-making (e.g. removal from country).
• Specific Issue Order for decisions such as schooling, religion, medical care.
• In extreme cases, the local authority may apply for care or supervision orders, or courts may order guardian appointments and assessments by Cafcass.

Engage a specialist solicitor early

A skilled family law solicitor helps navigate legal forms, court deadlines, and strategy. They can assist with:

• Drafting Witness Statements focused on child welfare
• Liaising with Cafcass
• Drafting and securing Consent Orders
• Advising on mediation, court strategy, or emergency legal action if needed

Offering reassurance

Make sure your children understand that the separation is nothing to do with them, and that yes, they will still get to spend plenty of time with that the other parent, even if no longer every day.  It is important that they fully understand – especially if young – that the parent who has moved out is still their father or mother and will still be part of their lives.

Routines are an important part of this reassurance. Serve meals at the usual time, help your kids off to school at the time they’ve always gone, let your kids see their friends as usual and enjoy their regular pursuits. Let them feel safe and secure in the knowledge that their pre-divorce lives will continue in many ways, even as other aspects of their lives change.

If you are still on relatively good terms with your estranged spouse, you might want to sit down and discuss the situation with your children together. But if that isn’t possible, the same clear messages can be conveyed separately. It is better to both agree on the approach you plan to take, so try to discuss this with your ex beforehand if you possibly can: a unified, consistent message will help console upset children and give them confidence in the future.

The post How do I protect my child during my divorce? appeared first on Major Family Law.

Following divorce or separation, child support is paid by the non-resident parent in order to support the upkeep of the child or children. The payment of child support is a legal requirement, but separated parents are encouraged to reach a private agreement between themselves on how much will be paid and when. This is called a family-based arrangement. Private arrangements can be straightforward and they have the advantage of helping to keep lines of communication between the parents open – something that is very definitely in the interests of their children.

The Child Maintenance Service (CMS) will only intervene if the parents cannot reach an agreement, the non-resident refuses to cooperate, or the resident parent has a good reason to not want to contact the former spouse or partner: for example, domestic violence or coercive behaviour. The resident parent must apply to the CMS for assistance, and a small fee is payable when they do.

The CMS has the authority to locate the other parent (if that is at issue), calculate a reasonable sum, and then enforce payment.

Gender-‑neutral nature of maintenance

Family law makes no distinction between mothers and fathers when it comes to entitlement to maintenance. The principle of equality between the sexes is firmly embedded in both legislation and judicial interpretation. Whether a parent is male or female, married or unmarried, the determining factors for maintenance are grounded in responsibilities toward children, the division of childcare, and the respective financial positions of the parents. For single or divorced fathers, this principle can provide a foundation for claims to either child or spousal maintenance, depending on the specific circumstances.

Parental responsibility and its importance

A father automatically acquires parental responsibility if he was married to the mother at the time of birth or if he is named on the birth certificate. If neither condition applies, he may acquire it through a parental responsibility agreement with the mother or by applying for a parental responsibility order from the court. In practice, establishing this status strengthens any maintenance-related claim, especially if there is a dispute over the child’s primary residence or financial contributions.

Child maintenance through the CMS and courts

As we briefly mentioned above, maintenance for children is usually addressed through one of three methods:

• Informal family-based arrangements
• Formalised court orders (it is unusual for the court to become involved in child maintenance issues. This tends to be reserved to high net worth cases, where things such as school fees are payable).
• Applications to the CMS. Fathers who are the primary carers for their children, whether as a result of a Child Arrangements Order or by circumstance, can seek maintenance from the mother. The CMS calculates maintenance based on a statutory formula that takes into account the non-resident parent’s gross income, the number of children involved, and the number of nights the children spend with each parent.

Shared care and financial imbalances

Where the care arrangement involves an equal division of time, the CMS may decide that no maintenance is due from either parent. However, the calculation is not purely mathematical. The CMS also looks at the actual arrangements in place, including whether there is a significant imbalance in the day-to-day costs borne by each parent.

If a father shares care but ends up covering a disproportionate share of expenses such as clothing, school equipment, extracurricular activities, or transport, he may still have grounds to request additional financial support. This can be pursued through a Schedule 1 application under the Children Act 1989, allowing the resident parent or a parent with substantial care responsibilities to seek specific financial contributions beyond the basic CMS calculation.

Spousal maintenance for divorced fathers

Child support is one of the two types of maintenance payment typically ordered by the family courts following divorce: the other is spousal maintenance. As the name suggests, these ‘periodical payments’ are made by the wealthier party in a marriage to their former spouse as form of ongoing financial support, in addition to the settlement agreed or ordered during the divorce. The law concerning payment of spousal maintenance is also gender neutral. If a wife earns more money than her husband or is simply wealthier, he may be awarded some level of spousal maintenance if there are limitations on his ability to find employment and earn a salary.

The Matrimonial Causes Act 1973 provides the legal basis for such claims, and courts will examine factors including the length of the marriage, the standard of living enjoyed during the marriage, the financial needs of each party, and their ability to earn an income. Spousal maintenance is often awarded on a time-limited basis—commonly until the youngest child reaches adulthood or the receiving party has retrained or re-entered the workforce.

Considerations for high-net-worth fathers

It is important to note that in high-net-worth families, while the courts are increasingly wary of creating lifelong dependency through spousal maintenance, they may still make substantial financial orders where one parent retains primary care responsibilities and lacks immediate earning capacity. For fathers who have exited the workforce to raise children, or whose post-divorce career options are limited, this can be a vital source of financial stability.

Do single Dads always get maintenance?

The law may be gender neutral, but of course, reality is often more complicated. Single fathers are still uncommon and many have to run the gauntlet of age-old gender stereotypes that insist looking after children on a daily basis is a mother’s job and fathers should be out there earning a salary.

Some single fathers encounter outright suspicion and confusion as they go about their day, and unfortunately, these old-fashioned attitudes can leak into the family courts. Judges and magistrates are not always as sympathetic as they could be to fathers during divorce or following separation, so if you are a single Dad, you may have to make a strong case for a maintenance award. But don’t be dissuaded by old school attitudes – if, for whatever reason, you are looking after the children every day, or if your former spouse is significantly wealthier, you are just as entitled to financial support as she would have been had the roles been reversed.

Challenges in enforcing maintenance

In practice, enforcing maintenance can be fraught with difficulties. Despite possessing a range of statutory powers, including deductions from wages, seizure of assets, and even revocation of passports and driving licences, the CMS has been widely criticised for its inefficiency and lack of enforcement. For fathers who are owed maintenance, whether child or spousal, this often translates into long delays, administrative errors, and a general lack of resolution. As of writing, hundreds of millions of pounds are in arrears, with thousands of families affected by systemic failures.

Court-based enforcement options

In some cases, especially where enforcement through the CMS proves ineffective, fathers may have to pursue remedies through the courts. A court can issue enforcement orders, including charging orders against property, third-party debt orders, or in extreme cases, committal proceedings for contempt of court. That said, such remedies can be costly and time-consuming, often requiring legal representation, financial disclosure, and detailed evidence of default.

Reaching agreements through mediation

To ensure a fair and enforceable maintenance arrangement, solicitors recommend that separating parents first attempt mediation. Not only is this a prerequisite for many court applications, but it also allows both parties to reach mutually agreeable terms in a less adversarial environment. If an agreement is reached, it can be formalised by way of a Consent Order, which gives the arrangement legal force and simplifies enforcement. Fathers who negotiate such agreements, particularly where they assume the bulk of day-to-day childcare, can often secure regular maintenance payments in a way that is both efficient and long-lasting.

Cross-border and blended family complexities

There are also unique challenges that fathers may face depending on their individual circumstances. For instance, if a father lives abroad, enforcement of UK maintenance orders can be complex, particularly in jurisdictions without reciprocal arrangements. On the other hand, where the mother lives abroad, it may be more difficult to secure payments or to have a CMS assessment recognised. In these situations, applications under international laws or mutual enforcement treaties may be required.

Another complicating factor arises when fathers are part of blended families. The CMS takes into account the number of children living with a paying parent, including stepchildren, which may reduce the amount payable or impact eligibility for receiving maintenance. Fathers must be prepared to provide clear financial disclosure and documentary evidence to support claims relating to household composition and care arrangements.

Impact of abuse and coercive control

Cases involving domestic abuse or coercive control add yet another layer of complexity. A father who has been subjected to controlling behaviour may find it difficult to assert his financial rights, particularly if the abuser controls access to financial documents or household income. However, exemptions from mediation are available in such cases, and courts are increasingly sensitive to the impact of coercive control in determining both maintenance and contact arrangements.

Support services and resources

Organisations such as Families Need Fathers, Gingerbread, and Citizens Advice offer guidance, peer support, and legal referrals tailored to the unique needs of single fathers. In addition, the government’s Child Maintenance Options service provides calculators, advice on agreements, and an overview of the various enforcement mechanisms available.

Asserting maintenance rights fairly

Maintenance is not only about securing funds; it is also about enabling a stable, supportive environment in which children can thrive. Fathers who document their caring responsibilities, seek legal recognition of shared care, and make use of both court and CMS options stand the best chance of receiving fair, long-lasting financial support. Despite the shortcomings of the system, the law does provide a framework within which fathers can claim the maintenance to which they—and their children—are entitled.

An experienced family solicitor will be able to outline your rights and the options open to you.

The post Are Single Fathers and Divorced Dads Entitled to Maintenance? appeared first on Major Family Law.

When is it advisable to get a financial advisor for your divorce?

• Complex asset portfolios: If you and your spouse have complex finances—including investments, multiple properties, pensions, trusts, businesses, and international assets—seeking the services of a financial advisor is almost always advisable. These scenarios require in-depth analysis to ensure fair division and to avoid costly mistakes. Misunderstanding the valuation or liquidity of certain assets could have long-term consequences.
• High-value divorces: For high-net-worth individuals, the stakes are higher, and the division of wealth can be more contentious. A financial advisor with experience in divorce situations can help evaluate tax implications, recommend asset division strategies, and project the long-term impacts of settlement proposals.
• Pensions and retirement planning: Pensions are one of the most misunderstood and overlooked assets in divorce settlements. Given the technicalities of pension sharing, offsetting, or earmarking, a financial advisor familiar with pension legislation can be indispensable. Mistakes here could result in significant financial hardship later in life.
• Income and lifestyle assessment: If there is a question of spousal maintenance or child support, a financial advisor can assist in projecting realistic budgets, income requirements, and lifestyle sustainability post-divorce.
• Business ownership: If either spouse owns a business, the valuation and potential liquidity issues can be highly technical. A financial advisor working with forensic accountants may be needed to ensure that the business’s value is correctly assessed and that any settlement is fair and sustainable.
• Rebuilding your financial life: Post-divorce, many individuals face the challenge of rebuilding their financial life, often with a different income level, reduced assets, and new responsibilities. A financial advisor can help you set new goals, manage settlements wisely, and create a secure financial plan for the future.

When might you not need a financial advisor?

• Amicable and straightforward divorces: In cases where the financial situation is relatively straightforward—such as minimal assets, no children, and mutual agreement on how to divide everything—it may not be necessary to engage a financial advisor. A solicitor might suffice for drawing up the legally binding agreements.
• Low asset cases: If both parties have limited assets and are not dealing with pensions, investments, or complex property ownership, the cost of hiring a financial advisor may outweigh the benefits.
• Strong financial literacy: Some individuals, particularly those with strong backgrounds in finance, may feel confident navigating the financial aspects of a divorce themselves. However, it is important to remember that emotional stress can cloud judgment, so even financially literate individuals might benefit from a professional’s detached, objective viewpoint.

Areas commonly overlooked that could benefit from financial advice

• Tax implications of asset division: Failing to understand the tax consequences of asset division can be costly. For instance, transferring properties, shares, or other investments might trigger capital gains tax or income tax liabilities. A financial advisor can highlight these risks and recommend the most tax-efficient strategies.
• Pensions and lifetime allowance: As previously noted, pensions are frequently mishandled. Issues such as the lifetime allowance (LTA), annual allowance breaches, and the nuances of different pension schemes (defined benefit vs defined contribution) can have profound financial impacts.
• Hidden costs of settlements: What might appear as a fair settlement on paper might not be equal when factoring in liquidity, maintenance costs, tax, and inflation. A financial advisor can help model these factors and provide a clearer picture of what each party will end up with.
• Impact on future borrowing and credit status: Divorce can negatively affect your credit status, borrowing capacity, and access to financial products like mortgages. A financial advisor can assist in managing these aspects.
• Overlooked liabilities: Dividing debts, mortgages, and other liabilities is just as important as dividing assets. A financial advisor can help ensure these are properly accounted for and apportioned fairly.

How do financial advisors and solicitors work together?

While solicitors provide the legal framework for the divorce process, financial advisors provide the financial clarity needed to make informed decisions. Their roles complement rather than replace each other.

Solicitor’s role:

• Advise on the legal rights and obligations of both parties
• Draft and file legal documents (such as the Consent Order or Clean Break Order)
• Handle negotiations and court representations where necessary
• Ensure compliance with family law, particularly the Matrimonial Causes Act 1973

Financial advisor’s role:

• Provide detailed financial analysis and forecasts
• Assist in the valuation of assets and liabilities
• Recommend tax-efficient strategies
• Support clients in understanding complex financial products and implications

The ideal setup is for both professionals to work collaboratively, ensuring that the legal settlement reflects the best financial outcome.

What if the other side has a financial advisor? Could this be an issue?

If your spouse is using a financial advisor and you are not, this could potentially create an imbalance in negotiations. Their advisor may uncover opportunities, tax savings, or settlement structures that are more beneficial to them. You might not recognise these nuances without similar advice, putting you at a disadvantage.

Additionally, if the other side presents financial reports or proposals prepared by their advisor, you may struggle to critique or challenge these without professional support. In contentious cases, hiring your own financial advisor ensures you have an expert who can identify inaccuracies, biases, or strategic omissions in the other side’s documentation.

While solicitors can challenge financial claims, they are not financial experts, and gaps in financial understanding could affect the final settlement if left unchecked.

So, should you get a financial advisor for your divorce?

Ultimately, whether you should hire a financial advisor for your divorce depends on your personal and financial circumstances. For many, the stakes are simply too high to rely solely on legal advice without comprehensive financial analysis.

When in doubt, at least seeking an initial consultation with a financial advisor can help you assess whether their ongoing support would add value to your situation. Many financial advisors offer a one-off divorce financial health check, which could help you decide if further involvement is necessary.

In cases of complex, high-value, or contentious divorces, financial advisors should almost always be a part of your divorce team—working alongside your solicitor to ensure you emerge with a settlement that protects your long-term financial well-being.

The post Should I get a financial advisor for my divorce? appeared first on Major Family Law.

The government has spent a number of years encouraging people to treat divorce like a purely bureaucratic process and issue their own divorce petitions online. Unfortunately, the new government divorce website does not effectively highlight this risk, so people who make use of it without seeking independent legal advice could find themselves facing demands for an additional payout years down the line.

Ending financial ties

The legal end of a marriage doesn’t necessarily mean the end of financial ties between former spouses. In England and Wales, even years after a divorce is finalised, one party may still bring a claim for financial provision — under certain circumstances. While this may surprise you, the legal framework does allow for post-divorce financial claims, unless a formal order explicitly prevents it.

No automatic cut-off without a financial order

A common misconception is that finalising your divorce decree ends all financial obligations between you and your ex-partner. In reality, the divorce itself only ends the marriage, not the financial relationship. Unless you obtain a court-approved financial order — such as a Consent Order or a Clean Break Order — both parties may remain legally entitled to make financial claims in the future.

Under the Matrimonial Causes Act 1973, either party can apply to the court for financial relief, including:

• Maintenance (spousal support)
• Property adjustment
• Pension sharing
• Lump sum payments

And crucially, there is no fixed time limit for doing so, even after divorce, as long as no final order has been made.

Lodging a financial claim 20 years after divorce

The absence of a time limit on financial claims when there is no consent order in place was vividly illustrated by the case of Wyatt v Vince. This concerned Dale Vince, founder of the successful green energy firm Ecotricity, and his ex-wife Kathleen Wyatt. The pair had married in 1981 and separated only three years later, although their divorce was not finalised until 1992. At the time, both had very little money. In 1996, however, Mr Vince founded Ecotricity to generate electricity using wind turbines, and the company is now worth an estimated £57 million.

In 2011, nearly 20 years after the divorce Kathleen Wyatt was living in straitened circumstances and lodged a financial claim with the family courts, seeking a large payout from her ex-husband. He successfully appealed, but his ex-wife and her legal team pursued the case all the way to the Supreme Court. There, Justices restated the principle that there is no time limit to such claims and explained that the family courts must take into account “the contribution of each party to the welfare of the family, including by looking after the home or caring for the family”. They therefore allowed the ex-wife to pursue her claim but made it clear that the unusual circumstances of the case meant the full payout sought was “out of the question”. Mr Vince and his ex-wife eventually settled in June 2016 for a more modest – but still substantial – sum. He was also required to pay her legal fees.

The amount of time that had passed since the couple’s divorce meant that the case attracted a lot of media attention and also caused a stir in the legal world. But Kathleen Wyatt’s claim ultimately succeeded for one simple reason: the courts could find no evidence that a binding consent order had ever been issued, so the possibility of a financial claim remained, even two decades after the divorce.

What is a clean break order, and why does it matter?

A Clean Break Order severs all future financial ties between ex-spouses. It ensures that neither party can make a claim against the other’s income, assets, or estate at any point in the future.

Without this order, even if you agree informally or divide assets amicably, your ex could still pursue a claim years or even decades later — particularly if your financial situation improves.

What a clean break covers:

• Property
• Inheritance
• Business wealth
• Lottery winnings
• Pension accumulation post-divorce

A Clean Break Order can still be applied even when there are no assets to divide, simply to prevent future claims.

What factors will the court consider in late claims?

Though the legal door may remain open, success is not guaranteed. The longer the delay, the more questions the court will ask, such as:

• Why wasn’t a financial order secured at the time of divorce?
• Has the applying party remarried? (This may block certain claims.)
• Have there been significant changes in either party’s finances?
• Are there children or other dependents involved?
• What was the original financial agreement (if any)?

In essence, the court weighs fairness, needs, and prior conduct — not just the passage of time.

Remarriage and its impact on financial claims

If a party remarries without making a claim for financial provision from their previous spouse, they lose the legal right to do so. This is known as the “remarriage trap”.

However, this bar applies primarily to financial relief under the Matrimonial Causes Act, not to all types of claims — for instance, some trust-related matters might still be contestable. The safest course of action before remarrying is to ensure that all financial matters from the first marriage have been formally resolved by court order.

Pensions: The hidden time bomb

Many divorcing couples overlook pensions, especially when they’re young or when neither party is retiring soon. But pensions can represent one of the largest marital assets, and claims can arise long after divorce if not formally addressed.

Without a clean break order, your ex may later seek a share of your pension fund — especially if you’ve accumulated significant retirement savings since the divorce. These claims can severely impact your retirement plans, and defending them can be costly.

How to protect yourself from future financial claims

If you’ve already divorced but haven’t yet formalised a financial agreement, you could still be vulnerable. Here’s how to shield your assets:

• Get a consent order: This is a court-approved financial settlement agreed between the parties. It may include asset division, property transfer, spousal maintenance, and pension sharing. Sometimes couples reach an agreement entirely amongst themselves. An informal financial settlement can be quick and of course costs nothing.  But it may prove to be a false economy if things go wrong. The family courts cannot enforce an informal agreement with your ex, for that you will need a binding court order. A family solicitor will be able to draft such an order, setting out the details of your financial agreements, and then submit this to a court. Once it has been approved by a judge, it will become a legally enforceable ‘consent order’.

Family law insists on dividing a divorcing couple’s assets according to the particular needs of each spouse. In most marriages, one spouse usually has greater needs than the other, so most couples will still hold obligations to one another even after the divorce process has been completed and the decree absolute has been issued.  For example, a stay-at-home mother may find it challenging to obtain employment and therefore require ongoing financial support: in other words, maintenance. If the couple had children, the wealthier party will almost certainly be required to pay child support. The payment of a lump sum following the future sale of a property or business is another common inclusion in consent orders.

Some consent orders specify a final settlement between the former couple, with no ongoing financial relationship of any kind. These are known as ‘clean break orders’, and they usually reflect an exchange of some kind. One party might, for example, agree to forego maintenance payments in exchange for a higher share of the proceeds from the sale of a property.

Consent orders are binding and – in most instances final, unless there has been what lawyers term ‘material non-disclosure’: i.e., one spouse failed to declare significant details or specific assets at the time of the agreement.

Without a formal, court-approved consent order, you will remain at risk of financial claims by your former spouse long after the final divorce order.

• Apply for a Clean Break Order: Even if there are no assets, this prevents either party from making a claim in the future. It is particularly useful when:
  • There’s no money now, but there could be in the future
  • You plan to remarry or acquire significant assets
• Consult a family law solicitor: Attempting a DIY divorce without financial advice can leave you exposed. A solicitor can draft a consent order that is fair, legally binding, and tailored to your specific circumstances.

Common scenarios: Can my ex still claim FAQs?

“We divorced amicably years ago but never signed anything. Can my ex now claim my home or business?”

• Yes — unless you had a court-approved financial order at the time.

“My ex remarried. Can they still claim my pension?”

• Usually not. Remarriage generally bars new financial claims under the Matrimonial Causes Act. But it’s best to confirm with a solicitor.

“We agreed on finances privately. Is that enough?”

• No — informal agreements are not legally binding. Only a court-approved order can close the door permanently on future claims.

Why delay can be dangerous

Even if your ex is not currently interested in making a claim, that could change:

• They lose their job or fall into debt
• You inherit money or start a business
• You receive a windfall (e.g., compensation, lottery win)
• They face retirement with limited means

Unless the finances are legally resolved, these life changes can trigger renewed interest in a financial claim — regardless of how long ago the divorce occurred.

Key Takeaways

While you may feel that your divorce marks a clean slate, the law doesn’t assume financial closure unless you explicitly secure it. The risk of a delayed financial claim is real — particularly in cases where no Consent or Clean Break Order was issued.

If you’re unsure about your legal position, or if you finalised your divorce without a formal financial order, it is highly advisable to speak to a family law professional. Taking action now could save you from costly litigation or claims years down the line.

If you are concerned about your ex making a financial claim years after divorce, contact us to request a free 45 minute consultation with one or our specialist solicitors.

The post How long can my ex claim money after a divorce? appeared first on Major Family Law.

Separation vs. divorce: What’s the legal difference?

It is important to understand the difference between separation and divorce:

• Separation can be informal. Couples may choose to live apart without any legal documentation. Some might create a separation agreement, which outlines responsibilities and arrangements during their time apart.
• Divorce, on the other hand, is a formal legal process that not only ends the marriage but allows for a financial settlement through the courts. Until a divorce is finalised, your financial ties to your spouse remain intact.

In short, while emotional and physical separation may have occurred, the law still sees the marriage as valid until a divorce decree is issued.

Can a spouse claim money after years of separation?

Yes — and this often comes as a shock. Under family law in England and Wales, there is no automatic expiry on a spouse’s ability to make financial claims, even if you’ve been separated for decades.

As long as you are still legally married:

• Your spouse can seek spousal maintenance
• They may be entitled to a share of your property or assets, including any acquired after separation
• They can make a claim on your pension
• If you pass away without a valid will, they could inherit under intestacy rules

This legal entitlement only ends once a legally binding financial order has been approved by the court following divorce.

In the 2015 case of Wyatt v Vince, the Supreme Court ruled that a woman could pursue financial claims against her former husband more than 20 years after their separation — and 19 years after their divorce. The court reasoned that although no claim had been made during the divorce, there was no statutory limitation preventing one.

Although the parties in this case were divorced, it highlights a key legal principle: without a financial order, the door remains open indefinitely for a spouse to seek financial redress.

Financial orders: The only way to ensure finality

When a couple divorces, they should not only seek a final divorce order but also obtain a financial order. There are two main types:

• Consent Order – Where both parties agree on asset division and submit the terms to the court for approval. Once sealed by the court, it becomes legally binding.
• Financial Order – If no agreement can be reached, the court will decide how to divide assets following a series of formal hearings.

Without one of these orders, your former spouse can come back years later with a claim, especially if your financial situation has improved.

What assets can be claimed?

Even if you separated many years ago, your spouse might be entitled to assets such as:

• The marital home (even if only one name is on the title)
• Pensions
• Savings and investments
• Business interests
• Inheritances, depending on timing and use

If these were accrued during the marriage — or in some cases, even after separation — they can potentially be included in a financial settlement.

What if I’ve remarried or moved on?

If you remarry before making a financial claim, you may lose your right to apply for a financial order under divorce law. However, your ex-spouse — if they haven’t remarried — can still make a claim against you.

If you’ve acquired wealth or property since separation (e.g., from a new partner or business success), these can sometimes be considered “matrimonial assets” — particularly if the marriage was long or you had children together.

This means that even assets accumulated post-separation could be at risk without a clean break order in place.

What should you do if you’re separated but not divorced?

If you’re in this situation, there are proactive steps you can take:

• Seek legal advice: A family solicitor can help you understand your exposure and advise on the best steps to protect your interests.
• Start the divorce process: A formal divorce is essential to legally end the marriage and begin resolving finances.
• Negotiate a financial settlement: Even if you and your ex are amicable, put all agreements in writing. Mediation can help if communication is difficult.
• Apply for a financial order: Don’t skip this step. Without a financial order, your ex can still come after your assets in the future.

How can you protect yourself?

Here are key ways to shield your financial future:

• Get a consent order: This locks in the terms of your settlement.
• Create a Will: If you don’t, your ex could inherit your estate if you die while still legally married.
• Document all agreements: If you have informally divided assets, record it — though this won’t carry legal weight without court approval, it may be helpful evidence.
• Don’t wait: Delaying the divorce or financial settlement can backfire, especially if your financial situation improves.

Common misconceptions

“We’ve been separated for years — surely they can’t claim anything now?” Wrong. Time apart doesn’t erase financial obligations. Only a court order can.

“They’ve moved on — they wouldn’t claim anything.” People’s circumstances change. A future financial need or dispute can lead them to seek claims.

“I have nothing now, so I don’t need to bother.” Your situation may change. A lottery win, inheritance, or property appreciation can become a future target.

Remaining legally married — even after years of separation — creates ongoing financial risk. If you don’t obtain a divorce and financial order, your ex-spouse can legally claim against your income, pension, home, and other assets. Separation may feel like a clean break emotionally, but it is not a legal one.

To protect your financial future, take steps now:

• Initiate a divorce
• Seek a clean break financial order
• Work with a solicitor to secure your position.

The post I separated from my spouse years ago but we didn’t get divorced. Are they entitled to money now? appeared first on Major Family Law.

Children derive their sense of security from the parents. When the family home is calm and happy they feel settled and secure, while, by contrast, turbulence and arguments are deeply unsettling. Even resilient teenagers can be badly affected. Fortunately, the sensitive nature of family disputes is well recognised by the legal system. Many family lawyers work hard to minimise courtroom confrontation and the frequently distressing sense that for one side to prevail, the other has to lose. Guided negotiation and arbitration can help estranged couples reach mutually satisfactory agreements without any need for court time at all.

The views of children

Children are never asked to attend court themselves but are still placed at the centre of proceedings. Their best interests are focused on as the primary deciding factor in judgements and the views of older children are normally taken into account when judges make rulings on contentious cases. Usually, this is done via the written testimony provided during a case, but on occasions judges will meet with children involved in family disputes or write to them, asking what they think of events in their family, or explaining the reasons behind a judgement.

Letter-writing in particular is a delicate balancing act. Receiving a letter from a judge may be an unwelcome reminder that the youngster’s parents are in conflict, but it is clearly important – and just – that children are listened to and their views considered. Phrasing the letter in an effective but sensitive way is crucial, but the skills required do not come naturally to every judge, leading many to completely avoid direct communication with children involved in the cases before them.

Toolkit guidance

In recognition of the importance to family justice of well-honed communication with children, the President of the Family Division recently published a ‘toolkit’ for judges on this very topic.

The guidance provided aims to help judges to make good decisions on the “when, why and how” of writing to children involved in family disputes. The toolkit was also designed to encourage judges to do so whenever practical or possible.

President Sir Andrew McFarlane said:

“The benefit of judges communicating with the child at the centre of proceedings has long been recognised, yet few of us have ever written to a child to explain our decision in their case. There is an understandable judicial reluctance in this regard, partly because of the realisation that the letter will be important and there is a fear of saying the ‘wrong thing’. In addition, judges may be worried that it will take a good deal of time to get the letter ‘right’, coupled with the well-known inertia that comes from staring at a blank page, without a template or previous experience to guide the writer.”

Sir Andrew continued:

“As is made plain throughout [the toolkit] by direct quotation from children, a child is entitled to be given an accurate and informative account of what was decided, and why, from the judge who made the decision. This will be important for the young person in understanding that their wishes and feelings have been taken into account by the court, and in supporting them to accept or make sense of the decision as they move forward with their life thereafter.”

The toolkit is a very practical document, he explained, and drafted with a clear focus:

“This very readable ‘toolkit’ does a great deal to break down the factors that may have inhibited judges in the past. To get past ‘blank page’ inertia, the content of a typical letter is built up, sentence by sentence, with suggestions, explanations and examples, and the whole is rounded off with worked up examples.”

The toolkit was developed by the Judiciary of England and Wales in conjunction with two independent advisory bodies: the Nuffield Family Observatory and the Family Justice Young People’s Board. The former is a data-focused research organisation, while the latter is an advisory body made up of more than 75 children and young people who have experienced the family justice system or who have an active interest in children’s rights.

Writing to children – A toolkit for judges is available here.

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Researchers from Lancaster and Swansea Universities conducted a study for the Nuffield Family Justice Observatory, an independent organisation which researches family law, with a special focus on improving outcomes for children. The researchers tallied cases involving children made across England and Wales in 2019, each involving section 8 of the Children Act 1989. This concerns living arrangements for children following divorce or separation, when the parents have been unable to reach an amicable agreement between themselves. They typically result in a ‘child arrangements order’ specifying where they will live and how often and for how long they will see the other parent, but such legal orders can also address other far-reaching aspects of the children’s lives.

Long-lasting impact

In the new report, the Nuffield Family Justice Observatory explained the far-reaching nature of family court cases:

“Decisions made within private law children’s proceedings can have a very significant and long-lasting impact on the lives of children and their families. They can include who children live with and spend time with, as well as more specific questions such as what name they are known by or whether they are brought up in a particular religion.”

Approximately half the 67,000 children surveyed by the research team were never formally asked for their views on their families’ circumstances. Surprisingly, older children were no more likely to be asked about their “wishes and feelings” than younger ones.

The importance of being heard

The Children Act 1989, the United Nations Convention on the Rights of the Child, and the European Convention on Human Rights all cite the importance of allowing children involved in family disputes to express their views. However, there is currently no formal mechanism within English family law for doing so. The Children Act 1989 does state that the welfare of children must be the court’s “paramount consideration” in any case involving them, and that decisions made should include consideration of their “wishes and feelings” if they are old enough and show an understanding of their family situation.

In some cases, welfare reports are compiled by social workers, and these may include the views of the children involved. In other instances, courts appoint a guardian to intervene on behalf of children and protect their welfare, but both measures are only taken in a minority of cases and do not always involve direct communication with the youngsters in question.

The Nuffield findings come in spite of previous research showing that consultation helps many children feel more positive about the outcomes of court cases they have been caught up in, and that many youngsters feel distress if their views are not sought.

Children feeling ignored

Lisa Harker is director the Nuffield Family Justice Observatory. She said:

“Hugely important decisions are made about a child’s life during private law proceedings – but a strikingly large proportion of children aren’t seen by the professionals involved, and have no voice. Children of all ages – even older children and teenagers, who are routinely expected to make important decisions about other aspects of their lives – are not being consulted. Worryingly, children might feel completely ignored, even invisible, and that their views aren’t valued.”

The Family Justice Observatory report, Uncovering Private Family Law: How often do we hear the voice of the child, is available here.

The post Many children not asked how they feel in family disputes appeared first on Major Family Law.

London-based Opinium Research polled a representative sample of 2,750 divorced men and women for Legal and General. When post-divorce income was compared, they found an average first year fall of 41 per cent for women compared to only 21 per cent for men.

Pension savings also differ starkly according to the findings, with the women polled having saved an average of just £23,000 by the time they retired, compared to the much healthier average pension pot of £60,000 accumulated by the husbands surveyed. Despite this, according to the poll, women are almost twice as likely to not insist on a share of their ex-partner’s pension in divorce settlements.

Legal & General attribute these differences to the traditional, breadwinner role fulfilled by the majority of husbands. While they work full time and earn higher salaries, women who have had children often take on lower-paying, part time roles: about 70 per cent of poll respondents in a breadwinner role were male.

Asked if they found the cost of living a challenge after divorce, however, the differences were less stark, with 24 per cent of female respondents agreeing, compared to 18 per cent of men.

Your fair share

Retirement can already be a financially challenging time, without the additional stress of a poorly financed divorce – and yet, this is a situation that a surprising number do people do end up stumbling into. Avoid this pitfall by seeking legal advice. An experienced family solicitor will be able to provide you with a detailed overview of your options and entitlements, helping ensure you receive the assets you are entitled to. Even if your budget is limited, legal advice as a worthwhile investment that will pay dividends in the future.

Family law in England and Wales fully recognises the important role played in family life by mothers and homemakers. Such women enable the financial success of their husbands by managing domestic life and raising children, but their efforts do not generate income, making it harder for them to save their pension funds and leaving them at a significant disadvantage if the marriage breaks down and the couple separate.

A solicitor will advise on the assets, spousal and child support you may be entitled to in your family’s particular circumstances and you may find it is more than you think. A competent lawyer will also draw your attention to relevant legal provisions, such as the ability to apply for a share of your partner’s pension.

Pension sharing

Pension sharing enables the family courts to address the all-too-common scenario highlighted by Legal & General research: when the wealthier partner to a marriage has a significantly larger pension pot than their soon-to-be-former spouse.

Once issued, a pension sharing order will specify the percentage of the pension’s ‘transfer’ value to be allocated to the holder’s former spouse – that is to say, its overall monetary value. The pension assets are then immediately divided, and the share allotted to the less wealthy partner is known as a ‘pension credit’. Typically, pension credits are placed in the recipient’s own pension scheme. Not all pension schemes will allow this, however, and others may charge fees: seek specialist financial advice if necessary.

If there are no other financial ties, pension sharing may result in a ‘clean break’ settlement, in which the now divorced couple have no ongoing financial ties – a state of affairs considered ideal by most family judges. Once in effect, pension credits are a steady source of income and will not be affected by remarriage or other changes in circumstance – for example, the death of the other party.

For maximum fairness, the transfer value is often calculated just one day before the pension sharing order comes into effect. In some cases, however, the value may change before the pension credit is issued. Again, seek specialist advice if you need to.

The post Women’s income falls more than men’s after divorce appeared first on Major Family Law.

Setting up home with a new partner can be a heady and exciting time, especially if you have just left a troubled marriage behind you. It’s all too understandable to want to focus on your happiness and bright future together, even if ongoing divorce proceedings demand you look backwards too, at least for a while.

Financial needs

A key part of any divorce is the settlement – dividing your money and property – and needs are a guiding principle in the allocation of these assets. The family courts seek to ensure that both partners will have sufficient funds to meet their needs and pay their way following the divorce – in so far as that is possible.

When you divorce or separate, you and your ex-partner have a legal duty to provide full and frank disclosure of your financial circumstances. This means that you are required to provide full information about your income, assets and liabilities, and to indicate your likely financial needs in the future. This is vital to ensure that the eventual financial settlement is both fair to and reasonable for both parties.

A new relationship may well affect your own financial needs. For example, if you move in with your new partner, you may no longer have the same level of housing need, and if they provide you with financial support too, you obviously won’t have the same income requirements.

Of course, this situation could also move in the other direction: if you and your new partner are already expecting a child, for example, you may have a greater need for funds than you did before.

Details of your new partner’s finances

This all means that, yes, a family court will normally expect you to disclose some information about your new partner’s finances: their income, for example, their assets, and outgoings, in order to demonstrate your current needs. Of course, you do not have to disclose everything – just those aspects of their financial circumstances that are relevant to your new living arrangements. Your new partner’s bank account details or personal debts would fall outside that, and family judges will only be interested in relevant information necessary to enable a fair settlement.

Discussing the divorce with your new partner

But what if your new partner is not thrilled about revealing details of their financial affairs? Then you will need to talk the situation through with them carefully. This is a delicate topic, especially in the early stages of a relationship, and you and your partner may see the same situation very differently.

Clarity and respect should be your watchwords. Clearly explain to your new partner why your marriage ended in divorce but respect is also important. Resist the temptation to overshare or to badmouth your ex: doing so will send all the wrong signals and could even damage your new relationship. Try to be open and clear about what happened and how you feel about it now. Answer your new partner’s questions, respond to their feelings, and don’t pressure them to agree or sympathize with you.

They may have experienced their own divorce, or find the whole topic stressful and emotional. Choose the right time and place to raise the topic. You will need your new partner to be in as positive a mood as possible, receptive to doing you what is effectively a huge favour. Make sure they understand why their financial circumstances are relevant to your divorce proceedings.

If things don’t go well, try your best to keep a cool head and seek support and legal advice if you need it. A good family solicitor will help you work around any legal issues that crop up and prepare for your post-divorce future as best you can.

Disclosure

Financial disclosure is done via the completion of a standard form, called the Form E. This is capacious, with room for plenty of detail, but supplementary pages can be added too. You will also need to provide supporting documents, such as bank statements, payslips, tax returns, property valuations, and any other document relevant to your individual circumstances.

Penalties

As we saw above, “full and frank” financial disclosure is a legal obligation in divorce proceedings, and of course that includes those aspects of your new partner’s finances relevant to the current situation and living arrangements. There can be serious consequences if you fail to disclose financial facts and figures and your former spouse or their legal team can demonstrate this in court. For example, the court may order you to pay costs, financially sanction you or even send you to prison for contempt of court in extreme circumstances. If a financial settlement has already been reached with your ex when the “material non-disclosure” comes to light, it will almost certainly be amended to address the inaccurate or complete information – or even set aside altogether for an expensive rehearing. Transparency and honesty are always the best policies.

The post Do I have to reveal financial details of my new relationship in my divorce? appeared first on Major Family Law.