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Finances can add complexity to divorce

As more and more of the population has been vaccinated against COVID-19 there has been a gradual increase in the number of instructions to solicitors for divorce and more particularly to resolve the financial issues following divorce. A divorce can be dealt with online but that only covers the breakdown of the marriage.

Financial issues are more complex to resolve. Recently we have encountered a number of cases where clients have divorced several years previously but did not deal with the finances at the time of the divorce.

Whilst this may seem convenient at the time, it can leave clients in a surprisingly vulnerable position in the longer term, with not as many options as they might think.

In one case we were recently involved in the wife was living in a house in the sole name of the husband. The parties had got divorced and the wife then remarried. What the client was not aware of is that remarriage stops most of the financial claims which the client could have made against their former spouse upon divorce.

So it’s prudent to check and ensure that all financial claims have been correctly dealt with in divorce, prior to remarrying.

What if your financial assets have increased post-divorce? This could mean that the other party would be entitled a larger share of your assets than you think as the court deals with assets at the date any application is before it, rather than at the date of separation.

Of course arguments can always be made that assets have been acquired “post separation” but that argument may hold little weight as the court’s first duty is always to ensure that the needs of the other party and particularly any children are met in terms of financial settlement. The moral of the tale is that divorce is only half the story.

If you are getting divorced then please remember that the finances need to be dealt with preferably at the same time, so that a financial order can be made and approved by the court. This then prevents problems such as those set out above.

If we can be of any assistance please get in touch with a member of the team.

divorce and finances