Divorce: how can I protect myself financially?

Lawpack on March 27, 2020

Divorce law in England and Wales requires both parties to tell the absolute truth about their financial circumstances and there can be dire consequences if they don’t – usually the offending person is made to pay more in money and property to their ex-spouse, as well as being ordered to pay all of the divorce costs (which can be considerable).

Although it can be possible to protect yourself to a certain extent (financially speaking) upon divorce, you are not allowed to hide assets and income by fibbing about what you have. The divorce court also doesn’t ignore assets and income held by third parties as a matter of convenience (whether at home or abroad). The general rule is that all assets and income, in whatever manner they are held and wherever, are put into the ‘melting pot’ and are seen as available for the divorce court to redistribute between the couple upon divorce.

Divorce law is littered with cases of people trying to hide their assets and income in thousands of ingenious ways. The majority are unsuccessful – even offshore trusts and companies hold no sway with the divorce courts, which take a much more realistic view of ownership than, for instance, HMRC.

Also, a spouse who has tried to protect their money using tax-avoidance schemes (such as a trust) will not necessarily have the divorce court’s backing. To the contrary, the divorce court may not view the money to be an arms-length asset and it will be open to redistribution in the other spouse’s favour. Before embarking upon any exercise designed to put your wealth out of the reach of your spouse, take good legal advice or you may end up paying more than you would have done before you attempted to protect yourself.

So-called ‘simple’ ways of keeping assets from your spouse – such as placing assets in your sole name – also don’t really work as all the assets belonging to both spouses are taken into account by the divorce court. Putting all of the assets into joint names also doesn’t help and it may even make matters worse if the judge takes the view that unless there is evidence to the contrary, assets passed from one spouse to another are considered a gift and stay that way.

The only way you can really protect yourself financially upon divorce is to avoid a big contested financial battle through the lawyers and the courts so that you avoid the big legal fees that such litigation always entails. (Sir Paul will no doubt vouch for the huge divorce costs that can be incurred in such circumstances.)

The best way to avoid such a battle is to reach an agreement between the two of you in the divorce. Forget about the rest: the legal forms, the divorce lawyers, the divorce law and the divorce court.Your divorce is actually about you and your partner. So get talking!

If you can’t do this over the kitchen table, then try mediation or, failing that, collaborative law, where the parties agree in writing to reach a settlement without going to divorce court. Both are tried and tested methods of reaching settlements with the minimum of divorce lawyer and divorce court intervention. They are cheap (relatively) and they avoid the unpleasantness which inevitably accompanies contested divorces.

For more information, contact Resolution, or take a look at Lawpack’s Separation & DIY Divorce Kit which provides hundreds more tips on how you can handle your own quickie divorce and save legal fees and heartache.

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What is a consent order?

Lawpack on March 27, 2020

Unfortunately, marriages break down and spouses are forced to make a decision over who gets what, either in a court of law or mutually without legal intervention.

The problem is, financial disputes can arise and even when things seem to have been settled, exes can return and start to claim assets that the other spouse believes are rightfully theirs, among a vast array of other issues.

That’s why it’s a good idea to invest in a consent order, otherwise known as a clean break order, and protect yourself from losing more than is justifiable in a divorce.

What is a consent order?

A consent order is the legal document by which financial matters are finalised on divorce.

Without one, you may be vulnerable to your partner making a financial claim years later.

The advantages of a consent order

One of the great benefits of a consent order is that it is a cost-effective way of getting your financial divorce settlement in writing, saving loads in legal fees.

What the order ultimately sets out to achieve is a mutual agreement between you and your spouse regarding financial matters, while ensuring the other party cannot come at you with a financial claim in later years.

They are highly reliable documents (99.9% reliable) but there are rare occasions when they can be overturned; for example, if fraud takes place.

What is included in a consent order

1. The home you once shared together

Both parties to the divorce must agree what will become of the former matrimonial home, such as whether it will be sold or left to the spouse in custody of the children (where relevant). You might also consider whether the other spouse will begin or continue to make mortgage payments.

2. Other assets

Next up is to consider what will happen to other relevant assets. These could be shares, endowment insurance policies or a family business, among others. It is necessary to determine how they will be distributed.

3. Personal property and furniture

In a similar vein, it must also be decided what will happen to personal property and furniture, such as who will preserve the fine china. Generally this involves each party taking rightful ownership of their own goods; however, discrepancies can arise over who truly owns what. Typically, a standard clause will suggest each spouse retains goods in their possession at the time the order was drawn up.

4. Pensions

Couples making the break in retirement need to decide if they will pursue pension sharing or perhaps offset their funds against other assets.

5. Maintenance

It must also be decided if one spouse will pay the other maintenance. This is particularly relevant where children are concerned, with most courts ruling the parent with child custody deserving of maintenance. You must also agree when such maintenance payments can be completed; for example, upon death or when the child reaches 17.

6. Child maintenance

It is worth pointing out that while the Child Support Agency (CSA) generally determines child maintenance, courts can also order maintenance and either spouse can apply to the CSA for an assessment.

7. Private health care, insurance and school fees

Other factors that must be taken into consideration are expenses such as insurance premiums, private health care and school fees, especially if one party receives these benefits via their employer.

8. Debts

This clause should outline who will take on the responsibility of any debts of the marriage. If they are joint debts, will the paying party compensate their ex spouse?

9. Pets

Who will takes ownership of the family pet?

10 Termination upon death

The consent order should also outline that neither party will have a claim on the other spouse’s assets after they die.

Consent orders are easy to draw up with Lawpack. Our DIY Consent Order Service can help you to make an order for the fixed price of just £100. 

What do I need to do to get my final divorce papers?

Lawpack on March 27, 2020

If you’ve served your divorce petition and your spouse doesn’t want to defend the divorce, then you can apply for Decree Nisi.

How to apply for Decree Nisi

It’s not hard to apply for Decree Nisi, you simply have to fill in a form called Application for Decree Nisi (Form D84) and a Statement in Support of your Petition (Forms D80A to D80E). There is no court fee.

The Forms D80A to D80E correspond to the five grounds for divorce. You need to use the correct form for your situation. For example, if your divorce petition is for adultery, then you need to use Form D80A. Forms D80B to D80E are as follows:

  • D80B – Unreasonable behaviour
  • D80C – Desertion
  • D80D – Two-year separation
  • D80E – Five-year separation

With Forms D84 and D80 evidence must be provided that:

  1. Your spouse, or any co-respondent has received the divorce petition. If not, then you need an order for deemed service, or an order that service can be dispensed with.
  2. If your petition is based on adultery, then you must have evidence that your spouse admits to the adultery.
  3. If your petition is based on unreasonable behaviour, then you must have evidence that your spouse admits to unreasonable behaviour.
  4. If your petition is based on desertion, then you must have evidence that your spouse admits the desertion.
  5. If your petition is based on two years separation, then you must have evidence that your spouse consents to the divorce.

You’ll find most of the information above in the Acknowledgment of Service, so don’t worry about having to file lots of different pieces of evidence.

Filing the Decree Nisi at court

You then have to send these forms to the court and state that your divorce is undefended.

When the court receives your paperwork, it will consider whether you’ve completed the documents correctly, whether you’ve got sufficient grounds for divorce. You don’t need to turn up to the court to hear the Decree Nisi pronounced, unless you want to.

If the judge finds that your documents are in order, he will send you a Certificate of Entitlement to a Decree Form. It usually takes about two months from the time you first file your application for decree nisi. You’re usually told of the actual date about two weeks in advance.

Decree Absolute

A Decree Nisi is a provisional divorce and needs to be finalised with a Decree Absolute. You’re not finally divorced until you have your Decree Absolute.

If you’re the petitioner, you can apply for Decree Absolute six weeks and one day after you receive your Decree Nisi. If you’re the defendant you have to wait for four and a half months after you receive your Decree Nisi before you can apply for Decree Absolute. As long as the court is happy you will receive your Decree Absolute and finally be divorced.

Help from Lawpack

All the divorce forms you need – and expert guidance on how to use them – can be found in Lawpack’s Separation & DIY Divorce Kit.

If you need assistance in completing the forms, then you can use our DIY Divorce Service who will complete them for you. With our Managed Divorce Service they will complete them and also file them at court for you.

If you want more in-depth information from a divorce lawyer about all aspects of divorce law then read our guide, How to Get a Divorce by Punam Denley. Packed with tips and expert advice to ensure that you get through the divorce process smoothly.

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How can you arrange your own divorce?

Lawpack on March 27, 2020

Deciding that your marriage has no future is always tough, so the last thing you will want is for messy and drawn out divorce proceedings to follow.

Not everyone has the funds available to leave a divorce entirely in the hands of a legal team, so doing it yourself can be a good option. The good news is that it’s possible to handle your divorce personally, without the help of legal experts.

Divorce is an option that is open to anyone who has been married for at least a year and has found that their relationship has broken down for good.

3 steps to getting a divorce

  1. You need to file a divorce petition, which is effectively an application to the court for permission to go your separate ways. At this stage you will have to show the reasons behind your split.
  2. You must apply for a decree nisi, which comes if your spouse agrees to the divorce. It’s a document that states that you’re allowed to go ahead and complete the permanent split.
  3. You should seek a decree absolute, which legally ends your marriage.

Agreeing to divorce

If you’re to manage your own divorce, you will need to agree on certain issues with your partner first. These include:

  • The reasons for you requiring a separation
  • How you’re going to look after any children in the future
  • How assets – such as money and property – will be split between the two of you.

Should you be unable to reach an agreement on any of these matters you’re likely to require legal representation, but if you’re both reading from the same hymn sheet a DIY divorce is entirely realistic.

For starters, agreeing on these matters will save you from a court hearing, while the paperwork involved when all parties are happy is fairly simple.

If you don’t agree

If you find that you’re not in agreement over one or more of the relevant issues but still want to go ahead with managing your divorce, you can turn to the professional mediation sector. Experts will be on hand to help you work out a settlement with your spouse.

Grounds for divorce

Before you can apply for a divorce, you must have reasonable grounds for doing so. There are five acceptable reasons for ending a marriage, so be sure your case fits one of them.

These are:

  1.  Adultery
  2. Unreasonable behaviour
  3. Desertion
  4. Living apart for two years and you both agree you want a divorce
  5. Living apart for five years with just one party wishing for a divorce.

Agreeing on the reason for your split is an important factor in being able to oversee your own divorce, as it will reduce the possibility of any legal wrangling in this area. You should note that you cannot use adultery as a reason if you lived with your partner for six months or more after you found out.ADNFCR-1645-ID-801684724-ADNFCR

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