Solicitor Michelle O’ Neill shares how instructing legal and financial specialists can help ease financial uncertainty during a divorce process.
Divorce proceedings are often fraught with a potent mix of emotional turmoil and financial uncertainty. As a seasoned divorce solicitor at The Family Law Company, a firm that represents over 2000 family law cases each year, I’m all too familiar with these challenges. Still, I firmly believe that a strong advisory team – including both legal and financial specialists – can significantly ease this process.
The Dual Pillars of Divorce: Legal and Financial Advice
During separation, the interplay between legal and financial matters is paramount. Working with an experienced solicitor, their role can extend beyond the legal intricacies. Guiding you through the emotional whirlwind, ensuring that each decision is rooted in your best interests.
On the financial front, a knowledgeable financial adviser can also become indispensable. This expert can help optimise your cash management, reframe your financial goals, and propose tax-efficient investment strategies. Especially for those unfamiliar with the household finances throughout the marriage, this guidance is a game-changer. In tandem, these advisers set you on a path to future financial and emotional stability.
Tackling the Financial Implications of Divorce
Despite the sole ground for divorce in English law being the irretrievable breakdown of the marriage, financial considerations loom large. Before concluding your divorce and securing the final order it’s imperative to sort out your financial ties. This safeguard ensures no future claims emerge post-divorce.
Several avenues can lead to financial resolution such as:
- Negotiation: Negotiation is often the initial step. Here, both parties, either independently or through their respective solicitors, engage in direct discussions to reach a consensus. The advantage? It’s a private, often faster method that might lead to more flexible arrangements. Before finalizing any agreement, it’s beneficial to exchange full financial disclosures, ensuring that both parties have a transparent view of the assets and liabilities at stake.
- Mediation: Mediation introduces a neutral third party—a trained mediator—to facilitate discussions between the parties involved. While mediators don’t impose decisions, they assist in finding common ground. They’ll also encourage the sharing of financial disclosures to forge a balanced agreement. Importantly, while mediation can result in a provisional agreement, it becomes legally binding only after being vetted by solicitors and converted into an official proposal or consent order.
- Court and a Court Order: Whether through mutual agreement or court judgment, asset division needs official documentation. This order factors in the children’s needs, followed by each spouse’s needs. If surplus assets remain, fairness becomes the yardstick, accounting for marriage duration, ages, incomes, liabilities, pensions, and more.
Will the Settlement Meet My Future Needs?
Cashflow modelling emerges as a beacon here. It offers a holistic view of your financial trajectory, considering lifetime events like retirement or large expenditures. This comprehensive financial plan highlights potential surpluses or deficits in the settlement.
Specifically for divorces, this tool evaluates proposed settlements over your lifetime. It can pinpoint areas of concern and guide mediation to derive an adequate settlement amount.
Ultimately, if the financial analysis is favourable, it reassures you that the decided settlement supports your future effectively.
So how do I resolve the financial aspects of my separation?
Dissolving a marital bond can be overwhelming, particularly when financial disparities exist or communication channels collapse. Yet, with specialist solicitors like us and astute legal and financial specialists, you’re equipped to navigate these treacherous waters. Together, we ensure that you emerge from this ordeal with clarity and renewed confidence, poised to embrace the next chapter of your life.
Should you need more insight into this complex realm, please reach out to us. We’re here to support and guide you every step of the way.
Need some advice? Get in touch today