Separation & Divorce Financial Settlements Manchester

If you can’t agree what should happen to a jointly owned property, it may need to be sold and the proceeds divided. In other cases, one person may keep the home (often where children live primarily), with the overall settlement adjusted to reflect that.

A lump sum can be used to balance the overall division of assets, for example, to reflect one person keeping a larger share of the property or to offset the value of pensions or savings.

This involves transferring an asset (such as a property) from joint names into one person’s sole name. It’s often considered where one party will remain in the family home, particularly where children are involved.

The court can order ongoing financial support for a spouse where it’s appropriate. This can be for a fixed period or, in some situations, on a longer-term basis. Depending on need, maintenance can also be dealt with on an interim basis while divorce proceedings are ongoing.

Pensions are often one of the most valuable assets in a divorce. In some cases, pensions can be “shared” or offset against other assets, and in others a different financial arrangement may be used to ensure the overall outcome is fair. The right approach depends on the wider picture and the factors the court must consider.

Yes, in most cases it’s still sensible to formalise what you’ve agreed in a legally binding financial order (often a consent order). Without one, either of you could make a financial claim in the future, even years after the divorce, so putting the agreement into a court-approved order gives you certainty and protects you both.

It’s usually best to start thinking about the financial settlement as early as possible, ideally once you’ve separated and you have a clear picture of your assets, debts, income and pensions. Many couples negotiate and agree terms while the divorce is progressing, but the settlement is normally finalised and made legally binding by a court order towards the end of the divorce process (often after the Conditional Order), so you have certainty and protection moving forward.

Yes, many couples reach an agreement and even draft the financial settlement terms before the divorce is finalised. However, to make it legally binding and protect you from future claims, the agreement normally needs to be approved by the court as a consent order, which is usually submitted once the Conditional Order has been granted and then sealed by the court.

Yes, you can often still reach a financial settlement after several years of separation, particularly if you were married (or in a civil partnership) and there is no court-approved financial order/consent order in place. Without a sealed order, either of you may still be able to make a claim in the future, so it’s usually sensible to formalise matters to achieve certainty and, where appropriate, a clean break. The court will consider your circumstances as they are now, including your current needs and what has happened to assets over time.

Yes, they’re related, but they’re not the same thing. The divorce legally ends the marriage, while the financial settlement is about sorting out the finances, such as the home, savings, debts and pensions, and making those arrangements legally binding. You can be divorced without having a final financial order in place, which can leave the door open to future financial claims, so it’s usually important to deal with both.

In a divorce financial settlement, the court (or the agreement you reach) usually takes a wide view of both parties’ finances, not just what’s in joint names. Assets commonly considered include:

• The family home and any other property (including buy-to-lets or overseas property)
• Savings and cash (bank/building society accounts, ISAs, premium bonds)
• Pensions (workplace, private and public sector schemes)
  Investments (shares, funds, crypto, bonds)
• Business interests (shares in a company, partnership interests, director’s loan accounts)
• Income and future earning capacity (including bonuses, commission, dividends)
• Debts and liabilities (mortgages, loans, credit cards, tax liabilities)
• Vehicles and valuable personal items (cars, jewellery, art/antiques, high-value collections)
• Trust interests and certain future entitlements (where relevant)
• Inheritance and gifts (often treated differently, but may still be considered depending on needs and how they’ve been used)

In broad terms, the court distinguishes between matrimonial assets (built up during the marriage) and non-matrimonial assets (for example, pre-marriage assets or inheritances), but it can still look at everything, particularly where it’s needed to meet housing needs or the needs of children.