The introduction saw the biggest shake-up in divorce law for 50 years.  It aimed to allow couples to divorce or dissolve a civil partnership without one of them attributing blame to the other, thereby removing hostilities and making the process more amicable.  It’s fair to say that, a year on, it has done that.  More and more couples are choosing to carry out the divorce/dissolution process themselves and the introduction of joint applications seems to have been welcomed by separating couples.

The overall process is much easier and has been welcomed by separating couples and lawyers alike.

But the divorce itself is not usually the conclusion of matters: it does not deal with the financial implications for separating couples.  When and how is that addressed?

When a final order is issued, you will not be told by a court to sort out your financial claims or even what that means and how to do it.  There is no bar to obtaining a divorce/dissolution even if your financial claims are unresolved.

The divorce process will end your marriage and make you a single person again.  It does not sort out your finances automatically.

Because no-fault divorce means that the divorce/dissolution process is much more accessible, many people are taking the leap without legal advice.  That is understandable: it keeps costs down.  But the downside of it is that divorcing couples or those dissolving a civil partnership don’t get any legal advice on how their finances should be sorted.  Some think that a verbal agreement between them is sufficient – it isn’t.  Some think they have no financial claim to make – that may not be the case.

When you enter into a marriage or civil partnership, you automatically gain financial claims against each other.  This includes claims for maintenance and against cash, earnings, property, inheritance and pensions – probably one of the most valuable assets in any marriage/civil partnership.  Those claims remain open, even after you have obtained the final order in a divorce/dissolution.  They don’t automatically go away.

Legal advice is vital if you want to ensure that your finances are sorted equitably and legally when you divorce or dissolve your civil partnership – especially in relation to pensions.  Each year, it’s likely that significant sums are lost by spouses/civil partners failing to consider pensions as part of a financial settlement.  Some people might not even realise they have a claim against their spouse’s/civil partner’s pension or appreciate how valuable a pension can be.  It may even be possible for someone to be at risk of losing their entitlement to the pension if the final order is pronounced and the other spouse/civil partner then dies before finances are sorted out.

Verbal agreements relating to financial issues between ex-spouses/civil partners are very rarely satisfactory. There have been cases where a verbal agreement was entered into and then one spouse/civil partner later withdrew their consent, seeking a different (and often increased) settlement. Such verbal agreements are not legally enforceable, and it is often difficult and more expensive to try to rectify issues later.

Bradie Pell, partner and head of Graysons’ family law team cautions:

“The introduction of no-fault divorce has certainly made it easier and less acrimonious to carry out the divorce or dissolution of civil partnership yourself.  However, it is still always best to take legal advice regarding your finances at an early stage so that you know what your options are. You will then be able to make an informed decision as to how you should proceed.”

If you want to discuss your own situation, we currently offer new clients an initial, free 30-minute consultation with one of our family law experts, who will give you an overview of the law relating to your case, advise you on the next steps and what the cost implications will be. Contact one of our team now.

Author: Bradie Pell, partner and head of Graysons’ family team.