Advice & information • Family & matrimonial

Divorce — the financial agreement

Divorcing can be stressful for all parties concerned and one of the most significant stresses is reaching agreement on the division of the matrimonial assets.

The decision on how a husband and wife should divide their assets if they divorce can be made at any stage — even before they marry.

An amicable agreement is far better than having the terms of the division imposed by the court and is often cheaper, too, since legal costs can escalate when you have to go to court.

In reaching agreement it is important that both parties have full knowledge of all the assets both jointly and separately owned. Only then can proper negotiation take place. These negotiations should be meaningful and not rushed with both parties being aware of their legal rights.

CONSENT ORDERS

When a couple reach a private agreement as to their financial relationship, they can do so by oral agreement, by written note or by way of a legal document. The legal document, known as a Consent Order, covers the couple’s past, present and future financial relationship.

A Consent Order is an order of the court whereby the terms have been agreed by the parties rather than imposed by a court. The court then ratifies the agreement, which means it is binding on both parties and difficult to challenge.

THE COURT PROCESS

Where the parties cannot reach a private agreement, then they must turn to the court. There are three hearings in financial dispute matters: the First Appointment; the Financial Dispute Resolution Hearing (FDR); and the Final Hearing.

Although the court will apply pressure on the parties to strive for a settlement at each stage of the process, it is the FDR that is designed to encourage the parties to reach agreement. This is done by the intervention of a judge, who will offer advice on the likely outcome of issues if the matter goes on to trial.

Further information

Poole & Co LLP specialises in assisting parties to reach a financial settlement as early as possible while protecting their own rights in the division of matrimonial assets.

For further advice or information, please contact Richard Maloney.