Divorce Financial Settlements

A financial settlement helps both parties decide how your finances will be divided when you divorce.

It is an important part of the divorce process that helps you agree on provisions for your children and what will happen to assets such as property, pensions and business interests. 

Making arrangements for your finances is a crucial part of the divorce process that can often feel daunting.

However, there are several options for reaching a financial settlement and the guidance of an expert divorce solicitor can help you decide which is right for you.

At HPLP, our team of experienced divorce solicitors in London recognise that making financial arrangements can be challenging.

Our dedicated divorce law specialists can assist with Alternative Dispute Resolution methods such as mediation and negotiation and have the necessary expertise to represent you in court where necessary.

We offer sensitive and practical advice that will help protect your interests for the future.

Speak to our divorce financial settlement solicitors in London today

Contact our expert divorce financial settlement lawyers in London now by calling 020 7553 9000 or use the contact form for a prompt response.

How our divorce financial settlement solicitors can help you

A divorce financial settlement is an agreement between the divorcing parties that outlines how your assets will be divided such as property, business interests, and pensions.

There are several ways to reach a financial settlement, using Alternative Dispute Resolution methods such as mediation and negotiation or escalating to court proceedings where necessary.

In mediation, a neutral and impartial third party will facilitate communication between the involved parties to help you reach a mutually agreeable settlement.

In negotiation, both parties agree to provide full disclosure of your financial situations and get individual legal advice before engaging in voluntary negotiations.

If a financial agreement cannot be reached, your solicitor may start court proceedings to resolve the matter.

In court, you may attend a Financial Dispute Resolution (FDR) Hearing, where a judge will help you reach an agreement with their involvement.

If unresolved at or after the FDR, the case moves to a Final Hearing, where the judge will review both parties' evidence and make a final decision about your financial arrangements.

Financial settlements FAQs

How are finances split in a divorce?

During a divorce, assets such as your property, savings, pensions, and investments will be assessed and divided.

The goal is to achieve a fair division, which may not always mean an equal split. You can agree on this together or reach an agreement through Alternative Dispute Resolution Methods such as negotiation and mediation.

If an agreement cannot be reached, the court will decide during a Financial Dispute Resolution (FDR) Hearing or a Final Hearing.

How is a divorce settlement calculated?

A divorce settlement is calculated by considering various factors to achieve a fair division of assets and liabilities.

The court will examine your financial situation, including income, property, savings, and pensions.

They will then consider the length of the marriage, each partner's contributions, both financial and non-financial, your future needs and the welfare of any children involved as a priority.

Spousal maintenance may be awarded if one party requires financial support going forward.

What am I entitled to in a divorce settlement?

When dividing finances in a divorce, the starting point is often a 50/50 split, but this is just the beginning of the process.

There are various factors that determine how the assets should be divided. These include the length of the marriage, each spouse's income potential, and your current and future financial needs.

Couples often have multiple assets, and how each asset is treated depends on your individual circumstances.

Options for dividing assets may include pension sharing, transferring equity, or splitting the proceeds from the sale of assets. It's crucial to carefully evaluate all of these possibilities before making any decisions.

Given the complexity of navigating a divorce and finances, it's essential to seek expert legal advice that is tailored to your circumstances as early on in the process as possible.

Do you have to settle finances before divorce?

You are not required to settle your finances before getting a divorce, but it is strongly advised.

The financial settlement, including the division of assets, spousal maintenance, and child support, will be handled separately from the divorce proceedings but is generally done alongside the divorce process.

Finalising financial matters ensures both parties' finances are protected and can prevent future disputes.

While a divorce can be granted without a financial settlement, unresolved finances after divorce can lead to complications further down the line.

If you acquire money in the future, and there is no financial agreement in place, your spouse could make a claim for financial provision.

They might be entitled to a portion of the assets you’ve acquired after the divorce, even if many years have passed.

 It is recommended to seek legal advice to ensure a fair and comprehensive financial agreement during the divorce process.

How long does a divorce financial settlement take?

The time it takes to reach a financial settlement will vary based on individual circumstances, however, it typically takes six to 12 months.

This depends on factors such as the complexity of the financial arrangements, the level of cooperation between the parties, and court availability.

An uncontested settlement, where both parties agree on the terms, can be quicker and is often finalised within a few months.

However, contested cases requiring court intervention and multiple hearings can extend the process.

Seeking financial divorce advice and mediation can make the process more straightforward and save time and costs.

Speak to our divorce financial settlement solicitors in London today

Contact our expert divorce lawyers in London now by calling 020 7553 9000 or use the contact form for a prompt response.