Financial Claims and Orders
While your proceedings for divorce or the dissolution of a civil partnership are progressing, it’s usual to deal with both parties’ financial claims against each other. The aim is to sort out how the assets should be divided and what the financial arrangement between you should be in the future.
The types of claims you may have against one another are for property, income, lump sums, maintenance and pensions. These claims can also be made for children of the family.
There are a variety of ways to try to deal with financial claims, such as negotiating yourselves, negotiating through solicitors, attending mediation or going through the collaborative process or court proceedings.
There is a four-stage procedure for resolving financial issues:
You must both make full, frank and honest disclosure of your respective financial positions. This includes detailing (with documentary proof) your property, savings, assets, investments, incomes, business interests, pensions, interest under trusts, liabilities, outgoings and needs.
Once the disclosure process has been completed and you and your advisors know what and how much is in the financial ‘pot’ and what your financial positions are, the next step is to reach an agreement.
Assuming you reach an agreement, you should obtain a court order, called a ‘Consent Order’. This is usually drafted by solicitors due to the legal content.
Once the Consent Order is made by the court, the terms need to be implemented to put the settlement into effect.
If one party will not co-operate in the disclosure process or if a financial agreement cannot be negotiated, an application can be made to the court for the judge to handle the case. If necessary, they will make a decision as to what the financial arrangements between you should be. This will then be made into a Trial Order.
There are three types of Financial Orders:
- Capital orders – dealing with the transfer or sale of property and the payment of money from one party to another
- Income orders – dealing with maintenance to be paid by one party to the other or for school fees to be paid
- Pension orders – dealing with the sharing of pension or pension attachment
Our expert family lawyers in Chester and Shrewsbury have extensive experience in dealing with all aspects of the financial process. We can advise you at each stage accordingly, with the aim of minimising conflict and reducing costs.
Partner & Head of Family Law
Family Law Partner