Financial Settlements

One of the first questions we often get asked is how will our finances be divided?  Our experienced divorce solicitors in Chesterfield and Sheffield will work with you to achieve the best possible settlement available.

Financial settlement negotiations take into account several factors, including:

• The financial and other needs of any children
• The current earnings of both parties
• The potential future earning capacity of both parties
• Length of the marriage
• Standard of living enjoyed during the marriage and income needs
• Contributions that both parties have made to the marriage, both financial and otherwise – including looking after the house or caring for children
• Assets of each party, including accrued pension values

Reaching an agreement on finances

The ideal solution is for an amicable financial agreement to be reached by negotiation between both parties and their solicitors. This will help to minimise legal fees and avoid the necessity of going to Court to reach a settlement.

If an agreement can be reached out of Court then your solicitor will draw up a consent order giving full details of the agreement reached. Both parties sign this agreement and it is then sent to the Court for a Judge to check it is reasonable before the Court endorses it as a legally binding order. We would always advise couples to try and come to an sgreement before having to go through the Court process.

What if we can’t agree?

We would always advise couples to try and come to an agreement so to avoid having to go through the Court process but we know sometimes it is just not possible to agree.  In these cases an application will be made to the Court and a timetable will be fixed. It is essentially a three stage process:

1. First directions appointment "FDA":
   During the first stage both parties have to disclose their financial circumstances to the Judge. Our experts will deal with all the paperwork and ensure that everything is in order prior to the hearing. At this stage the Judge is checking that we have all the information we need and will give directions to progress the case to stage 2, for example, whether any valuations of property or businesses are required.
2. Financial dispute resolution hearing "FDR":
   Here the Judge will give guidance to the parties on areas of dispute and will encourage the parties to find a compromise solution which is fair to both of them. Most cases do settle at this stage.
3. The trial:
   If the case cannot settle, then a trial date will be fixed and the Judge will hear evidence from both parties and solicitors before deciding what should happen and making an order which the Judge considers to be fair.

Clean Break Agreements

A clean break is a type of settlement where all finances are finalised at the point an agreement is implemented. It usually involves a split of assets between the parties with no ongoing spousal maintenance.

A clean break is also achievable in cases where spousal maintenance would normally be payable. If enough assets exist to enable the party liable to pay maintenance to transfer assets of a suitable amount, then this can negate the payment of maintenance on a capitalised basis.

Once a clean break has been accepted by the court then neither party can try to claim additional assets or maintenance at a later date, no matter what their change of circumstances.

A clean break applies only to your spouse. It is not possible to get a financial clean break in respect of your children as you have an ongoing financial responsibility to support them.

All financial settlements are different as they are based on the circumstances of the individuals involved but our experts are here to guide you through the process and make sure you get your fair share of the matrimonial assets.

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