Financial Settlements

If you are concerned about protecting your wealth during a divorce, it is important to seek specialist legal advice at an early stage. While the court aims to achieve a fair outcome, there are often steps that can be taken to protect assets and ensure that complex financial arrangements are properly considered as part of any settlement.

We regularly advise business owners, property investors, professionals and high-net-worth individuals on how best to protect their financial interests during divorce proceedings. Every case is different, but careful planning and expert advice can make a significant difference to the outcome.

To help protect your wealth, it is important to:

• Obtain legal advice as soon as possible.
• Ensure all assets are properly identified and accurately valued.
• Consider the impact of any pre-nuptial or post-nuptial agreements.
• Take specialist advice regarding business interests, trusts, pensions and investment portfolios.
• Understand the potential tax consequences of any proposed settlement.
• Avoid informal agreements that have not been approved by the court.

Our Family Law Team works closely with Banner Jones' Business Legal Services Team and Private Client Team, as well as independent accountants, pension experts, valuers and tax advisers where required. This collaborative approach helps ensure that valuable assets are properly protected and that all relevant issues are considered before any agreement is reached.

Whether your wealth is tied up in a family business, property portfolio, pension arrangements, investments or inherited assets, our experienced financial settlement solicitors can provide strategic advice tailored to your circumstances and help you achieve a fair outcome that protects your long-term financial future.

A pre-nuptial agreement can provide valuable protection for assets brought into a marriage, particularly where significant wealth, business interests, inherited assets or family trusts are involved. However, pre-nuptial agreements are not automatically binding under English law, and the court will always consider whether the terms are fair in the circumstances at the time of divorce.

When deciding on a financial settlement, the court's primary consideration is achieving a fair outcome that meets the needs of both parties and any dependent children. A properly drafted pre-nuptial agreement is likely to carry significant weight, especially where both parties received independent legal advice, fully disclosed their finances and entered into the agreement freely.

Even where a pre-nuptial agreement exists, factors such as changes in circumstances, the length of the marriage and the financial needs of the parties may affect its enforceability. For this reason, it is important to seek specialist legal advice to understand how your agreement may be treated in practice.

Our financial settlement solicitors can review your pre-nuptial agreement, advise on its likely impact and help ensure that your interests are protected throughout the divorce process.

Assets owned before the marriage are often treated differently from assets acquired during the marriage, but they are not automatically excluded from a financial settlement. The court will consider all the circumstances of the case when deciding what is fair, including the financial needs of both parties and any dependent children.

In many cases, assets brought into the marriage, such as property, savings, investments or business interests, may be regarded as non-matrimonial assets. However, their treatment will depend on factors such as the length of the marriage, the extent to which the assets have been used for the benefit of the family, and whether there are sufficient matrimonial assets available to meet both parties' needs.

Our financial settlement solicitors can advise you on how pre-marital assets are likely to be treated in your particular circumstances and help you take steps to protect your financial interests throughout the divorce process.

Assets that have been gifted during the marriage can be treated differently depending on the circumstances. The court will consider factors such as who made the gift, who the gift was intended for, how it has been used, and whether it forms part of the family's overall financial resources.

For example, gifts received from family members, such as money towards a property purchase, shares in a family business or other valuable assets, may be regarded as non-matrimonial assets in some cases. However, if those assets have been used for the benefit of the family, mixed with matrimonial assets or are needed to meet either party's financial needs, they may still be taken into account when reaching a financial settlement.

The court's overriding objective is to achieve a fair outcome. As a result, there is no automatic rule that gifted assets will be excluded from a financial settlement. The significance of the gift will depend on the facts of each case, including the length of the marriage and the resources available to both parties.

Our financial settlement solicitors can advise on how gifted assets are likely to be treated in your particular circumstances and help you protect assets that you believe should remain outside the matrimonial pot.

An inheritance is often treated differently from assets acquired during the marriage. In many cases, money, property or other assets inherited by one spouse may be regarded as a non-matrimonial asset, particularly if the inheritance has been kept separate from the family's finances.

However, inherited assets are not automatically protected from financial claims on divorce. The court's primary objective is to achieve a fair outcome, taking into account the needs of both parties and any dependent children. If there are insufficient matrimonial assets to meet those needs, inherited wealth may be taken into consideration.

The court may also consider:

• When the inheritance was received.
• The size and nature of the inheritance.
• Whether the inheritance has been mixed with matrimonial assets, such as being used to purchase or improve the family home.
• The length of the marriage and the financial needs of both parties.

For example, an inheritance received shortly before separation and kept in a separate account may be easier to argue should remain with the beneficiary. Conversely, an inheritance that has been used extensively for family purposes may be more likely to be considered as part of the overall assets available for division.

Our financial settlement solicitors can advise you on how inherited assets are likely to be treated in your particular circumstances and help you protect your financial interests throughout the divorce process.

A business can be one of the most valuable assets considered during a divorce, but this does not necessarily mean it will be sold or divided equally between spouses. The court will look at the overall financial circumstances of the case and seek to achieve a fair outcome while taking into account the needs of both parties and any dependent children.

Where a business was established before the marriage, inherited, or owned solely by one spouse, this may be relevant when determining how it should be treated. However, the value of the business may still be taken into account as part of the overall financial settlement, particularly where it represents a significant family asset.

In many cases, the court will try to avoid disrupting a successful business. Rather than ordering a sale, alternative arrangements may be considered, such as:

• Offsetting the value of the business against other assets.
• Lump sum payments.
• Property transfers.
• Maintenance arrangements.

Where business interests are involved, it is often necessary to obtain an independent valuation to understand the true value of the company and the options available. We regularly work alongside accountants, business valuation experts and our Business Legal Services Team to provide comprehensive advice in complex cases.

Every case is different, but having a business does not automatically mean you will lose it on divorce. Our financial settlement solicitors can advise on the likely treatment of your business and help you protect both your commercial interests and your long-term financial future.

If a business forms part of the assets available for division on divorce, it will usually need to be valued before a fair financial settlement can be reached. The valuation process can be complex and will depend on the nature, structure and financial performance of the business.

In many cases, an independent business valuation expert will be instructed to assess the company's value. This helps ensure that both parties have a clear understanding of the business's worth and can negotiate a settlement based on accurate information.

When valuing a business, experts may consider:

• The company's assets, liabilities and overall net value.
• Annual turnover, profitability and future earning potential.
• Shareholdings and ownership structure.
• Goodwill and reputation of the business.
• Existing contracts, customer relationships and order books.
• Any borrowing, tax liabilities or contingent liabilities.

The court will not simply look at the headline valuation. It will also consider whether the business generates income, whether it can realistically be sold, and whether it would be fair or practical to disrupt its operation. In many cases, the aim is to preserve the business rather than force a sale.

At Banner Jones, our Family Law Team regularly works alongside our Business Legal Services Team, independent accountants and business valuation experts to ensure businesses are accurately valued and that any settlement reflects both the commercial realities of the business and your long-term financial interests.

Whether you own a family business, limited company, partnership or professional practice, our financial settlement solicitors can help you understand how your business is likely to be valued and treated during divorce proceedings.

Yes. If you believe a business valuation is inaccurate, incomplete or does not properly reflect the true value of the company, it may be possible to challenge it. Business valuations can have a significant impact on the overall financial settlement, so it is important that the valuation process is conducted fairly and transparently.

There are a number of reasons why a business valuation may be challenged, including:

• Disagreements over the value of company assets or liabilities.
• Concerns that future profitability or income has been underestimated.
• Disputes regarding the treatment of goodwill or business reputation.
• Questions about shareholder interests or ownership structures.
• Concerns that relevant financial information has not been disclosed.

Where a valuation is disputed, it may be appropriate to obtain a second expert opinion or ask further questions of the valuing expert. In some cases, the court may consider evidence from multiple experts before determining what weight should be given to a particular valuation.

Our financial settlement solicitors regularly work with forensic accountants, business valuation specialists and our Business Legal Services Team to scrutinise company valuations and ensure that business interests are accurately assessed. This can be particularly important where family businesses, professional practices or owner-managed companies are involved.

If you are concerned that a business has been undervalued or overvalued, our specialist solicitors can advise on the options available and help ensure any settlement is based on a fair and accurate assessment of the business.

Not necessarily. Owning a property portfolio does not automatically mean it will be sold or divided equally as part of a divorce settlement. The court will consider the overall value of the portfolio alongside all other assets and will seek to achieve a fair outcome based on the specific circumstances of the case.

Property portfolios can be particularly complex, especially where they include investment properties, commercial premises, buy-to-let properties or assets acquired before the marriage. Factors that may influence how the portfolio is treated include:

• When and how the properties were acquired.
• Whether the properties were owned before the marriage or inherited.
• The income generated by the portfolio.
• The housing and financial needs of both parties and any children.
• The availability of other assets that could be used to achieve a fair settlement.

In many cases, it is possible to retain ownership of a property portfolio through alternative arrangements, such as offsetting its value against other assets, making a lump sum payment, or adjusting the division of pensions, savings or the family home.

Where significant property assets are involved, independent valuations are often required. Our financial settlement solicitors regularly work alongside property valuers, accountants and tax advisers to ensure that portfolios are accurately assessed and to help clients achieve the most appropriate outcome.

Every case is different, but having a property portfolio does not automatically mean you will lose it. Early legal advice can help you understand your position and explore the options available for protecting your investment interests.

When a property portfolio forms part of a divorce, the court will first need to establish its true value before deciding how it should be treated within the overall financial settlement. This usually involves obtaining independent valuations for each property, together with details of any mortgages, loans or other liabilities secured against them.

The court will typically consider:

• The current market value of each property.
• Outstanding mortgages and borrowing.
• Rental income generated by the portfolio.
• Capital gains tax and other potential tax liabilities.
• Management costs and maintenance expenses.
• Whether the properties were acquired before or during the marriage.

In more complex cases, specialist surveyors, accountants and tax advisers may be instructed to provide expert evidence on the value of the portfolio and its income-producing potential. This is particularly important where there are commercial properties, buy-to-let portfolios, development opportunities or overseas holdings.

The court is not simply concerned with the headline value of the properties. It will also consider the role the portfolio plays in supporting the family's finances and whether retaining the portfolio is necessary to provide future income. For example, a portfolio worth £5 million with significant borrowing attached may have a substantially lower net value than first appears.

Where possible, the court will often seek to avoid forcing the sale of income-generating properties, particularly if alternative arrangements can achieve a fair outcome. This might include offsetting the value of the portfolio against other assets, such as pensions, savings or the family home.

Our financial settlement solicitors regularly work alongside property valuers, accountants and tax specialists to ensure that property portfolios are accurately valued and that all relevant factors are considered when negotiating a settlement.

Not necessarily. Pensions are often one of the most valuable assets in a marriage, but this does not mean they will automatically be shared equally or that you will lose your pension following a divorce. The court will consider the value of all assets alongside the needs and circumstances of both parties before deciding what constitutes a fair settlement.

The treatment of a pension will depend on factors such as:

• The length of the marriage.
• The value of the pension and any other assets available.
• The age of both parties and their retirement plans.
• Each person's income, earning capacity and financial needs.
• Whether there are sufficient alternative assets available to achieve a fair outcome.

There are several ways pensions can be dealt with during a divorce, including:

• Pension Sharing Orders, where part of one person's pension is transferred into a pension scheme in the other person's name.
• Pension Offsetting, where one spouse retains their pension in exchange for the other receiving a greater share of another asset, such as the family home or savings.
• Pension Attachment Orders, where a portion of pension benefits is paid to the other spouse when the pension is drawn.

In cases involving valuable or complex pension arrangements, it is often necessary to obtain advice from an independent pension expert to understand the true value of the benefits and the long-term impact of any proposed settlement. We regularly work alongside specialist pension advisers to ensure our clients receive comprehensive advice.

Every case is different, but having a pension does not automatically mean you will lose it. Our financial settlement solicitors can help you understand your options and work towards a fair settlement that protects your long-term financial security.

Trusts can be one of the most complex aspects of a financial settlement. Whether a trust will be taken into account on divorce depends on a number of factors, including the type of trust, the value of the assets it holds, and the extent to which either spouse benefits from it.

While assets held in a trust are not necessarily owned by either spouse, the court may still consider them when deciding what constitutes a fair financial settlement. This is particularly likely where one party has received, or is likely to receive, financial benefit from the trust.

The court may consider:

• Whether you are a beneficiary of the trust.
• The value of the trust assets and any income they generate.
• The likelihood of future distributions being made to you.
• The circumstances in which the trust was established.
• Whether trust assets have been used to support the family's lifestyle during the marriage.

In some cases, trusts established by parents or grandparents may remain largely separate from the divorce. In others, particularly where trust assets have been regularly accessed or relied upon, they may play a significant role in settlement discussions.

Due to the complexity of trust structures, specialist advice is often required. At Banner Jones, our Family Law Team works closely with our Private Client Team, and where necessary independent trust and tax experts, to ensure that trust arrangements are fully understood and appropriately considered as part of the financial settlement process.

If you or your spouse are a beneficiary of a trust, our financial settlement solicitors can advise on how it may be treated during divorce and help protect your long-term financial interests.

Not necessarily. Whether spousal maintenance is payable will depend on your individual circumstances, including the income, earning capacity, assets and financial needs of both parties. There is no automatic entitlement to maintenance, and many financial settlements are resolved without ongoing payments.

When considering whether maintenance should be paid, the court will look at factors such as:

• The income and financial resources available to each party.
• The standard of living enjoyed during the marriage.
• The length of the marriage.
• The age and health of each party.
• Whether one spouse's earning capacity has been affected by caring for children or other family responsibilities.
• The ability of each party to meet their own financial needs following divorce.

In many cases, couples seek a clean break settlement, which brings financial claims between spouses to an end and avoids ongoing maintenance obligations. This may involve one party receiving a larger share of the available assets instead of future maintenance payments.

It is important to distinguish spousal maintenance from child maintenance. Even where a clean break is achieved between spouses, financial support for children may still be payable.

Our financial settlement solicitors can advise whether maintenance is likely to be relevant in your case and help you negotiate a settlement that protects your long-term financial future.

When negotiating a financial settlement, both parties are under a legal duty to provide full and frank disclosure of their finances. This includes income, savings, investments, property, pensions, business interests and any other assets, regardless of whose name they are held in.

If you believe your spouse has failed to disclose assets, it is important to seek legal advice as soon as possible. Attempting to hide assets or provide incomplete financial information can have serious consequences and may affect the outcome of the settlement.

Warning signs may include:

• Unexplained transfers of money or assets.
• Sudden changes in income or business performance.
• Missing bank statements or financial documentation.
• Undisclosed investments, properties or overseas assets.
• Assets being transferred to family members or third parties.

Our financial settlement solicitors can help investigate concerns regarding non-disclosure and, where necessary, work alongside forensic accountants and other financial experts to identify and value assets.

If hidden assets come to light after a financial settlement has been agreed, it may be possible to ask the court to reopen the case and set aside the original order. The court takes non-disclosure very seriously and has wide powers to ensure a fair outcome is achieved.

If you suspect your spouse has not been honest about their finances, our specialist financial settlement solicitors can advise on the options available to protect your interests and ensure all assets are properly accounted for.

Once you and your spouse have agreed how your finances should be divided, it is important to make the agreement legally binding. An informal agreement, even if recorded in writing, may not prevent future financial claims between former spouses.

If an agreement is reached, your solicitor will prepare a Consent Order setting out the terms of the settlement. This will include details of how assets such as property, pensions, savings, investments and any maintenance arrangements are to be dealt with.

After both parties have approved and signed the Consent Order, it is submitted to the court for consideration. A Judge will review the agreement and, provided they are satisfied that it is fair and reasonable, will approve it and make it legally binding.

Once the Consent Order has been approved:

• The agreed division of assets can be implemented.
• Property transfers and financial payments can take place.
• Pension sharing arrangements can be put into effect, where applicable.
• Any clean break provisions will prevent future financial claims between former spouses.

Reaching an agreement is a significant milestone, but obtaining a court-approved Consent Order is usually the final step that provides certainty and protects both parties moving forward. Our financial settlement solicitors can guide you through the process and ensure your agreement is properly documented and legally enforceable.

A clean break order brings financial claims between you and your former spouse to an end, allowing you both to move forward independently without the risk of future financial claims. For many divorcing couples, achieving a clean break provides certainty, finality and peace of mind.

To obtain a clean break:

1. Reach agreement on your financial settlement
   You and your spouse must agree how assets, pensions, savings, property and any other financial resources will be divided. This is often achieved through negotiation with the assistance of solicitors.
2. Consider whether ongoing maintenance is required
   A clean break is usually most suitable where both parties can meet their financial needs without long-term spousal maintenance. In some cases, a larger share of capital assets may be transferred to one party instead of ongoing payments.
3. Prepare a Consent Order
   Your solicitor will draft a Consent Order that includes the terms of the financial settlement and specifically provides for a clean break between you and your spouse.
4. Submit the Order to the Court
   Once signed by both parties, the Consent Order is sent to the court for approval. A Judge will consider whether the agreement is fair and reasonable.
5. Receive Court Approval
   Once approved, the clean break becomes legally binding. This usually prevents either party from making future financial claims against the other, even if their circumstances change.

It is important to remember that a clean break only applies to claims between spouses. Financial responsibilities towards children, including child maintenance, are not usually affected by a clean break order.

Our financial settlement solicitors can advise whether a clean break is appropriate in your circumstances and help you secure a legally binding settlement that protects your future financial security.