How to Split Finances in a Divorce

Going through a divorce is an emotionally testing experience and dealing with the practicalities often feels like a real burden. How to approach the division of finances can be a sensitive subject, but with the right legal support, it is usually possible to get a settlement that meets your needs quickly and without conflict.

This blog covers the different ways divorcing couples can work out the division of their assets, including various methods of alternative dispute resolution and court proceedings. This will give you an overview of the different options and which might be right for your circumstances.

If you would like a better understanding of what you can expect to receive from the division of finances, then you may wish to read our previous blog What am I entitled to in a divorce?.

Whatever your situation, the best thing you can do to help ensure a fair division of finances is to get early advice from a divorce solicitor. Our specialist divorce finances solicitors at Atkins Hope can assess your circumstances and guide you through the entire process.

Methods for splitting finances in divorce

Private negotiation

To use a divorce negotiation process, couples must first make a financial disclosure, and create a draft agreement. From here, the couple can arrange a meeting with a divorce negotiation solicitor.

The solicitor will review the agreement and ensure that both parties have included the necessary agreements details to proceed to court. The solicitor will produce a report that confirms what the parties have agreed on, and then support them to obtain a financial consent order.

If you and your ex-partner have drafted a financial agreement and you need a lawyer to check it, divorce negotiation is a suitable option. If you and your partner are struggling to agree on how your finances should be divided, divorce negotiation is unlikely to be a viable option.

Private negotiation may be a good option if your finances are fairly straightforward and/or you are confident you can quickly agree a settlement.

Divorce mediation

Many couples use mediation processes to split finances in a divorce. Both parties meet to discuss and agree a financial settlement, with the help of a trained mediator (who acts as a neutral third party to help facilitate negotiations).

At the first stage couples must attend a Mediation Information and Assessment Meeting. This initial meeting is used to assess whether the case is suitable for mediation.

If a case is suitable for mediation both parties will need to provide full disclosure of their financial assets, in order to reach a financial settlement. It’s important that both parties valuate their assets correctly, to offer a full picture of their financial situation.

If you and your partner are struggling to agree on a financial settlement, the family mediation process can help you to discuss matters, with the support of an unbiased third-party.

You should seek advice from a lawyer before entering mediation to ensure you fully understand your rights and what a fair settlement looks like. You should always have a solicitor review any agreement reached through mediation before accepting it to make sure it is fair and fully meets your needs.

Divorce mediation can be a good option if there are some issues that need to be resolved, but you are confident you and your former partner can work effectively together to resolve these.

Divorce arbitration

Arbitration is a method that can be used to help couples settle disputes when reaching a divorce financial settlement. If couples have attempted mediation, and they are unable to agree, yet they want to avoid going to court, divorce arbitration is a useful process.

Divorce arbitration is similar to a divorce trial. However, the case is reviewed privately by an arbitrator (a specially trained lawyer) instead of having a hearing in a public court room. An arbitration process provides couples with a less expensive option compared to taking matters to court.

Divorce arbitration can be a good option if you cannot agree on a divorce settlement but want to avoid the expense, time and/or public nature of court proceedings.

Divorce court proceedings

If a couple attempt the above processes and cannot reach an agreement, they will need the assistance of the Court to divide their assets. This is sometimes called ‘seeking financial remedy’ or ‘applying for a financial order’. If you need support throughout these processes our divorce solicitors are able to represent your case.

Court proceedings are usually a last resort, but if you truly cannot reach an agreement or feel it would be inappropriate to seek a settlement, then they may be worth considering.

How do you make sure you get a fair divorce settlement?

One of the best ways to make sure you get a fair divorce settlement is to hire an expert divorce solicitor. A specialist solicitor can give clear advice on exactly what you are entitled to and support you through every stage of negotiating a settlement or seeking financial remedy in court.

It is important for both parties to make a full disclosure of all financial assets. This enables a fair settlement and make a full disclosure could be grounds for legal action. If you are concerned that your ex-spouse may be attempting to hide assets, we can support you.

Any settlement you do agree should be recorded by applying to a court for a Consent Order. This makes the terms of the settlement legally binding, protecting you against the risk of your former partner not meeting their obligations under the settlement.

Get support separating your finances during a divorce

To achieve a fair division of finances during divorce, the first step is to get in touch with a divorce solicitor who can support you to review your options and decide which next steps might be right for you.

Our divorce solicitors at Atkins Hope have extensive experience in supporting couples with both straightforward and complex divorce matters.

To speak to one of our family law solicitors today, please ring 0208 680 5018 or contact your local Atkins Hope office in Croydon, Medway, Blackheath or Guildford.