Getting Your Finances Ready For A Divorce

If you are thinking about filing for a divorce, part of the process will involve reaching a financial resolution in respect of your property and other assets. This can be a lengthy process, and getting your finances ready for a divorce will help it go more smoothly.

When you divorce, it is essential to have a financial order made to ensure that your spouse cannot make a claim against you in the future. Without an order, any financial obligations of marriage will not be ended, even if you are divorced.

Financial agreement on divorce

Wherever possible, it is preferable to deal with matters by negotiation, without the need for court intervention. Whether or not you go to court however, you will usually need to start by fully disclosing all your assets and liabilities to your spouse’s solicitor.

There is a lengthy form to fill in, known as a ‘Form E’. This will be a requirement of the court, if your case goes that far, but it is also often used so that couples can clearly set out their financial position.

This information can be used as a starting point for negotiation. Where agreement cannot be reached, you will generally need to consider mediation as a next step. Again, you would need to make full disclosure of all your assets and liabilities before attending mediation.

Getting your records ready

However, when settling your financial affairs, it will usually start by both parties exchanging full information. The following information will be required for Form E, so you can start compiling this now to give you and your solicitor a head start:

• The amount of child support or maintenance that has been agreed or alternatively an estimate of the amount of maintenance that will be payable under the Child Support Act 1991
• Details of any court cases you are involved in
• What property you own and the current market value
• Details of your mortgage, to include how much is outstanding and any potential penalties for early repayment
• The likely costs if your property were to be sold
• A list of your bank, building society and National Savings accounts and the balances held
• Details of investments such as PEPs, ISAs, stocks and unit trusts and their value
• A list of your life insurance policies and endowment policies and their value
• Money that is owed to you
• Valuable items you own, such as cars, furniture and jewellery
• Cash
• Liabilities and debts such as money owed on credit cards, bank loans and hire purchase agreements
• Business interests, to include their value and the amount owed to you
• The amount of Capital Gains Tax that you would pay if you sold your business interests
• Details of your pensions (not basic state pension), to include the type of scheme and a valuation
• Other assets, such as share options, trust interests and assets that you are likely to receive in the foreseeable future
• Details of the income you earn from employment, your business and from your investments and of any benefits you receive

This information will need to be backed up with supporting documentation. For example, payslips from your job and pension valuations in respect of your pension holdings. Some of these documents can take a while to obtain, so by starting straight away, you can avoid delays later when you are ready to start settling your financial matters.

If you would like to speak to one of our expert family lawyers, call us on 0800 015 0340 or email us at family@chadlaw.co.uk.