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Separation date and finances(12 Posts)
If taken to court are the finances looked at at what they were on date of separation?
(I have no signature of separation date but he had moved out and rented a flat and pay council tax on that and I now pay on our home the single person rate so I assume this would be good proof of living separately?)
And what about assets obtained since that date? Are they safe?
The answer to both is not necessarily. The physical act of moving out of the home doesn’t completely result in financial separation. Thats what you are working towards.
For example I don’t need to live in a property to have a 50% interest in it. Allowing you to occupy my 50% comes at a cost to me until you buy me out. Arguably that cost equates to your extra payments.
Increases in Income and windfalls that occur after separation impact on need and affordablility. If I won £1m on the lottery I couldn’t claim a need for more than 50% of the family home but the ex maybe could.
When you do the consent order you complete it at the current moment in time. I think there were spaces you could add free text though?
@toomanycats99 I am in Scotland. Is it different? Surely the financial split can’t be at the current moment in time as during the separation since living apart financial situation of individuals may have altered ?
Don't know tbh. As part of form e you need to provide 12 months worth of bank statements so they can see to some extent if there has been large spending since the split. I was worried about this as my ex had run up large credit cards bills since the split. Think this is why it's best to get it done ASAP after the split.
I am going through this in Scotland.
The relevant date is date one person moved out. Ideally you should have a valuation of house at that date but it's irrelevant as the court will always require to know the most recent valuation available.
Section 9 says everything is marital basically. But section 10 of the family law act 1985 says that any money earned before marriage "may" be excluded. General rule of thumb is: only what was earned during marriage is equally shared. Gifts and inheritance are expressly excluded from the marital pot. This is the "Broad underlying intent" of the family law act regarding assets.
After the relevant date (when one of you moved out) any assets and debts are considered completely seperate (excluded from marital pot). The one exception to this is obviously where a marital debt still lingers, in which case it still forms a marital debt.
If you take credit after relevant date. It's yours alone. But if you have a marital home that builds up debt, then it's still treated as marital.
Hope this makes sense.
Read section 9 and 10 if family law act 1975. Is online
Also: when I say pre-marital contributions "may" be excluded.
The word 'may' is used to allow court flexibility in awarding any settlement.
For example. A stay at home mum for 20 years, can claim on a basis of economic disadvantage (she allowed hubby to earn whilst she lost a career)
If your marriage is short (less than 5 years), then this argument will not hold.
Hence the word 'may'.
If you want further reading:
Read Harris v Harris court case available via scotgov.co.uk
Assets or debt obtained by either person after date of moving out will be excluded from marital pot.
A council tax statement is easily enough to prove you've moved out. Assuming a new address.
Gather up all financial records showing valuations at relevant date (moving out). And at date of marriage. This is the part that's divided equally.
Scots law is very clear on this. Unlike English law which will tend to include contributions before marriage.
Your best bet all around is to come to an agreement you both can live with without lawyers. We aren't bothering with any solicitors, they cost huge amounts. Start at 50% then ensure the weaker economic partner can cope with the financial agreement eg I'm getting the house because I cannot get a mortgage on my income, he's getting the cash savings to allow him to buy a house, I'm getting 20% of his pension but deferred to retirement because it's an excellent public sector scheme. Fighting would mean all our savings on bills and he actually trusts me (somewhat foolishly) to work it out ... basically I'm getting 65% plus the autistic dd for life, so I get £900 a month spousal unless she goes into residential or can cope with living alone at some point (possibility but she's already an adult now)
I would suggest making a list of all finances before during marriage.
Discuss with ex.
Any disagreements, bring to your solicitor.
Lawyers specialise in arguments. They can be used to perform the entire divorce but you'll pay thru the nose. Only bring them the parts or money you cannot agree on.
Keeps costs down
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