Practical stuff ti consider when you are ready to process it.
Re – Divorce and Financial Settlement
There are 2 aspects - divorce which is relatively straightforward and financially settlement which is more complex and very important.
To know what a fair split of assets is and to reach a financial settlement divorcing parties need to know what the assets of the marriage are, and what each asset is worth before making agreements and decisions. Pensions for example can be very valuable and some assets may not be obvious or known about e.g. stocks and shares
Listing all the assets - Full and frank financial disclosure is a legal requirement.
What does full and frank financial disclosure look like?
Look at a Form E. A long document in which each party sets out their assets, income, and financial needs. You can see in it the assets that are taken into consideration upon divorce and financial settlement, for example property (the former marital home), pensions, stocks and shares etc. It also lists the documents needed that show the value of assets for example CETVs (cash equivalent transfer values of pensions - which can be requested from pension providers). CETVs are a starting point for valuing pensions.
What the assets are worth
To find out what some assets are worth an independent expert can be used. Property can be valued by an expert e.g.estate agents, pensions by CETV and / or an actuary / pension on divorce expert (PODE) report and so on. It is important to decide what needs a valuation by an independent expert and factor in the costs of these.
Pensions can be very valuable – equivalent or more than the value of the former martial home in some cases. Divorcing parties might hold different types of pensions (not like-for-like, so difficult to compare without an expert). Circumstances might be complex for example an age difference or pensions in payment. One party may have stayed at home to look after children.
Not getting full and frank disclosure?
Full and frank financial disclosure is required and usually provided when Form E is exchanged and this includes attachments of documentary evidence showing the value of assets.
If after Form E there is missing information / evidence Questionnaires may be exchanged to retrieve it (a list of questions for a party to answer and requests for documentary evidence that is missing)
If still missing after that Deficiencies are exchanged (a list of questions / requests for documents).
A solicitor’s letter can be sent to retrieve financial information evidence.
A Court Order can also be applied for to gain financial information / evidence / valuations that is missing / essential.
Deciding how to distribute assets - Section 25
When deciding how to distribute a couple’s assets and income the court has to apply a checklist of factors set by statute. The relevant statute is section 25 of the Matrimonial Causes Act 1973. These factors will need to be applied in every case, regardless of whether you are engaged in court proceedings or negotiating your own settlement. These are often called the Section 25 factors, which the court will take into account when deciding how to distribute assets upon divorce or dissolution.
images.ctfassets.net/o8luwa28k6k2/2cpp2mEMwBJWJLuzTiTruB/b5397e7459154fad8927826a2c99acdd/section-25-expert-guide.pdf
The income, earning capacity, property, and other financial resource which each of the parties to the marriage has or is likely to have in the foreseeable future is taken into account. First consideration is given to the welfare (while a minor) of any child of the family who has not yet attained the age of eighteen.
The needs of each divorcing party are taken into account and as I understand it 50 / 50 is the starting point – so unequal shares based on circumstances and needs is possible, for example 60 / 40.
Advice & Info
These offer a free advice session about pensions on divorce and separation www.moneyhelper.org.uk/en/family-and-care/divorce-and-separation/divorce-or-dissolution-how-we-can-help-with-your-pension
Free advice line (busy so keep trying) rightsofwomen.org.uk
Guides on divorce and financial settlement
www.advicenow.org.uk/guides/how-apply-financial-order-without-help-lawyer
Pensions on divorce
www.sharingpensions.co.uk/penaudit3.htm
www.mediateuk.co.uk/the-ultimate-guide-to-pensions-on-divorce/
www.nuffieldfoundation.org/news/new-good-practice-guide-addresses-shortfall-in-understanding-of-how-to-treat-pensions-on-divorce
Valuation of pensions – pensions on divorce expert report
www.collinspensionactuaries.co.uk no relation – useful website
www.collinspensionactuaries.co.uk/pension-data-collection/ templates for information required
Legal advice should be sought.
This link gives you an indication of hourly rate for solicitors
www.gov.uk/guidance/solicitors-guideline-hourly-rates
Some organisations offer free advice from solicitors and barristers rightsofwomen.org.uk/get-advice/ On their FAQs page…”Our Legal Officers and Volunteer legal advisors are all solicitors and barristers”.
Some family solicitors offer an in initial free consultation and some a fixed fee rather than hourly.
Some barristers can be directly instructed e.g., via Clerksroom Direct
Mumsnet suggest www.advicenow.org.uk/tags/separation-divorce-and-dissolution-civil-partnerships
Important to get all the assets on the table and know what they are worth with documentary evidence of accurate valuations.
Consider setting money aside for an actuary to produce a pensions on divorce expert report.
Look after the old(er) woman you will become, financially.