Separation is emotionally draining and negotiating and deciding how to divide the property after a breakup is not always straightforward. While it is possible to sort out your finances between yourselves, we recommend that you take specialised legal advice to ensure you get the best outcome possible and so that any agreement you reach is legally enforceable.
Whether or not a separation is your idea, you should know your rights and understand what the best options are for the division of property. You will need to think about:
- the family home and any other real estate
- money in bank and other savings accounts
- pensions, shares and investments
- insurance policies
- debts and liabilities
- child maintenance and regular payments
Will I have to go to Court?
Ideally, you and your ex-partner should agree on how to divide the property between you. Sometimes, however, this is impossible so a judge will need to decide on how to divide the assets. Your rights will depend on whether the separation is a divorce or dissolution of a civil partnership, or simply leaving a relationship.
It is always the preferred option to try to agree on a financial settlement without resorting to litigation. Going to court will be a lengthy and more expensive option to determine the split. A lawyer can work with you and support you through your negotiations and mediation, if necessary, to reach a financial agreement without having to go to court.
If you and your ex-partner agree how the finances should be divided, you can have a consent order drafted and ask a court to approve it, in order to make the agreement legally binding.
Getting a financial order
When you and your ex-partner cannot agree on how best to divide the household finances you should ask a court to make a financial order. You can apply for a financial order as soon as you have started the paperwork for your divorce or separation.
Applying for a financial order will typically involve one or two court hearings before a judge. The court order will cover pensions, maintenance and ongoing payments, investments, property, and any other shared financial assets. If you have not applied earlier, you can still apply for a financial order after a divorce has been finalised however, to do so at this stage may change what you are entitled to. The judge will decide the fairest way to divide the finances and will normally look to make a clean break for the parties.
Unmarried couples
Many unmarried couples who have been together for many years assume they have the same rights as married couples or those who have registered a civil partnership. This is simply not true. No matter how long you have co-habited, there is no law providing you any rights to property once you decide to go separate ways. Even if you have a child with your ex-partner your legal rights are limited to ensuring the wellbeing of the child, and you can apply to the court for financial provision for that purpose. As a general rule, you have no rights to maintenance for yourself or the house. To protect yourself in this situation it is a good idea to have a cohabitation contract drawn up by a lawyer which sets out how finances and property are to be dealt with if you separate.
For expert family law advice from highly qualified professionals, contact one of our lawyers at [email protected] or call 020 3858 8020.