Finances on divorce
A recent Court of Appeal case is yet another to highlight the need for divorcing couples to ‘formalise’ their financial agreement and to have it approved by the courts.
This is sometimes done through complicated court proceedings or by an agreed consent order. It can prevent any further challenges to the agreement – save for any evidence of dishonesty during the financial disclosure of either party coming to light in the future.
In the recent case of Briers v Briers this happened:
A married couple separated in 2002
They got their decree absolute on their divorce in 2005
They had made a financial agreement between them at this time, but it was not formally concluded
Both parties acted on the agreement and transferred assets to each other e.g. lump sum payments, transfer of business assets and transfer in equity in the home.
The wife bought financial proceedings 8 years after that initial agreement and 11 years after the couple separated.
The husband said the agreement was a fair division of the assets at the time. On the facts, the court of appeal found that the husband had not provided full disclosure which the wife made conditional on agreeing the final settlement.
Even if you complete your divorce yourself, it is always worth getting advice to ensure that you are thoroughly financially separated from your spouse. If you don’t they might be able to bring a claim against you in the future or against your estate after you die.
Don't forget we offer a free initial appoinment, so why wait? Book today.