Unfortunately most people cannot afford to just move out of their home and rent elsewhere, so a separation in a literal sense could be out of the question. If you are on the mortgage of your family home you will still have to pay towards the mortgage and money will often be tight as it is. Living with someone through a relationship breakdown can be difficult though, and so knowing that you are doing something to move separation along can be reassuring.

I always advise clients to attend marriage counselling where possible. That said, in my experience, when clients attend my offices, their mind is already made up, there is no going back and a separation is inevitable.
I am always open with clients. You do not want a divorce hanging over your head. If you have children, they will usually sense there is something different and so it is better to tackle it head on and not let it fester. The children are always the most important thing and so minimal disruption is key, along with amicable communication with your partner where possible.

If you decide to separate, you can either live separate lives whilst living in the family home, or one person can move out. You should then discuss contact arrangements for the non-resident parent to see the children and discuss how and when you will divide the matrimonial assets. Whatever you do agree on can be incorporated into a Deed of Separation.

The advantages of a Deed are that it is cheaper than a divorce, you can decide on the settlement of most matrimonial assets and it can be used to show the parties intentions for settlement if and when you divorce later on.

Unfortunately though they are dependent on you both agreeing to terms of settlement. Immediately after a breakup this is not always possible as emotions are still raw. You cannot enforce some maintenance provisions as you need a court order, and therefore division of joint assets such as property and savings will only be completed.

If you simply cannot agree terms and emotions are running high, I recommend applying for divorce and financial relief. Each of you should obtain independent financial advice and at least matters can start progressing. There is nothing worse than not doing anything, as it only delays the inevitable.

I can immediately start progressing matters, so for more advice please call me on 02476 531532.

Melanie Davis (née Timms)

Family solicitor

The post Should I Divorce or Separate? appeared first on Brindley Twist Tafft & James.

Obtaining a divorce can be relatively easy. Very often, the hardest thing for clients is resolving the matrimonial finances instead. It is always difficult advising clients on what they can expect from a divorce settlement. Everyone wants to know what they will receive and when, but no two cases are ever the same. There is no set formula for division of income and assets.

Under section 25 of the Matrimonial Causes Act 1973, we have to consider the following factors when negotiating a financial settlement:

• The income, earning capacity, property and other financial resources of the parties, including earning capacity;
• the financial needs, obligations and responsibilities of each party;
• the standard of living enjoyed by the family before the breakdown of the marriage;
• the age of each party to the marriage and the duration of the marriage;
• any physical or mental disability of either of the parties to the marriage;
• the contributions which each of the parties has made or likely to make;
• the conduct of each of the parties;
• the value to each of the parties to the marriage of any benefitwhich, by reason of the dissolution or annulment of the marriage, that party will lose the chance of acquiring.

It is always a good idea to collate all of the relevant financial documents in support of each of the factors above. This helps me to advise clients properly. You may find the list below helpful in understanding what should be collated:

1. A copy of your last mortgage statement, showing how much is owed on the former matrimonial home.
2. Statements for each bank or building society account in your name (solely or jointly) covering the last twelve months.
3. Any documentation you have to confirm any Shares, PEPs, ISAs, Tessas, National Savings Investments, Bonds, Stocks, Unit Trusts, Investment Trusts, Gilts, or any other quoted securities.
4. A copy of any life insurance policy or endowment policy in your joint name or sole name, together with any accompanying correspondence.
5. A list of any personal belongings that are individually worth more than £500 each.
6. A copy of any bank loan or HP agreement on which you owe money.
7. Credit card statements from the last three months for each credit card you have.
8. A copy of any pension policy that you have together with any accompanying correspondence.
9. Your last three months’ worth of pay slips.
10. Your last P60.
11. Documentary evidence of any other income you might receive.

I also like to determine exactly what the client’s monthly outgoings are and what the client can afford. Why? Simply put, it can be difficult housing two people from one pot – so I need to establish what is a fair split for this particular couple and their children. How much do they both reasonably need going forward, and how should the income and assets be fairly shared between them?

A client’s expectations can often be too high, and sometimes may even be too low. Once I understand a client’s situation and what they want, I can then begin to advise on what would be achievable.

The longer the marriage, the more likely that the starting point of negotiations will be an equal split of matrimonial assets. This relates to assets accrued during the marriage only. If the union was a short marriage of five years or less, the starting point will likely be that the parties leave the marriage with the same share they had when entering into it.

Children, though, change everything. Their needs come first. The primary carer will often need more money to care for the children and, depending on the other factors above, could therefore receive more than fifty per cent of the available assets. Furthermore, if the matrimonial assets are insufficient to meet the needs of the children, then other assets will be drawn upon.

Divorce is a difficult time, whether at Christmas or not. Engaging a specialist really can make it easier. If you have assets you need to divide, please do feel free to call me on 02476 531532.

Melanie Davis (née Timms)

Family Solicitor

The post Divorce: Dividing Matrimonial Assets appeared first on Brindley Twist Tafft & James.

There are many reasons why our clients wish to do this:

1. Marriage
   1. When two people get married/cohabit and already own a property, they may wish for the property to be held in joint names

1. Divorce and separation
   1. Following a divorce, the parties may wish to transfer a jointly owned property into the sole name of one party

1. Tax Planning
   1. Property owners are sometimes advised by tax planners to transfer a share in a family home into the name of their child or other family member
   2. This may be deemed in law as a gift

Whatever the reason, the process is extremely straightforward and something we would be happy to assist with.

Tax and Stamp Duty

Undertaking transfers of equity can have tax implications for you and those involved.

Some transfers will be considered a ‘gift’ or a ‘transaction at under value’. Depending on the value of a share in the property there may be stamp duty to pay, but some transfers of equity are exempt: for instance where a property is being transferred as a gift or result of a court order following divorce proceedings.

There may also be Capital Gains Tax implications on a transfer or disposition. We are not tax advisors, but may be able to help or at least refer you to an accountant for further advice.

Process:

1. Obtain title deeds
2. Prepare a transfer for parties to sign
3. Notify third parties who have an interest in the property, e.g. mortgage lenders
4. Assess whether stamp duty is payable
5. Complete stamp duty land tax form if applicable
6. Register transfer with land registry and pay applicable land registry fee.
7. Send a copy of the new title documents to client.

Please contact us on 02476 531532 if you wish for us to assist you with your transfer or any other conveyancing matter.

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