Divorced couples are leaving themselves exposed to the risk of future financial claims from their ex-spouses by not formally finalising financial settlements, warns our Family & Matrimonial team.

Those who apply for a divorce online are often not aware that this will only end the marriage – a divorce does not end the financial links between a couple says Kate Booth, Head of Family and Matrimonial.

“If, after a divorce you go on to earn good money and build a decent nest egg, or if you win the lottery or make a substantial sum on the sale of a house, as the law stands your ex has every right legally to make a claim against you unless you obtained a financial clean break.

This is even more of a risk if illness or accident has left your ex out of pocket or unable to work and where the court considers they need financial provision.

We advise couples with no joint assets to still formally cut all financial ties.

We would still advise people to ensure they have a clean break from their ex at the point of divorce in the form of a Consent Order. They don’t need to go to court for this – it can be submitted for a judge to approve on paper.

Couples who are avoiding solicitors’ fees to save money, for example in the case of amicable spouses who decide to organise their divorce and assets themselves, could end up paying more in the long run.

We’ve had clients approaching us for help when their ex-spouse has come back to make a claim on the former family home. In the time they’ve been separated the client may have carried on paying the mortgage and the property has increased in value, so their ex may feel they have nothing to lose by making a claim.

We have also advised clients who agreed when they separated that one would keep the house while the other retained their pension.

While this may suit at the time of separation, the person who has agreed to keep the house must factor in that they will also need an income after they retire.

This won’t matter so much if the couple is in their 20s or 30s and they still have time ahead to build up their own pension, but if they’re older it’s something they need to think about. If one person focused on raising the children while their partner was the breadwinner, they may have limited – if any – pension of their own.

When deciding how the assets should be shared, it is important to look at the how their needs can be met when they retire.

This is something both parties need to think about.”

For further advice on the above, or for any other family or matrimonial law related matter, please contact our expert team who will be happy to assist.

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The number of marriages decreased by 20.8% between 1992 and 2022, with a significant drop of 61% in 2020 due to the COVID-19 pandemic. 

The proportion of adults married or in a civil partnership has also fallen below 50% for the first time in England and Wales, according to Office for National Statistics data. 

Not every couple decides to get married. You may still own property or assets together though while you are living together and if you were to separate, you may not agree how these assets are to be divided. In addition, you may have property or assets which you may want to keep separate and protect for the future.

We are increasingly advising our clients to enter into cohabitation agreements, as they show a clear intention of how the finances will be dealt with during the relationship and after. We hope the latter will not be necessary, but unfortunately it is best to cater for every eventuality. They are like pre-nuptial agreements, but for cohabitants.

If you wish to speak with someone regarding Cohabitation Agreements or advice on other family or matrimonial matters, please contact our compassionate and caring team for advice.

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Our Family and Matrimonial team are seeing an increasing number of cases where the well-meaning ‘Bank of Mum and Dad’ is trying to retrieve its money from their child’s former partner or spouse following a split.

With one in three first time property purchases made by couples attempting to overcome the UK’s unaffordable housing market we are expecting the tidal wave of enquiries to continue in the coming months and years as relationships break down.

In most cases the disputes are over whether the cash was initially intended as a gift or a loan. But without a prior formal agreement it can be difficult to prove intent at the time, leaving the other party room to argue it was a gift that doesn’t need to be repaid.

“The difficulty occurs when what was an informal arrangement is later looked at in a different light. What was a non-issue in happier times can become a significant area of dispute.”

It is important for a court to make the distinction, as gifts will be included in the matrimonial pot of assets to be distributed upon divorce whereas loans are classed as a liability to be repaid. In such cases, loans will be deducted from the total assets which results in less overall to divide.

The loan can often represent a significant portion of the assets so it really does make a difference as to whether or not it is an asset that can be split, or something that will not be entered into the calculations.

Issues can be further complicated by whether the courts are dealing with hard liabilities – mortgages, credit cards or commercial loan repayments – or “soft” liabilities such as loans from family and friends without formal repayment terms. In such cases of soft liabilities a court may decide there is less priority for repayment.

When acting for a person whose family has advanced the money and is insisting it needs to be repaid, we will look for evidence that supports it was a loan. Is there a written agreement? Were there emails? Have repayments been made? Quite often we find there may have been really large payments made shortly before the issue of proceedings. In such cases we will go through bank statements, ask questions on such payments and request further evidence.

Where property is concerned, parents should consider registering a charge over the title to the property, which in effect sets out clearly that the loan is there to be repaid.

Pre and post nuptial agreements also offer very clear protection while declarations of trust between parents and their children and / or their children’s spouses also give a clear record of intent.

For further advice on this… or any other Family and Matrimonial matters, please contact our expert team who will be happy to assist.

Article written by Head of Family and Matrimonial, Solicitor Kate Booth.

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Partners on a lower salary – usually women – are subject to a steep drop in income, after a marriage breakdown – especially in the first 12 months – with one in five admitting to not even being able to meet essential costs.

But couples are not taking advantage of the professional help available to ensure a fair settlement for both parties in the event of a divorce.

The courts are there to ensure a fair outcome for both parties which includes helping the person on the lower income to  transition into a life of financial independence. Many people don’t realise, but a 50-50 split is in most cases only a starting point for a separation. It doesn’t have to end at 50-50 if that would leave one party really struggling.

In the event of a family home being sold as a result of a divorce the courts, where possible, will seek to help the person on the lower income back on to the property ladder, even if it means granting a larger share of the proceeds of the sale of the house to that person.

In addition, an ex-spouse is also entitled to a share of their former partner’s pension at the point of settlement, rather than waiting until their partner reaches the pensionable age. The money is then able to re-invested into another pension scheme for that person.

We generally receive clients through the door when they can’t reach what they deem a fair settlement with their former partner. But what is more difficult to measure is how many people don’t use the help of a court and are settling for far less than they are entitled to.”

Statistics* show that at the point of divorce men have an average £60,000 in their pension pot as opposed to £23,000 for women.

In the first 12 months after a divorce a woman’s income will fall by an average 41 per cent while a man’s will fall by 21 per cent.

Twenty-four per cent of women face financial struggles after divorce, compared to 18 per cent of men, and 21 per cent of women struggle to even pay for essentials, compared with 13 per cent of men.

Thirty per cent of women are more likely to waive their right to their partner’s pension, as opposed to 17 per cent of men.

*Statistics from Opinium Research on behalf of Legal & General.

Divorce is a life-changing situation and we want that experience to be as stress-free as possible. Our solicitors can assist with all aspects of divorce, from the initial issuing of the divorce petition, all the way through to obtaining the final order. For further information please contact our Family and Matrimonial department.

Article written by Solicitor and Head of Family and Matrimonial, Kate Booth.

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If negotiation and mediation fail, an application to the Court may be required. The Court will automatically appoint Cafcass to commence their involvement and investigate matters. 

Cafcass is an acronym for Children and Family Court Advisory and Support Service.  They are effectively the eyes and ears of the Court and are an independent organisation who will, as part of their work, investigate any safeguarding welfare concerns, potentially speak to the children and report back to the Court as to their findings and what their recommendations will be about the children’s care. 

The initial safeguarding report will be timetabled by the Court requiring Cafcass to give an initial view as to whether matters can resolve via mediation or by negotiation or if a further in-depth report , known as a section 7 report, is required. The section 7 report can commonly take at least 12 to 15 weeks to be prepared and is intended to be a detailed assessment of the children’s situation.

Cafcass will consider within their report what they think is in the best interest of the children. when making their recommendations they will take into account the provisions of The Welfare Checklist which is set out in the Children Act 1989. This includes considering the case in light of the child or children’s age, sex, developmental needs, health needs, level of understanding, any risk factors and their wishes and feelings.

Such a report will aid the Court in making decisions as to children’s long-term care and the time they spend with each of their parents. Cafcass therefore is extremely influential to the Court in their recommendations.  

Our team of experienced solicitors can advise and assist parents concerning their applications in relation to the care of their children. We can assist with advising parents in respect of their application and representing them throughout and within the Court proceedings.

For help and advice on the above or any other family or matrimonial matter please contact our team who will be happy to assist.  We have offices in Coventry, Warwick, Balsall Common and Southam and cover the whole of the Coventry and Warwickshire area & beyond.

Article written by Samantha Chater, Family and Matrimonial Solicitor.

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For some this may not be a huge issue as any pensions you may have may be insignificant or may have been frozen years previous however, for others who have continued in their employment and particularly if they have public sector pensions such as with the NHS, Teachers Pension Scheme, the MOD (Military) or indeed the Police then those pensions can be extremely valuable. 

An important case dealing with this issue was decided in 2020 which has now paved the way as to how we approach this issue.  The case confirmed that setting aside the amount of a person’s Pension which accrued pre marriage or post marriage, is inconsistent with the way in which non matrimonial property is treated in divorce. Most divorce cases will be needs cases which means that the focus will be on the needs of both husband and wife rather than on arguments as to who contributed what. It is important therefore to appreciate that in needs  cases the timing and source of the pension savings is not necessarily relevant. What this means in simple terms is that in reality the whole of your pension could be taken into consideration and open to division between you and your ex-spouse regardless of when it was accumulated. Therefore, if you and your ex-spouse have been separated for 15 years but have not yet divorced then the amount of your pension which has built up over that 15 year period could also be open to division between you and your ex-spouse upon divorce.

In many cases that we deal with Pensions may be the largest asset or at least the second largest asset and for those who hold that Pension fund they can be extremely reluctant for any of that pension fund to be shared with their ex-spouse. It is therefore vital that individuals obtain legal advice as soon after the parties have separated as possible in order that they are aware of all of the implications.

For further advice on matrimonial assets, or any other family and matrimonial reated matters, please get in contact with our friendly, experience Family and Matrimonial team.

Article written by Natasha Aspinall.

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Kate Booth, Head of our Family & Matrimonial department warns clients to be aware that an agreed financial settlement may not be as final as they might hope. 

A recent Family Court case has once again highlighted the dangers of failing to take legal advice when dividing assets on divorce.  Here, the couple had agreed their financial split when they divorced 30 years ago, even signing a Deed of Separation. However, they failed to obtain a Consent Order – the court’s approval to their agreement.  This left them without a clean break.  Although they initially remained on good terms, disagreement arose years later.  Without a clean break order, the parties still have the right to make financial applications against each other into the future.

Kate say’s

“It is always essential for clients to deal with their financial arrangements formally on divorce – even if there are not many assets.  Often, when agreement is reached, spouses might be happy to proceed on a less formal footing, but this can store up problems for the future.  Circumstances may change, asset values may alter. If the court has not made a clean break, financial claims can remain open indefinitely.

Every couple’s situation is different, we provide personalised advice to ensure that clients can protect what is important to them and their family.”

If you require advice on the above, or any other family or matrimonial related matter, please do not hesitate to contact our friendly, understanding team.

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We are still approached by former couples despite the concepts of custody and access being replaced by Residence and Contact orders in 1989.  The law was further updated with the introduction of Child Arrangement Orders in 2014.

Kate Booth, Head of our Family and Matrimonial team, says:

“I still see a lot of clients wanting custody of their children, or access. But this system no longer exists. Widely regarded as very inflammatory and focusing too much on the parents, this has now been replaced by Child Arrangement Orders which focus more on the best interests of the child and less about the labels of who they live with. Courts are now more inclined to make shared care orders for a child to live with both parents where it is safe to do so even if there is not a 50:50 split of time.

Some parents are seeking legal advice while still reeling from their break-ups. The law is not there to help people win battles against their exes. The main aim of a shared care order is to act in the best interests of the child and to emphasise that one parent is no more important than the other.”

Contrary to common belief it is not necessarily the case that courts always acted in favour of the mother. The law emphasises the important role both parents play in a child’s life.

Despite the new system there can still be a lot of heat between separating parents and we still see power struggles and attempted shifts in dynamics but we would say it is not a given that you would need to meet your ex in court. Most issues are able to be resolved through mediation or other steps. Or if the parents are amicable and have worked most things out themselves and have a few last issues they can’t agree on we can help iron out those remaining issues.

Where children are involved, we always advise people not to involve a court unless absolutely necessary –  court orders can be rigid and if made when the children are five or six then may not be right for them when they are 12 or 13.”

For further advice on this, or any other Family or Matrimonial issue, please contact our friendly team. We have local offices in Coventry, Warwick, Balsall Common & Southam.

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In law a pet is classed as a chattel.  A chattel is a piece of personal property or a thing which belongs to you. 

If there is a dispute with your spouse/partner upon separation as to who will keep the family pet we would recommend that you firstly attempt to negotiate directly with them but if this proves unsuccessful then please do come to us for further advice and guidance.  We would suggest mediation as a next stap and only if this were unsuccessful would we suggest court proceedings.  Court proceedings would be a last resort and are very rare in cases concerning pets only. 

To avoid the above situation arising many people are now considering a Pet Nup when purchasing a pet with their spouse/partner.  A Pet Nup is an agreement between the two of you which could specify where the pet lives, who pays for the insurance, who pays the vet bills, who pays for the upkeep, who makes decisions regarding medical treatment and what will happen to the pet if the relationship breaks down.  If such an agreement is drawn up and both parties have obtained legal advise prior to signing the agreement, then if the relationship did break down you would have something to refer back to which would therefore avoid the conflict and issues which can arise at the end of a relationship as to where the pet will go and who the pet will remain with. 

Ways of resolving the issue could be that the non resident owner of the pet could still take a dog for a walk and/or could look after the pet whilst the other party was on holiday.  The parties could even care for the pet for half of the week each so that they were each having an equal amount of time with the pet. 

Anyone with a pet can enter into a Pet Nup be it a married couple, a cohabiting couple, Civil partners, family members or even friends.  As to how legally binding pet nups are, this is similar to pre nups (pre nuptial agreements) and separation agreements in that technically, although the law does not recognise such agreements currently (although this is changing), the Courts are likely to uphold the terms of the pet nup if certain factors are in place. Such factors being:

1. Proof that the agreement has been entered into freely.
2. Proof there has been no undue pressure applied or misrepresentation.
3. Proof that the parties both obtained legal advice.
4. Proof that the parties intend that the agreement is final in governing what will happen with the pet.
5. Proof that both parties understand the implications of the Pet Nup
6. Evidence within the document to confirm that the Pet Nup is fair and in the interests of the Pet. 

The benefits of having a Pet Nup are that it would avoid confusions, disputes and unnecessary stress at an already stressful time of relationship breakdown.  It would also avoid time and money being spent on an emotive subject. 

For further advice please contact our friendly Family & Matrimonial team.

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Solicitor and Head of our Family & Matrimonial depoartment Kate Booth said:

“We know that the pandemic has put huge pressure on families, particularly those who are separating. Every parent wants to put their children’s interests front and centre, but often they don’t know where to turn for help or support.”

“It’s important for parents to have access to good, authoritative and professional advice that helps them to parent responsibly through their separation. The Parenting Through Separation Guide, can help parents find a better way forward for them, and for their children.”

The free guide, published as part of Good Divorce Week contains advice about how to co-parent with a former partner and how to talk to children about the painful topic of divorce or separation, plus much more.
 
Juliet Harvey, national chair of the family justice organisation Resolution, said:

“I’m really pleased to have Kate’s support during Good Divorce Week. Resolution members like her do really important work in their community to help families separate in a constructive and amicable way. The more families who know about and use the free Parenting Through Separation Guide, the better equipped they will be to navigate the challenges divorce and separation brings, particularly when it comes to putting children first.”

For a copy of the free guide or further advice & support, please contact our friendly Family Law & Matrimonial team Kate Booth or Samantha Chater.

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