Get the facts about divorce
Divorce continues to prove a minefield for many people especially when disagreements over money and property are involved.
Here are some more commonly asked questions about this difficult process and some practical answers to make the time less traumatic.
Q: Will the family home need to be sold?
A: The court will consider the children before looking at the other factors which need to be taken into account. In traditional marriages where the mother looks after the children and the home, she will often be able to stay put. However, today children dont necessarily remain with mum and it may not be appropriate for the home to be transferred to her. In such cases other assets such as life policies, shares and savings may need to be exchanged for the home. If the house isnt sold then it is still possible for the other person, very often the father, to retain an interest in it by having what is called a charge over the property. Then at a later date for instance when the children have finished their education the home can be sold or remortgaged to pay off the charge.
Q: Will my pension be affected?
A: Pensions must be taken into account in negotiations. They are most significant in longer marriages where only one party has made provision for retirement. When dealing with pensions, there are a number of options open to the court the most common of which are off setting and pension sharing. The first option off sets the value of the pension against other assets, like the house and life policies. If there arent enough assets to trade, a pension sharing order may be needed. As the name suggests the fund is shared or split to create two separate funds which will each generate an income in the future. There is a third option known as earmarking but this is seldom used.
Q: We have reached an amicable agreement - do we still need a solicitor?
A: A couple may have negotiated an agreement, but it must be formally recorded in a court order otherwise the case could be re-opened in the future. There will be costs involved but its best to get a clean break and peace of mind that the matter has been brought to a proper conclusion.
Q: Why do I need to give so much information regarding my finances?
A: There is a duty on both parties to give full and frank financial disclosure. Only then can your solicitor accurately advise you or the court make a binding decision. If full disclosure is refused, a spouse can ask the court to re-open the case at a later date leading to increased costs. The court hopes that by encouraging full and frank financial disclosure, cases will settle early on thereby saving costs.
Q: Will I have to sell my business?
A: A business is often the main source of income and to dispose of it could be disastrous generally the court recognises this. If the couple have a business together, the court can order one partner to buy out the other.
