Do I really need a Family Lawyer for my divorce?
Do you need to seek advice from a lawyer for divorce? The Nuffield-funded research study: “Fair Shares? Sorting out money and property on divorce” (“Fair Shares”) by Professor Emma Hitchings, Caroline Bryson, Gillian Douglas, Susan Purdon and Jenny Birchall carried out in 2022/23 is a major study which, for the first time, delved into the financial arrangements of divorcing couples and evaluated whether fair outcomes are being achieved.
With approximately 100,000 couples divorcing each year, a key question to consider is whether those couples should seek legal advice to reach a financial settlement.
As family lawyers, it would always be our advice that divorcing couples should seek legal advice to help ensure that fair and reasonable outcomes are reached, but how important is it? Fair Shares has highlighted some of the reasons why legal advice should be carefully considered in all cases.
Fair Shares extends to 397 pages, and it is a key read for any professionals involved in supporting divorcing couples, and for the couples themselves.
This blog will focus on four key points and explain how we, at Blake Morgan, can assist:
1. Lack of knowledge
The report identifies that a lack of awareness of family finances can impact on the overall fairness of a financial outcome. Put simply, how can a financial settlement be fair if the couple entering into it do not have the full financial picture? Without such knowledge, there is no way of being able to make a fully informed decision.
Financial disclosure is inherently important for every couple getting divorced. It can be an overwhelming step in the financial process, but with the benefit of disclosure, your lawyer can advise you about your specific circumstances and what the options available are.
In circumstances where 12% of those participating in Fair Shares confirmed that they had sought no advice or information about their divorce, it cannot be surprising that a number of the outcomes were not necessarily fair.
2. No Financial Order
A divorce legally brings the marriage to an end; it does not bring financial claims of a once-married couple to an end. This is a common misconception. Fair Shares found that out of 100,000 divorcing couples, only around one-third obtained a financial order. This is a worrying statistic. The reasons why a financial order is required is explored in this blog on financial orders.
Resolving your financial relationship on divorce is imperative to enable divorcing couples to move on without the risk of future claims. At Blake Morgan, we can advise on the methods of reaching a financial settlement and assist in preparing and obtaining a financial order.
It should be noted that obtaining a financial order does not mean going to court. In fact, the vast majority of financial orders obtained in divorce matters are agreed documents, approved by a Judge using documents only and without either of the parties even needing to know where the court building is!
3. Don’t forget about Pensions!
One of the central findings of Fair Shares is the lack of interest in, and awareness of, pensions. A startling statistic revealed that only 11% of divorcees with a pension yet to be drawn had made an arrangement for pension sharing.
Pension assets, even if not yet in payment, can be an extremely valuable matrimonial asset and should always be considered when resolving financial matters on divorce. We can advise you about how to obtain valuations, when an expert might be required to provide specific pension advice, and the options for how pensions can be dealt with in a financial settlement.
Fair Shares identified ‘not using a lawyer made it more likely that the pension position would not be adequately addressed’. An enlightening, albeit worrying, statement!
4. Fairness
A financial settlement on divorce should be fair and reasonable bearing in mind the circumstances of the specific case. There is no ‘one size fits all’. This applies, for instance, in relation to equal division. This a yardstick or guideline in the law, but for very good reasons an equal division is very often not the fair outcome in a given case. This could include yours. Therefore, careful consideration and advice is key. Your Family lawyer will consider all of the assets of the case, including capital, income and pensions, and will consider what would be the appropriate outcome for your family.
Fair Shares concludes that ‘legal oversight, whether through the court, or through the provision of legal advice, appears to provide a potentially valuable form of monitoring which may protect individual divorcees, particularly wives, from unfair financial arrangements.’
The Report highlights the vulnerability of wives, particularly mothers, and those in older age, compared to men. This usually links to a lack of awareness of family finances, and to a lack of knowledge generally in how to negotiate a fair settlement.
Whether you are a wife, or a husband, embarking on divorce, we can advise you to ensure a fair outcome in your circumstances.
Your future
The financial settlement that you reach on divorce will undoubtedly shape your future. We can help you to navigate your divorce and deal with financial matters, with the benefit of our experience, to conclude matters in the most advantageous possible way.
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