Managing marital breakdown is challenging. Navigating divorce is difficult both emotionally and practically, often requiring the disentangling of a shared history in a move towards financial independence. At a time when trust and communication may be at best strained, but at worst broken, how do you reach agreement regarding financial matters?
Financial Remedy Provision
During divorce proceedings both spouses share an ongoing duty to provide full disclosure of their financial affairs. A Court prescribed document, known as a ‘Form E’ provides the starting point, detailed documentation in support must be provided. The aim is to clarify, transparency here is key. Often further questions may arise following exchange of Forms E, enquiries should be reasonable and proportionate in order that all parties have clarity regarding financial matters which may result in the need for assets to be valued and actuarial reports may be required regarding pension provisions. Issues such as liquidity, capital and income extraction and the tax consequences thereof, needs to be considered. The object of this is to understand the value and possible treatment of all assets, identify and quantify any liabilities including taxation, in order for negotiations to begin. Only when there is clarity can discussions take place regarding how such assets may be shared. Discussions will be informed by legal principle and will often be dependent upon the origin and treatment of assets during the course of the marriage.
Consent Orders
Once an agreement is made, the details are added to a draft Consent Order. If the Judge is satisfied that the financial agreement is fair, he will make the Order. Any order made on the basis of material non-disclosure may be set aside resulting in serious costs. Failure to disclose and or mislead the Court will not be tolerated, this will simply result in delays and further costs.
Most spouses will be able to reach agreement in relation to financial matters providing they receive specialist independent family law advice, and both parties are willing to co-operate and collaborate on the basis of full financial disclosure.
To discuss how we can assist, contact the Buckles Family Law team for an initial consultation to help secure your future.
