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Understanding Financial Settlements in Divorce: Are You Entitled to Half?

Understanding financial settlements

When facing the challenging decision of ending a marriage, one of the most pressing concerns is the financial settlement. The question “Am I entitled to half?” often looms large in the minds of those considering divorce. At Easy Online Divorce, we understand the emotional and financial stress that comes with this life change. Our mission is to help couples navigate these waters smoothly, affordably, and with as little conflict as possible.

What is a Divorce Financial Settlement and Should You Get Half?

The law in the UK does not state that you are entitled to half of assets when divorcing. However, a 50/50 split of assets acquired during the marriage is often considered the starting point, especially in long marriages. When working out a fair financial settlement, the court considers various factors to ensure a fair split. These factors include the length of the marriage, the financial needs and resources of each party, contributions to the family (both financial and non-financial), and the standard of living enjoyed during the marriage.

A consent order is a legally binding document that outlines the financial arrangements agreed upon by both parties. It covers various aspects such as the division of assets, maintenance payments, and pension sharing. Without a consent order, your ex-partner could make financial claims against you in the future, even years after your divorce is complete.

At Easy Online Divorce, we offer four types of consent orders to cater to different needs:

    1. Clean Break Order: This is the simplest type of consent order, suitable for couples with no children or assets to split. It ensures that neither party can make any future financial claims against the other.
    1. Consent Order: This type handles lump sums, property transfers, and house sales, ensuring a clear and fair division of assets.
    1. Pension Sharing Consent Order: Specifically designed for couples needing to divide pension pots, this order ensures a fair distribution of retirement funds.
  1. High Net Worth Consent Order: For individuals with assets exceeding £1.5 million, this order addresses complex financial arrangements, ensuring an equitable settlement.

The Importance of Starting the Financial Settlement Process Early

The key to a fair financial settlement is to begin the consent order process as early as possible. At Easy Online Divorce, we advise that you start gathering the necessary financial information as soon as you initiate your divorce. Regardless of the assets being divided, both parties must disclose the following financial information:

    • Total equity held in properties
    • Total savings and investments
    • Total liabilities (excluding mortgage debt)
    • The total value of pensions
  • Monthly income, itemised by source (employment, benefits, child maintenance payments, pensions, or other sources)

Having a clear understanding of your assets allows you to make more informed decisions about how to divide them.

A consent order can only be submitted to the court for approval once your conditional order for divorce has been granted. After receiving your conditional order, there is a mandatory six-week waiting period before you can apply for your final order.

The court typically takes four weeks to approve a consent order, so the ideal situation is to have your consent order documents ready for submission as soon as the court grants your conditional order so that your consent order and divorce are concluded simultaneously.

Important Consideration for Public Sector Worker

Obtaining pension valuations, known as Cash Equivalent Transfer Values (CETVs), from public sector organisations such as the NHS, Teachers, and Police can take several months. Therefore, if you work in these sectors, you must contact your HR department and request your CETV as soon as you start your divorce. Delaying this step can postpone your consent order and, ultimately, your divorce, as it is advisable not to finalise your divorce without an approved consent order.

For more information on this, read our article: Why you should wait for a consent order before applying for your final order in divorce.

What If We Can’t Agree on Our Financial Settlement?

If you and your ex-partner cannot reach an agreement on your financial settlement , you may need to go to court for a financial remedy. This involves a more formal process where the court examines all aspects of your financial situation and makes a decision on the division of assets. While this route is more time-consuming and costly, it provides a clear resolution when negotiations fail.

Addressing Common Concerns With Financial Settlements

Am I Entitled to Anything If I Didn’t Contribute Financially?

Many worry that they might not be entitled to anything if they didn’t contribute financially to the mortgage or other assets. However, the court also considers non-financial contributions, such as homemaking and childcare, which are equally valuable. These contributions can significantly influence the division of assets.

Even if neither party has significant assets or finances, it is crucial to obtain a clean break order. This order ensures that both parties are protected from any future claims. Without it, there is always a risk that an ex-spouse could make a financial claim years down the line, potentially jeopardising future wealth.

What If We Can’t Reach an Agreement Over Our Divorce Settlement?

If you and your ex-partner cannot reach an agreement on your financial settlement, the next step is to seek mediation. Mediation involves a neutral third party who helps facilitate discussions and negotiations to reach a mutual agreement. If mediation fails, you may need to apply to the court for a financial remedy. The court will then assess your financial situation and make a binding decision on how your assets will be divided.

How Do We Reach a Financial Agreement?

To reach a financial agreement, both parties need to list all their assets, including property, savings, investments, pensions, and any other financial resources. Full disclosure is essential to ensure a fair settlement. Once you have a comprehensive list, you can start negotiating the division of these assets. For more detailed guidance on financial divorce settlements, visit our article: Financial Divorce Settlement – Do I Need One?

At Easy Online Divorce, we offer a range of services that will make your financial settlement legally binding:

    1. Clean Break Order £399: Ideal for couples with no financial ties, ensuring a clear separation without future claims.
    1. Consent Order £499: Comprehensive arrangements covering lump sums, property transfers, and house sales.
    1. Pension Sharing Consent Order £599: Fair distribution of pension pots for a secure financial future.
  1. High Net Worth Consent Order £899: Tailored solutions for complex financial situations involving substantial assets.

Free Consultation Offer

We understand that every divorce is unique, and navigating the financial and legal aspects can be challenging. To help you through this process, we offer a free consultation to discuss your situation and help you understand what information and considerations you need for your consent order. During this consultation, we will advise on the most suitable service for your needs.

Obtaining a consent order involves several steps:

    1. Reach an Agreement: Both parties must agree on the division of assets and financial arrangements.
    1. Drafting the Order: Once an agreement is reached, the consent order is drafted, detailing the financial settlement.
    1. Submitting to the Court: The drafted consent order is then submitted to the court for approval. The court ensures that the agreement is fair and reasonable before making it legally binding.
  1. Final Approval: Once approved, the consent order is sealed by the court, making it a legally enforceable document.

Why Choose Easy Online Divorce?

With Easy Online Divorce, you benefit from a streamlined, supportive process that reduces stress and conflict. Our services are designed to be accessible and affordable, helping you navigate the complexities of divorce with ease. But don’t just take our word for it. Here’s what Natasha, one of our satisfied clients, had to say:

Fantastic experience Fantastic experience, really made the process of getting a Clean Break / Consent Order easy and quick. Cameron was extremely helpful and made the process simple as well as being extremely clear on what was needed. The WhatsApp contact is also fantastic, I received very fast and helpful responses to any queries I had throughout. Would definitely recommend, especially considering the price and how easy it was to get a simple Clean Break/ Consent Order processed!

Get Started Today

If you’re contemplating divorce and are unsure about your financial entitlements, don’t hesitate to contact us. We offer a free consultation to help you understand your options and make informed decisions.

Contact us today:

    • Phone: 0204 530 8101

For more information and resources, visit our Knowledge Hub.

Navigating a divorce can be overwhelming, but with the right support and guidance, you can achieve a fair and equitable financial settlement. Let Easy Online Divorce help you through this journey, ensuring a smoother, less stressful process for you and your family.

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You can apply for a special expenses variation for the following:

  • Travel costs to maintain regular contact with your child (if more than £10 a week)
  • Costs connected with supporting a child with a disability or a long-term illness
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Basic Rate
The Basic rate applies the amount of child maintenance you will pay each week is based on the following percentages:

  • 12% for one child
  • 16% for two children
  • 19% for three or more children

Basic Plus Rate
If your gross weekly income is more than £800, the Basic Plus rate of child maintenance is applied as well as the Basic rate.
In addition to the percentage rates applied to the first £800 above, the following percentages are calculated
on any balance over £800:

  • 9% for one child
  • 12% for two children
  • 15% for three or more children

The basic plus rate is capped at £3000 per week.

Reduced Rate
For the reduced rate you would pay a fixed rate of £7 a week for the first £100 and the following
percentage will be applied to the balance:

  • 17% for one child
  • 25% for two children
  • 31% for three or more children

Flat Rate and Nil Rate
If your weekly gross income is less than £100 or you or your partner receive certain benefits,
you would pay a flat rate of £7 a week in child maintenance.

If you are under 16, a student aged 19 or less, in prison or in a care home,
you would not have to pay any child maintenance.

The more nights that your children stay overnight with you, the more the
calculator will reduce the weekly amount of child maintenance:

  • 52 to 103 nights = 1/7 (14% reduction)
  • 104 to 155 nights = 2/7 reduction
  • 156 to 174 nights = 3/7 reduction
  • More than 175 = 50% reduction plus an extra £7 a week for each child

If you have other children, the calculator will reduce
your weekly gross income by the following percentage:

  • 11% reduction for one child
  • 14% reduction for two children
  • 16% reduction for three or more children
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