When your marriage ends, one of the most crucial issues that needs to be resolved is how your assets should be split. Wherever possible, it is always preferable for the couple to decide how to divide their assets between themselves, with help from their legal advisors. That way, the parties can avoid the time and expense of litigation and concentrate on building their future. A financial separation agreement is an agreement made between the parties detailing how their assets are to be split.
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How Can You Reach A Financial Separation Agreement?
There are many ways in which you and your partner might reach a financial separation agreement. They include the following:
• Negotiation
In some cases, negotiations between the parties’ legal advisors can result in a financial separation agreement. Our family law solicitors have vast experience in negotiating excellent financial settlement terms for our clients. We swiftly identify those issues on which agreement will likely be reached and those that will likely be contentious. Even if you and your ex-partner cannot agree on all aspects of your financial separation agreement, negotiations frequently narrow the issues in dispute.
• Mediation
Mediation is a popular form of alternative dispute resolution in family law proceedings. It can achieve excellent results provided the parties are willing to voluntarily disclose their financial situations and are open to compromise.
During a mediation, the parties are joined by an impartial third party, known as the mediator. The mediator is a highly trained professional with experience in assisting divorcing couples in reaching a settlement of the issues arising from their divorce. Our family law solicitors will accompany you to the mediation and support you throughout.
The parties are in control of the mediation process. You can choose the mediator you consider would be best suited to your case, as well as the time, date, and format of the mediation itself. You might decide to sit around the table with your legal advisors, your ex-partner, and the mediator and discuss the issues. Alternatively, you might feel more comfortable sitting in a separate room from your partner.
If you and your ex-partner reach a financial settlement agreement following your mediation, you can make it binding by way of Consent Order.
What Happens If You Cannot Reach A Financial Separation Agreement?
Unfortunately, some couples are simply unable to agree on how their assets should be divided following their divorce. In these cases, we may advise that you refer your case to arbitration or issue court proceedings.
• Arbitration
Arbitration is a form of alternative dispute resolution. Unlike negotiations and mediation, arbitration does not achieve a financial separation agreement as such because the parties do not decide how their assets will be split. Instead, an arbitrator considers the case and makes an order stating how the couple’s assets should be divided. An arbitrator’s decision is final, and the scope to appeal it is extremely limited. As a result, arbitration achieves a final settlement of the issues resulting from your divorce and allows you to move forward.
Arbitration can be an invaluable alternative to litigation in divorce cases. It tends to be less formal than litigation, so it reduces the stress placed on the parties at what is already a stressful time. It is quicker and cheaper than litigation, meaning that you can spend your time and money on building a future as opposed to time-consuming, expensive court hearings. The parties retain some control over the process, being at liberty to pick the arbitrator and decide when the hearing should take place.
• Litigation
While our family law solicitors avoid litigation wherever possible, the court’s intervention is sometimes necessary to settle the parties’ differences. For example, if we suspect that your ex-partner is hiding assets in an attempt to keep them out of the divorce financial settlement, we may advise that you issue proceedings.
The court has broad discretion when it comes to splitting a couple’s assets for the purposes of their divorce settlement. The judge’s key concern will be ensuring that the settlement is fair and reasonable. Accordingly, when deciding how to split the couple’s assets, the judge will consider the circumstances of the case overall, taking into account factors such as the following:
- The overall value of the couple’s assets.
- How long the couple have been married for.
- Each party’s earning potential.
- The financial position of any new partner.
- The needs of any children.
Issuing proceedings does not necessarily mean that you will end up in court. In most cases, settlement discussions continue behind the scenes, and our family law solicitors frequently settle our client’s divorces before trial on excellent terms. If your case does reach trial, we will be by your side every step of the way. We are experienced litigators, and we will go above and beyond to ensure that you and your family receive all you are entitled to in your settlement.
Reach out to Birch & Co’s specialist and supportive team today. Call us on 0191 284 5030 or complete a Free Online Enquiry.
“Have just used Birch & Co … after using them a few years ago for my divorce, they are great, they are very professional at the same time as being welcoming and friendly putting you completely at ease as soon as you walk through the door, If you’re lucky you may even get cuddles from Murphy the dog. I would thoroughly recommend them to anyone looking for a solicitor in the area.” (JA)
