| The financial cost of divorce |
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This article refers to divorce law as it applies in England and Wales. Apart from all the emotional turmoil, there are so many practical matters that must be sorted out when a married relationship comes to an end. If you and your partner find yourselves in the unfortunate situation where you have decided to separate, you will both need to consider what will happen to your money, investments, possessions, property and children. There are lots of different ways in which you can make arrangements to part ways. For a start, you don’t need to get a divorce. If you and your partner can agree amicably on how to settle the things that you shared during your marriage, you may just opt for an informal separation. It’s much cheaper and much less stressful than going through the divorce courts. However, bear in mind that any informal arrangements may affect any decisions made by the courts if you decide to take your case down this route in the future. Also, a court may reverse or alter any arrangement you have made with your partner if it is considered unreasonable to either party or unfair on any children. An alternative way to split without going through the divorce courts is formal separation, in which a written mutual agreement is drawn up, preferably by a solicitor. The agreement sets out the terms for settling financial and material matters and arranging the care of any children. It can cover financial maintenance either for the other partner or for the children. Any agreement not to take a case to court in the future will not be legally binding and both of you still have recourse to the courts should amicable communication break down. There are various other factors to weigh up when considering whether divorce is the right option. Remaining married will have various legal implications, and of course you won’t be able to remarry. Divorce is therefore often the safest, fairest and most practical option. Let’s straighten out a few facts about divorce, as it can cause confusion to many people: Both partners are financially responsible for their children, no matter who the children live with. (Children under the age of 16 or under the age of 19 and in full-time education are considered to be your dependants.) The most amicable way to arrange support is through a voluntary agreement, where you and your partner come to a mutually acceptable arrangement for looking after the children. This may be an informal verbal arrangement or you could have a written agreement drawn up by a solicitor (which is the safest option as it can help to resolve any disputes further down the line). There are various ways in which one partner can provide financial support to the other. They may agree to pay all the household bills and perhaps the mortgage or rent, they may buy the childrens’ clothes or pay for their holidays, or they may prefer to give the other partner a regular maintenance payment for their partner to spend appropriately on the children. If you’re unable to come to an informal arrangement with your partner, you’ll need to apply for financial support through either the Child Support Agency or the court. Financial arrangements â€" settlements for the other partner Even if there are no children in the marriage, making a financial settlement can be tricky business. If you are able to come to an informal agreement together on how you will split your wealth, it can save a lot of time, stress and money. However as with everything in life, when there’s money involved, disputes inevitably arise. Many divorcing couples therefore end up turning to the court to obtain a financial settlement. In England and Wales, the general principle concerning disputed settlements is that both partners should receive 50% of their combined wealth. There are sometimes extenuating circumstances though, particularly in cases where a large amount of wealth was accumulated by one partner before the marriage, or where one partner has, for example, given up a career as a result of the marriage or of having children. In such cases the split may not be completely equal. Financial arrangements â€" property Again, you may come to an informal agreement as to what to do about the marital home, or, if you can’t agree, the courts will decide. One partner may still be living in the property, but this does not give them any more rights than the other partner. The partner who is no longer living in the home still has the right to come back to collect items belonging to them (although in cases of domestic violence this may be restricted by a court order), and still has a say in what happens to the home â€" their consent will be required to put it up for sale, for example. Even if one partner isn’t listed on the deeds as an owner of the marital home, they nevertheless have equal rights to the property â€" either to live in it or to have a say in whether it is sold. However, to protect their rights, this partner must complete a form and send it to the District Land Registry. A final word of advice In an ideal world, it’s always best to be able to agree things amicably without the indignity of involving solicitors or going to court. In reality, however, it’s not always easy to reach a fair and reasonable agreement â€" and even if you do, things might turn sour at some point in the future and either one of you could be left in the lurch. It’s therefore best to consult a solicitor to ensure you understand your rights and what you’re entitled to, and to help you reach an arrangement with your partner that will allow you both to live reasonably and comfortably when you separate. Author: Benedict Rohan Website: <a href="http://www.mortgagenation.co.uk">http://www.mortgagenation.co.uk</a> Benedict Rohan works as a freelance finance writer. <a href="http://www.mortgagenation.co.uk">Commercial Mortgage</a>, Homeowner Loans, Remortgages. Read more at: http://www.ArticlePros.com/finacces/personal_finance/article-62396.html. |
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