Will a Divorce give me a Clean Break?

A divorce can provide a legal end to your marriage but the divorce itself does not provide an automatic ‘clean break’ insofar as financial arrangements are concerned.

Will a Divorce give me a Clean Break? Here are some points to consider:

• During the divorce, the scope of the family assets will need to be determined. This can be done in various ways: negotiations through solicitors, the mediation process or in some circumstances, the Courts. Those assets include property, investments, savings, pensions, and your respective income positions. Parties are encouraged to reach a fair division of the assets that have been accumulated during the relationship.
• How these will be dealt with will be very specific to your case, depending on how long you have been married, your ages, any dependent children etc.
• Specific consideration is given to business assets, pensions, inheritance, trusts and assets accumulated post-separation etc.
• In reaching an agreement, it is important to bear in mind the requirement of openness and transparency and sharing of information.

When the matter is concluded, it is equally important to ensure you have a Court-approved Order that is final and binding to prevent any ‘come back’ in the future.

While clean breaks are encouraged (i.e. all financial ties are severed, save for children), this is not always possible and again, will be determined on a case-by-case basis. Financial obligations may continue beyond the divorce and can be affected by future changes in circumstances such as income fluctuations.

“When the matter is concluded, it is equally important to ensure you have a Court-approved Order that is final and binding to prevent any ‘come back’ in the future.”

It is important that you and your assets are protected and you should always seek advice from a Family solicitor, particularly in cases of complexity including businesses, pensions etc. The advice will be unique to you and based on your specific circumstances not only now but in years to come to protect you, your children and to protect you in your retirement years.

Here at Cullimore Dutton, we have solicitors with many years of experience who have dealt with all aspects of Financial proceedings with a range of issues and complexities. This experience is invaluable to you.

If you would like a free initial consultation with a member of our Family Law team to discuss the making of a divorce application, or the financial consequences of doing so, simply click on the “Speak to Our Experts” button on this page, call us on 01244 729 073 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Divorcing your business partner

Getting divorced is never easy in any circumstances. This can be even more complicated when spouses are in business together as they rarely consider coming to a commercial arrangement beforehand.

In limited companies, the parties may be co-Directors and equal shareholders, one party may have been added to the business for tax reasons who is not the key person. Partnership Agreements are not always clear.

During the divorce process, emotions can be raw and that can often make decisions more difficult.

Divorcing your business partner, what Usually Happens
It is uncommon and unlikely that you will lose your business or have to sell it if you do not wish to. While the Courts do have the power to order the sale of a business, they are both careful and reluctant to use this power, after all, a successful business is likely to provide for you and your family for years to come.

Coming to an agreement about the future of the business
The most obviously and straightforward way to determine what will happen to your business is to come to an agreement with your spouse. This will often mean a valuation of the business, its assets, shareholdings etc. A Solicitor will guide you through this and facilitate discussions between the parties with a view to reaching an amicable agreement. In some cases, although not common, some couples may continue to run the business and have a good working relationship.

More commonly however, one party usually buys out the other party’s interest in the business.

Splitting the assets of a business
Dividing business assets can be complicated so we would always advise seeking specialist legal advice on your position and your own particular circumstances.

If you would like a free initial consultation with one of our team contact us on 01244 356 789 or email info@cullimoredutton.co.uk.

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

The property market has boomed over the last year with many unmarried couples purchasing their first homes together. This is an exciting time for these couples, but what plans are in place should the relationship come to an end?

In this article Head of Family Law Brenda Spain looks at why unmarried couples should consider a Cohabitation Agreement.

Why you need a Cohabitation Agreement.
If you live with your partner or are considering moving in together you may have thought about a Cohabitation Agreement. There is, of course, no legal requirement to have a Cohabitation Agreement to live with a partner but it can be useful to protect your finances and establish practical arrangements both during the relationship and unfortunately if that relationship comes to an end.

What is a Cohabitation Agreement?
A Cohabitation Agreement basically sets out what you and your partner would like to happen in terms of your financial arrangements both during the relationship and most importantly if it comes to an end. You should discuss the financial aspects of the relationship and set them out clearly in the agreement. It can be as detailed as you both wish.

Do cohabitants have the same rights as married couples?
The answer is no. Nor is there any such thing as a common law husband and wife, despite the length of the relationship.

One of the key incentives to enter into Cohabitation Agreements is to ensure that your arrangements and intentions are clearly set out.

Many couples who have lived together and separate end up in bitter disputes because there was no agreement about what should happen to the house, money, businesses or even what the children arrangements are likely to be.

Cohabitation disputes before the Courts can be very expensive and a Cohabitation Agreement can be evidentially helpful in those circumstances otherwise you are left to organise the division of assets informally at a time that may already be challenging and sensitive so it can be a helpful insurance policy against future difficulties.

Obtaining advise at this stage of your relationship can be crucial as it can affect many aspects of your financial arrangements for example:

How the ownership of the property should be set out. What if somebody is making a larger contribution that the other through savings, inheritance, or previous divorce settlement?

There are no maintenance right between parties should the relationship end.

There is no automatic entitlement to your partner’s pension. What can you do, including death in service benefits, Will and Estate Planning?

If you would like a free initial consultation with a member of our expert Family Law team to discuss a cohabitation agreement, please contact us on 01244 356 789 or email info@cullimoredutton.co.uk.

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.