Resolving financial issues during the divorce process can take time. Parties need time to address disclosure matters and to negotiate settlement terms, which is often achieved through mediation or through solicitors’ correspondence. As a last resort, the Court process may need to be utilised to resolve financial claims within divorce.
In the interim, what protective steps should be considered and taken?
Register your matrimonial home rights
If the matrimonial home is owned in your spouse’s sole name, you may be advised to register your Matrimonial Home Rights with HM Land Registry. This prevents your spouse from selling or transferring the property without you being notified. A family solicitor can deal with this for you.
Make or update your Will
You may not wish your spouse to deal with or indeed benefit from your Estate should you pass away prior to your divorce being finalised. You should therefore seek advice from a private client solicitor as soon as possible with a view to making a Will or updating your existing Will.
Take financial, tax and mortgage advice
Divorce is a significant life event which can significantly impact on financial choices and options, and also impacts on other matters such as retirement and tax planning. It is therefore advisable to take independent financial advice early on in the process so you have a full understanding of your options and position, which will help you make decisions going forward. You may also seek to secure mortgage advice if this is appropriate.
Sever joint tenancies on jointly owned properties
You may not wish your spouse to receive your beneficial interests in any jointly owned properties should you pass away prior to your divorce being finalised. If so, you may need to look to sever the beneficial joint tenancies on the properties, so that you then own the beneficial interests as tenants in common. You will also need to make a new Will. A family solicitor can deal with this for you.
Resolve financial claims before divorce
We generally recommend that you do not finalise your divorce until the financial claims and rights have been resolved, and formally dealt with, within the divorce process. This is because some financial rights and claims are lost on divorce if a party dies before financial claims are formally resolved (such as widow/widower pension entitlements).
Enter into a Deed of Separation
You may have reached a financial agreement with your spouse, but it may be some time until your agreement can be made legally binding within the divorce. This is because there is a ‘20 week wait period’ in the divorce prior to being able to apply for the Conditional Order. A Consent Order detailing a financial agreement cannot be filed with the Court until the Conditional Order has been pronounced. It may therefore be appropriate to have a ‘Deed of Separation’ prepared by a Solicitor which is a contractual document entered into by the married couple setting out their intentions and agreement. This is then a holding document pending a Consent Order being prepared at the appropriate time in the divorce.
Contact King Street Solicitors LLP today on 01924 332395 for specific advice about your circumstances.
Disclaimer: The content in this blog post is for informational purposes only and should not be seen as formal legal advice. King Street Solicitors is not responsible for any reliance on the information in this post. We do not take responsibility for the content of any external websites linked in the post. Any link to a third-party website should not be seen as an endorsement by King Street Solicitors.