Financial Settlements on Divorce
A divorce financial settlement can address how your property, savings, pensions, income and other assets will be dealt with after separation. NLS can help you understand the issues, consider the options available and prepare for the next steps. Please note that we do not offer legal aid for private divorce and financial matters.
Understand your financial position and approach the next step with clarity.
Shabana Sultana
Financial settlement advice from NLS
Separation can bring important financial decisions about your home, income and future security. You may need to consider what will happen to the family home, savings, investments, pensions, debts, business interests or maintenance arrangements.
NLS provides clear advice, careful representation and practical support for privately funded family-law matters. We can help you understand the financial issues that may need to be resolved and work towards an arrangement that is practical for your circumstances.
The right approach will depend on the information available, the assets and income involved, the needs of the family and the matters that need to be addressed.
What can a financial settlement cover?
A financial settlement can cover a range of financial arrangements following divorce or the end of a civil partnership. This may include:
- The family home and other property
- Savings and investments
- Pensions
- Income and maintenance
- Businesses and company interests
- Debts and other liabilities
- Other assets held by either person
A financial settlement may be reached through discussion and negotiation, or further legal steps may be needed if an agreement cannot be reached.
Understanding the full financial picture
Before financial arrangements can be considered properly, it is important to have a clear picture of the finances. This is often referred to as financial disclosure.
Financial disclosure can involve information about property, savings, investments, pensions, income, debts and other financial interests. Where there are more complex arrangements, it may also be necessary to consider business interests, trust arrangements or assets held outside the UK.
Having accurate information can help you understand the issues that need to be resolved and consider whether an agreement may be possible.
The family home and other property
Property can be one of the most significant issues in a financial settlement. This may include the family home, investment property, holiday homes or property held in another country.
It is important to consider ownership, mortgage borrowing, housing needs and the practical arrangements that may be required after separation.
Pensions and future financial security
Pensions can form a significant part of a couple’s finances, particularly after a long marriage or where one person has built up more pension provision than the other.
They should be considered alongside property, income, savings and other assets when looking at the wider financial position.
Savings, investments and business interests
Savings, investments and business interests can add complexity to financial settlement discussions. A business may provide income, future security or both, while investments may be held in different accounts or structures.
It can be important to understand how these assets are owned, their value, any associated liabilities and the part they may play in the wider financial arrangements.
Reaching an agreement
Many separating couples are able to reach an agreement about financial arrangements without asking a judge to decide the outcome. An agreement may need to address immediate practical needs, as well as longer-term issues such as housing, retirement provision and future income.
Once terms have been agreed, a consent order may be used to set them out formally and submitted to the court for approval. GOV.UK describes a consent order as a legal document that confirms an agreement and explains how assets and maintenance arrangements will be dealt with. If approved by the court, it makes the agreement legally binding.
A consent order will not be right in every situation. NLS can explain the issues that may need to be considered before you decide how to take matters forward.
When agreement is not possible
Sometimes, it is not possible to reach an agreement about the financial arrangements after divorce. This may be because there are different views about property, pensions, income, business interests or future needs.
If further legal steps are required, an application for a financial order may be necessary. Form A is used to start an application for a financial order in divorce or civil partnership proceedings.
The court process can involve detailed financial information and a number of stages. The NLS Private Law department can explain the options available and help you understand what the next steps may involve.
Shabana Sultana - Head of Private Family Law
Shabana has spent more than 26 years working solely in family law and can conduct with confidence all private family cases of every description. She specialises in financial matters following divorce and private Children’s matters with a focus on international child relocation cases are the heart of her practice. She is a natural problem solver always thinking creatively and outside the box to achieve successful outcomes for her clients. Her clients praise her for being a master negotiating who is never phased by the noise of her opponents, and this has meant she can boast a strong record of achieving out of court settlements.
Shabana works alongside an impressive team of carefully selected experts who lead with discretion and expertise including accountants, auditors, from pension actuaries to surveyors and private investigators. Twenty-six years in practice have given her a strong network of family law barristers who time after time deliver the results her clients want.
Financial settlements in complex divorce cases
Where a divorce involves substantial or complex assets, careful consideration may be needed before arrangements can be agreed. This can include cases involving multiple properties, pension provision, investments, business interests, trusts or international assets.
For more information about divorce involving substantial or complex finances, visit our high net worth divorce page.
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Financial Settlement FAQs
- What is a financial settlement in divorce?
A financial settlement sets out how financial matters will be dealt with after divorce or the end of a civil partnership. It may include property, savings, investments, pensions, income, maintenance, debts and other assets.
- Do we need a court order if we agree?
If you reach an agreement and want it to be legally binding, you can ask the court to approve a consent order. A consent order records the terms agreed and, once approved, is legally binding.
- What information do we need to share?
The information needed will depend on your circumstances. It may include details of property, savings, investments, pensions, income, debts and other financial interests. Where court proceedings are underway, Form E is used to provide detailed financial information.
- What happens to the family home in a divorce financial settlement?
The family home is often an important part of financial discussions after separation. The options available will depend on matters including ownership, mortgage arrangements, available resources and the wider circumstances of the family.
- Can a financial settlement include pensions?
Yes. Pensions can be included in financial settlement discussions and may be an important part of future financial planning. GOV.UK lists pensions among the assets that a consent order can address.
- What happens if we cannot agree a financial settlement?
If an agreement cannot be reached, further legal steps may be needed. Form A is used to begin an application for a financial order in divorce or civil partnership proceedings.
- Can a financial settlement include a business?
A business or company interest can be relevant to a financial settlement. The issues may include the ownership, income, liabilities and wider role of the business within the financial circumstances of the family.
- Can a financial settlement be changed later?
Whether an arrangement can be changed later will depend on the terms of the agreement or order and the circumstances. It is important to obtain advice before making assumptions about what can be varied.