Protecting Wealth in Divorce
Divorce can raise important questions about property, pensions, investments, businesses and other assets. NLS can help you understand the financial issues involved, 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.
Take a considered approach to the assets that matter to your future.
Shabana Sultana
Protecting wealth during divorce
Protecting wealth in divorce is not about assuming that a particular asset will be kept separate or treated in a particular way. It is about understanding the full financial position, identifying the issues that need to be addressed and making informed decisions about financial arrangements.
You may be concerned about a family home, investment property, savings, a business, pension provision, inherited assets, trusts or assets held outside the UK. The right approach will depend on the circumstances of the marriage, the financial resources available, the needs of the family and the wider issues involved.
When considering financial arrangements, the court must have regard to all the circumstances of the case. This includes the parties’ income, earning capacity, property, other financial resources, needs, responsibilities, ages, the length of the marriage, contributions and pension benefits that may be lost because of divorce.
How NLS can help with protecting wealth in divorce
The NLS Private Law department can help you to:
- Identify the financial issues that may need to be addressed
- Consider property, pensions, savings, investments, businesses, trusts and other assets
- Prepare for financial disclosure and settlement discussions
- Understand the options available if an agreement cannot be reached
- Consider how financial arrangements may affect your home, income and future plans
Every financial situation is different. NLS provides clear advice, careful representation and practical support based on the circumstances and information available.
Understanding the full financial picture
Before financial arrangements can be considered properly, it is important to understand the full picture. This can include assets, income, pensions, debts, liabilities and future financial needs.
Where finances are more complex, this may involve reviewing several properties, business interests, investments, trusts, inherited assets or assets held in other countries. It can also be important to consider how assets are owned, how they have been used during the marriage and whether they generate income.
Clear financial information helps both people understand what needs to be resolved. In financial remedy proceedings, the court expects parties to give full and honest disclosure of material facts, documents and other information relevant to the issues.
Property and investment assets
Property may include the family home, second homes, buy-to-let properties, land or property held as an investment. These assets may have been acquired before or during the marriage, inherited from family members or owned through more complex arrangements.
It can be important to understand the legal ownership, current value, mortgage borrowing, rental income and any financial contributions connected to a property. The practical role of the property may also be relevant, particularly where it provides a home for one person or the children.
Investments and savings can require similar consideration. This may include shares, investment portfolios, savings accounts, bonds or other financial interests. The issues will depend on how the assets are held and how they fit within the wider financial circumstances.
Businesses, trusts and family wealth
A business can be both a source of income and a long-term asset. If either person has a business interest, company shareholding or role in a family business, it may be necessary to understand its ownership, value, income, liabilities and future role.
Trusts and wider family wealth can add further complexity. A trust may hold assets for the benefit of one or more people, so it is important to understand the nature of the arrangement and how it relates to the financial circumstances of the family.
NLS can help you identify the information that may be relevant and understand the issues that need to be considered alongside property, pensions, savings and income.
Pensions and future financial security
Pensions can be a significant part of financial arrangements after divorce, particularly after a long marriage or where one person has built up substantially more pension provision than the other.
A pension should be considered alongside property, income, savings and other assets. The type of pension, the benefits it may provide and each person’s future retirement needs can all be relevant.
A pension sharing order is one possible way that pension benefits may be addressed in a financial settlement. It provides for a percentage of one person’s pension benefits to be transferred to the other person as a separate pension entitlement.
For further information, visit our pension sharing orders page.
Financial settlements and reaching an agreement
A financial settlement can address how property, pensions, savings, investments, income, debts and other assets will be dealt with after divorce or the end of a civil partnership.
Some people are able to reach an agreement after the relevant financial information has been shared and the issues are clearer. Where an agreement is reached, it may be possible to ask the court to approve a consent order, which makes the agreed arrangements legally binding.
An agreement should be considered carefully. The appropriate arrangements will depend on the individual circumstances and should not be based on assumptions about how a particular asset will be treated.
When a financial agreement cannot be reached
If agreement is not possible, it may be necessary to apply to the court for a financial remedy order. Financial remedy applications can involve property adjustment, lump sum payments, maintenance and pension sharing, depending on the circumstances.
The process may require detailed financial information and further discussions about settlement. If the issues remain unresolved, the court can make a decision about the financial arrangements.
For more information about this process, visit our financial remedy orders page.
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.
Planning ahead to protect future interests
If you are planning to marry or enter a civil partnership, a nuptial agreement can provide a structured way to discuss financial arrangements and future expectations.
This may be relevant where one person owns property, has a business interest, expects to receive an inheritance or wants to discuss how family wealth should be approached if circumstances change. The effect of a nuptial agreement will depend on its terms and the circumstances in which it was made.
For more information, visit our nuptial agreements page.
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Protecting Wealth FAQs
- Can I protect my assets in a divorce?
You should not assume that an asset will automatically be protected because it is held in one person’s name, was acquired before marriage or came from a family member. Financial arrangements depend on the full circumstances of the case, including the parties’ resources and needs.
- Does it matter if I owned property before marriage?
Property owned before marriage may be relevant to financial discussions, but its treatment will depend on the circumstances. It can be important to consider how the property has been used, whether it has become a family home and the wider financial position.
- Can a business be considered in a divorce settlement?
Yes. A business interest can form part of the financial picture in divorce. Relevant issues may include its ownership, value, income, liabilities and role in future financial arrangements.
- Are pensions included in divorce finances?
Yes. Pensions can be considered as part of financial arrangements after divorce or civil partnership dissolution. The court can make pension sharing, pension attachment or pension compensation sharing orders where appropriate.
- Do I need to disclose all my financial assets?
Financial disclosure is important when resolving divorce finances. In financial remedy proceedings, the court expects full and honest disclosure of material financial information relevant to the issues.
- Can a pre-nuptial agreement protect wealth?
A pre-nuptial agreement can help couples discuss how they intend to approach financial arrangements. Its effect will depend on the agreement’s terms and the circumstances in which it was made. It should not be assumed to guarantee a particular outcome.
- What if we cannot agree about financial arrangements?
If agreement cannot be reached, you may need to consider applying for a financial remedy order. The court can make different types of financial order, including orders concerning property, maintenance, lump sums and pensions.
- How long does it take to resolve complex divorce finances?
Timescales vary depending on the issues involved, the information required, whether agreement can be reached and whether court proceedings are necessary. It is not possible to predict a timescale without understanding the circumstances.