Common Myths about resolving matrimonial finances
Dealing with matrimonial finances refers to the process by which a couple’s assets are divided following the breakdown of their relationship. This is often a complicated matter, surrounded by many myths and misconceptions which can lead to unsuitable outcomes. Therefore, it is imperative to seek specialist legal advice in order to effectively deal with matrimonial finances.
Myth 1: Everything is split 50/50
A commonly held misconception is that matrimonial assets will always be split equally between the parties. However, this is merely the starting point. The division of assets is based on what is considered just and fair. The court will consider various factors including the needs of the parties and the children and the length of the marriage. The aim is to achieve an equitable distribution which can result in an unequal division of the matrimonial assets.
Myth 2: Decree Absolute or Final Divorce Order will end financial ties
Many believe that a Decree Absolute or Final Divorce Order severs all financial obligations that spouses have towards each other. However, a Decree Absolute or Final Divorce Order only ends the marriage. It will not sever the financial ties. Obtaining a financial order will end financial ties and prevent either spouse from bringing further financial claims against the other.
Myth 3: Parties with limited or no assets do not need to sort out their finances
Another common myth is that if spouses have limited or no assets, they do not need to sort out their finances. It is a risk not to deal with finances alongside the divorce as this could result in a financial claim from the other spouse in the future. The purpose of a financial order is to dismiss future claims that a spouse might make against the other.
Myth 4: Pensions are not worth being considered
When resolving matrimonial finances, many do not realise how significant pensions can be. It is important not to overlook these assets as their value is often underestimated. All pensions should be considered as part of the financial settlement.
Myth 5: The spouse earning the most always pays spousal maintenance
Another misconception is that the spouse who earns more will need to pay spousal maintenance to the other spouse. Although the higher-earning spouse may be required to provide financial support, this is not always the case. In some circumstances, the court may not award spousal maintenance if both parties can support themselves financially. When making this decision, the Court will consider various factors such as the parties’ financial resources and needs, the couple’s standard of living during the marriage.
It is important to differentiate myths from fact to effectively resolve financial matters arising from divorce. The experts at Clough & Willis Solicitors are acclaimed for their work in family law and can support clients through the divorce process. Call us on 0800 083 0815 or complete our online enquiry form to request a call back.
