Financial Settlements on Divorce | Derby, Burton, Ashby & Swadlincote
Organising and managing finances is often the part of a divorce that worries people the most. This can be about the house, the pensions, the savings, the day-to-day costs of running two homes instead of one. It can feel like a lot to untangle at a time when you already have enough to think about.
At Timms, we have been supporting families in Derby, Burton, Ashby and Swadlincote and the surrounding areas and to work through these issues for almost 135 years. Our family law team take the time to understand what really matters to you, they explain the law in plain English and help you reach a settlement that is fair, workable and built to last.
What is a Financial Settlement?
A financial settlement is usually the agreement that sets out how your assets, debts, income and pensions will be divided when a marriage or civil partnership ends. It can also be imposed by the family court where no agreement has been possible. It can cover:
• The family home and any other property
• Savings, investments and shares
• Pensions including occupational and private schemes
• Business interests
• Vehicles, valuables and personal possessions
• Joint debts, mortgages and loans
• Ongoing maintenance for a spouse or children
Importantly, getting divorced does not automatically sort out your finances.
Until a financial order is approved by the court, your former spouse may still be able to make a claim against your assets, even years later. A properly drafted settlement gives you certainty knowing that’s no longer possible.
How are Finances Divided in a Divorce?
There is no fixed formula. The starting point is a fair division, and the court looks at all the circumstances under section 25 of the Matrimonial Causes Act 1973, including:
• The needs of any children under 18
• Each person’s income, earning capacity and financial resources
• Each person’s needs and obligations, now and in the future
• The standard of living during the marriage
• The length of the marriage and the ages of those involved
• Contributions made by each spouse, financial and non-financial
• Any physical or mental disabilities
• Conduct, where it would be unfair to ignore it
“Fair” rarely means a straight 50/50 split. We help you understand what a realistic outcome looks like in your situation, long before any court is involved.
Ways to reach a Financial Settlement
Court is not the only route, and for most of our clients it is not the first one we recommend. Depending on your circumstances, the right approach may be:
Direct negotiation through solicitors
Often the most cost-effective option. We correspond with your spouse’s solicitor on your behalf to reach an agreement you are both happy with.
Mediation
A trained, neutral mediator helps you both discuss the issues and work towards an agreement. We support you before, during and after each session. A MIAM (Mediation Information and Assessment Meeting) is normally required before any court application to see if your case is suitable for family mediation.
Collaborative law
You, your spouse and both solicitors meet around the table and commit to resolving matters without going to court.
Arbitration
A private process where an independent arbitrator makes a binding decision. Quicker and more confidential than court.
Financial remedy proceedings (court)
Where agreement simply is not possible, we will guide you through every stage, from the Form A application and Form E disclosure to the First Appointment, FDR hearing and, if needed, a final hearing.
Consent orders and clean break orders
If you reach an agreement, it should be made legally binding in a consent order approved by the family court. Without one, the agreement is not enforceable and future claims remain open.
Where appropriate, it will also include a clean break. This is a clause that prevents either of you making further financial claims against the other in the future, giving both sides genuine peace of mind.
Pensions on Divorce
Pensions are often the second largest asset after the family home, and one of the most commonly overlooked. We will help you consider:
• Pension sharing orders — a percentage of one pension is transferred to the other spouse
• Pension offsetting — one spouse keeps the pension, the other receives a larger share of different assets
• Pension attachment (earmarking) orders — payments are made when the pension comes into payment
Where the figures are significant or the schemes complex, we work alongside trusted Pension on Divorce Experts (PODEs) and independent financial advisers to make sure you are not short-changed.
Further details can be found on our Pensions on Divorce <> page.
Spousal & Child Maintenance
Maintenance is about meeting ongoing needs. We advise on:
• Whether spousal maintenance is appropriate, and if so for how long
• How child maintenance interacts with the Child Maintenance Service
• Lump sum payments instead of monthly maintenance
• Varying existing maintenance orders when circumstances change
• Protecting business interests, inheritances and pre-marital assets
Non-Matrimonials Assets
Not everything brought into a marriage is automatically shared. If you own a business, have received an inheritance or built up significant assets before the relationship began, we will help you to ensure that these are treated appropriately and, where possible, ring fenced.
What if my Former Partner is Hiding Assets?
Full and frank financial disclosure is a legal duty. If we suspect assets are being concealed or undervalued, we can apply for further disclosure, instruct forensic accountants and ask the court to draw adverse inferences. We have acted on cases involving overseas property, undisclosed company interests and trust structures.
How Long Does it Take, and What Does it Cost?
Every case is different. A straightforward agreement formalised by consent order can often be completed in a matter of weeks. Contested financial remedy proceedings typically take 9 to 18 months.
We are upfront about costs from the outset. We will always discuss funding options and likely overall expenditure with you at our first meeting.
Why Choose Timms?
For almost 135 years, families in Derby, Burton, Ashby and Swadlincote and the surrounding areas have trusted Timms with the decisions that matter most. As proud members of Resolution, our family lawyers take a constructive, non-confrontational approach, giving you straightforward advice, a clear plan and a steady hand from first conversation to final order.
Speak to our Family Law Team
If you would like a confidential, no-obligation conversation with one of our family law experts, please contact us on freephone 0800 011 6666 or at legal@timms-law.com.
We will listen, explain your options clearly and help you take the next step with confidence.
Frequently Asked Questions
Do I need a financial order if my divorce is amicable?
Yes. Even where you both agree, your financial claims against each other remain open until a court-approved consent order is in place. Without one, your former spouse could make a claim against your assets, income or pension years down the line including after a remarriage, inheritance or business sale.
Will I have to go to court?
In most cases, no. The majority of financial settlements are resolved by the parties themselves, through solicitor negotiation, mediation or collaborative law and then formalised in a consent order and without either of you attending court. Court is reserved for cases where agreement cannot be reached or where one party will not engage.
Is everything split 50/50?
Not automatically. The starting point is fairness, not equality. The court weighs all the circumstances against the provisions of Matrimonial Causes Act 1973 including the needs of any children, each person’s income and earning capacity, the length of the marriage and future needs. A 50/50 division is one possible outcome, not the default.
What happens to the family home?
There are several options: selling and dividing the proceeds, one spouse buying the other out or one spouse remaining in the property until a future trigger event (often the youngest child finishing school). The right answer depends on housing needs, mortgage capacity and the wider settlement. We will talk you through the realistic options for your situation.
How are pensions dealt with on divorce?
Pensions are matrimonial assets and are often more valuable than people realise. They can be shared by way of a pension sharing order, offset against other assets such as the family home or less commonly earmarked for future payment. Where the figures are significant, we work with specialist actuaries to make sure the division is fair.
How long does a financial settlement take?
A straightforward agreement formalised by consent order can often be completed in a few weeks. Where financial remedy proceedings are needed, the timeline is typically 9 to 18 months, depending on the complexity of the assets and the court’s availability.
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