{"id":261343,"date":"2025-08-15T15:55:48","date_gmt":"2025-08-15T15:55:48","guid":{"rendered":"https:\/\/dominiclevent.com\/blog\/?p=261343"},"modified":"2025-08-15T15:55:48","modified_gmt":"2025-08-15T15:55:48","slug":"how-to-stay-on-the-right-financial-track-during-divorce","status":"publish","type":"post","link":"https:\/\/dominiclevent.com\/blog\/how-to-stay-on-the-right-financial-track-during-divorce\/","title":{"rendered":"How To Stay On The Right Financial Track During Divorce"},"content":{"rendered":"\n
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If you are in this situation and are concerned about future finances, Jones Myers Partner Nicki Mitchell<\/span><\/a> – a Mediator, Child Inclusive Mediator and Collaborative Family Lawyer – shares insights on the pitfalls to avoid.<\/p>\n

Be Open and Honest\u00a0<\/strong><\/p>\n

Not sharing financial information during a relationship can contribute to problems during divorce proceedings.<\/p>\n

One spouse may have no idea where the budget line is \u2013 or even where it should be drawn \u2013 and may have unrealistic expectations of what they are entitled to, or what is a realistic and affordable.<\/p>\n

\u00a0One spouse may have hidden savings or income from the other or scrutinised the other\u2019s spending without being transparent about their own. On divorce, there is nowhere to hide. It is fundamental that both spouses fully and frankly disclose everything they have to each other as a starting point for an informed negotiation.<\/p>\n

The Importance of Financial Disclosure\u00a0\u00a0\u00a0<\/strong><\/p>\n

In every divorce, separating couples must provide to the other full details of their assets, income, pension and liabilities.\u00a0\u00a0 This is known as financial disclosure.<\/p>\n

Financial disclosure ensures that both spouses can make fully informed decisions about what they consider to be a fair settlement.\u202fA failure to disclose anything material to the settlement can in some cases lead to an agreement being set aside. Lawyers and judges know every trick in the book and will ask questions if they suspect that money has been concealed. They may even employ forensic accountants to track down missing assets.<\/p>\n

Don\u2019t be tempted to hide money in offshore banks. These still have to be disclosed.\u00a0 If you do not provide everything that is necessary to understand the financial position, family courts have the power to question your accountant, your financial advisor and even your bank manager.<\/p>\n

\u202fSetting up a new business shortly before separation may well be seen as suspicious or even a deliberate attempt to hide assets.\u00a0 Taking steps designed to put money beyond the reach of your spouse could lead to injunctions being made against you, freezing assets, or ordering the return of monies from third parties.\u00a0 In the long run, actions such as these are highly unlikely to succeed and will almost certainly damage your credibility in the eyes of the court.<\/p>\n

The Penalties of Concealing Assets\u00a0<\/strong><\/p>\n

If it later comes to light that you have withheld material financial information during the financial disclosure process, your spouse might be able to ask the court to set aside the Financial Consent Order and relook at what would be a fair order – taking into account all the assets, including those not previously disclosed.<\/p>\n

The court can also make an order that you pay your ex\u2019s legal costs. In the worst-case scenario, deliberately withholding financial information in breach of a court order can amount to a contempt of court for which a range of penalties (including ultimately imprisonment) could be imposed.<\/p>\n

Include Pensions in Financial Settlements<\/strong><\/p>\n

Frequently overlooked in financial settlements, pensions are frequently one of the most valuable assets of a marriage. They often make up the second highest- value asset in a divorce settlement after the family home – or sometimes the highest.<\/p>\n

It is key that information about pensions is made available in the financial disclosure process which must include details of all<\/em> pensions, including state pensions – and the value of each one.<\/p>\n

The most common way in which a disparity in pensions is addressed in a divorce settlement is pension sharing.\u00a0 Pension sharing splits the pensions immediately and provides a clean break<\/p>\n

As an alternative, in some cases ex-spouses prefer to take a greater share of the equity in the family home or other capital, as a trade-off for a share of the other\u2019s pension.<\/p>\n

Some divorces may involve several pension arrangements so it is important to consider which arrangements should be shared, and to what extent.\u202fPensions are complex and, save in very straightforward cases with pensions of limited value, it is important to get specialist advice about them before agreeing a settlement.<\/p>\n

The pension share may be internal (when the recipient becomes a member of the scheme) or external when the share must be invested in an existing or new arrangement of the receiving party. Care should be taken to obtain details of the cost of any transfer.<\/p>\n

In deciding what is best for them, the couple need to consider how their respective financial needs will be met and what other assets are available for distribution.<\/p>\n

We always advise that couples in this situation seek legal advice from established and respected family lawyers and financial experts.<\/p>\n

As part of our holistic approach, Jones Myers advises and guides our clients through the stages of divorce both during and after their divorce.<\/p>\n<\/div>\n\n

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