What is a Financial Settlement?
Financial Settlement is the legal process for the division of wealth during a divorce. This settlement safeguards the financial security of both spouses as they separate.
The settlement may be in the form of the division of joint accounts, properties and more. Not only will joint assets be divided, liabilities such as credit card debt and loans will also be divided prior to signing the divorce. Assets will be divided with agreed terms and conditions in the presence of a mediator. A mediator will help you reach a fair settlement by being impartial.
Where you have the right over jointly owned assets, you also have the duty to pay jointly owned debts or liabilities. It is important to reach a settlement to divide loans and other financial liabilities before signing the divorce not only for legal purposes but also to safeguard your personal financial interests in future. It can be instrumental in starting your new life after the divorce.
Some marriages see one spouse working and the other maintaining the home or looking after children. After divorce, it may be financially easier for the sole earner of the family to support themselves than the person who has spent their time at home. So, after the divorce has been signed, there may be funds which have to be paid on regular intervals from the sole earner to the former spouse, known as Spousal Maintenance. Spousal Maintenance depends upon the following aspects:
The ability of each person to support themselves financially
The living standards before and after divorce.
Disabilities or special requirements
The length of the marriage
The age of divorcees
It should be noted that the Spousal Maintenance funds are not to be confused with Child Care Funds.
Failure in meeting the terms of the agreement:
Spousal Maintenance must be fulfilled. Failure to do so can have serious consequences for those in violation of the agreement. If you or your former spouse are violating pre-agreed terms of Spousal Maintenance, you can approach the court for intervention.
One possible outcome is that a legal order may be issued to the employer of the party in violation of the agreed terms. This may pre-allocate some percentage of the salary of the former partner in violation to the other. The court can also impose fines on the former spouse in violation of the terms as monetary compensation for any losses or other effects of the situation.
Get in touch with us for expert advice
Financial Settlements can be daunting and difficult so it is recommended to have expert legal advice. Our solicitors here at ASL will happily consult you. We also have a team of people who speak fluent Urdu and Punjabi to help communicate about our legal services effectively. Contact us on 07484 515874 for 24-hour advice.