I don’t mean the actual cost of getting divorced, I am talking about the cost of dealing with a Divorce and financial settlement.
FAQs
You may have questions and worries on your mind such as,
- Can I afford to move out?
- Will I have to contribute towards mortgage and bills if I move out – but how can I with such high prices for rental properties?
- Will I be able to secure a mortgage for another property and how much deposit will I need?
- My business is doing well but it is in debt, if I give money to my spouse from the business, will I be able to continue trading?
- My pension is already being paid out, will I still have to share it, and what if I run out of money in the future?
Let’s talk statistics
Without going too deep into politics, I want to highlight some issues, that we as lawyers have to advise our Clients about.
Energy prices are capped and are currently £1,971 but this is set to rise to £3,582 (predicted) in October 2022 and then increase to £4,266 (predicted) in January 2023. [Source www.moneysavingexpert.co.uk]
With more and more of us having to return to work after the COVID lockdown ended, and with the cost of fuel increasing so rapidly – it’s actually expensive to travel to work. The current prices are 176.88p for unleaded petrol and 187.42p for unleaded diesel (as of 9th August 2022). [Source www.rac.co.uk].
Although property prices are on the increase, it is actually the cost of purchasing or renting a new property that can be worrying because those costs are increasing. The average monthly rental value has increased since last year in each area of the UK. Even with house prices decreasing slightly, it will be some time before properties become more affordable in line with wages again.
What does this mean for you?
Before you think about Divorce and a formal separation, you have to consider your needs. Do you need a new property? Do you need to change jobs? Will you have extra outgoings for travel or school costs? How much will it cost for bills each month?
All of these issues have to be taken into consideration, and during the separation process, you cannot assume that the other party will automatically pay towards mortgage/rent or other costs if they move out. Also if you decide to move out, the other spouse may not have the disposable income to help you with the costs of living even when you have children.
It is a myth that the non-resident parent of children has to financially provide for the spouse with children in their care. It is a myth that they have to provide a house or a car or anything else unless it is agreed upon before the separation.
It is possible to reach an informal agreement before separation to decide who will pay for what and how long this will last. It is better to have realistic expectations of the separation than false promises.
You may be in a position where you have limited information about the household finances or your spouse’s earnings. You may not even know what you are entitled to, or what financial help you can ask for.
Is legal advice worth it?
You can get advice from a Solicitor at the point of separation, to help you put together a Separation Agreement setting out all the financial issues that you need to deal with before you deal with a formal Divorce. This is for those couples who do not want to get Divorced straight away but want some time to get used to living independently. There may be co-parenting issues that need to be resolved first before going through a Divorce.
If you do not want a Separation Agreement, you can ask a Solicitor to put together a proposal for the meantime before the Divorce starts and begin discussing actual financial settlement which will then be agreed upon and approved by the Court. This is called a Consent order, and when the Judge approves it, it will be legally binding on both parties just before they become divorced.
If you speak to friends and family members about their experiences of Divorce and Financial settlement, you might get different responses. You have to remember that each case is different and everyone has different financial obligations. You also have to consider your own needs and what you can afford independently. You have to think about the questions set out above and make decisions on what is best for you and for any children living with you. I know from experience that no two cases are the same even though we apply the same principles. Each negotiation is different and what you need now, might not be the same as what you need 1 year later or even 5 years later.
If you have recently separated or want to issue Divorce proceedings, you can Contact me to get some advice.