Financial settlements in divorce: What do I need to know?

Financial settlements are agreements reached between two parties who are going through a divorce. In this video, our family law expert shares the key things that divorcing couples need to know.

Also known as financial agreements, financial settlements aim to set out what the parties agree, both now and in the future, and are used to benefit everyone involved. Divorce and finances can be complicated and family lawyers can help you to focus on what is important.

Jonathan Eager – partner in our highly rated divorce & family law team – shares his guidance on financial settlements in the video at the top of this page, including the dangers of ‘DIY agreements’.

How are financial settlements formalised?

Financial settlements can be formalised in a number of ways. You can attend mediation and reach an agreement, asking your respective solicitors to then draw up what’s been agreed, or you can come to an agreement having instructed solicitors who then negotiate between themselves on your behalf.

The document that is eventually completed is a financial order. That is then sent to the court with some supporting documents, and a court will approve the terms of that order.

Why would someone want to avoid going through the courts?

We would recommend out-of-court dispute resolution. This is because going through the courts, first and foremost, is extremely expensive. There is also an element of uncertainty – if you have a final hearing in front of a judge, that judge is making a decision for you. There are numerous ways of being able to come to an agreement between you without having a decision imposed.

This could be achieved through mediation, private hearings or arbitration. It could also be achieved through you and the other party having a roundtable meeting with solicitors, discussing things that allows you to keep control of the narrative.

This way, you are in control of what gets divided and how it is divided rather than the court process, which is very adversarial and is dominated by one person telling you what has to be done.

Watch the full version of this Q&A by clicking on the video at the top of this page, where our family law expert looks into these questions and more in detail.

If you have any questions or queries about financial settlements, or would like to find out more, please don’t hesitate to contact Jonathan and our friendly and approachable family law team.

Our Legal 500 and Chambers-rated department can help with all aspects of family law. Our lawyers listen to your needs sensitively and fairly, providing clear, supportive and careful guidance to deliver the best outcome for you.