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You are here: Home / Blog / 7 Divorce and Finances Red Flags

7 Divorce and Finances Red Flags

August 15, 2022 By Helen Pidgeon

 This blog was originally posted here

7 Red Flags when going through a divorce and resolving your finances 

  • How much maintenance should you pay or receive?
    If you have children, the court will be guided by the equivalent rate of an assessment by the Child Maintenance Commission.  With spousal maintenance, the court will look at the way your family circumstances and finances were structured in the past and what is needed, and how much you or your spouse can afford to pay.
  • All agreed without solicitors?
    You still need a court order recording the financial agreement. To give you the best possible protection, you should instruct a solicitor to draft this document for you. 
  • Tax implications
    You may have to pay capital gains tax (CGT) on the disposal or transfer of assets between you and your spouse –this can be for a considerable amount, and you may need financial planning advice on the most tax-efficient way to proceed with your financial settlement.
  • What can you do if your spouse is spending excessively and disposing of assets?
    You may need to take urgent action such as obtaining an injunction or registering restrictions on those assets to stop them from being sold before a financial settlement is reached. 
  • Claims to add money back into bank accounts for money that has been excessively spent are difficult to sustain
    You should not rely on being successful to make an “add back” claim.
  • You should consider getting a joint expert to advise upon how best to share pensions
    You need to obtain the transfer value of all pension schemes and consider whether an equal interest in the capital or income is appropriate.  In order to achieve an equal interest, your or your spouse’s interest is not necessarily equal to 50% as it will depend upon the type of pension scheme you have and the benefits it will attract.  
  • Multi-national marriages
    Depending upon your nationalities, either you or your spouse may be able to issue divorce proceedings in another country. This should be explored at the outset to determine in which country it would be in your best interest to issue the proceedings. 

Helen Pidgeon Solicitors specialise in all aspects of family law and offer mediation and the collaborative practice. On our other website, find out where you stand and obtain more information about your situation or contact us by telephone or email for an initial discussion to see how we may help you.  We offer initial fixed fee meetings.

References in this article to divorce proceedings also apply to the dissolution of a civil partnership save as otherwise stated.  

Attorney Testimonials

Barbara A. Castrataro

Professionalism, Quality, Responsiveness, Value

I have worked with Helen collaboratively when my New York cases require international counsel, in this case, in London. Helen is remarkably astute, thoughtful with strong acumen. She is thoroughly professional and creative when faced with difficult cases. Whether working in litigation or in collaborative cases, Helen has the perfect temperament. I not only work exclusively with Helen, I have unreservedly recommended her to other counsel.

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