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If you’re experiencing a divorce or dissolving a civil partnership, agreeing on how to split your finances can be a difficult situation to resolve.

Some couples may be fortunate enough to be able to resolve matters amicably between themselves, while others may need some impartial support to reach an agreement that is favoured by both parties.

What’s covered in a financial settlement?

A financial settlement at the end of your relationship is an agreement that outlines how your assets are divided between you as a couple. It includes areas such as properties, pensions, savings, investments and debts. The agreement may also include child maintenance payments or support with living expenses.  

For a divorce or dissolution settlement to be legally-binding, a financial order is needed. You’ll both need to apply to court to get one, which then formalises all arrangements. You can apply for a financial order when you apply for your divorce or dissolution or after that date. The financial order will only start after you get your final order or decree absolute.

Reaching an agreement together

If you can reach an agreement on financial matters together, you’ll save time and money compared to going through a court process.

If you feel you may need some additional help, you can choose to go down the route of mediation. Mediation sessions are held by a professional mediator, usually from a solicitor’s office, who acts as a third party and helps to encourage open communication between both parties and helps you get your point of view across.

If you need further help or to negotiate, a solicitor can ensure that all key issues are covered, considered, and agreed upon. A solicitor will also look into your financial needs to help ensure that standards of living are still met.

Using court to reach a financial settlement

If you can’t reach an agreement with your ex-partner, you can ask a court to make a financial order for you, where they decide how your assets will be split between you. Before applying to court, you must have attended a mediation session and have a signed form from the mediator to confirm you’ve attended. In certain circumstances, for example, if there has been domestic abuse in the relationship, it’s not required that you attend mediation.

The court will follow guidelines set out in the Matrimonial Causes Act 1973, and its primary consideration will always be protecting the interests of any dependent children.

How to contact PayPlan

If you’re experiencing debt during or after a divorce or separation, we can help. Call us for free on 0800 316 1833, speak to us on Live Chat or fill out our online form.