FINANCIAL
MATTERS
1. Do I have to let my spouse and children
stay in the former matrimonial home?
It is essential that you realise that although Case
Law helps solicitors to advise clients as to possible
outcomes, each case is individual and is therefore considered
on its own facts and merits. If the household income
is modest and it is unlikely that your wife can afford
to stay in the home (if you rent/buy somewhere else)
then it is unlikely that the long term settlement will
see her and the children staying in the property.
If your spouse is able to afford to stay in the property
with some financial support (either by way of child
maintenance and earned income together with benefits)
then the Court may support this if it is the best course
of action. If Court Proceedings become necessary to
deal with the financial arrangements then a court will
take into account a number of factors that are specified
within the Matrimonial Causes Act 1973 including need,
earning capacity, length of marriage and age of the
parties to name but a few.
2. How much equity can I get out of the house?
Even if your spouse and children stay in the house
your interest isn’t wiped out, instead it can
be protected and realised at a future date. The times
you will get this is agreed between you both and are
often referred to as trigger dates. The usual dates
include the youngest child attaining the age of 18 or
completing full time education (you can agree to include
further education), your spouses cohabitation or remarriage
and their death or voluntary sale of the property. Your
interest will be protected for example by way of a legal
charge on the property.
3. Is my spouse entitled to any of my pension?
When a pension is considered within divorce proceedings
you have to start with the premise that everything (all
assets and liabilities) go into one pot and therefore
there is always a possibility that your spouse may be
entitled to some of your pension. Various factors are
considered for example, the length of the marriage,
age of the parties and also the actual size of pension.
If there are other assets that the spouse may retain
to offset any entitlement to a pension then your pension
can stay completely in tact.
4. How much child maintenance do I have to
pay?
The CSA use a basic system to calculate the amount
of Child maintenance that should be payable. This is
as follows:-
• 15% of your net income for 1 child
• 20% for 2 children
• 25% for 3 or more children
Thereafter there are some deductions that may apply,
for example if you have overnight contact with your
children for more than 52 nights per year then you can
apply a reduction in the amount due. In addition, if
you have a second household with children a further
deduction may apply.
5. I have reached an agreement with my spouse
about the finances so what do we do next?
It is important to bear in mind that even if you implement
the financial agreement reached that your claims against
one another remain open. Divorce does not bring these
claims against each other to an end. There are 2 ways
in which financial claims against each other are terminated.
The first is remarriage however only the spouse who
remarried is prevented from claiming financially against
the other. The second is to have a Consent Order drawn
up which is a document that is drawn up setting out
the agreement reached. This is subsequently sent to
the court within the Divorce Proceedings to be considered
an approved by a Judge. The agreement must be considered
to be fair and equitable by the Judge and it is not
simply “rubber stamped”.
For information on any matters discussed, simply call
one of our family law solicitors Helen Oakes or Suzanne
Smith on our Freephone 0800 731 2947
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