For better, for worse: the reality of divorce in the credit crunch

Wake Smith Solicitors 15 December 2010
The division of assets in divorce settlements needs greater consideration as more people face the reality of divorcing in the credit crunch and the realisation that assets can go dramatically down in value as well as up.
 
Lindsey Canning, Associate in the divorce and family team at Wake Smith said: "A number of high profile cases in the news recently have highlighted the need for couples to seriously consider the effects of the credit crunch and how their divorce is handled. This is not just about millionaires; the implications extend to anyone currently going through a divorce settlement. Everyone needs to appreciate the affects that the economy is taking on the value of their assets."
 
Lindsey's advice on divorce in the credit crunch:
 
  • If there is to be a sale of any property then divide the proceeds by way of a percentage split and not set amounts.
  • If you decide that you want to buy out your partners share in a property, it is worth paying for a formal valuation by a chartered surveyor. Free estimates can be unreliable as the estate agents expect the property to go on the market for sale and so the property value will be determined by the offers made. Without an expert report you may be paying out more than you should.
  • Should your future employment be uncertain, then consider whether it is sensible to offer to pay an additional capital sum to your ex partner to capitalise any maintenance claims. If you are paying maintenance and then lose your job, the maintenance can be changed. If you have paid a lump sum instead of maintenance then it is unlikely that you will be able to vary the payment.
  • The Court of Appeal has said that the natural processes of price fluctuation whether in housing, shares or any other property, however dramatic, is not sufficient to reopen the settlement. People need to assess the risk of keeping property and investments.as part of the settlement.
  • It is vital to act quickly. If you consider that a "new event" has occurred to alter the settlement reached then you must act immediately and seek expert advice. Once the court has made an order about property and capital it is intended to be a final order. There are very few successful applications made to the court. If the "new event" relates to a partys ability to pay / require maintenance then an application should be made to the court as soon as possible if no agreement can be reached.
 
For further information and advice, please contact Lindsey Canning on 0114 266 6660 or email [email protected]

Tags

Archive

March 20247February 20242January 20248December 20236November 20232October 20235September 20232August 20234July 20232June 20235May 20238March 20234February 20235January 20233December 20225November 20224October 20224September 20223August 20221June 20221May 20227April 20223March 20223February 20223January 20224December 20214November 20213October 20215September 20216August 20212July 202111June 20218May 20216April 20212March 20218February 20218January 20219December 20208November 202013October 20209September 20208August 20203July 20208June 202016May 202013April 20209March 202016February 20209January 202011December 20199November 20199October 201911September 20195August 20194July 20196May 20198April 20196March 20193February 20195January 20194December 20186November 20185October 20182September 20185August 20184July 20189June 20184May 201810April 20185March 20184February 20184January 20183December 20175November 20178October 20177September 20179August 20175July 20176June 201710May 20176April 20178March 201711February 20176January 201712December 20169November 20167October 201610September 201610August 20166July 20167June 20163May 20162April 20166March 20162February 20164January 20165December 20153November 20155October 20156September 20156August 20157July 20157June 20157May 20156April 20159March 20156February 201510January 20156December 20145November 20144October 20142September 20143May 20144March 20146February 20144January 20142December 20132November 20133September 20134July 20132June 20132May 20133April 20131March 20133February 20133January 20136December 20121November 20123October 20122August 20122July 20128June 20123April 20123March 20121January 20124December 20112November 20111October 20112September 20113August 20113July 20117June 20119May 20117April 20115March 20119February 20118January 20111December 20101October 20102September 20102August 20103July 20106June 20101May 20102April 20106March 20102February 20103January 20102December 20095November 20092October 20092September 20092August 20091July 20095June 20095May 20093April 20093March 20093February 20091January 20092November 20082October 20082September 20081August 20083July 20081January 20082

Featured Articles

Contact us