Financial dispute

When a relationship breaks down it may well be necessary to consider the financial implications. What is to happen to the family home? Should one spouse live in the home with the children whilst the other spouse moves out into rented accommodation? Or should the house be sold? The many questions are endless. The procedure known as ‘Financial Relief’ allows parties to resolve their financial matters. This process entails both parties disclosing all their financial assets to the other party. For example they will be required to show to the other party bank statements of all bank accounts, salary slips, pension details etc. The purpose of Financial Relief is to decide on a set of financial arrangements which are fair to all parties. This proceeding allows a party to apply for a wide range of financial claims such as:

• Maintenance – One party can make a claim for maintenance. For example the wife remains in the home with young children whilst the husband works. The court could order that the husband pays an amount each month from his salary to the wife. The maintenance can be limited to a set period i.e. when the youngest child turns 18 years then the maintenance will stop.
• Lump sum orders – the court can order that one party pays the other a lump sum of money. The amount the court will order will depend on individual cases. A lump sum can be ordered in addition to maintenance or can amount to a final settlement. So for example the court can order that the wife receives £300 per month by way of maintenance and also a lump sum of £150,000.
• Transfers of property – The court can order a husband or wife to transfer any property to the other. This order is often made when the property to be transferred is the spouse’s interest in the former matrimonial home. These orders can be made in relation to all forms of property, including business property, shares and investment accounts.
• Pension Sharing Orders – The court can order various types of pension sharing or pension attachment orders. For example the court can order that the wife’s pension should be divided into two and that the husband should have one half. The husband could then transfer his half into another pension fund of his choice.