What is a Fair Divorce Settlement?

There are so many misconceptions flying around about divorce settlements. The most common is that a divorce settlement is simply a 50/50 split between both parties. The fact is, if your divorce finances go to the Family Court, what the judge considers to be fair may not match your idea of a fair divorce settlement.

Equally, what you think is fair, your former partner might have a different viewpoint on. The truth is, there is no ‘one size fits all’ formula for deciding who gets what when splitting divorce finances. Every divorce is unique, and your situation will determine the outcome of any settlement.

With that said, if you have children, the Court will always make their needs a priority. This means that they will make sure that a child’s primary caregiver has the money to support the child and themselves.

The family home

As part of a divorce settlement, the Court may rule that the primary caregiver remains in the family home.

As part of a divorce settlement, the Court may rule that the primary caregiver remains in the family home, should it suit a child’s needs – for instance if the family home is close to their school.

Another common misconception surrounding divorce settlements is that the Courts will view stay-at-home parents differently to a parent who has a full time job. In fact, the Court won’t see the contribution of the main wage earner as being greater than that of a home maker when deciding on divorce finances.

This means that if you were the main wage earner in the household, even if you paid for something out of your salary, your former partner could be entitled to it as part of any fair settlement.

A fair settlement isn’t always 50/50

A fair divorce settlement isn’t always 50/50.

If you’re planning on, or in the process of getting divorced, you can’t enter into the process thinking you’re going to get 50% of everything. With so much at stake, including the family home, other property assets, pensions, savings, cash in the bank, vehicles, furniture and appliances, stocks, bonds, mutual funds and businesses, a 50/50 split is not guaranteed.

Meanwhile, non-matrimonial assets aren’t necessarily exempt from a divorce settlement either. Non-matrimonial assets are those that your acquired prior to getting married.

In the case of a settlement, you may have received an inheritance before getting married, but some of that was used to buy an asset such as a car or house while you married.

That asset would usually be treated as a matrimonial asset – meaning that your former partner could be entitled to it even though you bought it using inheritance money received outside the marriage.

Ultimately, the aim of the Family Court is to divide assets fairly and equally, but it’s important not to get in the mindset of thinking that this means half and half. You just need to manage your expectations.

Challenging an unfair divorce settlement

You can challenge a divorce settlement decision.

However, if you believe a settlement to be unfair, you can challenge the Court’s decision. But it is up to the Court to decide whether a settlement can be re-negotiated. Most divorce settlement cases that are re-opened occur when one party is found to have been dishonest.

If you’re able to prove that your former partner failed to give full disclosure of their financial situation or they have hidden assets, the Court is more likely to revisit your settlement. If it’s found that your former partner failed to disclose assets, a Court Order approving a financial settlement can be set aside.

Talk to us about getting a fair divorce settlement

The Holland Family Law team specialises in all matters relating to divorce, including financial settlements. For quality legal advice and representation to secure a fair divorce settlement for you, reach out today on 0116 436 2170 or get in touch using our website contact form.