Understanding financial settlements and child maintenance after separation
Separating from a spouse is never easy, particularly when there are children and shared finances to consider. Reaching a fair, workable arrangement is essential for your wellbeing and for your child’s future. At Attwaters, our expert Family Law team can help you understand your rights, explore your options and secure an agreement that protects your long-term interests.
Financial settlements
When a relationship breaks down, you will need to consider how to divide your property, assets, pensions and income. This is a separate decision from Child Maintenance Arrangements.
If you can reach a financial agreement between yourselves or through mediation, you should obtain an order from the Court to make this legally binding and enforceable if you ever need to. Without a Court Order, your ex-spouse can legally ask you for more money or assets at any point in the future.
There are two main types of financial order:
- Consent Orders confirm the terms of an agreed settlement and prevent either party from making further financial claims
- Clean Break Orders are for couples with no assets to divide upon separation, but who want to ensure that all financial ties between them are severed.
If you cannot reach an agreement, a Court will decide how your finances are to be split. The Court will look at the circumstances of each case and take the following into account:
- Whether the former matrimonial home will be sold or transferred to one party if you are married
- Whether one party is to receive an immediate or deferred share of their interest in the home
- How all other assets should be divided, including shares, stocks, ISAs, PEPs, premium bonds and savings
- Whether either party should be awarded a lump sum
- Whether there are any pensions that need to be divided or shared
- Where fitting, what will happen to the family business.
Child maintenance
If you have children, you will need to agree on how their day-to-day living costs will be covered. This is separate to shared care arrangements; however, if your child spends exactly the same amount of time with both parents, no child maintenance is required (even if your financial situations are different).
You must have a child maintenance arrangement if your child is under 16 (or under 20 if they are in approved education or training). If you can’t reach an agreement privately or through mediation, you will need to go through the Child Maintenance Service (CMS) who will decide for you. If you do not want to have contact with your ex-partner, the CMS can collect payments and pass them on for you.
Talk to us
Our experts can help you achieve financial settlements and reach child maintenance arrangements. We can do this through the traditional route of making an application to the Court or through alternative dispute resolution options. To talk through your particular circumstances, contact our Family Team on familylaw@attwaters.co.uk or 0330 221 8855.
