Legal costs & costs on transfer of assets

Legal costs can easily stack up, and even the solicitors at the first meeting will check whether separating couples have tried cheaper alternatives.

Couples in the process of a divorce or dissolution can apply to a court, for a financial order.

What is financial remedy order?   

Also Sometimes known as an ancillary relief order, a financial remedy order helps settle the financial dispute between divorcing couples in court. A financial remedy order can include lump sum payments, share of pensions, ownership of a property and regular payments for childcare and other needs.

This covers areas such as a lump sum payment, ownership of a property, regular maintenance payments to help with children or living expenses, and a share of a partner’s pension payments.

Ultimately, in many cases, a judge will decide how the couple’s assets are divided between the couple.

The decision will be based on the length of the marriage or civil partnership, the ages of the parties involved, their ability to earn, their property and money, their living expenses, and their standard of living.

The roles played, such as breadwinners or primary carers will also be considered.

The judge will make arrangements for any children first, especially their housing arrangements/needs and child maintenance, if there are not enough assets to go around.

There can be tax implications following these rulings.

Tax when transferring assets:

You do not usually have to pay Capital Gains Tax if you give, or otherwise ‘dispose of’, assets to your husband, wife or civil partner before you finalise the divorce or civil partnership.. Assets include shares, certain personal possessions and property. You usually do not have to pay tax if you transfer or sell your main home.  See more information here

Ultimately, if a couple’s finances are more complex, it is likely to cost more – in both time and money – to reach an agreement.