Delaying Financial Settlement on Divorce
Dealing with finances is part and parcel of the divorce process.
Agreement should be recorded between parties by way of consent order, and before Decree Absolute is granted. It is important that settlement of financial matters is not delayed.
Here are two reasons:
Firstly, the value of both parties’ pensions will be considered during financial negotiations.
Recent reports have highlighted significant increases in transfer values for those workers with defined benefit pension schemes where workers can ‘cash in’ their pension entitlements.
Increases of up to £200,000 in only a matter of months were seen in some pension values last year. This highlights the need to act quickly, rather than lose part of this increase upon a pension sharing order.
There is always a possibility that the transfer value of a pension will increase by the time a consent order is drafted, and valuations also take several months to be obtained from pension providers.
Share in an equality of division of assets
Secondly, unnecessary delay in bringing financial matters to a conclusion can negatively affect a party’s share in an equality of division of assets on divorce.
The recent case of Briers v Briers demonstrates how a party who waited 8 years after divorce to apply for a financial remedy order was penalised by the court. They received a discounted share on equality of division of assets due to her responsibility for delay.
Therefore, the best advice when divorcing is clear; don’t delay!