Divorce Settlements

Divorce Settlements

Agreeing to a divorce settlement is a practical solution to the distress and heavy legal costs of a court hearing. That is why most divorcing and separating couples opt for this choice.

Generally, it is the solicitors who negotiate a divorce settlement between the parties. The settlement is similar to the order of the court when it decides on a dissolution proceeding and needs a separate order from the court confirming the terms of the agreement. But the difference is that this can be done by post, which means that the parties do not have to go through the hassle of going to court.

In the vast majority of cases, this is what happens. However, a divorce settlement should only be done if the chance of agreement is real. If not, then an application must be made to the court to resolve the issues.


What the Court Considers

The first thing you need to learn about divorce settlements is that there are no firm rules about how assets and properties are divided. There is not even one rule to define how money has to be paid to one or other spouse. Essentially, the court is given the widest discretion to make whatever divorce settlement as it sees fit.

The factors laid down by lawmakers include the present and future needs, resources and earning capacity of both husband and wife, their age, the length of their marriage and the contributions of each to the family finances.

First, consideration should be given to the welfare of the children. If there are no children and both the husband and the wife are self-supporting, then the divorce settlement will be simple and requires very few transfers of assets.

By contrast, where a couple has been married for several years, their finances will be harder to separate and will therefore require a more complex divorce settlement.

Conduct of each party is not generally taken into consideration for the divorce settlement. It is accepted that a great many people behave irrationally when their marriages are breaking down. However, there may be a tiny minority who behave in such a way that their conduct will be taken into account into making the divorce settlement order. But again, this is only treated as an exception rather than the rule.

When Couples Agree to a Divorce Settlement

A divorce settlement may be worked out at any time. Situations wherein a divorce settlement may be done can include the following:

* When a couple decides to separate and find a solution by voluntary agreement
* When divorce proceedings are issued or any time afterwards as long as the person applying has not remarried.

Note that orders requiring husbands and wives to transfer property or pay lump sums to each other can only be made after a final decree of divorce, although in practice, the transfers may be done beforehand.