By Jones Myers Partner Nicki Mitchell – Mediator, Child Inclusive Mediator and Collaborative Family Lawyer

The fear of starting all over again and all the financial worry that can bring with it can understandably have a profound effect on many people going through divorce or separation.

This anxiety can be particularly acute for those who have not had to deal with financial practicalities such as tax, standing orders and direct debits during their relationship.  

Below are some insights to help you stay on the right financial track.

Be Open and Honest

Not sharing financial information during a relationship can contribute to problems during divorce proceedings. 

One spouse may have no idea where the budget line is – or even where it should be drawn – and may have unrealistic expectations of what they are entitled to, or what is a realistic and affordable. 

One spouse may have hidden savings or income from the other or scrutinised the other’s spending without being transparent about their own. On divorce, there is nowhere to hide. It is fundamental that both spouses fully and frankly disclose everything they have to each other as a starting point for an informed negotiation.

The Importance of Financial Disclosure   

In every divorce, separating couples must provide to the other full details of their assets, income, pension and liabilities. This is known as financial disclosure.

Financial disclosure ensures that both spouses can make fully informed decisions about what they consider to be a fair settlement. A failure to disclose anything material to the settlement can in some cases lead to an agreement being set aside. Lawyers and judges know every trick in the book and will ask questions if they suspect that money has been concealed. They may even employ forensic accountants to track down missing assets.

Don’t be tempted to hide money in offshore banks. These still have to be disclosed.  If you do not provide everything that is necessary to understand the financial position, family courts have the power to question your accountant, your financial advisor and even your bank manager.

Setting up a new business shortly before separation may well be seen as suspicious or even a deliberate attempt to hide assets. Taking steps designed to put money beyond the reach of your spouse could lead to injunctions being made against you, freezing assets, or ordering the return of monies from third parties.  In the long run, actions such as these are highly unlikely to succeed and will almost certainly damage your credibility in the eyes of the court.

The Penalties of Concealing Assets

If it later comes to light that you have withheld material financial information during the financial disclosure process, your spouse might be able to ask the court to set aside the Financial Consent Order and relook at what would be a fair order – taking into account all the assets, including those not previously disclosed.

The court can also make an order that you pay your ex’s legal costs. In the worst-case scenario, deliberately withholding financial information in breach of a court order can amount to a contempt of court for which a range of penalties (including ultimately imprisonment) could be imposed.  

Include Pensions in Financial Settlements

Frequently overlooked in financial settlements, pensions are frequently one of the most valuable assets of a marriage. They often make up the second highest- value asset in a divorce settlement after the family home – or sometimes the highest.

It is key that information about pensions is made available in the financial disclosure process which must include details of all pensions, including state pensions – and the value of each one.

Pension sharing, the most common way in which a disparity in pensions is addressed in a divorce settlement, splits the pensions immediately and provides a clean break

As an alternative, in some cases ex-spouses prefer to take a greater share of the equity in the family home or other capital, as a trade-off for a share of the other’s pension.

Some divorces may involve several pension arrangements so it is important to consider which arrangements should be shared, and to what extent.  Pensions are complex and, save in very straightforward cases with pensions of limited value, it is important to get specialist advice about them before agreeing a settlement. 

The pension share may be internal (when the recipient becomes a member of the scheme) or external when the share must be invested in an existing or new arrangement of the receiving party. Care should be taken to obtain details of the cost of any transfer.

In deciding what is best for them, the couple need to consider how their respective financial needs will be met and what other assets are available for distribution.

As part of our holistic approach, Jones Myers advises and guides our clients through the stages of divorce during and after their divorce.

Part 2 of this article will include how financial planning can prove useful, the importance of a formal Financial Order – and how to plan for your finances post-divorce.    

This article was originally commissioned for, and published in, The Divorce Magazine.

Image courtesy of Unseen Studio on Unsplash

For queries on pensions in divorce or any aspect of family law, call 0113 246 0055 (Leeds) 01423 276104 (Harrogate), 01904 202550 (York). Visit www.jonesmyers.co.uk, email info@jonesmyers.co.uk or tweet @helpwithdivorce

Jones Myers blog is ranked among the UK’s Best 25 family law blogs and websites to follow in 2025

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By Jones Myers Partner, Nicki Mitchell

A Financial Consent Order, which divides financial assets between separating couples, is vital in protecting them from future financial claims.

Once approved by a court, a consent order becomes legally binding and its terms are enforceable in exactly the same way as an order made by a Judge after a contested court hearing.  The positive is that agreed orders are much less likely to need to be enforced than those imposed by a Judge.

If your order is being ignored, we always advise, wherever possible, to contact your ex to understand why they haven’t done what the order requires before initiating legal action.

There might be genuine reasons for their failure to comply and communicating with them may resolve the problem. This is something which a court will expect you to do in any event before any enforcement application is made.

If this approach doesn’t work or your ex fails to respond, you may want to seek legal advice with a view to taking legal action.

The penalties for breaching a Financial Consent Order include the risk being in contempt of court and possible severe penalties such as a fine, imprisonment – or both. The legal avenues to address a refusal to comply with a Financial Consent Order include:

Enforcing orders for sale of property

The courts possess stringent powers to ensure orders for sale of property are put into effect.  Where your ex is failing to do what is required to market a property, the court can make an order giving you the power to progress the sale without their input.  The Judge can even sign key documents on behalf of your ex if they refuse to do so.

Charging Order

If there is an unpaid lump sum and your ex owns property, the court can make a charging order. This is registered against the property. If the debt remains unpaid, you can make an application to enforce the charging order by a sale of the property.

Attachment of Earnings Order

This court order compels your ex-spouse’s employer to make regular deductions from their wages and send them to the court until the money owed is paid.  Attachment of earnings can be a useful means of enforcing maintenance orders.

Third-party Debt Order

A court can order that money be taken from your ex’s bank account or from other monies owed to them.

Warrant of Control

A court order where the court instructs bailiffs to collect the money owed by seizing your specified assets and selling them to pay the debt.

At Jones Myers we help our clients navigate the enforcement process. Alternatively, if their circumstances change and they cannot fulfil the obligations outlined in their Financial Consent Order, we can guide and support them to seek a variation of the order.

For queries on Financial Consent Orders or any aspect of family law, call 0113 246 0055 (Leeds), 01423 276104 (Harrogate), or 01904 202550 (York). Visit www.jonesmyers.co.uk, email info@jonesmyers.co.uk or tweet us @helpwithdivorce

Jones Myers blog is ranked among the UK’s Best 25 family law blogs and websites to follow in 2024.

Image courtesy of Wara-cro-mt, Pixabay

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A study which reveals that seven out of 10 divorcing couples do not include pensions in their divorce settlements re-enforces our previous concerns about women struggling financially during their retirement.

Even more disturbing is the fact that 58% of participants indicated that pensions were never discussed when negotiating a financial settlement.

Pensions – the second highest value asset in a divorce settlement after the family home – often make up on average 42% of the household wealth. 

They are vital in the financial disclosure process of divorce. This entails producing a full statement of divorcing couples’ current earnings and assets). It also includes full details of all pensions including state pensions along with the value of each one.

The financial statement aims to ensure that detailed negotiations can take place. This is to enable both ex-spouses receive a fair settlement which could include a division of the pension benefit fund. 

Pension sharing, the most popular method of reaching a divorce settlement, enables a clean break between parties in respect of capital claims. In most cases, the pension fund permits a transfer of a percentage of the pension to another pension provider.

The pension share is not compulsory. In some instances, a party may prefer to take a greater share of the family’s home or other capital, abandoning any claim against the other party’s pension.

 It is important to assess how the parties’ finances will be in the years ahead to avoid and any longer-term financial problems.

Some divorces may involve several pension arrangements so it is important to consider which ones should be shared – and to what extent. 

Expert advice from an Independent Financial Adviser will help with this along with a valuation and projected future incomes.

The pension share may be internal (when the recipient becomes a member of the scheme) or external.

A pension share must be invested in an existing or new arrangement of the receiving party. Utmost care should be taken to obtain details of the cost of any transfer.

The Court will look at the needs of the parties and what other assets are available for distribution.

Agreeing financial settlements which avoid going to Court can be resolved through alternative processes including Mediation.  Here, an impartial third party “the mediator” helps separating couples to discuss issues confidentially and find workable agreements.

There is also Collaborative Family Law where a “no court” agreement is signed at the beginning of the process so that there is a shared commitment to finding an agreed resolution.

Another choice is Arbitration where a Family Law Arbitrator (‘judge’) decides the outcome of divorce financial settlements.

Once an agreement (Award) has been decided with the above processes, details are sent to the court for an order to set in the place a pension share.

Sadly, going to Court is sometimes necessary. Jones Myers experienced lawyers advise on options best suit our clients.

For queries on divorce, pension sharing, finances, or any aspect of family law, call us at Leeds 0113 246 0055, Harrogate 01423 276104, or York 01904 202550. Visit jm2023.jonesmyers.co.uk, email info@jonesmyers.co.uk or tweet us @helpwithdivorce

Jones Myers blog is ranked ninth in the UK’s Best 25 family law blogs and websites to follow in 2022.

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News that a man has been sentenced to jail after deliberately lowering the value of a house during his divorce is a salutary reminder of how both spouses must reveal all their financial information.   

During divorce there is no avoiding a full and frank disclosure of each other’s finances. Neither you nor your spouse should put you head in the sand or believe you can squirrel away and hide assets or income.

There are three areas to consider in the disclosure when working out who has what proportion of the joint finances – and for how long.

• Assets – including savings, investments, property, shares, and businesses
• Income – whether you are employed or self-employed, along with dividends and interest payments
• Pensions – the type of scheme and value

Both you and your spouse are required to produce a completed form which sets out in detail all your finances. Standard requirements include providing details of all bank accounts along with one year’s worth of statements for each account. In addition, pay slips and other documents are required to confirm the accuracy of the information.

The next priority is building a detailed picture of the needs and requirements of you and your spouse, both now and going forwards. This protects both of you, ensuring you each receive a fair settlement for your financial situation.

Despite the introduction No-Fault Divorce in April this year, financial settlements continue  on occasionsto remain more problematical and difficult during divorce proceedings.

We recommend you see an experienced family lawyer as soon as possible to obtain a good understanding of your financial rights and obligations.

Entering into negotiations without first understanding what you might be entitled to, or required to provide, can create an unrealistic expectation on you both and it may cause unexpected difficulties in the future. 

It is important to resolve (either by negotiation or through the courts) all the financial issues before the Final Order (the legal document ending your marriage for good) is made to ensure that both parties are financially secure.

Planning your future finances may be the last thing you want to do at such a difficult time. However, reaching a financial settlement that is mutually satisfactory and will stand up to legal scrutiny remainsa priority.

Giving clarity and certainty to you and your spouse, finalising the financial issues between you enables you both to look forward with security, optimism, and peace of mind.

For queries on financial remedies or any aspect of family law, call us on 0113 246 0055 (Leeds), 01423 276104 (Harrogate), or 01904 202550 (York). Visit jm2023.jonesmyers.co.uk, email info@jonesmyers.co.uk or tweet us @helpwithdivorce

Jones Myers blog is ranked ninth in the UK’s Best 25 family law blogs and websites to follow in 2022.

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By guest blogger Ralph Zoing, Director at Harrogate Wealth Management

“The world is full of obvious things which nobody by any chance ever observes.” Unfortunately, Arthur Conan Doyle’s words are all too often relevant, when looking at many divorce settlements involving financial remedies.

Matrimonial assets usually centre around the matrimonial home as the highest valued asset. This perception has been happily supported by the phenomenal rise in property prices over the last 40 years or so.

The average price of a property has increased by 1,314% from Jan 1982 to today1 However, another family asset, which often competes with the matrimonial house for top ranking in value but is often ignored by many, is the real value of pensions. 

Rightly or wrongly the perception is that the wife, homemaker, and primary child career is happy to retain the property as a security and continuity for her and the children often at great expense and without scrutinising the value of pensions. This may be due to the perception that the pension funds may be of little or insignificant value.

A recent report published by the Social Market Foundation (SMF) says, “the typical person aged 50-64 has pension savings that are 58% short of what they require, yet only one-in-five have spoken to a financial adviser about their pensions”.

Savers approaching retirement age are now almost £250,000 short of the pension pot they need, to deliver the pension income they want in later life, the SMF found.

The report outlined that more than two-thirds of 50-64-year-olds in the UK do not know how much they will need for retirement.  It appears that most are not interested in pensions, which is a crying shame as they are the still most effective way to save for your retirement.

If you also consider that women have far less pension provision than men, then the decisions made around the financial settlement are vital to ensure successful longer-term outcomes for women. In the latest Scottish Widows Women and Retirement Report, the gender pay gap has helped fuel a gender pension gap. This year’s report (2021) demonstrates that women could face a huge £185,000 gap in retirement.

On average, women in their 20’s will retire with £100,000 less in their pension pot than men and will need £85,000 more than their male counterparts for retirement. 

In Part 2 of this article, I will explain the reasons behind this shortfall – and why pension assets are vital in the financial disclosure process of divorce which produces a full statement of the current earnings and assets of divorcing couples. The process aims to ensure each couple receives a fair settlement which could include a division of the pension benefit fund. 

With over three decades expertise in the financial services industry, Ralph Zoing can advise on all forms of pension and retirement planning. Tel 01423 530277 or Ralph@harrogatewealth.co.uk

Source: 1 UK House Price Index

For queries on divorce, finances, or any aspect of family law, call us at Leeds on 0113 246 0055, Harrogate on 01423 276104, or York on 01904 202550. Visit jm2023.jonesmyers.co.uk, email info@jonesmyers.co.uk or tweet us @helpwithdivorce

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By Jones Myers founder, Peter Jones

The thorny issue of how cohabitation affects divorce settlements can differ from case to case and have long-lasting monetary and lifestyle implications on a former spouse.

In divorce proceedings, all ex-spouses are required to be open and transparent about financial disclosures (which include cohabitation) until a financial agreement or order has been agreed by a Court.  

This agreement is a contract between the divorcing couple and is invariably made an order of the court.It sets out how any property, finances and spousal maintenance should be shared between them post divorce.

The Financial Order, also known as a Court Order, sets out the financial arrangements between you and your ex. Approved and issued by a Judge, it makes your termslegally binding.

Here are some examples of how living with a new partner can impact on financial settlements.

Scenario 1 

The ex-husband has been the primary earner throughout the marriage while his former wife stayed at home to look after their children. He meets a new partner who owns her house and earns a good salary.

In this case a Court may considerthat the housing arrangements of the husband are resolved and may then give a more favourable view of the wife’s position. It could be her entitlement to remain for a period of time in the property or to receive a more generous share on sale.

The husband will also have less housing costs (as he may be sharing these with his cohabitee) and therefore will have a greater disposable income from which to pay maintenance. 

Scenario 2

A husband and his former wife have undergone divorce and a financial order has been agreed in which she receives maintenance. During the financial settlement process, his ex-spouse fails to disclose that she has been living with a younger man on a low-income.   

The Court would need to be satisfied that the wife’s financial situation was much improved by the cohabitee sharing housingcosts and she may risk a reduction in maintenance.  If the cohabitee was earning a substantial income, this could also have an impact by a reduction in the maintenance. 

Scenario 3

Complexities arise in situations where, for example, a former husband on a good salary has been cohabitating with a new partner who has four children, one of whom is disabled.  

There is a conventional view that first families come first.  The husband in this instance was aware of his responsibilities to his first wife and family before he embarked on a second relationship.  However, in this case the Court has a difficult balancing act to satisfy the financial requirements of 2 families.

Key considerations

As an ex-spouse you must give a full and frank disclosure of yourfinancial means to your ex and vice versa right up to the point that the Court Order is approved.

If you start living with a new partner before the financial settlement is agreed or have an intention to do so after the divorce – and have not disclosed the relationship or intention while negotiations are ongoing – your settlement can be changed when it is later discovered. 

The outcome could result in a change in the terms of the order and the possibility of paying the court costs.  

If you are unsure of your position on cohabitation while divorcing, I urge you to seek advice from an experienced family lawyer. 

For queries on financial settlements, cohabitation agreements, divorce, or any aspect of family law, call us at Leeds 0113 246 0055, Harrogate 01423 276104, or York 01904 202550. Visit jm2023.jonesmyers.co.uk, email info@jonesmyers.co.uk or tweet us @helpwithdivorce

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By Jones Myers founder, Peter Jones

Pensions are often one of the most valuable assets of a marriage and play a vital role in deciding financial claims on divorce.

Financial disclosure – a full statement of your current earnings and assets – aims to protect you both. It also looks to ensure that you each receive a fair settlement which may well include a division of the pension benefit fund. 

Pension sharing – which provides a clean break between parties, as the pension assets are split – has been given more prominence in recent years. It recently hit the headlines when a BBC producer lost her court case to reduce her unemployed ex-husband’s 33% share of her £2 million fortune.  

In this particular case, The Court of Appeal reaffirmed that pension sharing is appropriate when deciding on the allocation of capital. 

Judges took into account the length of the marriage and discounted the former wife’s allegation that her ex-husband had made a ‘significantly negative’ contribution to the family fortune during the marriage.

They also upheld an earlier ruling and said the original £733,650 and pension share he was awarded would meet his ‘needs’. 

The criteria in considering a pension share requires the pension fund to be valued and included in the list of the family’s assets.  

The receiving party needs to decide if it’s better for them to receive a percentage share or, in some circumstances, seek a greater share of the liquid capital as a “set off” when not pursuing a share of the pension.

Some divorces may entail several pension arrangements so it is important you think about which arrangements should be shared. Expert advice from an Independent Financial Adviser is necessary to ensure the correct pension(s) are shared and to what extent. Advisors will also assist with the valuation and projected future incomes.

The pension share may be internal (when the recipient becomes a member of the scheme) or eternal when the share must be invested in an existing or new arrangement of the receiving party. Utmost care should be taken to obtain details of the cost of any transfer.

The court will look at the needs of the parties and take into account what other assets are available for distribution.

Agreed financial settlements avoiding Court can also be decided through alternative processes including Mediation where an impartial third party “the mediator” helps you discuss issues confidentially and find workable agreements.

There is also Collaborative Family Law where a “no court” agreement is signed at the beginning of the process so that there is a shared commitment to finding an agreed resolution

Another option is Arbitration where a Family Law Arbitrator in the role of a ‘judge’ decides the outcome of divorce financial settlements. As one of the first UK Family Law Arbitrators qualified to decide the outcome of financial and property disputes, I am arbitrating on an increasing number of cases which often include pension arrangements.  

With Mediation, Collaborative Family Law and Arbitration, once there is agreement (or an Award) details are submitted to the court for an order which enables a pension share to be implemented.  

Sadly, going to Court is necessary in some cases. The extensive expertise of Jones Myers lawyers can advise you both on the option which may suit you best.

For queries on divorce, pension sharing, finances or any aspect of family law, call us at Leeds on 0113 246 0055, Harrogate on 01423 276104, or York on 01904 202550. Visit jm2023.jonesmyers.co.uk, email info@jonesmyers.co.uk or tweet us @helpwithdivorce

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Jones Myers team

Our highly experienced team at Jones Myers has opened a new office at Windsor House, Cornwall Road in Harrogate as we mark our 25-year anniversary.

The milestone for our specialist family law firm, which operates out of Leeds and London, is to accommodate an increase in instructions from our clients in North Yorkshire.

The move has been widely featured across print and broadcast media including The Yorkshire Post, The BusinessDesk, BusinessLink, Bdaily, the Harrogate Advertiser and Stray FM.

2017 has been a formative year for our practice, which was founded in Leeds by Peter Jones – one of the country’s leading family lawyers and a former national chairman of Resolution.

We are consistently ranked in a joint Top Tier position by the Legal 500 and Chambers guides for Leeds, West Yorkshire and North Yorkshire.

Chambers 2018 describes us as, “A very strong firm – not just in finance but also in children cases.” It adds, “Expertise in dealing with financial remedy nuptial cases adds depth to their practice.”

The latest edition of the highly respected Legal 500 guide describes Jones Myers as “a family practice that is one of the best in the area” and attracts praise for our “sensible, expert, conciliatory advice that does what it says on the tin.”

Our clients are based regionally, nationally and internationally, and we have earned an enviable reputation working exclusively in divorce, separation, complex financial disputes, children issues and contested wills and estates.

Our team of experts, which include a Deputy District Judge, an experienced mediator, a family law arbitrator and our own in-house barrister, jointly combine 250 years of legal experience.

Our move to Harrogate follows the recent expansion of our highly respected children’s department who are regarded as leading experts in issues of residence, contact, relocation, child protection and international child abduction.

Peter Jones said: “The services we provide at our Harrogate office complement those at our Leeds and London locations. We are proud to be recognised as lawyers who look for solutions to problems and are acknowledged for supporting families and children. We advise and guide where possible on options which can avoid conflict and unnecessary costs.

“A big ‘thank you’ to our valued and talented team in what is a momentous year for the firm.”

For more information about any aspect of divorce or family law, call Jones Myers at our Leeds office on 0113 246 0055, our Harrogate office on 01423 276104, visit jm2023.jonesmyers.co.uk, email info@jonesmyers.co.uk or tweet us @helpwithdivorce

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Our latest guest blog on The Divorce Magazine asks what you need to do if your ex won’t provide details of the Cash Equivalent Transfer Value of a pension.

When it comes to divorce, pensions are treated just like any other asset.

However, unlike bricks and mortar, it can sometimes be difficult to establish whether a pension exists and what it might be worth. This can become even more difficult in an acrimonious split, when one partner refuses to divulge the financial details of their pension arrangements.

If this situation arises, there are number of steps you can take with the help of a specialist solicitor.

First, you need to find out if a pension exists. A useful first step is to take advantage of the Government’s Pension Tracing Service – an online database containing details of all workplace and personal pension schemes.

Although you won’t be able to search your partner’s details, you can make an application to the court for them to be forced to make search by putting in all of their past and current employers, together with any personal pension providers that might be relevant. This won’t give you the value of the pension, but it will tell you who the provider is and give you details of where to write for more information.

The next step in securing a fair allocation of assets is to find out how much the pension is worth by obtaining a calculation of the Cash Equivalent Value (CEV) of the pension benefits that have accrued.

Under normal circumstances, this information is put on the table along with any other assets in order to work out what each spouse is entitled to. However, it does happen occasionally, when relationships have completely broken down, that this information is not produced.

In cases of a refusal to provide CEV information about a known pension fund, there is provision in law for the court to require the member spouse to obtain information and also for the court to order the pension provider to supply that information to the court.

To make that happen, the non-member spouse’s solicitor would send a copy of the application for a pension sharing order direct to the pension supplier. It is then obliged to provide certain information to the member, including the value of the pension benefits. If the member spouse refuses to disclose that information, an application can be made to the court for a separate order for this information to be provided.

Once all of the information is before the court, it enables a decision to be made about how the pensions should be split equitably between the parties. This split can take a number of forms, of which the most usual are:

• Pension sharing – where you receive a percentage share of any one (or more) of your ex-partner’s pensions. This is either transferred into a pension in your name or you can join your ex-partner’s pension scheme, depending upon the pension scheme rules and independent financial advice;
• Pensions offsetting – where the value of any pension(s) is offset against other assets, for example, you might obtain a bigger share of the family home in return for your ex-partner keeping their pension.

Amid the stress and emotional turmoil of divorce, it can be difficult to think beyond the day-to-day. However this is precisely the time to focus on planning ahead and avoid later regrets about failing to make adequate provision for the future.

For more information about financial claims on divorce or any aspect of family law call our team of experts at Jones Myers on 0113 246 0055 or tweet us on @helpwithdivorce

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