Financial Settlements in Divorce: What You Need to Know ======================================================= Obtaining a financial settlement is a crucial part of the divorce process and it is also one of the most daunting for many people going through or considering a divorce. However, with the right lawyers by your side, this doesn't need to be the case. In this financial settlement guide, we've outlined the 5 key points that you should be aware of to help address common questions and misconceptions. 1. Yes, nuptial agreements can be enforced - if certain criteria are met ------------------------------------------------------------------------ Following Vardags' victory in the landmark [*Radmacher v Granatino*](https://vardags.com/law-guide/important-divorce-cases/radmacher-v-granatino) case, nuptial agreements will be given effect, provided that certain conditions are met, namely: > - Both parties entered into the agreement freely > - Both parties had a full appreciation of the implications of the agreement > - It would not be unfair to hold the parties to the agreement In assessing whether these criteria have been satisfied, the family court will take into account numerous factors, such as whether the parties received independent legal advice or if enforcing the agreement would leave a party "in a predicament of real need". Learn more about the criteria for a valid nuptial agreement [here](https://vardags.com/law-guide/nuptial-agreements/criteria-for-a-valid-nuptial-agreement). 2. Providing full and frank disclosure is mandatory --------------------------------------------------- First and foremost, expect to provide complete disclosure of your assets. Many people going through a divorce are naturally concerned about protecting their wealth. However, it not advisable to attempt to hide or dissipate your assets in an attempt to prevent your spouse from receiving a share of it. Both parties are obliged to provide full and frank disclosure, and a failure to fulfil this obligation may result in punitive action from the court (learn more about the penalties for non-disclosure [here](https://vardags.com/law-guide/financial-proceedings/what-are-the-penalties-for-non-disclosure-in-divorce)). 3. Equal sharing of matrimonial assets -------------------------------------- In England & Wales, the family court draws no distinction between 'homemakers' or 'breadwinners' - both parties are treated as equal partners to the marriage. To reflect this, the court's starting point is to divide all matrimonial assets equally. Matrimonial assets are those which have been acquired by either party from cohabitation until separation. Who legally owns the asset is irrelevant. Non-matrimonial assets are those which derive from a source outside the marriage, and they will generally be kept separate. An asset may be deemed matrimonial if it was acquired prior to the parties' cohabitation, post-separation, or if it was inherited by one party. Learn more about matrimonial and non-matrimonial assets [here](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/what-are-matrimonial-and-non-matrimonial-assets). 4. The marital home is usually shared equally --------------------------------------------- Many people believe that if they bought the [marital home](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/divorce-and-your-marital-home) prior to the marriage, and it remains in their sole name, that their spouse will have no claim to it. This is not true. The marital home is given unique status by the family courts. It will usually be considered a matrimonial asset, regardless of legal ownership or if it was acquired prior to the relationship. Therefore, it will generally be shared equally. Other properties, which were not treated as the family or marital home, are not afforded the same unique status. Whether they are shared will depend on whether they are considered matrimonial or non-matrimonial, and the needs (including housing needs) of both parties. 5. The importance of obtaining a financial order before your divorce is finalised --------------------------------------------------------------------------------- Prior to obtaining a [Final Order](https://vardags.com/law-guide/divorce-process/conditional-orders-and-final-orders), which legally ends your marriage, it is important to get a financial order. This should either be in the form of a financial order from the court, or a consent order enshrining an agreement between you and your former spouse. Either way, the financial settlement should be resolved in the form of a legally binding order - it not enough to just come to a verbal agreement. Crucially, your former spouse may still make financial claims against you after the Final Order. Having a financial order in place can prevent them from doing so, providing protection for any wealth you may have accumulated post-divorce. ### **Need Help Navigating Your Divorce Settlement?** **Whether you're considering divorce or already going through it, Vardags can help you secure a fair and legally sound financial settlement. Click below for a free initial consultation with one of our expert divorce solicitors.** [BOOK FREE CONSULTATION](https://vardags.com/contact "BOOK FREE CONSULTATION") About Us -------- Ayesha VardagFounder & President "A DIVORCE LAWYER WIDELY REGARDED AS ONE OF THE WORLD'S BEST" The Metro Vardags offer a unique approach to the law, specially tailored to the needs of HNW individuals. We offer City-quality representation for your divorce and family law needs. Our lawyers come from the very best universities and receive the very best training - they are determined, diligent, and dedicated to getting the best outcome... [read more](https://vardags.com/about-us) [BOOK FREE CONSULTATION](https://vardags.com/contact) Related Guides -------------- [Are Nuptial Agreements Binding in Divorce?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/are-nuptial-agreements-binding "Are Nuptial Agreements Binding in Divorce?") [Understanding Conditional Orders and Final Orders in Divorce](https://vardags.com/law-guide/divorce-process/conditional-orders-and-final-orders "Understanding Conditional Orders and Final Orders in Divorce") [Divorce and your marital home](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/divorce-and-your-marital-home "Divorce and your marital home") [Enforcing a nuptial agreement](https://vardags.com/law-guide/nuptial-agreements/enforcing-a-nuptial-agreement "Enforcing a nuptial agreement") [Is your nuptial agreement invalid? The vitiating factors which undermine a contract](https://vardags.com/law-guide/nuptial-agreements/vitiating-factors "Is your nuptial agreement invalid? The vitiating factors which undermine a contract") [The criteria for a valid nuptial agreement](https://vardags.com/law-guide/nuptial-agreements/criteria-for-a-valid-nuptial-agreement "The criteria for a valid nuptial agreement") [The Matrimonial Home in Divorce](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/the-matrimonial-home-in-divorce "The Matrimonial Home in Divorce") [The Sharing Principle in Divorce](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/the-sharing-principle "The Sharing Principle in Divorce") [Matrimonial vs Non-Matrimonial Assets](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/what-are-matrimonial-and-non-matrimonial-assets "Matrimonial vs Non-Matrimonial Assets") [What are the guiding principles of the courts?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/guiding-principles "What are the guiding principles of the courts?") [Penalties for Non-Disclosure in Divorce](https://vardags.com/law-guide/financial-proceedings/what-are-the-penalties-for-non-disclosure-in-divorce "Penalties for Non-Disclosure in Divorce") The information on this website is intended as a guide and does not constitute legal advice. Vardags do not accept liability for any errors in the information on this website, nor any losses stemming from reliance upon the statements made herein. All articles and pages aim to reflect the legal position at time they were published, and may have been rendered obsolete by subsequent developments in the law. Should you require specialist advice, tailored to your situation, please see how Vardags can help you.