Financial disclosure - Who? What? When? How?

As part of the process of reaching a financial settlement in respect of the finances when going through divorce or dissolution proceedings, you will need to provide details and documentary evidence of your financial situation including your income, capital, assets and liabilities. This is called the duty of financial disclosure. Throughout the negotiations (and any court case), you will be under an ongoing duty to disclose any changes to your financial situation. This is to ensure any settlement reached is in light of the up to date financial landscape of the parties. If it is later found that a party has not provided full and accurate financial disclosure, for example if they have failed to disclose a property they have an interest in, this could invalidate any settlement reached. It is a good idea to seek…

Understanding Parental Responsibility & Child Arrangements: A Guide for Parents

Navigating family law matters can be challenging, especially when disputes arise over a child’s upbringing or living arrangements. Understanding your legal rights and obligations is crucial in ensuring the best outcome for your child. This guide outlines the key aspects of parental responsibility and Child Arrangements Orders (CAOs) to help you make informed decisions.  Our Family Law Team at Ware & Kay provide expert legal advice on parental responsibility and child arrangements. Parental Responsibility Parental responsibility refers to the legal rights, duties, powers, responsibilities, and authority a parent has in respect of their child. It includes important decisions about the child’s upbringing, including their education, medical treatment, religious teaching, and overall welfare. Who Has Parental Responsibility? The law governing parental responsibility is primarily set out in the Children Act 1989. The following individuals automatically acquire parental responsibility…

Do I have to agree to a prenuptial agreement?

If you have been presented with a prenuptial agreement (often referred to as a ‘prenup’) hopefully this is not a surprise to you, as it is now seen as a sensible measure for many couples. However, you may be wondering if you have to agree to everything set out in the document, or how strong your negotiating position is if you want to propose changes to some of the terms. ‘Planning a wedding is exciting, but it can also bring up some important financial conversations, such as whether to have a prenuptial agreement,’ says Samantha Sinclair, Head of Family Law with Ware & Kay. ‘It is important that you understand and agree to all terms of the agreement. There are some crucial points to consider before you contemplate signing one.’ Do I have to sign…

How to propose … a cohabitation agreement

Moving in with a loved one is an exciting time and the last thing on your mind is likely to be the seemingly unromantic notion of making a plan for what should happen to your finances, property and children while you live together or if you split up or die. ‘However, if you plan to stay together for the long term then it is worth discussing the potential benefits of a cohabitation agreement,’ says Samantha Sinclair, Head of Family Law with Ware & Kay. ‘Cohabitees do not enjoy the same automatic legal rights as a married couple when a relationship breaks down, which can lead to financial uncertainty and the potential for a costly dispute.’ It is sensible for an unmarried couple to have a cohabitation agreement – which is a legally binding document if…

Why is asset valuation important when a farming relationship breaks down?

A relationship breakdown is often stressful, with couples having to divide their belongings to achieve a fair financial settlement. For farming families, unique and complex challenges can arise following a break-up and the subsequent division of assets. Farming businesses, says Samantha Sinclair, Head of Family Law at Ware & Kay incorporating Pearsons & Ward Solicitors in Malton, York and Wetherby, are often passed down through many generations. There are frequently third parties who can claim an interest in the farm. Accurately valuing all farming assets and determining who owns what is therefore vital before a financial settlement can be worked out.  As with any other split, the aim when a farming couple divorce is to reach a fair financial settlement, taking into account the contribution each has made to the farm, the needs of any…

  How is future earning potential considered in a financial settlement?

When navigating a divorce or dissolution of a civil partnership, financial stability is a priority. Future earning potential often plays a key role, particularly if one partner sacrificed their career to support the family or enable the other to progress professionally. ‘You may also wonder how plans to retire early or reduce work hours could impact this,’ says Samantha Sinclair, Head of Family Law at Ware & Kay. ‘Understanding how future earnings are considered can help you make informed decisions and prepare effectively.’  The Court’s Approach When determining a financial settlement, the court considers all relevant circumstances, including future earning potential. This assessment may involve: Current work and earnings; Qualifications and skills; Experience and employment history; Projections of future earning capacity. Future earnings are vital for assessing income needs but are not treated…

Is a postnuptial agreement part of your family business succession plan?

The 2020s have been called ‘The Great Wealth Transfer,’ as £1 trillion of wealth built up by the ‘baby boomers’ is expected to pass to the next generation. Much of this wealth will pass via a family business, and parents who wish to retire are having to make strategic decisions about succession planning. A particular concern for many is the potential impact on a family business of a divorce or the dissolution of a civil partnership, and the consequent negotiations of a financial settlement. ‘Business difficulties can arise for any number of reasons, and directors usually have business strategies, budgets and contingency plans,’ says Samantha Sinclair, Head of Family with Ware & Kay incorporating Pearsons & Ward Solicitors in York, Wetherby & Malton. ‘However, few businesses have a plan for what would happen if an…

Arbitration in family law – could this help us?

When trying to resolve matters relating to matrimonial finances, or deciding on certain child arrangements after a relationship breakdown, one alternative to court, for a privately funded family law case is arbitration. ‘Arbitration involves the appointment of an independent arbitrator who will be presented with the facts of the case from each side. After evaluating all the information, they make a decision which is akin to having a court judgment without the protracted process of litigation,’ explains, Samantha Sinclair, Head of Family with Ware & Kay incorporating Peasons & Ward Solicitors. ‘Arbitration can remove delay and bring swift closure, as long as you are willing to accept the arbitrator’s decision as it is difficult to challenge.’ Below, Samantha explores some of the things to consider when deciding to opt for arbitration. The benefits of arbitration…

How do we deal with our mortgage during a divorce?  

With interest rates and the cost-of-living crisis in the headlines on a daily basis, mortgage affordability is a key concern for many homeowners, not least for couples who are separating and wondering how this will affect their mortgage arrangements. Most divorcing couples will have a mortgage on their family home, and the family home is likely to be their largest asset. The mortgage may be in joint names, or it could be in one person’s sole name. Either way, the house will be considered a matrimonial asset if it is the family home, and it will need to be dealt with as part of the financial settlement. Whether a mortgage is affected by divorce or the dissolution of a civil partnership, and the extent to which it is affected, will depend on the terms of the…

Contact arrangements for children – indirect Contact

Along with the welfare issues to be considered when thinking how to meet your child’s needs, parents who are separating will need to decide on practical issues around the contact arrangements with the other Parent. There are a number of different types of Child arrangements, which vary in terms of the quality of the time spent which occurs. In this article we will focus on the different types of indirect contact and how it might work. ‘Indirect contact means the amount of time a parent has with a child that is not face to face,’ explains a Family Lawyer with Ware & Kay in York. ‘In an increasingly digital age this can now take many formats.’   Why should there be indirect contact? There are a number of different reasons: It is the safest option…