Sorting Out Finances in Divorce: Key Points

What to Sort Out

1. Where you and your children will live
2. How you will support your children
3. What you will each live on
4. How to share savings, pensions, and debts
5. Whether maintenance should be paid

Legal Principles

• Children’s welfare is the top priority
• Consider both parties’ income and earning capacity
• Take into account financial needs and responsibilities
• Consider standard of living during marriage
• Age of parties and length of marriage are relevant
• Contributions to family welfare are considered
• Aim for a clean break where possible

Assets and Income

• Family home is often the most significant asset
• Pensions can be valuable and should not be overlooked
• Consider all assets, including savings and investments
• Income from all sources should be disclosed
• Child maintenance is separate from spousal maintenance
• Consider future earning capacity of both parties

Reaching Agreement

1. Try to agree between yourselves if possible
2. Consider using family mediation services
3. Seek legal advice, especially for complex situations
4. Court should be a last resort
5. Get a consent order to make agreements legally binding

Important Considerations

• Be prepared for potential lifestyle changes
• Consider long-term financial security, not just immediate needs
• Be aware of tax implications of financial decisions
• Update your will after divorce
• Seek professional advice for complex financial situations
• Consider impact of new relationships on financial arrangements