A landmark decision taken by the Supreme Court last October looks set to have a major impact on divorcing couples. Husbands or wives who attempt to hide the true extent of their wealth could find that their settlements are subsequently set aside on the grounds of fraud.
The wives in this case, Alison Sharland and Varsha Gohil, were both awarded larger pay-outs as their former spouses hadn’t fully disclosed the value of their assets at the time their settlements were made.
This ruling may mean many more couples returning to the courts to revisit agreements that were made without all the facts and details having been disclosed.
Finances on Divorce
There are no hard and fast rules governing how assets should be divided on divorce, although there is a broad starting point of 50:50. If the divorcing couple are unable to come to an agreement on the division of their financial assets, the court will decide how these should be apportioned between them based on factors such as their age, earnings ability, property and money, and role in the relationship (e.g. breadwinner or primary carer). The needs of any children of the marriage are always considered paramount.
By this ruling the court has sent out a clear message that those spouses who failed to give a true and accurate account of their financial means at the time of their divorce could find themselves being bound by a new and fairer financial settlement at a later date.
Those looking for finality in their divorce proceedings should be careful to be transparent and honest in all their financial disclosures.
Planning for the Future
Post divorce, it makes sense to discuss your revised circumstances with your professional adviser. You should consider your financial goals and review your mortgage, life insurance, savings and investment plans. You will also need to rewrite your Will.
Reorganising your finances is an essential step in moving forward to a new life.
Take the first step by contacting us here at Logic Wealth Planning to make an appointment.