Finance - Things to Consider

Tying up all the loose ends

There will more than likely be quite a few loose ends to tie up, most of which will be dealt with by your solicitor. For example if you have a property this will need to be dealt with, endowment policies may be sold surrendered or assigned to one of you, and car ownership may have to be dealt with.

You need to gather as much information as you can before you even see a solicitor and we suggest you take photocopies of as much documentation as you can for future reference.

Who gets the house?

When caught in the midst of of a relationship that is breaking down, the matrimonial or the home you both live in if you are not married is probably going to be the major asset.

What happens if you want to separate? Who leaves the home? and if you leave do you lose your interest in the property and at what stage should you get legal advice?

To a certain extent the way in which the matter is dealt with depends on your relationship with your partner. If you trust each other despite the breakdown of your relationship then you can discuss your plans openly. You may agree to sell the house and split the proceeds so that one or both of you can be re-housed.

The situation will be different id their is a great deal of anger and mistrust. You need to be alert and aware. In such situation you need to ensure that your interests are protected.

Be aware of the following key points:

• If the property is solely in your partner's sole name and you do not trust them, you should register a caution under Section 4 of The Matrimonial Homes Act or a class F Land Charge. This will ensure that the property cannot be sold or further charges placed on the property without your knowledge, pending negotiations or legal proceedings. This should not be viewed as a hostile act but an action to protect your interest, and care should be taken not to use this in a vindictive way.
• If the atmosphere at home has become intolerable and one of you chooses to leave, that person does not lose any entitlement to a claim in the property. It does, however introduce an element of calm into what may have been a volatile situation.
• If you leave the home, take with you what is important because you may not get the opportunity to return for more if your partner becomes embittered or vengeful.
• If the property is sold, it is preferable that an overall settlement is reached in relation to the division of assets rather than dealing with assets on a piecemeal basis.
• In resolving finances, it is not necessary to liquidate all the assets at once. However it is important to obtain updated valuations, preferably agreed, of all property and interests in property, so that agreement can be reached as to who will keep what and what, if anything will need to be sold
• If you do not want to sell the matrimonial home until, for example your youngest child completes full-time education, you can retain an interest in the property to be paid to you at an agreed future date.

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Information on this page is current and last updated: 4/2/2012