Read more articles in: Blog, Family Law, Stuart Daniel

What stipulations are common during a divorce settlement?

Going through a divorce can naturally be an emotionally challenging time, and divorce settlements add a layer of stress and complexity.

Understanding what financial stipulations are common in divorce settlements can provide clarity and help you confidently approach negotiations.

Ensuring a fair division of assets

One of the core parts of any divorce settlement is the division of marital assets.

The law in England and Wales typically aims for a fair split, which does not necessarily mean an equal one.

Courts consider factors like the length of the marriage, each person’s contributions (both financial and non-financial), and the future financial needs of each party.

Common assets divided in a divorce include:

The family home – Often the most valuable asset, with options ranging from selling and splitting the proceeds to one party buying out the other’s share.
Savings and investments – Accounts, shares, and other investments are usually divided to achieve a fair balance.
Pensions – These can be treated as shared marital assets, and there are specific options for division, like pension sharing orders and offsetting.

Our expert team of solicitors can help you negotiate a fair division and protect your interests.

Spousal maintenance

Spousal maintenance is designed to provide one partner with financial support if there is an imbalance in earnings or financial stability post-divorce.

The courts assess the need for spousal maintenance based on the standard of living during the marriage, the recipient’s needs, and the payer’s ability to provide support.

Spousal maintenance can be:

Short-term (interim) – Support during the divorce process.
Fixed-term – Temporary support to help one spouse adjust financially, often seen in shorter marriages.
Lifetime maintenance – In rare cases, for longer marriages or where one spouse is unlikely to regain financial independence.

Spousal maintenance amounts and duration vary and can be adjusted later if circumstances change.

In many cases, the courts encourage a ‘clean break’ approach where possible, aiming for each person to become financially independent.

Lump sum payments

In some divorce settlements, a lump sum payment is used instead of ongoing maintenance.

This one-off payment can simplify finances by allowing a clean break and avoiding monthly payments.

Lump sums are common in cases where one spouse has significant assets, and a cash settlement can help the other spouse establish financial independence.

However, both parties must agree on an amount that reflects their needs and resources, as the decision is typically irreversible once settled.

Debt allocation

Debt division is often overlooked but is an important part of divorce settlements.

Joint liabilities, like mortgages, credit cards, and personal loans, must be divided fairly.

Courts generally aim to allocate debts in proportion to each person’s ability to repay, but this can become complicated when joint loans and mortgages are involved.

Some options for handling debt include:

Selling assets to repay joint debts before the final division.
Transferring ownership of joint assets if one person assumes responsibility for the associated debt.
Allocating debts proportionately based on each person’s financial standing.

Addressing debt as part of your divorce settlement can prevent unexpected financial burdens post-divorce.

Clean break order

A clean break order legally ends financial ties between ex-spouses once the settlement is complete, ensuring neither party can make future claims on each other’s income or assets.

For couples seeking finality, a clean break provides peace of mind and financial independence.

However, it is only suitable when both parties are financially stable enough to forego future maintenance.

If you would like more information or advice on what to expect when going through a divorce settlement, reach out to us today.

Stuart Daniel

Director – Head of Family Department

I qualified as a Solicitor in 2006 and now specialise in divorce, financial settlements, childcare arrangements and Pre Nuptial Agreements. I have many years’ experience as a private family lawyer having worked with two other local firms before returning to Mander Hadley, where I first undertook work experience during my university studies.