Family Lawyer Advises on Financial Settlement

Hello. In this video clip Im going to look at financial claims, and really the substance behind them. In my earlier clip Ive looked at the procedure, the process, what steps need to be taken to get cases ready for the negotiation stage, and how those negotiations would take place. Whats important is no only what's at stake but what factors are relevant and therefore how we can achieve a settlement to save time and costs. There is no presumption in English law for a 50 50 outcome as there are in other jurisdictions. There is a case law which suggests that we should look at the Ulstic of equality, so if 50 50 is not going to be the outcome, then what should the outcome be, and the reasons for that? So we are very much guided by a checklist of factors called section 25 of factors, and although this is not an exhaustive list, relevant factors can include such things as, are there any children? How long have the parties been married, and how old are they? Are there any health issues which need to be taken in to account? What are the resources in the case? What's in the pot and what are the respective earning capacities of the husband? What if now or in the foreseeable future, what contributions have been made by the parties? They can be financial contributions, they can also be non-financial contributions, for example being a home-maker and carer for the children. Importantly in the vast majority of cases one of the checklist factors which always features are needs; what do the husband and wife need? They will need a house, and particularly relevant are whether there are children. So there are housing needs. Practically, rather than getting bogged down in percentages, where is that house going to be? Where is it going to cost? What are the respective borrowing capacities of each of the parties? So therefore what mortgages are available to them and how much will that cost? So, broadly speaking we've got what to look at housing. We've also got to look at income; what is the income for all sources in the case, and therefore particularly with the more vulnerable party, what is his or her maintenance needs? That can be a very important feature in a case. Not only child maintenance, but here Im talking about spousal maintenance; how much maintenance is to be reasonably paid? Also, again importantly, how long should that maintenance be paid for? There will always be competing arguments as you can see from the checklist of factors that leans itself sometimes to substantive negotiation, but where there is dialogue and where there is communication it will often result in a settlement. Quite clearly as I have said in my earlier video clip, it is very important that the procedure is followed alongside so we can determine as best we can what accurately is in the matrimonial pot, taking into account what are the assets of the case and what are the liabilities and what can be incomed to ensure that everything is fair, because ultimately if a court comes to look at it, then what are the judges going to consider what is a fair outcome? Importantly at what stage can a clean break be achieved in the case. Thank you.