Is the financial settlement on divorce final?

Agreeing the terms of a financial settlement on divorce can be one of the landmarks in the eventual split of a couple and is usually the issue which creates the most dispute between spouses. It is highly advisable to seek the guidance of a family law lawyer when negotiating a financial settlement to ensure the best outcome when the ancillary relief order is considered by a court.  

During a period of national economic stability the major wage earner will probably enjoy high bonuses and the prospect of regular salary increase, but in a recession or economic downturn the terms of a divorce settlement ruling can suddenly appear punitive and an ex-spouse may feel they should apply for a variation to the financial order to reflect their changed level of wealth.

Assets, bonuses, shares and savings

In a typical high value financial settlement where the couple have young children it is likely that ownership of the matrimonial home will be transferred to the spouse with whom those children are going to live (usually the mother), or it will have been placed in trust until a certain event, such as both children reaching the age of eighteen, when it will be sold. There may also have been a pension sharing order made, a lump sum payment may have been ordered in place of on-going maintenance payments, and monthly child maintenance payments will be required, perhaps with additional school fee payments as well.

Typically, it is likely that the major earner's assets (usually the husband's) after the financial order has been made by the family law court will be a substantial share portfolio, the balance of savings after a lump sum has been taken, the balance of pension and predicted future bonuses.  

However, if a global economic downturn occurs the ex-husband may find his personal wealth, and ability to rebuild it after the divorce through continued earning, cut down and maybe even stripped altogether if redundancies and wage cuts become widespread.

Re-negotiating a divorce financial settlement

If an ex-husband refuses to pay maintenance or keep up mortgage payments, as agreed in the court order, this could result in a court hearing and a custodial sentence may be handed down if he cannot provide compelling evidence for the halting of payments and failure to provide for his children.

Nevertheless, ex-partners cannot arbitrarily re-open divorce settlement cases for variation purely because it appears that the other spouse is in receipt of greater wealth and assets once he has suffered losses.  

When considering a financial settlement variation order, first and foremost, the court will be concerned with the welfare of any minor children of the family and will require evidence that the events leading to the request for a variation were unforeseeable and without causation by the spouse requesting the new order.

Under section 31 of the Matrimonial Causes Act 1973 family law courts have the power to vary periodical payment orders, but have no ability to vary other types of ancillary relief orders such as lump sum orders (except in the varying of instalment payments) and property adjustments.

Consult your divorce solicitor for advice on variation

The family law lawyers at Healys are happy to discuss the terms of your financial settlement on divorce and can advise you on the possibility of applying for a variation order.

Our many years experience as specialist family law practitioners has taught us that each individual situation is different. We can help by listening sensitively and giving you straightforward legal advice so you can weigh up what options will work best for you.

When things are amicable we can help you keep it that way, and when things are tough we can help fight your corner.

Call direct to Naim Qureshi, in our London office, on 020 7822 4165 or e-mail naim.qureshi@healys.com

In our Brighton office you can speak directly to Catherine Taylor on 01273 669 124 or e-mail on catherine.taylor@healys.com