The Impact of the Mini-Budget on Your Divorce
What are financial remedies?
On divorce, you will need to decide how your finances will be divided. This process is known as “financial remedies”. Sometimes it is possible to agree a financial settlement with your ex-spouse. In other cases, if you cannot agree, the court will need to make the decision. In either scenario, close attention will need to be paid to the resulting financial position of each party. This will include consideration of income, housing, pensions and any other financial assets.
What impact will the mini-budget have on financial remedies following divorce?
The mini-budget appears to be having wide-ranging impacts on the financial landscape including the following:
- An increase in interest rates
- As a result, it will be harder to obtain a mortgage
- A decrease in the value of the pound.
The court is generally looking at the impact of any final order on each party. A change in the financial landscape means the same final order may have a different impact.
What steps do I need to take to protect my financial position?
The impact of these changes will depend on the stage of financial remedies proceedings. You may be:
- Negotiating a settlement
- Awaiting a final hearing to make a decision
- Considering the updated impact of a settlement or decision already made.
If you are negotiating a settlement or awaiting a final hearing, the first question is whether you have the best possible information and evidence. You may need to go back to any mortgage broker, pension expert or other valuer and ask for updated figures or further information. This information and supporting evidence serves two purposes: to satisfy you that your position will meet your needs and be fair, and to persuade a judge that your position should be preferred, if you cannot settle the case without a judge’s input. You may need to think about postponing your court hearing in order to obtain updated evidence. You may need to think about withdrawing a previous offer and making a new updated offer, based on updated information.
What is a ‘Barder event’?
In exceptional circumstances, the court can set aside, or undo, an existing financial remedies order. An event warranting setting aside is known as a ‘Barder’ event. However, in light of previous cases on Barder events, it is unlikely that the current changes to the financial landscape would amount to a Barder event.
A matrimonial finance solicitor will be well-equipped to assist with assessing your specific case in light of the mini-budget and its consequences.
Here to Help
For advice about divorce, financial settlements and financial remedies proceedings, get in touch with Tracey Dargan, Partner and Head of Family and Divorce.
Please note the contents of this article are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.