Peter Marples

Perception is everything in a court process - being open is always the best option.
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Perception is Everything in a Court Process – Being Open is always the Best Option

Published on
Peter Marples
Peter Marples
Director
Fair Result

Whilst 80% of our cases never see a formal Court process in the context of a FDA, FDR or Final Hearing there are always a few where the Court get’s involved. Never the ones with the most assets to argue about but more often than not truth a total absence of trust between the two parties.

The further down a court process you go, not only is it more expensive but you start to lose control of the outcome. So our motto is always to endeavour to settle your finances without a Judge getting involved.

We have unfortunately been engaged recently in more and more complex cases – very complex, not because the issues are actually complex but because one or both parties decide they want to be economical with their answers to questions or simply don’t want to disclose matters which they believe they an ‘blag’ away and it will never become uncovered. Our job as professionals is to read our clients behaviours and whilst we will always follow instructions we are not frightened at challenging them. Why ? – because If they aren’t truthful or transparent with the information and documents they provide it is more often than not because they want to hide something. Unfortunately very few clients are able to do this and the risks to them are significant.

Judges are there to look at the characters in the case as much as the information in front of them. They inevitably form judgements and an initial perception is one that often sticks in the mind of the judge as easily as it does with us – whether it is our client or indeed the spouse in the case. The biggest risk to an equitable settlement when the Court gets involved is not the numbers themselves, it is how the Judge considers the parties in the matter, whether they come across as credible and honest or do they try and dodge the questions in disclosure. Faced with this perception – it is difficult to overcome and if negative be aware the Court may just find against you when they are formulating directions and ultimately in a final hearing the division of assets. Remember the principle that a claimant should not benefit from being less than honest or open in their dealings with the Court. If a judge considers this, they are perfectly within their rights to find in favour of the opposing party and you might be left with a settlement that is not at all satisfactory. You are then on the back foot as we often say.

So the motto is to be open – it is always the best option because in protracted proceedings, things will be found out and it is our role to probe and press on what we find to the benefit of our clients. Don’t let the Court form a perception of you as someone who is less than open because the likely result is a settled that will not be one you are happy with.

The best solution is to settle matters outside of the Court process. We are focussed on doing just that – that is why over 80% of our cases settle without Court intervention.

Read more articles by Fair Result.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

10 Steps to Divorce Financial Settlement
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10 Steps to Divorce Financial Settlement

Published on
Peter Marples
Peter Marples
Director
Fair Result

Agreeing a financial settlement is a huge milestone during the negotiation process of a divorce. It is advised that separating couples obtain a financial order that sets out this settlement, as whilst this is not mandatory, it will make this agreement legally binding.

Some lucky couples can decide on how to divide up their assets, agreeing their financial settlement without the need of going to court. However, to ensure both parties are protected, and the agreement is legally binding, a solicitor can draft a ‘consent order’ that both parties must sign.

This is then sent to the court with a completed Form A (notice of your intention to proceed with an application for a financial order), a Form D81 (statement about the parties’ financial situation to support your application for a consent order), and a £53 fee (administration fee).

However, a lot of couples fail to agree on a divorce financial settlement, which means that the court will have to decide for them.

In most cases, the process will follow the ten steps highlighted below, however, an agreement can be made at any point during this process. If that is the case, then this is agreed and signed in a legally binding court order to confirm all the details.

Providing notice of application – Form A

To kick start the financial settlement process, you will need to send a completed Form A (notice of your intention to proceed with an application for a financial order) to the courts.

This document will outline the kind of financial order you are looking for, at what stage you are at with the divorce or dissolution of a civil partnership proceeding, contact details of the separating couple or legal representatives, and information about the Mediation Information and Assessment Meeting (MIAM).

First Directions Appointment date

Once you have provided your application, the court will then set a date for the First Directions Appointment (FDA). This is the first hearing in relation to your financial dispute arising from your divorce.

This is an opportunity for the judge to consider what information each party needs to provide to create the divorce financial settlement. Both parties are encouraged to reach an agreement if possible. If this cannot be agreed, a second hearing with the FDA will be arranged to allow for further negotiation.

Financial statement – Form E

Form E (Financial Statement) is an important document in the UK divorce process since it acts as the starting point for the financial settlement negotiations.

Both parties send the court a Form E at least five weeks before the FDA hearing. You must also send a copy to each other.

The purpose of this document is to ensure both parties disclose their financial circumstances, including income, assets, liabilities, and projected financial needs.

FDA documents

These documents are filed by both parties two weeks before the FDA:

  • A concise statement of issues.
  • A chronology of events.
  • A questionnaire which is supposed to address the statement of issues.
  • A Form G, whereby you tell the court whether the FDA meeting can be used for a Financial Dispute Resolution (FDR) appointment. Typically, the FDR meeting takes place after the FDA meeting.

Costs – Form H

At this stage, each party will send the court a completed Form H just before the FDA meeting, listing any costs they have incurred.

This document sets out all the costs of the financial remedy proceedings, including costs from before and after the application was issued.

FDA meeting at court

The judge will consider both you and your partner’s financial disclosures and establish whether further information is required from either of you.

Many judges are keen to see whether a resolution meeting (skip to the final hearing section) can take place at this stage. If not, a date is set for the FDR meeting.

File proposals

Both parties will answer questionnaires, prepare evidence, and submit proposals to the court for the divorce financial settlement.

Both sides also submit a second Form H, which lists updated costs.

FDR hearing

During this hearing, the judge will focus on encouraging both parties to agree on a financial settlement, through judge-led negotiations.

Most divorcing couples settle at this stage (or soon afterwards). If not, the judge will arrange a final hearing, where both parties will need to make new offers and provide evidence.

Further proposals

The negotiations continue between both parties, including revised proposals for the divorce financial settlement which are sent to the court and to the other party.

Final hearing

This is usually the third and final court hearing within the financial remedy process.

In the absence of any agreement and following the submission of updated costs on a Form H1, a new judge will decide on your financial position and impose a settlement on your behalf.

Summary

One of the most important parts of getting a divorce is reaching a financial settlement. Many couples can agree this without the need of going to court however, but a lot of separating partners find difficulty in achieving this.

Perhaps one person is not providing their financial information, or they are not making sensible proposals, in that case, court is advisable.

By following these simple steps and receiving professional advice, you will be on your way to a Fair Result and a happy, brighter future.

Do you require specialist expertise in securing financial settlement? Get in touch with our team today.

Read more articles by Fair Result.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

The New Pension Rules and Divorce - Don't Leap too Soon
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The New Pension Rules and Divorce – Don’t Leap too Soon

Published on
Peter Marples
Peter Marples
Director
Fair Result

The recent announcement by the Chancellor to release the pension cap and the annual contribution limit was seen by many as a tax break for the rich.

However, the major beneficiaries of this change was those people in the Public Sector with Senior Roles such as Headteachers, Consultants, GP’s and Civil Servants, most of which are on either final salary or average salary pension schemes.

Why? Because many had already reached the maximum pension allowance and their marginal rate of income tax was becoming such a disadvantage that many had decided to retire.

So it is a good thing that you can add more to your pension fund and benefit from this in retirement – for many yes, but for those contemplating divorce or more particularly those that will be in receipt of a pension sharing order, the benefits are not so obvious.

With over 1/3 of the working population in the public sector, with the prevalence of final or average salary pension funds being prominent in the Public Sector it is not surprising in divorce that the pension is often the major element of the financial settlement.

The number of times we have seen, more often than not the wife in receipt of a large pension sharing order running to many hundreds of thousands of pounds is more common than you think. BUT, very few lawyers or even fewer pension advisors actually tell you that the devil really is in the detail of the pension funding rules themselves. We pride ourselves in giving fair advice to our clients and increasingly that advice is not to take a pension sharing order or at least to consider fully the implications of doing so. So let us pose a few questions, the answers for which might surprise you:

The value of my pension sharing order goes into my estate if I die early?

Nope – if you die, the vast majority of your pension sharing order is returned to the Chancellor of the Exchequer and your estate receives little or no benefit.

My pension is liquid and I can move it?

Nope – scheme rules are clear and different for each scheme. You cannot move funds in most schemes and they are certainly are not liquid. Contrast that with you taking a larger percentage of the family home in the divorce settlement and not a large pension sharing order. Your property is liquid, carries little risk and is yours to do what you want with

If I die before I can draw my pension then my will provides for the money to be distributed?

Nope – if you die before you can draw from the scheme, you get nothing. Just think if at 40 you took a £200,000 pension share and died at 55 – your divorce settlement in this case was not worth a great deal.

So I can draw my pension at 60 ?

Nope – all schemes have different rules. For example, the Fire Service pensions have three schemes and the earliest draw down for the annual pension in one of these schemes is 67 ! – yes 67.

Summary

So in summary, the new requirements allow more money to go into the pension which gives a larger part of any divorce pot being attributable to the pension itself. On face value, good news but unless you can get at it, then it is worth very little.

Each case is very different and needs to be considered, so but don’t just think a big pension sharing order means a great settlement. We would trade a pension for cash in a property NOW every day of the week because you just don’t know what might happen and with a property, you can leave it to your kids or even the RSPCA.

Read more articles by Fair Result.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

The latest updates on the Capital Gains Tax Legislation UK.
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Capital Gains Tax Changes 2023 – What to Expect

Published on
Peter Marples
Peter Marples
Director of Fair Result

On the 20th of July 2022, the government announced their plans to change the rules that apply to the transfer of assets between spouses and civil partners who are in the process of separating. The changes will be in effect from the 6th of April 2023.

The new Capital Gains Tax (CGT) measure aims to make the process fairer for those who are separating or divorcing and are in the process of distributing assets.

This article will provide detail about the CGT measure, the proposed changes, and its impact.

What is the Capital Gains Tax measure, in relation to separation and divorce?

This measure makes changes to the rules that apply to transfers of assets between separating spouses and civil partners. It gives the individuals up to three years to make no gain / no loss transfers of assets between themselves, when they cease to live together and unlimited time if the assets are in the process of a formal divorce agreement.

In addition, the measure introduces special rules which applies to individuals who have maintained a financial interest in their former family home, following a separation, and this applies when that home is eventually sold.

The objective of the measure is to make the CGT rules fairer for spouses and civil partners who are in the process of separating. It gives them more time to transfer assets between themselves without incurring a large CGT bill.

The proposed changes to Capital Gains Tax

A background to the proposed changes

The Office of Tax Simplification (OTS) highlighted in its second Capital Gains Tax report in 2021 that “the government should extend the ‘no gain no loss’ window on separation to the later of:

  • The end of the tax year at least two years after the separation event.
  • Any reasonable time set for the transfer of assets in accordance with financial agreement approved by a court or equivalent processes in Scotland.”

The government responded to this on the 30th of November 2021 and agreed that the ‘no gain no loss’ window on divorce and separation should be extended.

The proposal

The legislation will be introduced in the Spring Finance Bill 2023, which will provide the following:

  • Separating spouses or civil partners to be given up to three years after the year they cease to live together in which to make no gain / no loss transfers.
  • The no gain / no loss treatment to also be applied to assets that separating spouses or civil partners transfer between themselves during the formal divorce agreement.
  • A spouse or civil partner who maintains an interest in the former matrimonial home to be given an option to claim private residence relief (PRR) when the property is sold.
  • Individuals who have transferred their interest in the former matrimonial home to their ex-spouse or civil partner and are entitled to receive a percentage of the proceeds when the property is eventually sold, be able to apply for the same tax treatment to those proceeds when received that applied when they transferred their original interest in the property to their ex-spouse or civil partner.

What is the impact of these changes?

The latest measure will make it fairer for spouses who are going through divorce or separation and are in the process of distributing assets between themselves.

This measure is anticipated to create a positive impact on individuals, by extending the period of time available to give separating couples at least three years to make a no gain / no loss transfer between themselves for CGT purposes. It will especially benefit those who are involved with more complex proceedings, as it means that more time can be spent on the divorce proceedings and other considerations, rather than CGT.

In addition, the extension will help avoid further reduction of household income or existing accumulated household wealth through dry tax charges for those who meet the new time period. There will also be similar benefits for those who are transferring assets between themselves that are listed in a divorce or separation agreement.

Summary

As announced in July 2022, the government will be making changes to the rules that apply to the transfer of assets between spouses and civil partners who are in the process of separating. The anticipated impact of the CGT changes is meant to be positive, as it makes the separating / divorcing process fairer and provides additional time to make a no gain / no loss transfer. The changes will take effect for disposals made on or after the 6th of April 2023.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

Does the area of England you live in mean you are more likely to get divorced
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Does the area of England you live in mean you are more likely to get divorced this January?

Published on
Peter Marples
Peter Marples
Director of Fair Result

Does the area of England you live in mean you are more likely to get divorced this January?

People in the South Of England are the most likely to consider getting a divorce this New Year, according to research carried out by disrupter firm Fair Result.

However, it’s also bad news if you live in the East Riding of Yorkshire, whilst Yorkshire may not be the most likely region for divorce at this time of year, the East Riding County has the highest search volume percentage for divorce in the whole of England.

The UK’s only true fixed-fee divorce company Fair Result take a look at the regions of England where people are most likely to consider divorce this January. Compiled from Google Search volume data, each year there has been a consistent increase in the volume of enquiries to legal firms following the festive period.

Delving more into the South East, which is the region with the highest search volume, of their total 8.080 million population, 0.067% were searching for a divorce. The most likely county in the South East is Surrey who came out easily on top with 0.061% followed by Buckinghamshire with 0.059%. The South East county with the lowest search volume for divorce was West Sussex with 0.049%.

The next three most likely regions to consider divorce are Greater London with 0.066%, North West with 0.061% and the East of England with 0.055%

Yorkshire & Humber are at the halfway point with 0.053% of their 5.454 million population searching for divorce, however, the East Riding appears to be the English county where people are most likely to consider divorce this New Year with a 0.14% search volume.

The remaining 5 regions are the South West with 0.052%, East Midlands with 0.047%, Wales with 0.045%, North East with 0.036% and the lowest of the 10, with 0.029% of their 1.885 million population is Northern Ireland.

January consistently sees the highest Google search volume for divorce, year upon year. Fair result recently spoke about why January is such a popular month for divorce which stated “The festive period is a time for reflection and the trend of New Year’s resolutions plays quite a factor in Divorce, January tends to be that breaking point of starting to strive for a new better you”

To find out where your region appears in the list you can view the full analysis here.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted

You might be interested in

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