Family Law Articles & Advice

Read the latest articles on Family Law from our expert Family Law solicitors here at Evolve Family Law in Manchester & Cheshire.

We put a lot of family law legal information on our website and if you have a single question about your situation, you should find an answer in this blog.

If you need a greater level of help, please contact us and one of our team will call you to make an appointment.

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Who Pays Child Maintenance When You Share Custody?

Who pays child maintenance when you agree to share the parenting of your children after a separation or divorce? It's essential to understand the law on child support before finalising your divorce financial court order or reaching a childcare agreement. Our Northwest family law solicitors can help you understand how child maintenance works and assist you in reaching a parenting agreement or financial settlement. For specialist family law advice, call Evolve Family Law or complete our online enquiry form. Who pays child maintenance when the parenting of children is shared? If you poll parents on the question of who pays child maintenance when parenting is shared, most parents assume that the parent who earns more will be responsible for paying child maintenance. That’s not correct. Under the complex child maintenance law rules, if both parents equally share the care of their children, neither parent will be required to pay child maintenance to the other parent. This child maintenance rule can lead to two problems: Parents not wanting to agree to shared parenting because they don’t want to lose out on child support or can't afford to do so. Parents saying they want to parent equally but not doing so in practice, or the child spending an equal amount of time at each parent’s home but not getting the same quality of parental care and attention at both parents’ homes. These problems can result in more parental disputes about the best childcare arrangements for their children or child arrangement order applications for the court to decide if parenting should be shared equally. What difference does shared care make to child maintenance payments? If you share the care of your children, then it can make the difference between: Receiving hundreds of pounds each month for your children in child support and receiving no child maintenance at all. That can mean the difference between being able to afford to work part time and having to work overtime to pay your household bills, or Paying hundreds of pounds each month for your children in child maintenance. This can mean that a parent cannot afford to pay child support and pay the mortgage or rent on a suitable home near their child’s school, or afford for their children to have the same sort of lifestyle that they enjoy with their other parent. That is why both parents must understand their respective roles and responsibilities regarding shared parenting and child maintenance before agreeing on a parenting regime and child maintenance arrangements. Child benefit and the payment of child maintenance  It was thought that if one parent receives the child benefit money, their entitlement to the child benefit payment automatically means they are the parent who is entitled to ask for child maintenance from the other parent. One father challenged that assumption. The child maintenance tribunal decided that: Child maintenance is only payable if one of the parents is classed under child maintenance rules as the ‘non-resident parent, or in other words, there isn’t an equal shared care arrangement. This means that the other parent is classed under child maintenance rules as the ’parent with care.’ If there is no evidence to the contrary on shared care, then if the person applying for child support receives the child benefit payments, it is assumed that they are the ‘parent with care.’ This assumption isn’t relevant if both parents equally share the care of the children. The day-to-day care provided by each parent must be evaluated. The evaluation isn’t just about counting the nights the children stay with each parent, but also about assessing tasks and responsibilities. If there is equal responsibility for the day-to-day care of the children, then no child maintenance is payable, even if one parent earns a lot more than the other parent. Factors to consider when negotiating parenting arrangements and child maintenance Here are some factors to consider when negotiating parenting arrangements and child maintenance: What type of child care arrangement meets your child’s needs? Some children cope better than others with an equal shared care arrangement. How do the practicalities of commute and work commitments impact how you will share the parenting time and childcare? If you do equally share the care of the children and child support isn’t paid, how will this impact the finances of both parents? Will one parent be paying spousal maintenance to the other parent and, if so, how long for? Will one parent be receiving more than half of the equity in the family home to rehouse themselves because they earn less than the other parent? With specialist legal advice from a Manchester divorce solicitor on your best divorce and financial options, many parents can agree a financial settlement that meets both families’ needs. The lawyer can then draw up a financial consent order, ensuring that both parents have the certainty and legal protection of a court order.   You might also be interested in [related_posts] What counts as shared care of children for child maintenance payments? Shared care is as individual as families. It is a question of what works for a particular family. Some families agree on: A week on, week off schedule so the children spend a week with each parent, or A day on, day off schedule so the children never spend more than a day away from each parent, save for holidays, or Sharing an au pair or nanny so that the child care support moves with the children to provide continuity. These types of shared care arrangements can work better for some families than the more traditional 3-day/4-day split, where one week is spent on the 3-day schedule and then swapped with the 4-day schedule in the second week. The shared care arrangement that works best for a family can depend on: Distances between family homes. If a family has children with different or competing needs. For example, if one child has special educational needs or there is a significant age gap. New relationships and stepchildren. The practicalities of managing work and child care commitments combined with the daily commute and school run. Experience as a Manchester divorce solicitor has shown that any type of shared care arrangement can be beneficial for children, provided their parents are happy with the arrangements, commit to co-parenting and parenting routines, and share the highs and inevitable occasional lows of parenting. What happens if we stop or start sharing the care of the children? If, for whatever reason, you stop or start sharing the care of your children, then child maintenance could either stop or start. That is because, in most situations, you can apply to the Child Maintenance Service for child support at any stage. If child care arrangements change, then a parent may be able to ask the child maintenance service to either stop the requirement to pay child support or to vary the amount paid in child maintenance. That’s why, when looking at your housing options and finances on separation, it is sensible to factor in possible changes in child support in future. Manchester & Cheshire-based Evolve Family Law solicitors are approachable and friendly, providing pragmatic and expert solutions for divorce, children, and financial settlements. For specialist family law advice, call Evolve Family Law or complete our online enquiry form.
Robin Charrot
Jul 21, 2025   ·   7 minute read
Sweet moments of fatherhood concept, happy father hold embrace cute little child daughter, smiling black family daddy and small kid hugging cuddling enjoying time together at home

How Often Can a Father See His Child?

One of the most emotive topics after a separation or divorce is how often a father can see his child. In this blog, Northwest family law solicitor Louise Halford explains the law regarding parenting time after separation or divorce. For specialist family law advice on parenting plans and child arrangement orders, call Evolve Family Law or complete our online enquiry form. How often can a father see his child after a parental separation? There is no rule on how often a father can see his child after a parental separation. As specialist family law solicitors, we have negotiated parenting plans or secured child arrangement orders that say: The child lives with their dad and spends some parenting time with mum, or There is a shared parenting regime, or The children live with their mum and their dad has contact. In extreme cases, where there are significant welfare concerns, the court can order supervised parenting time or even no contact. Our family lawyers recommend that neither parent attend the parenting negotiations with a fixed idea of the parenting time that must take place. In most families, there isn't only one solution that will meet the children's needs to have an ongoing relationship with both parents. Do children always stay with their mothers after a separation or divorce? It used to be the case that after a separation or divorce, most children lived with their mother, and their father had parenting time or contact. In many families, that remains the position. However, instead of it always being assumed that a child will live with their mother nowadays, all options are on the table, including the child living with their father, the child having contact with their mother, or a shared care arrangement. It isn’t so much that the law has changed, but societal attitudes and working practices have changed. For a long time, the court has focused on what child law order is in the best interests of the child when determining court applications over parenting time. As every child and family is different, family lawyers must consider family circumstances before advising on parenting arrangements or when advising on a child arrangement order application. Custody, residence and child arrangement orders In the past, when a father traditionally went out to work and the mother was a stay-at-home parent or worked part-time, it was often thought best that a child should continue to live with the primary caregiver or the parent who was available to meet their day-to-day needs. With both parents now often working full-time, the best interests of the child may be best served by a shared care arrangement. The change in working patterns and societal norms has prompted a change in legal language. Lawyers no longer talk about custody, contact and residence, but rather parenting time. Is a father entitled to shared care if he wants to co-parent his child after a separation or divorce? Although much is written in the media about shared parenting being the norm or ideal, neither a mother nor a father is ‘entitled’ to share the care of their child after a separation or divorce. That’s because if parents can’t agree on the childcare arrangements for their child and the court is asked to make a child arrangement order, the court will assess what order is in their child’s best interests. Shared parenting (whether that is an exactly equal split of parenting time or a sixty-forty split of time or other percentage) may be the best option for the child, but not necessarily. Equal shared parenting time may not be in the best interests of a child if: Parents don’t live, or are not intending to live, relatively close to one another to ensure that the child can get to school from both homes, or The child prefers to have one home base, rather than moving between homes, or One parent’s work commitment means that if parenting were shared, the reality is that the child would be looked after during that parent’s parenting time by extensive use of professional carers, or The parents don’t get on at all and won’t cooperate over parenting, making frequent handovers for the child disruptive and distressing. Shared care can be ideal, but it isn’t practical for every family, and therefore it isn't in the best interests of every child whose parents separate or divorce. When looking at childcare arrangements, it is best not to think of ‘entitlement’ but what arrangements are likely to meet your child’s needs. Is shared parenting the best option for children and their dads? Most child experts say that spending an equal amount of parenting time with a child after a separation or divorce isn’t the key to successful parenting, but ensuring that the time you do spend with your children is ‘quality’ time. For parenting time to be quality time, it doesn’t have to be expensive outings, but being able to set aside time to read with younger children, help with homework, or transport to football practice, ballet club or just talking and taking an interest in what your children are doing at school or when they are with their other parent.   You might also be interested in [related_posts] How often can a father see his child? Fathers often want to know the worst-case and best-case scenarios of how they will usually be able to see their child after a separation or divorce. A great deal depends on your circumstances.  For example, contact will be restricted if a mother successfully applies for a relocation order to enable her to move overseas with the child, or parenting time will be more limited if a father has to relocate to a new area in the UK due to his work commitments. Many parents agree to split the week so that children spend roughly equal amounts of time with each parent. For other families, the preferred option is for a child to live with one parent during the week and have midweek and alternate weekend parenting time with the other parent. Contact with the child every weekend would mean that the residential parent of a school-age child would not spend any quality time with the child over the weekend. There is therefore no set rule about how often a father can see his child. That can be frustrating for some fathers who want certainty after a separation or divorce. However, not having set rules means that parents can work out what child parenting arrangements or co-parenting schedule works best for their family, or the court can be asked to make a child arrangement order after assessing what is best for your child rather than following a fixed formula. Manchester and Cheshire Children Law Solicitors If you need help with your separation or divorce, negotiating parenting time or representation in a child arrangement order application, call Evolve Family Law or complete our online enquiry form. We have offices in Whitefield, North Manchester and Holmes Chapel, Cheshire, but we can also arrange a telephone appointment or online consultation.
Louise Halford
  ·   6 minute read
What Children Want From Shared Parenting

What Children Want From Shared Parenting

In this blog, Louise Halford, a family lawyer specialising in children's law, examines what children want from shared parenting.   Call Evolve Family Law or complete our online enquiry form for children's law advice.   What is shared parenting? To some, shared parenting means equal parenting, where a child’s time is split equally between the two parental households. To the court and family lawyers, shared parenting is a more encompassing concept. A child can live with one parent under a child arrangement order but participate in a shared parenting arrangement because their other parent has contact and actively cares for them. Take the case of two separated parents who parent 50/50 but don’t communicate with one another, unless they have no choice. The anger and animosity during their separation and in financial settlement negotiations meant their divorce was labelled as high-conflict. They are now engaged in shared parenting, but not in the spirit of it. Contrast their co-parenting with a Mother who has a child arrangement order and a child who lives with her 60% of the time. You may think that isn't shared parenting, but the Dad is actively engaged in all important parental decision-making, and both parents communicate with one another to provide their child with consistent parenting and routines. As a children lawyer, Louise Halford prefers to use the broad definition of shared parenting as that encapsulates what shared parenting should be. It should not relate to percentages or the hours spent with a child, but rather to sharing the job of being a parent and quality time.   The court's approach to shared parenting The court has moved away from weekend contact to an absent parent (traditionally the Dad), and nowadays, a child arrangement order with shared parenting is usual unless: The parents engaged in a high-conflict divorce, or There was domestic violence in the parental relationship, or Child welfare reasons prevent shared parenting, or The child is of an age to say that they do not want a shared parenting arrangement, or Geographical reasons make shared parenting impractical. Child welfare issues include factors such as parental alcohol or drug addiction, mental health, or other issues that lead the court to conclude that a shared parenting arrangement is not in the child’s best interests.   Shared parenting after a high-conflict divorce It can be hard for separated or divorced parents to put aside their differences and focus on shared parenting. High conflict between parents can stem from: One or both parents' behaviour during the relationship. One parent has met a new partner, and the other parent does not think the new partner is a good role model for their child. Difficult financial settlement negotiations, or one parent is unhappy with the terms of a financial court order. Unwanted interference from extended family or new partners. Children focused on creating parental conflict as it suits their agenda to play one parent off against the other.   The consequences of high conflict in shared parenting Some of the consequences of high-conflict divorce in shared parenting arrangements are: The children don’t want to move between the two households as it is too emotionally draining. Children are embarrassed by the parental conflict and don’t want their friends to witness it. The children work hard to fit in and be the children their parents want them to be during their parenting time – the children lead a double life. Children mask and pretend that the conflict between their parents isn't affecting them. Children act out because they are caught in the middle of a parental war.   Research on what children want from shared parenting You would think it would be relatively easy to download the latest research on what children want from shared parenting and quote relevant chunks of data. However, it is far from easy. A lot of internet searching led us to an article published in April 2015 in The International Journal of Children's Rights, ‘’A qualitative synthesis of children's experiences of shared care parenting arrangements post separation.’’ [related_posts]   Data on children's experiences of shared care parenting arrangements post-separation  The 2015 article in The International Journal of Children's Rights pulls together international research on children’s experiences of shared cared parenting post-separation from studies conducted in various countries. Here is a snippet from the article that references two of the research studies: ‘’The line that differentiates sole versus shared care is arbitrary, adult-construed, and does not necessarily reflect the views of the children involved. Rather than a binary legal argument, children consider multiple factors when assessing the parenting plan that may work best for them (Sadowski and McIntosh, in press; Whitehead, 2012). Participants across the studies seem to favour shared care when they were provided input into the decision-making process, when parents respect and integrate their feelings and concerns, when the parenting plan emphasised and maximised their time with both parents, and when the plan supported a continuous and meaningful relation- ship with both parents and their siblings post separation and divorce (Blackwell, 1992; Cashmore et al., 2010; Lodge and Alexander, 2010)’’. In summary, the various research studies referred to in the article show: Living arrangements with flexible contact between both parents were the preferred arrangement across studies. Children appreciate the opportunity to see their other parent and the flexibility to visit their other home when needed. Children appreciate shared care that provides them with a regular routine and a sense of being wanted by both parents. Children prefer shared care when they were asked for their views on how shared care will work, and when parents respect their views and the plan allows for meaningful time with both parents. Children appreciate shared parenting that allows for flexibility, enabling the plan to be adjusted to fit the child’s priorities and commitments. Young adults sometimes prefer to have one home because they want to concentrate on school or find it hard to study in a parental household with younger half-siblings. Children get frustrated when a parenting plan does not allow them to spend quality time with one parent. Some children, especially when parents conflict with one another, find shared parenting difficult. Some children expressed a preference for stability and a regular routine. The type of shared parenting arrangement has a significant impact on how it works for the child. Some children took the view that an alternating week schedule with each parent was too disruptive for them. The children said that sharing their time between both parents did not weaken their sibling relationships or adversely impact their childhood friendships.   Lessons from the 2015 research The research studies in the 2015 paper tell family lawyers what children want from shared parenting: To be heard and to feel that they have a voice. For parents to work together to make shared parenting work. Parenting plans based on a child’s needs rather than a parent's desire to have 50/50 time. Flexible shared care to meet a child’s calendar of sports activities, friendships and commitments. Shared care arrangements that adjust as children's needs change over time. One of the key points in the 2015 article was the importance of listening to the child. In one study, a child described attending a school event with both parents. To outsiders, it must have appeared to be a successful shared parenting arrangement. However, to the child, it was awful, as they recognised their parents’ body language and the fact that neither was prepared to speak to the other.  The article highlights that what children want from shared parenting is the real thing: parents who can communicate and share parenting responsibilities between two households, rather than high-conflict parents pretending to engage in shared parenting.   Shared parenting legal advice Parents may need help understanding how shared parenting affects their children when parenting styles conflict, there is a high level of parental conflict, or when practical issues, such as distances between parents’ homes, make shared parenting difficult to navigate. It is equally important for parents to understand the impact of a shared care regime on the financial settlement and child support arrangements. Whilst money should not affect the decision on the type of parenting plan that meets the needs of your children, for most parents, the financial impact is a key consideration. Where parenting time is shared equally, the Child Maintenance Service rules say that no child support is payable, even if there is a significant income discrepancy. Those child maintenance rules can make it difficult for some parents to agree to a shared parenting regime, even in situations where they get along, unless the ex-spouse is willing to pay child maintenance voluntarily. When parents are splitting up, it's best to discuss openly with older children and the other parent the type of parenting arrangement that will best suit your family after your separation. Those discussions can take place jointly with the child, individually with each parent or with professional help. The help could come through a child-inclusive family mediation or family therapy. At Evolve Family Law, our children's law solicitors provide comprehensive legal advice, ensuring parents receive the support they need to understand the financial and practical implications of agreeing to a shared parenting arrangement. If an agreement cannot be reached, we can advise and represent you in an application for a child arrangement order.   Call Evolve Family Law or complete our online enquiry form for children's law advice. ‍ ‍
Louise Halford
Jul 11, 2025   ·   8 minute read
Boy learning to ride a bicycle with his father in park. Father teaching his son cycling at park.

Child Arrangement Orders – Your Questions Answered

If you are going through a separation or divorce, you are bound to have lots of questions about your child custody rights or want to ask questions about residence, contact or access orders. In this article, children law expert Louise Halford answers your frequently asked questions on child arrangement orders. For expert Divorce and Children Law advice, call our team of specialist divorce lawyers or complete our online enquiry form.   What is a child arrangement order? A child arrangement order is a court order that sets out parenting arrangements for children when there is a dispute between parents over their child’s living arrangements. The order is a combined order, as it will outline where the children will live (formerly referred to as a custody order or residence order) and the spending time with arrangements (formerly referred to as an access order or contact order). Do I need a child arrangement order? You only need a child arrangement order if you can’t agree on the parenting arrangements for your children. If you cannot reach an agreement directly with your ex-partner, your children's law solicitor can help you resolve issues through alternative dispute resolution. Alternative dispute resolution keeps disputes out of court. There are several ways to reach a parenting agreement without going to court. These include: Family mediation. Family arbitration. Amicable divorce with our one-lawyer service. Solicitor negotiations. Direct negotiations. The family court will not routinely make a child arrangement order to record what you have agreed unless there is a history of dispute or a real reason for the order. Will a child arrangement order let me take my children abroad? If you are named as the parent a child lives with in a child arrangement order, you can take your children abroad on holiday for up to four weeks without needing the other parent’s agreement. However, even with a child arrangement order, you can’t move overseas with your children without the other parent’s agreement or a court order. If the other parent won’t agree to your plans to relocate overseas with the children, then you need to apply for a relocation order. Can you change a child arrangement order? A child arrangement order can be changed either by: Both parents record that they agree to the parenting change, or By applying back to the family court to vary the child arrangement order. For example, if you agree that the children should be returned home at 6 pm rather than the old time of 5 pm, the agreement to the change could be recorded in a text or email without incurring the expense of a court application. However, if your child wants to move to live with you and the other parent won’t agree, then you will need to apply to the court to vary the child arrangement order. You should not change the child arrangement order without taking advice, as you do not want to be accused of breaching the court order.   Child arrangement orders and child support A child arrangement order does not say if one parent should pay child support to the other parent. Child support is arranged by: Agreement between parents, or Assessment by the Child Maintenance Service, or In limited situations, the court can make a child support order. The general rule is that when a child spends an equal amount of time with both parents, neither parent is required to pay child support. That rule applies even when one parent earns more than the other parent under the Child Maintenance Service rules. Child support rules are complicated. It's best to speak to a family law solicitor about your entitlement to child support before reaching a financial settlement or agreeing to a parenting plan. You might also be interested in [related_posts] Shared care and child arrangement orders A child arrangement order can specify the parent the children will live with and set out the contact or spending time arrangements with the other parent. Alternatively, a child arrangement order can stipulate that parenting is shared and outline the details of the shared parenting arrangement. It does not necessarily have to be a 50/50 split each week. Ideally, a child arrangement order will also set out how holiday contact will be arranged. For example, parents may have alternate year Christmas Day contact, or school holiday contact will be divided equally on dates to be agreed upon between the parents. With a child arrangement order, can you make all important decisions regarding your child? If you have a child arrangement order, it does not allow you to make all the important decisions for your child and exclude the other parent from decision-making. Important decisions include: Choice of school. Whether to follow a religion and the extent of faith observances. Medical decisions. If both parents have parental responsibility for their child, they both have equal rights and responsibilities over major decision-making. Where parental responsibility is shared and both parents cannot reach an agreement over an aspect of parenting, then either parent can apply to the family court for a specific issue order or a prohibited steps order. The court will decide based on what the judge believes to be in the child’s best interests. Who can apply for a child arrangement order? It isn’t just parents who can apply to court for a child arrangement order. Others have an automatic right to apply for a child arrangement order, such as: Step-parents, or A relative if the child has been living with the relative for twelve months, or Anyone who has looked after the child for three years or more. In addition to those with an automatic right to apply for a child arrangement order, others can apply for permission to apply for a child arrangement order. This typically covers situations where a grandparent wants to obtain an order to have contact with a grandchild. How Evolve Family Law can help you with sorting out parenting arrangements If you need help with a child arrangement order application, our specialist children law solicitors are here to help you. We can assist you by: Representation in an application for a child arrangement order. Applying to vary a child arrangement order. Family mediation to help you reach a parenting agreement. Legal advice by offering legal services whilst you mediate with an alternative mediator. If you are divorcing amicably, consider our Amicable Divorce One Lawyer service.   For expert Divorce and Children Law advice, call our team of specialist divorce lawyers or complete our online enquiry form.
Louise Halford
Jul 05, 2025   ·   6 minute read
Parenting Plans

Parenting Plans

If you have separated from your partner or you are mid-way through divorce proceedings, the most important thing to sort out is the childcare arrangements for your children. As parents, you need to decide whether your children will be co-parented, parallel parented, or if one parent will be the primary parent, looking after the children full-time, with the other parent spending time with them. Whatever child care arrangement you choose, a parenting plan can help both parents understand the ground rules and reduce the risk of disputes and court applications for child arrangement orders. For specialist family law advice on parenting plans and child arrangement orders, call Evolve Family Law or complete our online enquiry form.   Children law solicitor, Louise Halford, answers your frequently asked questions on parenting plans: What is a parenting plan? How do I agree on a parenting plan? What should be included in a parenting plan? How do you change a parenting plan?  What is a parenting plan? A parenting plan is a document created by parents to outline the parenting arrangements for a child or children following a separation or divorce. Parents can agree upon a parenting plan, or it can be made after children's court proceedings for a: Child arrangement order. Specific issue order. Prohibited steps order. Relocation order. How do I agree on a parenting plan? There are many ways that parents can agree on a parenting plan. You can use a template and prepare one yourself. Sometimes, that is a bad idea, as ‘going it alone’ may lead to arguing with your ex-partner and polarising your positions. With the help of a children's law solicitor or family mediator, you may be able to discuss child care arrangements and reach a compromise. At Evolve Family Law, our solicitors are committed to helping parents reach an agreement on post-separation parenting arrangements for their children without needing to apply to court for a child arrangement order. We can do this through: Solicitor negotiations. Family mediation with our family law mediator. Family arbitration. Using our amicable divorce one lawyer service. Sometimes, a parent has no choice but to apply to the court for a child arrangement order. For example, if one parent is not able to provide a satisfactory level of care or if they fear the other parent will take the child overseas to live. To understand your options, book a consultation with one of our specialist family law solicitors. What should go into a parenting plan? Every child and family is different, so your parenting plan should be tailored to your individual needs and those of your child. The fact that a family member, a neighbour, or a friend has a parenting plan should not influence what should go into your parenting plan. That is because your parenting plan needs to outline the best agreement for your family, taking into account your family's circumstances and personal preferences. For example, some parents share care of their children, with the children spending an equal amount of time with each parent. Other parents prefer their children to have one home base during the week and to share quality time on weekends and school holidays. Neither option is the ‘best’ or the right one, as so much depends on your family and each parent’s work commitments and the distance between the two homes. Every parenting plan should consider including what has been agreed on, such as: Home base– unless parenting is to be shared equally. Contact or shared parenting arrangements, such as the agreed-upon times for collection and return, drop-off points, and who will do the collections and returns. The practical points on shared care and regular contact, such as the washing and return of school uniforms, the supervision of homework or who is responsible for clothes and shoes shopping or haircuts. Whether phone contact is to take placebetween parent and child, and, if so, the frequency of phone calls so that they do not become too restrictive or intrusive for a parent with the care of a younger child. Special contact(child and parents' birthdays, Mother’s Day, Father’s Day, as well as Christmas and religious observance days) and holidays. Best method of communication between parentsif contact or other arrangements need to be changed. For example, mobile, text or email. Communication may be necessary to cancel a visit or to agree on a coordinated approach to buying birthday presents. Who is responsible for medical and dental appointments, and communication about appointments, or to say if a child is ill or hospitalised. How will you deal with parent evenings at school, or attendance at school plays, or sports days? How will you address the introduction of new partners and their children, and the communication of the information to your ex-partner? This type of information is helpful so that the other parent does not find out about new relationships or remarriage through the child. Whilst you may not want to communicate this type of personal information or receive the news about your ex-partner’s new relationship, a significant reason for child care arrangement breakdown is non-communication over adult issues that also affect your child. Holiday plans– if you plan to go on holiday during your holiday contact time, is it agreed that you need to inform the other parent about your planned trips overseas or to a destination in the UK and give agreed key information such as flight times and numbers and hotel details and who else who will be accompanying the child on holiday. For example, a new partner and their children. Parenting plan changes– how you will agree to make changes to the parenting plan.   You might also be interested in [related_posts] How do you change a parenting plan? Children's wants and needs change over time. What are the appropriate parenting arrangements for a two-year-old who is not in school may be completely different from those for an eleven-year-old. By the time a child is in their teenage years, the arrangements will need to change again. Add to the mix that your circumstances may change with a new job, house, or relationship, and the arrival of additional children or stepchildren. Likewise, your ex-partner’s circumstances are likely to change, necessitating a review of the parenting plan. The fact that a parenting plan needs to be changed should not be a sign of defeat. For example, your five-year-old may struggle to cope with equal co-parenting, even if their cousin or other children in their class can manage it. Some children are just more adaptable than others. Alternatively, a parenting plan may need changing or tweaking because the only reason that a child is struggling with co-parenting or parallel parenting is different parenting regimes in the two households and two parenting styles that are confusing to the child because as soon as a child has got used to one routine they move to their other parent’s home. Agreeing to a change in the parenting plan A parenting plan can be changed by email, or you may prefer a meeting; alternatively, you can set up an annual review to discuss how things are working. The best thing is that if anything about the child care arrangements is ‘bugging you’, you do not let things fester, so they do not become acrimonious or even lead to children's law court proceedings. Instead, it is preferable to agree to review the parenting plan, perhaps with the help of a children's law solicitor or family mediator, before the arrangements break down or positions are polarised. It is also helpful to remember that as children get older, they will want to have a say in the parenting plan. For example, the ten o’clock Saturday contact start time may work for you, but your teenager may want to stay in bed until noon or go out with their mates on a Saturday night. The key point with a parenting plan is that it should evolve with you and your family. Just because something worked in the past doesn’t mean it's necessarily the best approach for your child or your ex-partner now. How can a children's law solicitor at Evolve Family Law help? If you are struggling to agree on child care arrangements after your separation or divorce, or you want to change your parenting plan and your ex-partner is resisting, Evolve Family Law can help you to reach an agreement or secure a child arrangement order. We are North West and Online Children Law Solicitors: For expert family law advice, call us now or complete our online enquiry form.
Louise Halford
  ·   8 minute read
Divorce Assets: Protecting Family Wealth for Couples & Advisers

Divorce Assets: Protecting Family Wealth for Couples & Advisers

A Guide to What Assets will be Shared in Divorce Proceedings and how Couples and Their Financial Advisors can Safeguard Family Wealth From Being Shared in Divorce Financial Proceedings Standish v Standish [2025] UKSC 26. On 2 July 2025, the Supreme Court ruled on the classification of assets in divorce financial proceedings, specifically whether matrimonial assets and non-matrimonial assets should be shared when the court makes a financial order. The decision in the Supreme Court case of Standish is important because it emphasises how crucial it is to work with your family law solicitors and financial advisors to ensure family wealth and non-matrimonial property is protected. At Evolve Family Law, our specialist family lawyers can advise you on wealth protection strategies and advise you in financial settlement negotiations and court proceedings. For expert family law advice, call our team of specialist family lawyers or complete our online enquiry form. The Supreme Court decision in Standish v Standish You can read the full court ruling here. Supreme Court rulings in family cases are rare due to the high cost and litigation risk associated with appealing from the original decision to the Court of Appeal and then to the Supreme Court. The decision in Standish radically alters the size of the financial award to Mrs Standish, but it also: Explains how the sharing principle in dividing matrimonial assets should work. Says that the sharing principle does not apply if the asset is a non-matrimonial asset unless it is a needs case. Offers guidance on when a non-matrimonial asset can convert to a matrimonial asset and therefore be subject to the sharing principle. Matrimonial assets and non-matrimonial assets Depending on the extent of your family's wealth, categorising assets into separate pots can be helpful. They are: Matrimonial assets or family assets, and Non-matrimonial assets or non-family assets If all your assets are matrimonial assets, they will be shared with your spouse. The starting point is an equal division of assets, but the court can order a different outcome after considering the factors in Section 23 of the Matrimonial Causes Act 1973. These include the needs of dependent children, the duration of the marriage, and other relevant factors, such as housing requirements and earning capacity. The court will only share an asset classified as a non-matrimonial asset if the sharing of the matrimonial assets does not meet one spouse’s reasonable needs. Ownership and the classification of matrimonial assets and non-matrimonial assets Some people believe that if an asset is jointly owned, it is considered a matrimonial asset, whereas if it is held in a spouse’s sole name, it is deemed a non-matrimonial asset. The law is more complicated than that. The judgment in Standish confirms that matrimonial assets are ‘’the fruits of the marriage’’. However, the fruits do not need to be owned jointly to be classed as marital assets. If a husband and wife cannot agree on whether an asset is a matrimonial asset or a non-matrimonial asset, the court can rule on the issue. This is what the Supreme Court did in the Standish case. Family lawyers recommend the use of prenuptial agreements and postnuptial agreements if you want to reduce the risk of a dispute over whether an asset is a matrimonial asset or a non-matrimonial asset. You might also be interested in [related_posts] How a non-matrimonial asset can convert into a matrimonial asset The Standish case involved an argument that the husband’s non-matrimonial assets had converted into matrimonial assets when he transferred millions to his wife, to enable her to place the funds in a trust as a tax mitigation strategy for the benefit of the children. The money was not placed in a trust, and the wife argued that the transfer of the funds from her husband's sole name into her name converted the money from a non-matrimonial asset to a matrimonial asset. The Supreme Court disagreed. While the Supreme Court said assets could change category by a concept referred to as ‘’Matrimonialisation’’, it had not occurred when Mr Standish transferred funds to his wife. The concept of Matrimonialisation If a non-matrimonial asset is matrimonialised, it becomes a family asset. That’s a crucial transformation as under the family court principles, a matrimonial asset is available for sharing between the husband and wife. The court will start on the premise that all matrimonial assets should be shared equally between the husband and wife, unless there is a reason to depart from this principle of equality. If you have family wealth or are a financial advisor, accountant or tax advisor, you need to understand the Standish principles of matrimonialisation and how to avoid it. In Standish, the Supreme Court said: Matrimonialisation occurs where there is intention by the contributor to share non-marital property, coupled with treatment by the parties of this non-marital property as shared over time. The Standish Matrimonialisation principles can be summarised as: Matrimonialisation will not be applied narrowly or widely by the court. When deciding if a non-matrimonial asset has become a matrimonial asset, what is important is how the husband and wife have dealt with the non-matrimonial assets and whether their course of dealing shows that, over time, the husband and wife have matrimonialised the non-matrimonial asset into a matrimonial asset. If a husband or wife wants a share of a non-matrimonial asset, they need to be able to demonstrate that the other spouse intended to use or treat the assets as matrimonial assets despite their initial treatment as non-matrimonial assets. The longer an asset is shared or treated as shared by spouses, the stronger the evidence that the asset has become a matrimonial asset. Financial lawyers should advise on the proportionality of arguing whether an asset is a matrimonial asset or a non-matrimonial asset, or if a non-family asset has been matrimonialised.   The facts in the case of Mr and Mrs Standish Every family law case is decided on its facts. As every family is different, it is hard to say that a family situation is an exact match to an earlier court decision. In the case of Mr and Mrs Standish, Mr Standish kept his wealth separate from his wife, except for some accounts and a jointly owned family home. In 2017, he transferred £80 million to his wife as part of a tax mitigation strategy. Instead of transferring the assets into a trust, Mrs Standish separated from her husband and started divorce proceedings. She argued in the Supreme Court that the transfer of funds into her name converted her husband's non-matrimonial asset into a matrimonial asset. The Supreme Court disagreed because it held that there was ‘no Matrimonialisation’ of the assets because the transfer was to save tax and was for the benefit of the children not the wife and therefore the money was not being treated by the husband and wife for any period of time as an asset that was shared between them. Accordingly, the wife’s financial award was limited to £25 million, representing her share of the matrimonial assets. Classifying assets as non-matrimonial assets and avoiding Matrimonialisation You may not be as wealthy as Mr. or Mrs Standish, but it is essential to understand how family wealth and pre-marital assets can and should be protected. Here are some examples of where family wealth or pre-marriage assets may require protection: Money inherited from extended family. Parents gifting substantial sums as part of their inheritance tax strategy. Pre-marriage owned family business. Second marriage and a desire to protect family wealth for the benefit of children from a first marriage. Substantial civil compensation damages. Pension fund to which pension contributions were made prior to the relationship. The best way to ensure that there is no dispute over whether a particular asset or account is a matrimonial asset or non-matrimonial asset is to: Sign a prenuptial agreement to categorise specific assets as non-matrimonial assets. Review the prenuptial agreement if circumstances change. Speak to a family law solicitor when wealth or financial planning to ensure that non-matrimonial assets are not being matrimonialised by wealth planning strategies. Sign a postnuptial agreement if you come into unexpected wealth that you want treated as a non-matrimonial asset, such as an inheritance, the gift of money from a parent, the transfer of shares in a multi-generational family business or the release of capital or income from a trust fund. If you have connections to more than one country, as you or your spouse is from overseas, speak to a family lawyer with international family law expertise who can advise on jurisdictional issues and the impact on your prenuptial agreement or postnuptial agreement. Speak to Evolve Family Law At Evolve Family Law, our specialist prenuptial agreement solicitors collaborate with accountants, tax advisors, wealth planners, and trustees to help families understand decisions such as Standish v Standish and how to best plan their financial futures. For expert family law advice, call our team of specialist family lawyers or complete our online enquiry form.    
Robin Charrot
Jul 03, 2025   ·   8 minute read
Why Do I Need a Financial Court Order?

Why Do I Need a Financial Court Order?

If you are getting divorced, there are reasons why you need a financial court order, regardless of your current financial circumstances. In this blog, our divorce solicitors explain why you need a financial order, the types of court orders and how to obtain one.  For expert family law advice, call our team of specialist divorce lawyers or complete our online enquiry form. Does a divorce end financial ties between a husband and wife? Initiating divorce proceedings does not sever the financial ties between spouses. When you secure a final divorce order, the marriage is legally at an end, but former spouses can apply for a financial court order. There is no time limit to make a financial claim. That’s why you need a financial court order if you don’t want to risk a financial application years after your separation. The consequences of divorcing without a financial court order Getting divorced without a financial court order increases the risk of future complicated court proceedings to determine the value of assets at the date of separation and to argue about the impact of delay on the size of the financial award. If you divorce without a financial court order, your former spouse could claim a share of your assets even if they bring their claim 5,10 or 20 years after the separation. If your assets could increase in value, it is in your interests to ask the court to make a financial court order when you divorce. Assets that may substantially increase in value include: Pensions, especially if you continue to make pension contributions. Shares in a family business. Equity in the family home or other property. These assets can be considered by the court even if they are owned in one spouse’s sole name. Although the court considers delay when determining what constitutes a fair financial settlement, it also takes into account the individual's needs. If there is a small amount of equity in the family home at the date of separation, and you have a pension with a nominal value, that may not be the case in ten years. Alternatively, your former spouse may have had a well-paid job at the date of separation, but five years later, is unable to work due to ill health. Do separation agreements end financial ties between husband and wife? Some couples sign a separation agreement when they split up. The agreement may or may not end financial ties – it depends on what was negotiated at the time of separation. Family lawyers always recommend that a separation agreement is converted into a binding financial consent order. This can be achieved through a consent application. There is no need to attend a court hearing to obtain a consent order. Does a prenuptial agreement stop financial ties between husband and wife? If you signed a prenuptial agreement before your marriage, or a postnuptial agreement after your marriage, you may think you don’t need a financial consent order because your family agreement prevents or limits financial claims. You still need a financial consent order, even if you have an existing family agreement in place. A prenuptial or postnuptial agreement is not legally binding in the UK. It can carry significant weight if safeguards were put in place when it was prepared, and it meets the reasonable needs of your spouse. Ideally, a spouse will agree to convert the terms of the agreement into a binding financial consent order. If they won't do that, it is better to ask the court to make a financial court order in the same terms as the prenuptial or postnuptial agreement, rather than wait and face a financial application by your former spouse at a date chosen by them. For example, when the value of your investments or the shares in a family business has quadrupled in value in ten years. Does death end financial ties between a former husband and wife? The death of a former spouse does not end potential financial claims unless there is a financial court order that says explicitly that all claims are over. Without this type of order, a surviving former spouse can claim a share of the deceased spouse’s estate. This can be complicated and awkward in situations where the deceased spouse had children or had remarried. When you separate or divorce, you also need to review the provisions in your Will and take advice from a Will solicitor on how to avoid a claim against your estate. [related_posts] Does a financial consent order end financial ties between a husband and wife? Whether a financial consent order ends financial ties and stops future financial claims by an ex-husband or wife depends on its contents. There are three types of financial consent orders: Clean break – ending financial ties and claims. Deferred clean break – ending financial ties at a specified future date. Non-clean break. You may question why you should accept a financial consent order that only gives you a deferred clean break or no clean break. Your divorce solicitors will negotiate the best financial settlement possible for you. In your situation, that may involve you paying or receiving spousal maintenance for life or on a time-limited basis. Lawyers and courts always strive to achieve a clean break to provide finality and avoid further court proceedings to increase or terminate spousal maintenance or to capitalise spousal maintenance. This may not be possible where there is a significant income disparity between the husband and wife, justifying the payment of spousal maintenance, but with limited equity in the family home, nominal savings, or small pension funds. Where there are substantial family assets, the spouse with the reduced income can accept more of the capital assets (such as the equity in the family home) in consideration for giving up spousal maintenance claims and agreeing to a financial clean break order. What is a clean break financial order? A full clean break financial court order prevents all future financial claims. A clean break means there is no risk that a former spouse will ask a family judge for more because your financial situation has improved unexpectedly or theirs has worsened. The only exception to this rule is if the financial court order was made without providing complete and frank financial disclosure. For example, saying your business was worth 3 million when you had received an offer for 30 million. In some family situations, it isn’t possible to end financial ties either immediately or in the long term. For example: To provide a home for the children, the family home will remain in joint names until the children have finished school or reached the age of 18. Financial ties will be severed when the family home is sold. If there was a long marriage with substantial income disparity and insufficient capital to buy off the spousal maintenance claim, spousal maintenance may be ordered for the life of the receiving ex-spouse or until their remarriage. What is a deferred clean break financial order? A deferred capital clean break ends financial claims when an event occurs, such as the sale of the jointly owned family home. A deferred income clean break provides an immediate capital clean break, so a spouse cannot request additional funds, such as money from the family home or a larger percentage of a pension. However, the order maintains income ties until, for example, spousal maintenance payments cease. The court order could stipulate that spousal maintenance payments will cease after three years, with the clean break taking effect automatically upon completion of this period, as the court ruled that the spouse receiving spousal maintenance is not entitled to apply for an extension of the maintenance period. Is a financial consent order worthwhile if it does not contain a clean break? It may be impossible to obtain a clean break financial consent order due to your personal or financial circumstances. A financial consent order without an immediate clean break leaves you at risk of further court proceedings. For example, an application to increase spousal maintenance or to capitalise the spousal maintenance payments. However, if you do not have a financial court order, you are at risk of your spouse asking for an order that they get a share of your capital assets. These could include the equity in the property you own, shares in a listed company, your family business, or your pension. Therefore, whilst a deferred clean break financial consent order or a non-clean break financial consent order is not ideal, it is infinitely better than having no financial order. How to end financial ties with an ex-husband or wife To end financial ties with a former spouse, you need a clean break financial court order. If you cannot achieve this, it is still preferable to obtain a financial court order, even if it leaves open the potential for an ex-spouse to make a further court application. Take the example of a restaurant diner. Without a financial court order, the diner can request a three-course meal. With a non-clean break order, the diner may be limited to ordering dessert or after-dinner drinks. How to obtain a financial court order Most financial court orders are obtained by agreement. The court approves a draft order submitted by family law solicitors. There is no need to attend a court hearing. There are several ways you can reach a financial settlement, including: Solicitor negotiations. One lawyer divorce. Family mediation. Family arbitration. If you cannot reach an agreement, either of you can apply to the court for a financial court order. The court will order financial disclosure, and after a series of court hearings, it will hear evidence and make a financial court order to divide the assets. Our divorce solicitors can help you obtain a no-fault divorce and reach an agreed financial settlement or convert an agreement reached in family mediation into a binding court order. If you can't reach an agreement, our financial lawyers can represent you in a financial application to help you achieve a financial court order that meets your needs.   For expert family law advice, call our team of specialist divorce lawyers or complete our online enquiry form.
Robin Charrot
Jun 24, 2025   ·   9 minute read
Diverse children enjoying playing with toys

International Surrogacy

Couples struggling to achieve parenthood can look to international surrogacy to achieve their dream. Our family lawyers advise on international surrogacy arrangements, provide preliminary advice on matters to consider before embarking on international surrogacy, and represent parents in parental order applications. Call Evolve Family Law or complete our online enquiry form for international surrogacy advice. International surrogacy and the law Under UK law, a surrogate mother is the legal mother of a child born through surrogacy. That is the case even where there is a genetic link between the baby and the intended mother or father. This UK law applies even if the baby is born through international surrogacy. International surrogacy can throw up complicated family law issues as well as immigration and nationality issues for the baby. However, many families still opt to use international surrogacy because: The availability of overseas surrogates compared to the UK. Heritage reasons, as one or both parents originated from the surrogate's country of birth. Intended parents don’t realise how complicated international surrogacy and immigration law is. Often, intended parents choose international surrogacy for a combination of all three reasons. At Evolve Family Law, our specialist surrogacy solicitors provide expert international surrogacy advice so parents have a clearer understanding of the legal requirements and the timescale to return to the UK with their child. International surrogacy contracts In the UK, surrogacy arrangements are not enforceable as a contract between the surrogate mother and the intended parents. Different laws apply to surrogacy agreements in other countries. However, even if a surrogacy agreement is legally enforceable in the country where the surrogate mother lives, the intended parents cannot bring court proceedings to enforce it in the UK. International surrogacy and immigration     If a child is born to a surrogate mother who is not a British citizen, then complex surrogacy and immigration law will determine the nationality of the child. Those rules will also determine if and how the child can enter the UK. The child’s nationality and immigration status may depend on whether the intended father is genetically linked to the child and whether the surrogate mother is legally married or not. If you are contemplating international surrogacy, it is vital that you take expert legal advice from children and surrogacy law solicitors, as well as advice from immigration law experts. [related_posts] International surrogacy and parental orders Under UK children law, a child born to a surrogate mother is the legal child of the surrogate mother. Intended parents can apply to the family court for a parental order. This order extinguishes the legal rights of the surrogate mother and makes the intended parents the child’s legal parents. Once the parental order is made, the intended parents have parental responsibility for the child. Requirements for a parental order The Human Fertilisation & Embryology Act 2008 sets out the requirements for a parental order: The child must be carried by a surrogate who is not an intended parent. The surrogate (and her spouse, where relevant) must consent to the order. The consent must be unconditional and given at least six weeks after the child’s birth. The surrogate can only have received reasonable expenses for acting as a surrogate. At least one of the intended parents must have a genetic link to the child. The parental order applicants must be at least 18 years old. The application must be made within six months of the child’s birth. The child must have a home with the applicants at the time of the parental order application. One or both applicants must be UK domiciled. The law now says that applicants for a parental order can be single or couples. Joint applicants must be married, in a civil partnership, or in an enduring family relationship. The court defines enduring relationships broadly. Questions about parental order requirements Many intended parents have questions about the parental order requirements, such as: Can I be domiciled in the UK if I am not a British citizen? Can I apply for a parental order in the UK if I have Indefinite Leave to Remain or settled status under the EU Settlement Scheme? Can parental consent be dispensed with? When is a surrogate mother’s spouse’s consent required for the making of a parental order? What does the child having a home with the parental order applicants mean? How does that apply to situations where the baby has been living overseas and is awaiting UK entry clearance? What happens if the baby is over six months old at the parental order application date? What are reasonable expenses for a surrogate? What happens if the court thinks the payments made to the surrogate were excessive? Our UK surrogacy lawyers can answer your questions on surrogacy law and parental order requirements. Although the Act sets out the requirements, our family solicitors' advice is based on extensive caselaw, where family judges have widely interpreted the meaning of a home or enduring family relationship or dispensed with the requirement that the baby must be under the age of six months at the date of the application. Reasonable expenses have also been the subject of judicial caselaw. Expenses can include loss of earnings during the surrogate’s pregnancy, medical costs, pregnancy-related purchases, and expenditures related to the pregnancy, such as extra travel or dietary costs. Call Evolve Family Law or complete our online enquiry form for international surrogacy advice. Special considerations in international surrogacy arrangements There have been several parental order applications that have come before the court, where it has been evident to the family judge that the applicants had not taken expert advice before going ahead with the surrogacy arrangement. This led to all sorts of complexities with surrogacy law in the overseas country, the nationality of the baby, entry clearance and British nationality for the child, as well as the process taking substantially longer and being more complicated than the intended parents had contemplated. Concerns about intended parents not realising what they are getting themselves into have led to judges in three court cases drawing up a list of things for intended parents to consider when contemplating international surrogacy. The fact that the list now runs to 21 points emphasises how many issues there are for intended parents to consider when contemplating international surrogacy. The simplified 21 points from the three court cases are: What is the relevant legal framework in the country where the surrogacy arrangement is due to take place and where the child is to be born? Is surrogacy legal in the overseas country? When the child is born, will the intended parents be recognised as parents in the overseas country? Is that through the law in the country, or will the intended parents need to take legal steps before or after the child's birth? What is the surrogate mother’s legal status to the child at birth? If the surrogate is married at the time of the embryo transfer and/or when the child is born, what is her spouse’s legal status in relation to the child? If an agency is involved, what role will it play in matching the surrogate with the intended parents? What information, preparation or support has the surrogate had about the proposed surrogacy arrangement? Does the surrogate speak or read English? If not, what arrangements are in place to enable her to understand the surrogacy agreement? Will the intended parents and the surrogate have contact before deciding whether to proceed with a surrogacy arrangement? When will the agreement between the intended parents and surrogate be made, before or after the embryo transfer, and what are the reasons for it being at that time? What arrangements are proposed for contact between the intended parents and the surrogate during the pregnancy and/or after the birth? Which jurisdiction will the embryo transfer occur in, and which jurisdiction will the surrogate live in during pregnancy? Can the jurisdiction where the child is to be born be changed at any stage? If so, by whom and in what circumstances? What nationality will the child have at birth? What steps will need to be taken for the child to travel to the UK? What travel paperwork will be required, and how long will it take to get it? Do the intended parents need immigration advice on getting UK entry clearance for the child so the baby can enter the UK? What is the child’s immigration status after arriving in the UK? Will the intended parents keep a diary of chronological events and relevant documents to help with the parental order application and provide information about the child’s background and identity? Will discussions need to take place with departments such as the Home Department (HD), Department of Education (DfE) and/or Department of Health and Social Care (DHSC)? If proceedings are issued in the family court, should the HD, DfE, and/or DHSC be added as a party to the parental order application? What estate planning steps have been taken by the intended parents (before and after a parental order is made) regarding the child's future welfare? What steps have been taken by the intended parents regarding future care and financial arrangements for the child in the event of the incapacity of one (or both) of the intended parents? What steps have been taken by the intended parents in respect of future care and financial arrangements for the child in the event of the death of one (or both) of the intended parents? You may think that the final three questions about international surrogacy jar with the first 18 questions. That’s because those final three points were raised in the case of K & Anor v Z & Anor [2025], where estate planning and the child’s future care were welfare issues for consideration as the applicants were 72 years of age when applying for a parental order following a Californian surrogacy arrangement. If you want to read all three court cases and the full judicial wording of the 21 issues for consideration, the court cases are: Re Z (Foreign Surrogacy) [2024] EWFC 304 and Re Z (Unlawful Foreign Surrogacy: Adoption) [2025] EWHC 339 (Fam) K & Anor v Z & Anor [2025] EWHC 927 (Fam) (16 April 2025) Evolve Family Law Evolve Family Law is a niche firm of family law solicitors with substantial expertise in children and surrogacy law. If you are contemplating a surrogacy arrangement, either in the UK or abroad, our experts can advise you on your options and help you apply for a parental order. Call Evolve Family Law or complete our online enquiry form for international surrogacy advice.
Robin Charrot
  ·   9 minute read
shareholders agreement

Shareholder Disputes and Divorce

It’s bad enough to separate or divorce, but even harder to go through a shareholder dispute as well. Northwest divorce lawyers recognise that if you are in business with your husband or wife, you may face a shareholder dispute and financial proceedings over your divorce settlement. In this article, financial solicitor Robin Charrot answers your questions on shareholder disputes with your former partner during divorce proceedings. Robin can help you reach a financial agreement over how your family assets are divided and specialises in financial settlements involving family businesses. For expert family law advice, call our team of specialist divorce lawyers or complete our online enquiry form. Your frequently asked questions on family businesses in financial  proceedings Whether you own shares in a family business, jointly operate the business with your spouse, or rely on the income generated from the business without playing a part in it, you will have questions about the business if you and your spouse separate, such as: Are business assets relevant to divorce proceedings? What happens if business assets are not disclosed in financial proceedings? What happens when spouses are shareholders in a family business? Can a divorced couple agree to continue in business together? Can I ringfence business assets so they are irrelevant in divorce proceedings? Role of a shareholder agreement in divorce proceedings Valuing a business in a shareholder dispute or divorce proceedings At Evolve Family Law, our family lawyers have acted for spouses in a wide range of financial proceedings involving family businesses, from start-ups to multi-generational firms. We have the experience to help you whether you are the majority shareholder, minority shareholder,  employed by the business, or not involved in the company. Financial settlements involving a family business can be complicated as they raise complex issues, such as whether the business is a family asset, how it is valued or whether its current income stream is maintainable. Our legal experts have the expertise to guide you through financial proceedings involving a family business with all the complicating corporate, employment, and tax issues. Are business assets relevant to divorce proceedings? Business assets are potentially relevant to a financial settlement. They must therefore be disclosed in your financial disclosure. The rules on financial disclosure of business assets in divorce apply to all types of businesses, including: Companies Partnerships Limited liability partnerships. Sole traders. If you own shares in a family business, are a partner in a partnership or LLP or are a sole trader, you must disclose your business interests as part of your financial disclosure. Your finance solicitor can then make the case for you to say that your business is irrelevant to the financial settlement and its value should be ignored. Arguing that a business is not a family asset can be based on these arguments: Your prenuptial agreement said the value of your business would be ignored in any financial settlement. The marriage was of very short duration. You inherited, purchased, or developed the business before marriage. Your spouse signed a postnuptial agreement that said the business would not be considered in the financial settlement. Shares are held in a discretionary trust, and you are one of several beneficiaries. Whatever argument your divorce solicitor recommends is put forward on your behalf, providing complete and frank financial disclosure of all personal and business assets is crucial. A finance lawyer will prepare your Form E financial disclosure and advise on how best to present your disclosure and your best case to argue that your business should be ring-fenced and excluded from the negotiated financial settlement or financial court order. What happens if business assets are not disclosed in financial proceedings? You need to disclose your business assets, whether you are involved in financial court proceedings or negotiating a settlement through: Direct discussions with your spouse. Solicitor negotiations. Roundtable meeting. Family mediation. Family arbitration. If you do not disclose business assets and they are discovered after a financial court order is made by agreement or after a court hearing, your spouse can ask the court to reopen the case and award them a share of the business assets or more of the non-business assets. Failure to disclose or inadequate financial disclosure leaves you open to: Risk of further court proceedings. Costs orders. Ending up paying your former spouse more than they would have been given at the final hearing of a financial application. For example, if the business substantially increases in value after the conclusion of the divorce proceedings. If your spouse or their divorce lawyer discovers the existence of a business or other asset during the court-imposed financial disclosure process, this can lead to: Your spouse asking the court to order additional financial disclosure. The extra disclosure may not have been ordered if you had not raised suspicion by failing to provide financial disclosure. Your spouse asking the court to order that a forensic accountant be instructed to forensically consider the accounts and advise on a business valuation and liquidity. Your spouse asking the court to draw inferences about your honesty because of your business non-disclosure. Your spouse asking the court to order that a third party, such as the company or the trustees of a discretionary trust, be joined as an intervenor in the proceedings. What happens when spouses are shareholders in a family business? Divorce financial settlement solicitors say family law trumps company or corporate law because even if your husband or wife owns a 50% shareholding in the company, the family court can order the sale or transfer of shares in the financial proceedings. Working in the same business environment can be particularly tough if you are getting divorced. It’s best to keep business and private stuff separate, if possible, so the business isn’t affected by your separation. It’s unlikely to be in either of your interests for the business to suffer if you struggle to work together until a financial settlement is reached. [related_posts] Can a divorced couple agree to continue in business together? A divorcing couple can decide to remain in business together after their divorce. The marriage may have ended, but you may be good business partners. To reduce the risk of conflict and litigation (either family or corporate), you need: A financial court order in financial proceedings. A shareholder agreement if your business is a company. A partnership or LLP agreement if you are in business as a partnership. You should not rely on pre-separation corporate documents, as changes may be necessary. For example: A new dividend policy so your former spouse cannot stop your dividend income unless clearly defined circumstances are met. A new shareholder agreement to set out revised share voting or other rights. These documents can ensure the success of your future business relationship with your former spouse. For example, the agreement could say that if your spouse remains employed by the company as the managing director, he cannot, as the majority shareholder, increase his salary from £60,000 to £200,000. The effect of this salary decision could change the amount of dividend income you receive. Can I ringfence business assets so they are irrelevant in divorce proceedings? You can try to ringfence your business assets so they are irrelevant to the financial proceedings by signing a prenuptial or postnuptial agreement. The weight given to this type of family agreement will depend on a variety of factors, including whether: There was financial disclosure of the business as part of the prenuptial or postnuptial agreement process. Your spouse’s reasonable needs can be met through a financial settlement from the available family assets. For example, suppose the family assets are 12 million, and your spouse says their reasonable needs are 7 million after a short, childless, high-net-worth marriage. In that case, you can argue that your business assets, with an additional value of 15 million, should be ringfenced and ignored. Why? Even if the court agrees that your spouse needs 7 million, the money can be found from the available family assets that have been valued at 12 million. Role of a shareholder agreement in divorce proceedings If you divorce, your shareholder agreement may say your husband or wife must transfer their shares to you for £1. That does not mean your spouse will not get a fair financial settlement or a proportion of the family business. If you want to protect your business after marriage, you need a postnuptial agreement consistent with your shareholder agreement's wording.  If you are unmarried but plan to do so, you need a prenuptial agreement. Our prenuptial agreement and postnuptial agreement lawyers can work with your corporate solicitors and business advisors to ensure that the family agreement tries to ringfence your business assets and is consistent with your new shareholder agreement. Valuing a business in a shareholder dispute or divorce proceedings Valuing a business in a shareholder dispute or financial proceedings usually involves the instruction of a forensic accountant. The accountant is typically asked to consider: The value of your shareholding or partnership. The net value after the tax implications of a sale or transfer. The potential income stream if you continue holding business shares. The fact that a family court orders a business valuation doesn’t mean that the court will order the sale of the business. In most cases, the court will want to know the net value of the shareholding so it has an idea of the total extent of the family assets and any non-family assets. The court can then use that information to make a financial court order after weighing all the statutory factors to reach what the court considers a fair financial settlement. Contact Evolve Family Law for expert family law advice.
Robin Charrot
  ·   9 minute read