Divorce

As divorce solicitors, we are bound to say that yes you need a divorce solicitor if you are separating or planning on starting divorce proceedings. That’s because using a good divorce solicitor makes the legal process of separation and divorce less stressful than going it alone and the lawyer will ensure you understand your children law rights and help you achieve a fair divorce financial settlement. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form. Choosing your divorce solicitor Choosing the right divorce solicitor for you is the key to a successful working relationship between you and your lawyer. It is a difficult question to ask but what do you want from your divorce solicitors? Expert legal advice is a given but what else? There should be an element of trust as you are putting negotiating the parenting arrangements for your children and your financial future in your lawyer’s hands. When your divorce solicitor tells you that the divorce financial settlement you have discussed in family mediation is a fair one that should be agreed upon and converted into a binding financial court order in the divorce proceedings you need to be able to trust your lawyer’s judgment and experience and know that they have your best interests at heart. [related_posts] Working with your divorce solicitor If you don’t like your lawyer, or if you don’t trust them to always do the right thing for you, it is hard to place confidence in the legal advice they give you. Unlike any other area of law, the relationship between a family lawyer and their client is fundamental to the outcome of a case.   It is an unfortunate reality that many people have a deep set distrust of the legal profession based on the stereotypical fat cat solicitor who is only interested in maximising legal fees, who makes money out of other people’s misery, costs a fortune and who has an ego the size of a house. That couldn’t be further from the ethos at Evolve Family Law. Founders, Robin Charrot and Louise Halford have many years of legal experience in large commercial law firms and so sadly recognise the stereotypical ‘fat cat‘ lawyer image. It was precisely those experiences that led to them opening a family law firm that was a bit different. The focus is on helping clients and building trusted relationships between divorce solicitor and client that can last well beyond their ‘case’. Evolve Family Law opened in 2015 with the vision of being the most trusted and first-choice legal advisor for people going through relationship changes. At Evolve, clients are at the heart of all our divorce solicitors do. The focus is on listening, understanding, helping, and giving practical, strong, sensitive, and commercial legal advice. Our divorce lawyers don’t tell our clients what they want to hear, we tell them what they need to hear. If that legal assistance means we lose fees, we are fine with that. It is this approach to getting the best outcome for clients whilst offering value for money and transparency that has enabled Evolve to grow, with the vast majority of new work coming from existing or former clients, or their friends and contacts. If you are going through a divorce or relationship breakdown, ask yourself whether your divorce lawyer truly thinks as we do at Evolve. If you aren’t sure, then maybe Evolve Family Law a call. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form.

You may question why you would remarry your ex but remarrying your former husband or wife is a growing trend. Some unkindly refer to it as yo-yo or boomerang marriages but as divorce solicitors, we understand that what attracted you to a person in the first place can reignite despite your separation and divorce. For expert help with divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form. The legal implications of remarrying your ex Once you get divorced your legal relationship is at an end although some financial ties may remain unless you obtained a clean break divorce financial court order. This type of divorce financial settlement severs any financial obligations. On remarriage, you are husband and wife again with the same marital legal relationship as the first time around. That marriage relationship brings with it financial obligations. Those obligations are not covered in your financial court order obtained after your first marriage and subsequent divorce. What that means for you is that if you remarry your ex and it does not work out the second time around either of you can apply to the family court for a financial court order. The size of the financial award will depend on several factors, including the length of your second marriage and your respective needs. [related_posts] The importance of a prenuptial agreement when remarrying your ex It is understandable to be a bit wary about getting remarried, especially if you went through an acrimonious divorce financial settlement first time around. Even if you were able to reach an agreed financial consent order after the end of your first marriage you are right to be cautious about getting remarried to your ex and the financial implications for you. This is especially true when you are in a financially stronger position than the ex you are re-marrying, perhaps because you were more careful with your share of the assets from your first divorce financial settlement. How can you protect yourself financially whilst still enjoying a second marriage with your ex? The answer is a prenuptial agreement tailored to your circumstances. That’s because on re-marriage it is as if you are back to square one, with all the financial claims that a husband or wife can bring on a second divorce. For some couples that means that they are both more comfortable with living together in a cohabiting relationship with a cohabitation agreement in place to sort out and record their agreed property and financial arrangements. Others prefer the security of marriage but with a prenup agreement drawn up prior to their second wedding. There isn’t one legal solution that’s right for everyone who decides to get back together with an ex-spouse. Normally there are legal pros and cons to the options of living together without remarriage or marrying for the second time, with a prenuptial agreement in place. Putting romance and family feelings aside, for inheritance tax reasons, a couple’s adult children might well thank their parent’s decision to remarry rather than cohabit with one another but there is a wealth of legal and financial considerations with each option. The legal advice will all depend on what the couple agreed on the first time around about property ownership and the split of pensions and their current financial circumstances. Most couples who are marrying a second time around see a lot of sense in signing a prenup agreement. The document means that there is less risk of acrimonious and expensive second divorce proceedings. The beauty and practicality of a prenup agreement are that it can be as detailed or as broad as the couple requires provided that certain legal requirements are met. For those preferring to cohabit together, it is just as important to draw up a cohabitation agreement as few couples realise that even if they don’t remarry and don’t jointly own a house together that property claims can still be made if a relationship breaks down. For expert help with divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form.

Concerns about the impact of living with a new partner and how it will impact your divorce financial settlement are not unusual. As divorce solicitors, we help answer your questions on how your planned cohabitation with a new partner or your ex-spouse’s decision to spend a large proportion of their week with their new partner will affect the divorce financial settlement. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form. Does forming a new relationship affect the divorce financial settlement? Forming a new relationship may affect your divorce financial settlement. It isn’t possible for divorce solicitors to give a definitive answer without more information about your personal and financial circumstances and those of your ex-spouse. Although it is commonly assumed that the presence of a ‘’third party’’ will make a massive difference to a financial settlement that isn’t necessarily correct. That’s why it is best to speak to a divorce solicitor about your situation, and that of your ex-spouse, and to make sure that you don’t let the presence of a new partner adversely affect your judgment. If you do then it can be harder to set your feelings and emotions aside to focus on reaching a reasonable split of the family assets. It is especially hard to come to terms with an ex-spouse meeting a new partner when the ex-partner has hidden the new relationship from you and you have found out about the new boyfriend or girlfriend through the backdoor. For example, from children, family friends, or, as is often the case, from posts and pictures on social media or from disclosure and questions within financial settlement court proceedings. Is your ex-spouse cohabiting with a new partner? If there is a new partner on the scene the first question, from a family law solicitors’ point of view, is whether the spouse is living with his or her new partner or if they are at an early stage of a new relationship and not cohabiting. Sometimes there are disputes about whether a couple are living together or not because: Of the financial consequences of cohabiting and The ex-spouse and their new partner are not living together on a full-time basis as they each keep a separate home base although they spend a lot of their week together and present as a couple Working out if an ex-spouse is cohabiting with a new partner is important because if cohabitation can be established: Your ex-spouse may find it a lot more difficult to ask for spousal maintenance for themselves If there is already a financial court order in place you may be able to apply back to the family court to stop the spousal maintenance or to reduce the amount you pay If you are negotiating a divorce financial settlement, or you are involved in court proceedings, your ex-spouse may find it harder to argue that they need the same amount of money to rehouse themselves [related_posts] Proving that your ex-spouse is cohabiting with a new partner It is not uncommon for there to be a dispute about whether an ex-spouse and their new partner are living together as a cohabiting couple. Whether you are negotiating a divorce financial settlement by agreement or involved in divorce financial settlement court proceedings you and your ex-spouse are both under an obligation to provide full and frank financial disclosure. This includes disclosing your relationship status and the impact of your relationship on your housing and outgoings. For example, if you are living with a new partner are they sharing the rent and other outgoings? For example, if you plan to buy a new house with your partner does their savings and earnings capacity affect your ability to secure a bigger mortgage? Financial disclosure and new relationships The requirement to provide information about new relationships is contained in the court document (called a Form E) that needs to be completed by both a husband and wife in divorce financial settlement proceedings. Most family law solicitors also ask you to complete a Form E if you are negotiating a divorce financial settlement. In addition to disclosing the existence of a new partner that you are living with (or plan to do so), you also need to provide details about the new partner’s financial circumstances. This requirement can be a cause for concern especially if a new relationship is in its early stages or a new partner is unwilling to provide information that may be used against them or may result in them being drawn further into acrimonious divorce financial settlement proceedings. Non-disclosure of relevant personal matters or financial non-disclosure could be a basis for setting aside a financial agreement or a financial court order. If the non-disclosure is discovered during negotiations then trust can be lost making it harder to reach a divorce financial settlement. If the non-disclosure is revealed through questions asked during financial court proceedings the judge could draw adverse inferences against the person who hasn’t provided full and frank disclosure. The relevance of a new relationship to a divorce financial settlement There is often an argument that two homes are being maintained by the spouse and the new partner. It is then a case of establishing if, despite the two physical homes, the couple is in reality cohabiting because of the amount of time spent together and the financial links between the two of them. In some situations, it can be in the financial interests of a spouse to say that they do have a new partner they are living with and have taken on financial responsibility for. That is because that may mean they have larger outgoings and therefore an argument to say that they can’t afford to pay as much spousal maintenance each month or they need to spend more on rehousing. It is important to take objective family law legal advice on the relevance of an ex-spouse forming a new relationship when sorting out the financial division of property and assets. That’s because a lot of emotional and financial time and energy can be spent on exploring whether a separated spouse is in a new relationship and then whether, in reality, they are cohabiting together. The job of a family finance solicitor is to quickly assess whether a new relationship will have an impact on the financial settlement or the financial court proceedings. Although a new partner can be a hot topic it can either be a red herring or one of the key factors in your negotiations or in the family court deciding how money and assets are divided. The relevance of a new partner all depends on individual family financial and personal circumstances. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form.

The ONS figures reveal that the average age at marriage for men is around 38 years and 35 years for women. These statistics continue the rise in the average age of marriage since the 1970s. Marriage in the under the 20s has fallen whilst marriage for the over 65s has risen sharply. With those figures, it isn’t surprising that family lawyers are increasingly finding that arguments in divorce financial settlements centre on whether a husband or wife should keep their property owned before marriage in the divorce financial settlement or if the assets should be shared. In this article, family law solicitor, Robin Charrot, discusses how the divorce court treats pre-marriage assets. For expert divorce and family lawyers call our team of specialist divorce lawyers or complete our online enquiry form. What is a pre-marriage asset? A pre-marriage asset is anything owned by a husband or wife before their marriage. Whilst a couple could have bought an asset together, disputes in divorce financial settlement proceedings focus on assets bought by a husband or wife in their sole name before the date of their marriage. A pre-marriage asset can be anything of value as family solicitors warn that it is not worth arguing over the relevance of pre-marriage owned assets if their value will be outweighed by the additional costs of a longer financial settlement court hearing or the investigative costs of tracing and valuing the asset. Typically, pre-marriage asset disputes relate to: Property – this could be a property bought by one party to the marriage that has become the family home or a buy-to-let property or second home Family business – if a husband or wife set up a family business or inherited shares in the business before their marriage Investments- this could be a share portfolio, cash savings, or cryptocurrency Pension – the pension could be a final salary scheme pension that was started pre-marriage with a current or former employer, a private pension scheme, or a business-related pension scheme [related_posts] Do pre-marriage assets need to be disclosed in divorce financial settlement negotiations or court proceedings? Pre-marriage assets need to be disclosed in divorce financial settlement negotiations and court proceedings. That’s the case whether you are engaged in: Direct discussions Family solicitor negotiations Family mediation Family arbitration Divorce financial settlement court proceedings with an agreed financial consent order or where a financial court order is made after a contested hearing The law says you need to provide full and frank financial disclosure of all your assets. If an asset was bought before your marriage, you should disclose it but you can argue that the value of the asset should be ignored when negotiating a divorce financial settlement or in contested financial court proceedings. If you do not disclose the existence of a pre-marriage-owned asset and the court finds out about the asset the court can draw inferences about the honesty of the spouse who concealed the property. If the existence of the pre-marriage asset comes to light after a financial court order is made then your ex-husband or ex-wife could ask the court to reopen a financial court order made without disclosure of the asset, involving additional time and expense. Do pre-marriage assets need to be valued in divorce financial settlement proceedings? The court decides if assets need to be valued in divorce financial settlement court proceedings and will normally order a valuation by a jointly appointed independent expert. The fact that the court has ordered the valuation of a pre-marriage-owned asset doesn’t mean the court will decide that the value of the asset is taken into account when making a financial court order. The court often says it needs to know the total value of all assets owned before it can decide if pre-marriage assets are relevant or should be shared as part of the divorce financial settlement. Are pre-marriage assets ignored if you sign a prenuptial agreement? Divorce lawyers advise that the best way to protect pre-marriage-owned assets is to sign a prenuptial agreement to ringfence the assets. If you didn’t sign a prenup, then signing a postnuptial agreement is another option. Prenuptial agreements can either be comprehensive in scope or the agreement can say that a particular asset should be ignored (or ring-fenced) in a divorce financial settlement. Whether the pre-marriage asset will be ignored depends on the circumstances in which the prenuptial agreement was signed and other factors. For example, was financial disclosure provided as part of the prenuptial agreement discussions, were you coerced into signing the agreement, did you both take independent legal advice, and was the agreement signed at least 28 days before the marriage? If you meet all the tests for a prenuptial agreement to be found to be binding on both spouses, the pre-marriage asset can still be taken into account if a fair divorce financial settlement cannot be made without recourse to the property because the reasonable needs of the husband and wife can't be met without taking into account the value of the disputed asset. Take the case of a 40-year-old man who owned property before his marriage. The property became the family home when he married and he subsequently had 3 children with his wife. The couple doesn’t have any other significant assets and if the value of the family home isn’t taken into account in the divorce financial settlement the wife will end up with very little and will be unable to rehouse herself and the children. The outcome might be very different in a short marriage without children and where the wife had a good income and mortgage capacity. How does the court decide if pre-marriage-owned assets should be kept by the asset owner? In divorce financial settlement proceedings, the court makes a financial court order after assessing a range of statutory factors (referred to by family law solicitors as the ‘’section 25 factors’’) and exercising discretion. The court will ask itself a series of questions: Is the asset a pre-marriage asset- there may be a dispute over the date of purchase or, if the couple were cohabiting at the time of purchase, it could be argued that the cohabitation (assuming the relationship moved seamlessly into marriage) means the asset wasn’t acquired ‘’pre-marriage’’ Is there a prenuptial agreement and does the agreement meet all the relevant tests, such as the agreement was freely entered into, without coercion? What are the reasonable needs of any children and the husband and wife? What factors are relevant to the pre-marriage assets? For example, the length of the marriage or the fact that the pre-marriage asset was used as the family home for years may make it less likely that the asset owner can argue that the value of their pre-marriage asset should be ignored What are the family assets and can a fair and reasonable financial settlement be ordered without recourse to the pre-marriage-owned asset? A family solicitor will ask the same sorts of questions to help you and your spouse reach a divorce financial settlement involving pre-marriage-owned assets to try to avoid a contested divorce financial settlement hearing. For expert advice on divorce and family law call our team of specialist divorce lawyers or complete our online enquiry form.

When it comes to divorce you don’t immediately think of tax. After all it is reasonable to assume that separation and divorce should be one aspect of your life that is tax free. However, our Manchester divorce solicitors will tell you that divorce isn’t tax free. In this blog we look at divorce and tax. Taxing divorce When it comes to separation and divorce there are obvious and hidden tax consequences. For example: Child support – the parent that pays child support for the children will pay the child support out of their net income and the parent who receives the child support won't pay income tax on the child support. It is important to factor in the net effect of child support payments when looking at issues such as mortgage capacity and affordability of mortgage payments or the likelihood of the court ordering spousal maintenance in addition to child support Spousal maintenance – if the court orders that spousal maintenance is payable then the spouse paying the spousal maintenance will pay it out of their net income and the spouse receiving the money won't pay income tax on the spousal maintenance. If the receiving spouse did then it would be double taxation Pensions - if a couple agree to the making of a pension sharing order then it is important to look at the tax consequences of taking the cash out of the pension fund, if that is the plan. If the tax effects of withdrawing the money from the pension aren’t considered then one or both spouses may end up with a far smaller financial settlement than envisaged or paying too much tax than they would have done if they had taken expert financial and pension advice The family home – if the family home is going to be sold then it is important to factor in stamp duty costs on rehousing when looking at the housing needs of the husband and wife. If the family home is going to be retained in both spouses names until a future date then capital gains tax may be payable by one spouse when the property is eventually sold, for example, when the youngest child is age 18 The sale or transfer of assets – if assets such as shares in a family business or an investment portfolio are sold or transferred then capital gains tax may be payable. There is the potential to avoid payment of capital gains tax if the transfer of assets takes place in the tax year of separation. That is why it is best to take early specialist legal and financial advice if you are a business owner getting divorced or you have other assets that may be liable to capital gains tax on sale or transfer, such as a buy to let property portfolio International tax- if a couple own property abroad, such as a second home, then there may be significant tax issues in the overseas country if the property is sold or transferred Tax issues on divorce – if a spouse makes allegations in financial court proceedings that their husband or wife has not declared income for tax purposes (and there is evidence to support this) or evidence of other tax irregularities (such as a sham trust) a family judge can order disclosure of the judgement to HMRC. [related_posts] Divorce, tax and HMRC It is accurate to say that some divorce and financial court proceedings can open up ‘’a can of worms’’ for a husband or wife when it comes to their tax affairs.   In a recent court case a judge said that the £12 million divorce financial court proceedings could potentially end up in a HMRC investigation, subject to the findings at the final hearing of the financial settlement case.   The case concerns a shipping business and a family home worth an estimated £4.5 million. The couple enjoyed a luxurious standard of living during their marriage but when the relationship broke down there was an acrimonious separation that led to financial court proceedings initiated by the wife.   A court of appeal judge, Lord Justice Males,  warned that should the wife establish her case against the husband then both could both be implicated in a 'criminal conspiracy...to evade tax properly due' on their earnings. The judge’s comments were made when the court heard an appeal to reinstate a freezing order injunction to prevent the husband from disposing of assets that the wife says are family assets and the husband says aren’t beneficially owned by him. The husband disputes ownership or any wrongdoing asserting that the multi-million shipping fleet were legitimately and properly transferred and thus there was no tax evasion and the ships or their value can't form part of the financial settlement.   The court of appeal judge was clear that he made no findings but was equally transparent in saying that if a court at the final hearing of the financial settlement case concluded that the ships were not genuinely transferred to a third party this could potentially result in investigations by tax authorities.   Divorce, tax and legal advice When it comes to divorce and tax, specialist Whitefield divorce solicitors work with expert accountants and financial advisors so that a divorcing husband and wife know where they stand both legally and financially and can make informed financial settlement decisions, understanding the tax implications of their divorce and financial settlement. Our Manchester Divorce Solicitors Whitefield, North Manchester and Holmes Chapel, Cheshire Evolve Family Law divorce experts cover all aspects of family law, divorce and financial settlements. To speak to a specialist Whitefield divorce solicitor call us or complete our online enquiry form. Appointments are available face to face, via video conferencing, Skype or by telephone appointment.

Many parents who are thinking about a separation or divorce want to make a fresh start overseas with their child. In this article, specialist family law solicitor Louise Halford shares her experience in helping parents apply to move abroad with their children and advising parents on how best to oppose child relocation applications. For expert Divorce and Children Law advice call our team of specialist divorce lawyers or complete our online enquiry form. Moving overseas with a child after separation or divorce Evolve Family Law has seen an increase in inquiries from parents about moving out of the UK with their children. The inquiries are not just from parents currently based in Cheshire and the North West of England, but from across the UK. The increase in children law inquiries is down to the following trends: The world becoming a smaller place with people meeting and marrying partners from other countries The number of overseas families who came to the UK on work visas and dependant visas and who settle in the UK by securing indefinite leave to remain or British citizenship but, after a separation or divorce, one parent wants to return to their country of origin Emigrating for work as opportunities for working abroad increase International parenting after separation or divorce It is said that being a parent is one of the hardest jobs in the world. That is particularly true for any parent who is involved in ‘international parenting’ as a result of one parent moving abroad with the child. Most parents find it hard enough to let their child go off for the weekend with their ex-partner, let alone accept that their child should get on a plane to another country to see their mum or dad. Prior to committing emotionally or financially to an overseas move, many parents don’t fully appreciate that if they are successful in relocating abroad with their child that the family court will often order that the child should spend long chunks of time during holidays with the parent who is not moving abroad and who will be missing their weekend contact. It is often said that there are ‘no winners, only losers’ when one parent moves to another country with their child, whether that be back to a parent’s country of origin or as a result of a new job or relationship. However, with communication and imaginative contact arrangements, even airport handovers, can work. If it is a relocation to Spain then the flight from Manchester or Liverpool airport and the child’s handover may be a lot easier than navigating a motorway trip from Cheshire to Cornwall or Guildford. [related_posts] The law on international child relocation Some parents are well-researched on the law on child relocation but for others, it is a whole new arena. The basic principle is that if a child is habitually resident in the UK the child can’t move abroad with either parent unless the other parent agrees to the move or the family court makes an order granting permission to relocate. The law on child relocation and moving abroad with your child can be hard for a parent to get to grips with. If, for example, both parents originate from the US but currently live in the UK with their children this may mean that their children are classed as habitually resident in the UK. Therefore, although all the family members are American citizens, if one parent wants to return ‘home’ to the US with the children, permission still has to be obtained from an English court.  Without specialist legal advice on child relocation law, many parents don’t realise the implications of booking their flight home. The legal and personal costs of not knowing the law on international parenting can have a devastating impact on a parent and their chances of successfully getting a court order to let them take their child abroad or a child arrangement order. Contact arrangements if a child moves overseas As part of one parent agreeing to give permission, or the court making an order allowing the other parent to relocate, the contact arrangements should be recorded. If a court order to relocate is made the court will normally also make a child arrangements order setting out how often the child should see the other parent. The court order can include written contact, Skype, and face-to-face contact. An agreement should be reached and recorded on specific details such as The agreed travel arrangements Who, if anyone, will accompany the child Who should pay for the costs of flights Extended family and grandparent’s ability to travel, time differences with Skype, the child’s ‘best friend’, and key dates such as Thanksgiving and grandad’s 80th birthday should not be forgotten. ‘Small’ details such as these can impact on whether arrangements work for a child. Compromise is also a key factor as if grandparents can’t make a long-haul flight to Australia for Christmas could both parents split the travel and meet in Dubai? It is often those small points that make all the difference in whether international parenting will work for a family or not. Legal advice on child relocation overseas It is always tough to answer a query on whether a mum or dad will get permission to move abroad. That is not just because the law on this subject is so complex but also down to international parenting being one of the hardest things for any parent to contemplate, and therefore for their family law solicitor, to guide a parent through. Invariably a parent is already emotionally, if not financially, committed to their move abroad before they take the step of getting advice and so it is always worth getting an assessment of your family situation and your options before you commit to a move. For expert Divorce and Children Law advice call our team of specialist divorce lawyers or complete our online enquiry form.

Tax is not normally something that is on your mind when you are thinking about a separation or divorce but divorce solicitors say that capital gains tax has to be considered when negotiating a divorce financial settlement. The government has announced changes to the way capital gains tax is calculated on separation or divorce. In this article, divorce financial settlement solicitor, Robin Charrot, looks at the planned changes and explains the importance of checking out tax on divorce before you agree to your divorce financial settlement. For expert Divorce and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form. Tax on divorce   Many people who decide to separate do not realise that the timing of their separation, or their decision to transfer assets to the other spouse or to sell assets, can create tax implications. That is why it is important that a divorce financial settlement solicitor checks any proposed financial agreement to both reality test the financial settlement and to check the net effect of the financial deal. Without legal input, what you think is an equal split may not be a 50:50 division of assets if one spouse is going to end up paying a large tax bill in the future, whilst the other spouse escapes from tax liability. The financial agreement may still be a fair financial settlement but both husband and wife must understand the net effect so they are both comfortable with the deal or can negotiate a financial settlement that does achieve equality if that is their objective.   The current tax rules on separation and divorce   Under the current tax rules, a husband and wife can transfer assets between one another without the transfer is taxable. That’s because the transfer of an asset takes place on a no gain and a no loss basis so the spouse acquiring the asset gets the item at the base cost of the spouse who is transferring the asset to them. In other words, a spouse transfer does not crystalise a gain or loss. The issue with the current tax rules for separating couples is that these capital gains tax rules only give these concessions in the tax year of separation.   That may not sound like a big problem but it is. Take the example of a couple with an investment portfolio or a buy-to-rent property. They may conclude that if the wife is to stay in the family home, then the fair financial settlement is for the wife to transfer her share of the investments or buy to let property to the husband. If the couple decides to split in late March they only have until the end of the tax year in early April to sort out the transfers. If they don’t then one of them could face an unexpected and large capital gains tax bill that they would be solely responsible for.   Even if a couple decides to separate in May (so they have almost a full tax year) they can get caught out if they do not take early legal or accountancy advice. For example, the couple could start no-fault divorce proceedings in June but not start thinking about their divorce financial settlement until many months later giving them insufficient time to give notice to transfer investments or to sort out a new mortgage on the buy-to-rent property before the end of the tax year of separation. The government has acknowledged that tight timeframes on various tax aspects arising from separation or divorce can create difficulties and complexities so the proposed new tax regime is more generous and less restrictive. [related_posts] The changes to tax on divorce or separation   With effect from the 6 April 2023, there will be a new tax regime for separating or divorcing couples. If you transfer assets between spouses on or after the 6 April 2023 the no loss and no gain principle will apply to transfers that take place up to 3 years after the end of the tax year of separation. Furthermore, if the transfer takes place as part of a financial court order there is no time limit for the no loss and no gain principle.   The changes to tax on divorce or separation and the family home   If you sell or transfer a family home as a married couple there is no capital gains tax payable because of principal private residence relief. However, principal private residence can be lost resulting in unexpected tax bills.   The complexities of capital gains tax mean you both need to think carefully through the ramifications of agreeing to a mesher order on the family home. For example, a husband and wife may agree that the family home should stay in joint names until their youngest child is 18 as the spouse staying in the family home can't afford to take out a mortgage in their sole name so cannot get the house transferred to them. In reaching this type of mesher agreement the spouse who leaves the family home can, in some circumstances, lose their principal private residence relief.   The government is planning to make it simpler for couples to agree to mesher orders because the non-occupying husband or wife's share of the property will not be subject to CGT when the family home is eventually sold under the terms of the mesher order. The proposed changes may make mesher-type orders more attractive to some families, especially where there isn’t enough equity to rehouse two families or there is a particular need to delay selling the family home until the children have completed their exams. Capital gains tax and divorce in the future   Even after the new rules come into force capital gains tax will still be payable in some scenarios when a couple separates or divorces. If you are concerned about reaching a divorce financial settlement and the tax implications it is best to get early specialist advice on your family law options.   For expert Divorce and Financial Settlement advice call our team of specialist divorce lawyers or complete our online enquiry form

When you're getting divorced you can come across a lot of legal jargon and terms you’re not familiar with. Many people feel embarrassed about asking their divorce solicitor questions ( they shouldn’t) but in this blog our divorce solicitors explain what a divorce coach is and how they can work with your divorce solicitor to help you.   For divorce advice call our team of specialist divorce lawyers or complete our online enquiry form.   What is divorce coaching?   Divorce coaching gives you the chance to think and make decisions about your separation or divorce as well as process your feelings in an impartial and non-judgemental setting. It allows you to express and work through all the fears, thoughts, and anxieties that you may not feel ready to talk to those around you about. It can help you navigate the divorce process, empowering you to make decisions and take the action that’s right for you.   It can also allow you to explore how you would like this next chapter of your life to be post-divorce, helping you to see the possibilities and feel confident, positive, and optimistic about the future.   Why do I need a divorce coach if I have a divorce solicitor?   You may have a great divorce solicitor that you trust and feel comfortable talking to but a divorce lawyer is there to give you legal advice and explain your legal options. However good their legal advice is and however supportive they are you can still feel overwhelmed by the decisions you have to make. For example, over the timing of your divorce proceedings, whether you should agree a proposed financial settlement or the proposed post separation parenting arrangements for your children.   A divorce coach works with you so you have more confidence in the divorce, financial and children decisions you are making. With greater confidence you are likely to be better able to either reach compromises or cope with the stress of financial or children law proceedings that may be necessary. For example, if your ex-spouse is refusing financial disclosure or your ex is refusing you contact with the children.   Working with a divorce coach   A divorce coach has a client-centric point of view and works with you, not you and your partner. Coaching sessions are one to one and are confidential. They are usually conducted either at the private office of the coach, or via a platform such as Zoom.   You are your own expert on your life and what is most important to you as you move forward. A divorce coach though can act as a thinking partner and sounding board for you, helping you to make sure you can communicate what you want clearly, whether that is to your ex, your family, your divorce solicitor or your family mediator.   A divorce coach helps you to explore your views about possible options, enabling you to consider different choices. In this self-discovery process you can sometimes discover that there are gaps in your knowledge or gaps in your skills. Together you and your coach can develop a plan on how to close these gaps so that you can be confident not only in the decisions and agreements you are making as part of your divorce. But also, beyond it to help you to build strong foundations for a life post-divorce filled with optimism, potential, security, and excitement.   What are the benefits of talking to a divorce coach?   There are many benefits of divorce coaching, such as:   Reducing feelings of turmoil - getting divorced requires a lot of paperwork and organization — tasks that can feel overwhelming when you’re going through emotional turmoil. A divorce coach help you make sure you have everything you need to get it done so that when you meet with your divorce solicitor you are ready and prepared, meaning your meetings can be as cost effective as possible. Saving you money - working with a divorce coach during your divorce can actually save you money by ensuring that your meetings with your divorce solicitor focus purely on the legal process and decisions that need to be made. It is completely understandable that you want to talk through how you are feeling and work through all your emotions about your divorce. But doing this every time you meet with your divorce solicitor may increase your legal fees without actually moving you forward emotionally. A divorce coach will help you manage your emotions so that you can make decisions that are not clouded by how you are feeling about your ex-partner.   What will a divorce coach talk to me about?   The following isn't an exhaustive list, but does give you a general overview of the sorts of things a coach can work with you on:   You're so fearful about your future that you can't make decisions You are feeling overwhelmed by all the paperwork getting divorced involves You have no idea what you're going to do when the divorce is final You're very angry and are trying to use your children to get revenge You're not familiar with the legal process and feel overwhelmed You're not thinking clearly and it's making it very hard to make any decisions You are struggling to figure out a parenting plan that's going to work You are struggling to figure out how you will co-parent [related_posts] What should I look for in a divorce coach?   When looking for a divorce coach your divorce solicitor will be able to help with a referral but you should be checking that any divorce coach you approach is:   Properly qualified with a recognised qualification in coaching A member of a recognised coaching body such as the Association for Coaching, or the International Coaching Federation. This confirms that they are committed to working ethically and responsibly with you and are appropriately qualified A good fit for you as coaching is a very personal experience and it’s important that you feel comfortable with your divorce coach and that you can work well together. So, check that any coach you contact offers a chance to have a free, no obligation 15- 30 minute consultation with them so that you can ensure they are the right person for you   Final thoughts on divorce coaching   Divorce can be a lonely, stressful, and unsettling time, having a coach to help you navigate through, be on your team and ultimately help you flourish after your divorce is complete is definitely something worth considering.   For divorce advice call our team of specialist divorce lawyers or complete our online enquiry form.