Entering a marriage, few anticipate the complex and often costly process of untangling lives and finances should a divorce become necessary. The emotional strain can be compounded by significant financial decisions, making it crucial to navigate the separation with clear, practical advice.
Navigating Court Fees and Financial Support
The standard fee to file for divorce in England and Wales is £612. However, financial help is available for those who qualify. If applying individually, your income and savings are assessed; for a joint application, both parties' finances are considered.
To be eligible for a fee reduction or waiver, you typically need savings under £4,250. The income threshold is £1,420 per month for a single applicant or a joint income under £2,310 for a joint application. Additional allowances of £425 per month for children under 13 and £710 for those 14 and over can be added. Those receiving benefits like Universal Credit may have the full fee waived.
Untangling Joint Finances and Protecting Assets
A critical first step after deciding to separate is to open a sole current account and redirect your salary. In a joint account, each person legally owns 50% of the balance, regardless of who deposited the funds. A named party can withdraw money at any time, and removing a name requires both signatures.
Updating your will is also essential, as divorce does not automatically revoke previous instructions. Without changes, your estate could still pass to an ex-spouse. Furthermore, consider claims on pensions. A stay-at-home parent or a partner who supported your career may have a legitimate claim on a portion of your pension pot, an asset often overlooked in settlements.
Seeking Professional Guidance and Managing Emotions
While amicable, 'no-fault' divorces can be straightforward, involving children, dependents, or potential conflict makes professional advice vital. A solicitor or mediator, though an added cost, can prevent costly errors and ensure a fair division of all assets, including pensions and property.
Be cautious with living arrangements. If jointly owned, neither spouse can force a sale or eviction during proceedings. If you move in with a new partner, their income could affect financial settlements. Importantly, you must report your separation to benefits agencies immediately, as eligibility for support like Universal Credit will change.
Ultimately, the cost of divorce can escalate with heightened emotions, leading to rash decisions like draining a joint account. Engaging a mediator early can save thousands of pounds and considerable heartache, providing a structured path through a profoundly stressful life event.
