Tag Archives: Money

What You Need To Know About Divorce

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Five most common misconceptions about divorce

Couples considering divorce often have a number of misconceptions about the legal process and financial settlement which can cause unnecessary stress. Caroline Bourn, solicitor at Buss Murton Law LLP, Tunbridge Wells has highlighted the five most commonly mentioned by clients to help people keep a sense of perspective on the proceedings.

Caroline Bourn comments: “You would naturally expect clients to have a number of questions about the divorce process but is seems many people confuse what they see or hear in the media. Also people need to make sure they tie up all the loose ends of their divorce as they often don’t realise that there can be ongoing financial responsibilities towards a former spouse.”

1. To allow a divorce to go ahead the Respondent signs the Divorce Petition.

No, when the court sends the Divorce Petition to the Respondent they will also send a blank form called an acknowledgment of service form which should be filled in and returned to the Court within seven days. This form asks specific questions to which the court need answers to be able to grant the divorce – simply signing the petition is not enough.

2. The Decree Nisi brings your marriage to an end.

As reported in the press recently, Liz Hurley’s marriage “ended” in divorce when the Judge pronounced their Decree Nisi. This is not the case, marriage does not end on Decree Nisi, they end on Decree Absolute. The earliest possible date you can apply for Decree Absolute, if you are the Petitioner, is 6 weeks and a day after Decree Nisi. If you are a Respondent it is a further 3 months after the Petitioner could first apply and even then there may be a hearing before a Judge. However, often neither party will apply for Decree Absolute, unless there is an agreement about the finances and that has been known to take years in some cases.

3. You can get a quickie divorce like lots of celebrities seem to do.

Not even the celebrities get quickie divorces, they have to use the same system as the rest of us. Normally, if things go very smoothly, it will take around 6 to 8 weeks from the date the petition is issued by the Court to the date of Decree Nisi and as it will be a minimum of 6 weeks and a day from Decree Nisi before you can apply for Decree Absolute, and even then it may not be in your best interests to be divorced, as you may no longer benefit from death in service and pension benefits and even any inheritance from your ex.

4. Your soon to be ex can put the family home up for sale without your agreement.

Kevin Webster from Coronation Street managed to put the family home up for sale, despite his wife Sally making it clear she did not agree. In the real world any estate agents worth their salt would ensure that all the owners of the property agreed to put the property on the market for sale before marketing the property.

All the legal owners have to sign a contract and a Transfer document and without these a sale could never go through. One person can never force another person to sell a property unless there is a court order which states the property must be sold. Obtaining a Court order is an expensive and often time consuming process and would not be granted without a hearing before a Judge.

5. If you are divorced then your ex can’t make a claim on your money.

If you divorce without sorting out a financial agreement then it does not matter how long ago you divorced, either you or your ex can apply to the court to make a claim. The only bar on this would be that a person who has remarried could not make a claim on an ex, but if you have remarried, and your ex has not then your ex can still make a claim on you. All your assets and to a certain extent those of your new spouse would have to be disclosed to a court and would be considered in any court proceedings.

The only way to avoid this is to have an agreement drawn up which is then approved by a Judge. This document is called a Consent Order and it will contain an agreement that once approved by a Judge is binding upon you and your ex.

If after the divorce you inherit or win the lottery (remember Nigel Page who paid £2million of his Euromillions lottery win to his ex of 10 years last year), then you are safe in the knowledge that your ex can’t make a claim on your money. Once a Court have approved a Consent Order neither party can come back to make a claim on assets, properties or pensions, although if the Consent Order states that maintenance will be paid then the door is left open so that if circumstances change then the maintenance can be varied.

Lady Gaga would give away "every dollar" she has if she could.

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The ‘Edge of Glory’ hitmaker – who is estimated to be worth $112.8 million – explained being wealthy and gaining worldwide recognition was never something she aspired to, and she would be happy to give it all up.

Speaking in Sydney as part of her ‘Monster’s Ball’ tour, she said: “Money and recognition were never a driving factor for me. I was driven by recognition by showbiz.

“What does come along with showbiz is recognition, but the money goes right back into the show. If I had to give it all away, every dollar that I’ve earned, I would.”

However, the 25-year-old singer might not have so much cash to splash in the future, as she recently claimed her tour had “bankrupted” her.

She said: “I put everything in the show, and I actually went bankrupt after the first extension of the ‘Monster Ball’. And it was funny because I didn’t know!

“And I remember I called everybody and said, ‘Why is everyone saying I have no money? This is ridiculous, I have five number one singles’ – and they said, ‘Well, you’re $3 million in debt.’ “

WORKING WOMEN TAKE FINANCIAL CONTROL – BUT NEGLECT TO PROTECT THEMSELVES

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o Nearly half (46%) of working women describe themselves as the main earners in their family

o 44% of all working women state they are responsible for making the family financial decisions and over three in five (61%) raise money discussions in the household

o Yet over two million working females have no savings accounts in place

Almost a century after women asserted their right to vote, a new report from protection specialist, Bright Grey reveals another step forward in equality by highlighting that almost half (46%) of working women currently describe themselves as the main earner in their household. But its not all good news as the Women and Protection report* also suggests that women are actually less likely than men to have financial back-up should they suddenly be unable to work.

The ‘Women and Protection’ report – which examines the financial role of women in the household today – reveals that women are not only increasing their earning power but they are also gaining a stronger financial voice in the home. Over three in five (61%) working women state they are the most likely to raise money discussions in the home, compared to a lower 57% of working men who state they would raise them.

When it comes to crunch time, working women are also just as likely to make the financial decisions in their household with nearly half (44%) of all working female surveyed stating they predominately make the financial decisions in their household – compared to just over half (53%) of working men who state they would make them. Almost three in five (59%) of married couples say they consult each other on all financial issues.

Women are the family financial hub – but fail to financially protect themselves
Multi-tasking continues to remain a skill for women – even if they are at work all the time. In fact nearly three quarters of working women (72%) say they pay the bills, compared to two thirds (66%) of working men. A similar figure (71%) of working women in the UK do general day to day household budgeting, such as sorting home insurance compared to just 59% of working men who state they are responsible for this. Half of working women (50%) say they are responsible for longer-term financial decisions such as buying life insurance or organising a will.

Yet despite females bucking the traditional trend of males being the financial decision-makers it appears they are failing to financially protect themselves as over two million** working women (16%) say they do not have a savings account. Meanwhile, over a third of working females (35%) say they do not currently have a pension in place, compared to 30% of working men.

In terms of protection insurance products, over half (53%) of working women admitted that they have no life insurance cover in place, a product that is aimed at protecting their families in the event of their death. Over four in five (84%) working women do not hold income protection products, while a similar number of working women (78%) do not hold either a critical illness policy or private medical insurance (81%).

Roger Edwards, proposition director at Bright Grey said: “As earnings levels even up and the level of financial responsibility in households is more equally divided, women could be putting themselves at risk by not protecting their income – especially if a household is dependent on their salary.

Taking online accounting classes can be a great first step in really understanding financial matters.

“Bright Grey is calling for women to have adequate financial protection in place for themselves and their families. By buying a protection product that pays out if they are unable to work due to a serious illness or disability, women can ensure they protect both their household income and current lifestyle. There are various affordable protection options in the market, and it is critical that women in the UK who are increasingly running their household finances are protected.”

The Budget: to progressive what Kim Jong-il is to moderate {Carl Packman}

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We’ve had the first budget by the new coalition government, called out by a small boy, nervously looking down at his sheet, behind him a Prime Minister with a face so red backbenchers thought it was daytime (it was daytime, but they didn’t know it was daytime by any other measure than David Cameron’s face, which actually isn’t a measure of time at all, allegedly) and two Liberal Democrats, whose party once called the rise in VAT (which was called today, starting in January 2011) the Tories’ ‘secret plot‘.

Though, back then, the plot referred to Tory plans to raise VAT to 19.5%. Judging by the chants of ‘here here’ today by Nick Clegg and Douglas Alexander, either we are to take it that once VAT rises to 20% it stops being a plot, or the Liberal Democrats have their hands tied in this coalition government. All such speculation has been achieved on this subject, and it doesn’t look good for the yellows.

Julian Glover of the Guardian on the day of the budget argued that it was not: “as a Thatcherite one would have done, seek[ing] to divide the nation between winners and losers. It was a one-nation one, albeit produced in desperate circumstances.” Certainly all the talk of “progressive” (that vacuous blanket term for anything not fascistic or carried out by a person over the age of 50 – Ken Clarke beware) provided the cover with which to place over our eyes, while our ears heard insistence from the Treasury that “The top income decile [consult graph 1 here for further explanation] sees the largest absolute losses, while, on average, the bottom three income deciles experience the lowest losses”.

But if the way in which Ozzy Osborne has dealt his number blow is progressives then I might as well sign myself up to that Facebook group supporting Kim Jong-il right now.

VAT always hits the lowest paid in society the hardest, though mostly what George has forgotten is proportion and scale. If figure A earns £200 a week and the government decides to take £10 more of that away, while figure B earns £2000 a week, and the government also decides to take £10, figure A feels more of a pinch in spite of the fact that both have contributed the same.

Now this is not an accurate picture of what the government are doing at the moment, but certainly the illustration holds true, that though the top income decile will see the largest amount of money taken from them on their pay packets, this is because they are earning more. This does not represent an equal distribution of the “pinch” when you consider that those on the bottom end of the income decile, though not contributing as much (as they don’t earn as much as those on the top decile) feel more of a pinch by the raise in VAT, freeze on public sector pay and freeze on benefits.

It doesn’t follow that since figure A has less on his income statement than last year, that figure A is feeling the pinch more than figure B, in fact the opposite is true. This does not represent everyone taking an equal hit. Until this is rectified, the coalition government’s budget plans are to progressive what Girls Aloud were to dignity.