Times of stress
The past few years have tested our society in so many unexpected ways. During lockdown, restrictions were imposed on our daily lives, limiting rights and freedoms previously taken for granted. For some families, spending so much time together in difficult circumstances meant cracks in already fragile relationships were prized wide open.
Now only a year or two later, society is faced with yet another test: the “cost-of-living crisis”; building on stresses and strains exacerbated by the pandemic. Families all across our beautiful island are feeling the pinch in their pockets with the increase in cost of living, utlitliy bills and the local house prices.
Court should be the last resort
Invariably these financial pressures mean that some relationships are again being tested to stretching point. Unfortunately not all relationships will survive. A lot of couples will be thinking about divorcing/separating but worried they cannot afford to. They are frightened of what will happen next, which is understandable. It is usually fear of the unknown which raises our anxieties, but with good legal advice there is no need to fear what happens next. Equally getting divorced does not have to mean you will incur exorbitant legal fees: how you approach your divorce and sorting out the financial side of the separation will have a significant say in how much your divorce will ultimately cost.
At Le Gallais & Luce we understand that divorce can be a highly emotive and stressful process, and we are here to provide clear advice which is in our client’s best interests. Our starting point is to explore whether a settlement about the matrimonial finances can be reached through alternative methods such as round table meetings, mediation or collaborative law; this is not a sign of weakness, it is a sign of strength and sound legal advice. Court should always be the last resort. However if Court proceedings are necessary, we will advise you about all the possible outcomes and help remove the fear of not knowing what happens next.
The family home
One of the main fears is what happens to the family home. How to divide the matrimonial assets and use the family income to set up two homes that until now were funding just one. Whilst the law requires the Court to try and achieve a “clean break” wherever possible, the current cost of living crisis means in some cases it might not be possible at this time.
The most difficult cases are where the value of the matrimonial assets is insufficient to fund the purchase of two separate homes (particularly when there are children to support). Difficult decisions have to be made; decisions about whether the family home should be sold or transferred to one spouse (if they can take over the existing mortgage). In most cases the spouse leaving the family home will need to be released from the existing mortgage and receive a share of the equity in the house to fund a deposit to buy a new property.
Mesher Order
Whilst every case depends on its own facts, the Court has a wide range of powers in relation to the family home. In certain circumstances the Court has the power to transfer the family home to one spouse in its entirety, with the other spouse’s share being payable, at some point in the future: this is known as a “Mesher Order”. It is open to the Court, at times of financial crisis, to make an order that the share of the other spouse is payable when market conditions have improved. This allows one spouse to stay in the family home whilst the other lives in rented accommodation. Whilst this may not be ideal to those who want an immediate “clean break”, it allows separating couples the chance to start rebuilding their lives now, not waiting until the economy gets back on track, whenever that may be.
At Le Gallais & Luce we understand that there is no template or book which dictates when it is best to divorce. However if you are contemplating divorce, it is advisable to seek legal advice early on. Obtaining timely legal advice means you are better placed to understand your rights and make better informed decisions about what to do next – you longer need to fear the unknown.