“I have just separated – What should I do?”

Posted: 7th January 2019
Author: Helen Taylor TEP

This is a question we face all the time.

The maxim “preserve assets and limit liabilities” from the point of separation is always a good starting point.  In some cases there is a need for immediate action to safeguard monies or property or other assets but in other cases there is no need to make early decisions or take any specific actions.

When to take immediate action?

  • If you believe that assets are at risk because either assets are going to be transferred or sold, or pensions are going to be drawn down or savings are going to be dissipated by the spouse then clearly urgent steps need to be taken to safeguard those assets.  This can range from freezing bank accounts to injuncting assets via a court process.  It may involve placing a notice at the Land Registry or simply writing to the spouse to give clear warning that he or she should not act in a certain way with assets.
  • Where there is a risk of significant financial liabilities being incurred then again swift action needs to be taken.   Such action may mean reducing a joint overdraft facility, stopping a second credit card user or moving your salary credit to your own bank account to gain more control of the finances.  For those inclined to go out and spend the family monies – don’t do so.  The court will, if necessary, consider how debts have been incurred and a spouse spending recklessly upon separation could well be left with that debt to repay long after settlement occurs.

Why should you put an interim financial budget in place when separating?

It is crucial upon separation to have an interim financial plan ie to ensure everything is paid for pending a financial settlement which could take many months to agree.  Prepare a monthly budget including all regular outgoings, both personal and household in nature, and include all day to day family expenditure.  Identify who is going to pay what amounts and in particular ensure such things as the mortgage, utility bills and loan repayments are met to avoid adverse credit ratings which could have a long term impact and impede settlement options in due course.

What if immediate action is not required?

Sometimes taking no action until legal advice is sought is wise.  It is not every case where the financial arrangements are at risk or change immediately upon separation and that allows both spouses to “take stock” of what they need to do.  That may in due course involve some changes but it is not easy to change financial commitments overnight.

What other things may need to be considered?

Other considerations upon separation may include who is to remain in the home (it is very difficult to force one or other spouse to leave a family home against their will in the early stage of separation), or how the details of a separation are given to the children of a marriage (best to let the children know together in a positive way).  If one spouse is to leave the home then the issue of when the children are going to spend time with each spouse arises.  If that cannot be agreed then often these sort of issues can be addressed in mediation.

Getting legal advice

Obtaining legal advice (even for an initial session) can be invaluable in providing the basic information about divorce proceedings, the court process, what to expect as an outcome in respect of financial issues and indeed what the legal costs are likely to amount to.  Whilst there is a lot of information on line this is no substitute for advice tailored to your own situation.  Franklins Solicitors offer up to 1 hour advice at a cost of £150 plus VAT and even that short period of time can provide a lot of peace of mind, a direction for resolution of issues and sometimes a “To Do” list to make progress towards the future.

For more information or guidance please contact our Family Law team who will be happy to help on family@franklins-sols.co.uk or 01604 828282 / 01908 660966

Disclaimer: The information provided on this blog is for general informational purposes only and is accurate as of the date of publication. It should not be construed as legal advice. Laws and regulations may change, and the content may not reflect the most current legal developments. We recommend consulting with a qualified solicitor for specific legal guidance tailored to your situation.