money

What is Family Law Mediation? Hear from a mediator…

There are several different ways a couple could choose to negotiate their financial agreement and parenting plan in divorce. A popular method is mediation. In this guest blog, hear from experienced family law mediator Louisa Whitney about the benefits of mediation and when to consider using it:

What is family mediation?

“Family mediation brings together a couple who are separating to talk through what happens next with the help of a trained family mediator. Mediators are trained in all aspects of divorce and separation and also in facilitating discussion in difficult circumstances. They have a wealth of experience to draw on and can help with identifying ideas and solutions that you may not have thought about. A separating couple can talk about anything that’s important to them in mediation (children, money, pets and so on) and they aren’t constrained by only discussing what a court would take into account. It helps parents to resolve issues relating to their children by deciding themselves what arrangements they will put in place. Arrangements for children are usually best made by their parents as they know them pretty well!”

When is it best to try family mediation?

“There is no set time to try family mediation but it can often be helpful to get the ball rolling with this process once you both feel you are in a place in the recovery process where you can start to talk about and make decisions about what happens next. It can be helpful to try mediation at a relatively early stage to help keep your discussions constructive but the door is never shut on mediation and you can try this at any point – even if you have already started court proceedings.”

How does family mediation help?

“Family mediation helps because the couple involved are talking to each other directly, with the help of a trained professional. This often means issues are resolved more quickly because you don’t have to wait for letters to go back and forth. It also aids communication because you can see and hear the other person talking. Where communication takes place via email, letters or text it’s easy for this to be misunderstood because people tend to read messages in line with their view of that person. If one person believes the other is being unhelpful or obstructive then they tend to interpret even genuine messages in that way.”

Why is good communication important going forwards?

“Good communication is essential if the couple in question have children together. Although they will not carry on being a married couple they will continue to be parents of their children forever. Children are most affected by their parents’ separation when they are exposed to conflict and pulled into a dispute between their parents. Finding a way to resolve issues concerning your children in a positive and constructive way is the best way to manage your separation. Being able to attend events like school plays, sports days, graduations, and weddings together without it being awkward or unpleasant will mean that things are more manageable going forwards.”

How can I find a family mediator?

“If you are already working with a divorce professional like a lawyer or a coach then they may be able to recommend someone. Alternatively you can find a family mediator local to you (or who offers online mediation meetings if this would help you) via Resolution or Family Mediation Council.”

Louisa Whitney is an accredited family mediator who offers mediation meetings in person at her office in Dorking, Surrey, and online via zoom. She is passionate about helping parents reduce the effect of their separation on their children. You can get in touch with her here – LKW Family Mediation.

If you have found the tips in this blog useful then you’ll find lots more in my eBooks, which you can purchase and download today.

If you’d like to work with me 1:1, for help preparing for mediation and/or support during the mediation process, please get in touch to find out how I can help.

Why I became a divorce consultant.

How To Approach Funding Your Divorce

By nerysdonaldson

It is difficult for anyone to predict how much you will spend on legal costs by the end of your divorce case.

How long your case takes and how much it costs is actually as dependent on you and your ex as much as anything else.

The more the two of you disagree, the longer the case is likely to take and the more you both risk spending on legal costs to get everything resolved.

Solicitor’s Costs

When you make enquiries of solicitor firms to decide who you would like to work with in your divorce, make sure you ask questions about their charges and invoicing system. You’ll want to know;

Do they offer a fixed fee for the divorce element of the case?
Who has conduct of your file and what are their charges?
Who else may be working on your file and what are their charges?
How much is the first meeting?
How often do they invoice?
What monies on account do they require to start your case, if any?

This information will be set out again in a letter to you, once you have confirmed you wish to proceed with this particular solicitor.

What’s involved

Your overall divorce case is likely to involve two or three main issues:

The dissolution of your marriage – the divorce itself
Finances – reaching a financial settlement with your ex
Children arrangements – If you have children, you will need to reach agreement on their care arrangements as well as financial support for them (if they are under 18, in full term education or require long term care).

Paying for your divorce case

There are various ways in which you can pay your solicitor’s invoices. These are as follows;

1. Income

If you earn sufficiently, you may be able to simply pay the solicitor’s invoices as they come in.

2. Savings

You may have sufficient capital in savings accounts in your sole name, from which you can pay your solicitor’s fees. Or, you may reach an agreement with your spouse for both of you to use joint funds to meet your legal costs.

3. Your Spouse

You may reach an agreement with your spouse for them to pay your legal costs. This may be relevant if you don’t work, have no other form of income and your spouse has been the breadwinner during the marriage.

4. Loans

You may need to consider taking out a loan from a family member or friend or a bank loan. If you are lent monies by a friend/relative, you will need to show this is in fact a loan and not a gift. The lender can provide a letter to prove this and that they will be expecting the monies to be paid back.

5. Litigation Funding

Your solicitor can talk to you about options available for “litigation funding”. This is a type of loan used in divorce cases to provide someone who does not have any other form of meeting their legal costs with the funds to do so. It is, however, worth bearing in mind that this is a loan and these types of loans usually have very high interest rates.

6. Sears Tooth Agreement

This involves you reaching an agreement with your solicitor that they will get paid in full from your financial settlement before you receive any monies. These types of agreements are now fairly unusual but you could still ask whether your solicitor offers this.

How to keep your legal costs down

The best way to do this is to ensure you only use your solicitor for what they should be used for, i.e. legal representation and formal legal advice. Their role is not to provide emotional support and for this you should look to work with a divorce coach and/or counsellor. Working with a divorce coach/consultant such as myself can also help save you a lot of money on your legal costs.

For more tips on your legal costs, please click on the following links:

5 Tips To Save Money On Your Divorce

How To Get Financially Ready For Divorce

If you have found the tips in this blog useful then you’ll find lots more in my eBooks, which you can purchase and download today.

If you’d like to work with me 1:1, for help preparing financially for your divorce/or support during or after the divorce process, please get in touch to find out how I can help.

Why I became a divorce consultant.

Pension Planning and Divorce

By nerysdonaldson

Pensions are always a big topic in divorce cases. After the family home, they are often the most valuable asset in the family pot. Working out how to properly value a pension for the purposes of negotiations in a financial settlement can be difficult and it is common for divorce solicitors to use a pension expert to help.

I have had the opportunity of speaking to Andrew Potter, the Director of Pensions at Salisbury Financial Services to find out about his work with divorce clients:

What does your work as a pension planner involve in divorce cases?

We provide technical expertise and on hand practical advisory support to Family lawyers, barristers and their clients to help navigate through the complex rules that can significantly impact on the financial outcome on the pensions pre & post-divorce for both parties.

Very broadly, my role is to understand a client’s current circumstances and establish how best to match their financial resources to what they are trying to achieve, or help them to reappraise what they realistically can achieve when appropriate. This may include provision of reports to establish how best to value pension entitlements accrued pre-marriage, Annual Allowance calculations, Life Time Allowance calculations, cash flow forecasting to establish sustainable levels of income based on a capital sum, review & assessment of existing pensions to assess suitability to give up to/receive a pension credit/share, ‘translation’ of actuarial pension sharing reports, risk profiling etc.

Why are pensions important to consider when getting divorced?

Frequently, apart from the matrimonial home, pensions are the most valuable asset within a marriage. Therefore, it is important that they are considered very carefully. How best to split the value to ensure a fair outcome is often not just a straight forward 50/50 split. This might be because of age differences, open market forces e.g. advisory/product costs, investment risk, the impact of legislation, the disconnect between the way that defined benefit pensions (such as final salary) and defined contribution (personal pensions/SIPPs) are valued etc.

Pensions have always been an important part of the financial planning process because of the valuable tax breaks. However, since 2016, the government’s Pension Freedoms reforms has meant that the tax breaks are now complimented by far greater practicality & functionality, than in the past, that actually work in the real world.

How do you help clients who are already divorced?

Even in modest pension sharing cases the amounts involved can run into £100,000s. The purpose of a pension sharing order is to provide a degree of financial security in the future. It is important that the pension and if applicable non-pension investments are still there and sustainable when needed. We regularly review clients’ investment & pension portfolios to monitor performance relative to their requirements and to ensure income sustainability throughout life.

What advice would you give someone going through divorce when it comes to their pension?

Seek specialist help, take time to ensure that you understand your pension(s) better. Despite perceptions they are always valuable, review regularly. My mantra is summed up in two words – dialogue & diversification.

Why is pension planning important?

For most people the various tax benefits available on pensions are the best around. The legacy of pension funds on death for the family (and other nominated beneficiaries) is very tax efficient and accessible without probate.

From age 55, contemporary pensions are totally accessible & controllable – a tax efficient very practical financial resource that can not only provide tax efficient way of saving for your future financial security but also a lasting legacy to your family that cascades tax efficiently down the generations.

Andrew Potter specialises in all aspects of pension planning and is also a Chartered Financial Planner. He has a wealth of experience in pensions and works closely with many family law solicitors, barristers and clients in divorce cases.

As a divorce consultant, I work closely with my clients throughout their divorce, providing support every step of the way. Part of this involves making sure they have the right “team” of specialists around them to help them understand their options, enabling them to make informed decisions about their financial settlement. I can put my clients in touch with other professionals and resources to assist with the different issues which may arise in their case. I also work with clients beyond their divorce to help them to adjust to their new independent life and start to plan for their future.

If you have found the tips in this blog useful then you’ll find lots more in my eBooks, which you can purchase and download today.

If you’d like to work with me 1:1, for help preparing for your divorce/or support during or after the divorce process, please get in touch to find out how I can help.

Why I became a divorce consultant.

How Are Pensions Approached in Divorce?

By Rhiannon Ford

Many of my clients describe a big concern about the uncertainty around the financial outcome of their divorce. They worry about what financial settlement they will receive and whether this will be sufficient for them to move forward with their life.

Before negotiations can begin to reach a financial settlement, the couple divorcing need to collect together full details of their financial positions. I often get asked questions about how pensions are taken in to account in a divorce.

I have had the opportunity to interview Veronica Gilmour an experienced family law partner at Pennington Manches solicitors in Guildford to answer the questions I often get asked by my clients:

1. Will mine and my spouse’s pensions be taken in to account in the divorce?

Yes, absolutely. Pensions are often one of the most valuable assets that a couple have and must form part of an overall financial settlement.

2. What information will my solicitor need about my pension; is my annual statement enough?

No, your solicitor will need additional information from your pension providers including a cash equivalent value (CEV) and either you or your solicitor will need to make a special request for this. It can take many weeks for this to be provided so it should be one of the first things you ask for when you start gathering together your financial information. Information will also be required about your state pension provision too.

3. How will the pensions be divided between me and my spouse; are there different options?

There are a number of options which I will deal with further below, including pension sharing orders, earmarking and offsetting. Consideration will also have to be given as to whether the pensions are marital assets (or built up prior to the marriage) and whether an equalisation of pension income or capital is appropriate in your particular case. There are many types of pensions including defined benefit (or final salary schemes), defined contribution (that is the value depends on the actual amount invested and how the investments have performed) and SIPPS (self-invested personal pension schemes which can include properties as part of the assets of the pension). As with all parts of the settlement a judge will be looking to make a fair order in relation to pensions.

4. What is off-setting?

Offsetting is where the value of the pensions is taken into account as part of the overall settlement but the pensions themselves are not shared. The difficulty with offsetting is determining the value of the pension to be offset, as a pension is not a pure capital asset in the same way as cash in a bank account or an interest in a property is. In all but the most straightforward of cases it is important to obtain specialist advice on the amount of capital to be given to offset pension rights.

5. What is earmarking?

Earmarking is where your pension provider is asked to pay part of your pension (when it is being paid to you) to your spouse. It will be expressed in percentage terms and will only be paid during joint lives. If therefore you have an earmarking pension order and your spouse dies the payments will stop.

6. What is pension sharing?

Pension sharing is where a percentage of one party’s pension is given to the other. The pensions are split as soon as they can be implemented so that the spouse receiving the pension share will then have a sum of money to invest in her own pension scheme and her spouse’s pension will then decrease by the same amount. If a pension is already in payment then the pension payments will decrease from the moment the pension sharing order is made regardless of whether the person receiving the share starts to draw-down the pension straightaway. The person receiving the pension share has their own pension fund and they can do whatever they like with it (subject to tax consequences) and it will remain in place regardless of whether they remarry or one of them dies.

Veronica Gilmour is head of the family team at the Guildford office of Pennington Manches. She is a very experienced family law specialist solicitor and an accredited specialist with Resolution in pensions. To find out more about how Veronica could help you with your divorce, get in touch with her here.

Working through the financial aspects of your divorce can be challenging. To find out ways in which I could help, get in touch with me here – Contact Rhiannon and you can also see my other blogs –

Are you struggling with the Form E?

How a divorce consultant can help through the legal process?

How to approach getting a financial agreement in divorce.

If you have found the tips in this blog useful then you’ll find lots more in my eBooks, which you can purchase and download today.

If you’d like to work with me 1:1, for help with any financial aspects of your divorce, please get in touch to find out how I can help.

Why I became a divorce consultant.

What Are The Benefits Of Working With A Chartered Financial Planner During Divorce?

By Rhiannon Ford

Resolving financial matters to reach a financial settlement is usually what takes the time (and costs the most money) in getting divorced.

You get one chance to get the financial agreement right, so it is well worth making sure things are done properly and you feel comfortable with the agreement reached.

There are various different options available to help you and your spouse reach an agreement, and these are covered in my blog – How Do I Approach Getting A Financial Settlement In My Divorce?

Any settlement will have a significant impact on your financial position when you first start your post-divorce life. To help ensure you feel confident in the negotiations and reach the right financial settlement, it is worth ensuring you get specialist professional advice. As well, as your solicitor and divorce consultant, it is helpful to engage the services of a financial adviser. Most people only consider using a financial adviser once they already have their financial settlement, but there are good reasons for engaging their services long before this.

To help explain more about this, I have had the opportunity to interview Chartered financial planner Claire Harlow. Here is what she had to say;

What is a Chartered financial planner?

“Most people have heard of financial advisers, but many don’t really know what we do. Basically, we help people make the most of the money they have and structure their savings effectively for what they want to achieve – whether that is working out how to use their savings in retirement; give money to children or grandchildren, or sell a business.

Some advisers are Independent Financial Advisers (IFAs) which mean that they can advise you on any product, and are not limited to the products of just one company (known as “restricted” or “tied”).

Some financial advisers are Chartered, which is seen as the “gold standard” of the industry. We have at least 5 years’ industry experience, and have taken enough exams at undergraduate degree level in financial planning to qualify. We pledge to adhere to the Chartered Insurance Institute’s “Code of Ethics”, and ensure we keep up to date with changes to our industry, legislation, types of product, recording at least 35 hours of relevant training, reading and research each year.”

What are the different ways that a Chartered financial planner can help during divorce?

“There are several ways experienced advisers can help during divorce;

1. Early stages – helping with financial disclosure

We can help put together information that you would need for financial disclosure, as well as making sense of information put together by the other side. We can help chase down information from multiple financial organisations, and identify and challenge any discrepancies for you.

2. Helping clients to understand different options for their financial settlement

We can help you to understand both what you will need to live on, and what is being offered, as well as whether there are any changes that can be made to improve the outcome. We can explain the implications and generally help guide you through the financial side of what can be a challenging process.

3. Future financial planning

We still find that there is often one in each couple who “runs the finances”, often leaving the other partner struggling to work out where to start at a time when the last thing they want to do is learn a whole new set of skills (which, we appreciate, not everyone finds as interesting as we do!). We help guide and explain everything from the very basics to more complex elements and make the process as smooth and simple as possible for you. We will also keep an eye on everything for you in the coming years, and raise anything with you that needs attention. You can rest assured that someone is in the background making sure nothing gets missed.

What else can you tell us about your role as a Chartered financial planner?

“In reality, much of our job is not about the numbers and financial products, but about getting to know our clients, understand what they want to achieve, and working out how best they can do that.

Many people are not used to talking about money (it’s not very “British”!), and often talking to us is the only time our clients talk about money. We know that a big part of our job is making people feel comfortable talking to us, and entrusting us with their hopes and concerns. We take this confidence seriously, and take our time in getting to know you. We use that information to build a financial plan with you, which we then hone together over the years, providing support and assistance throughout.”

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Claire has worked as a financial adviser for 13 years, becoming Chartered in 2009. She works closely with her clients and their existing advisers to ensure a joined up approach to their life and finances. To find out more about how Claire Harlow could help you with your financial planning (whether you are getting divorced or not), get in touch with her here.

Introducing you to other divorce professionals, is just one way a divorce consultant can support you during your divorce.

If you have found the tips in this blog useful then you’ll find lots more in my eBooks, which you can purchase and download today.

If you’d like to work with me 1:1, for help during the divorce process, please get in touch to find out how I can help.

Why I became a divorce consultant.