If you are in the middle of getting divorced or contemplating getting divorced, you may be worried about how the present pandemic will impact on your financial security after separation. If financial matrimonial finances are disputed, how easy will it be to come to an arrangement and move on with your life?

‘Naturally, people have concerns about whether it will be possible to reach an agreement with the various restrictions in place in 2020, says Fiona Yellowlees, a solicitor in the family team with WBW Solicitors. ‘And of course, people are worried about declining asset values, reduced incomes and business uncertainty.’ 

Our family lawyers have embraced online communications

Here at WBW Solicitors, we use all the latest technology to ensure our clients will not be left in financial limbo. It is still possible to achieve a legally binding financial settlement, even during the pandemic. We can consult with you over the phone or by video call and then guide you through the steps and the documentation you will need to provide.  

If matrimonial finances are disputed, the first step is to obtain details on all of your assets and liabilities. During the pandemic, you can send this documentation either via post into our office or upload it online securely in order that we can view it digitally. Once the documentation is complete, we will arrange to exchange your documentation with that of your spouse or your spouse’s solicitor.  

Considering your individual circumstances, you will be advised about your entitlements. There is no set formula for how assets are divided, although S25 of The Matrimonial Causes Act provides a framework and each case l depends on its own circumstances. A plan will be agreed with you, and then settlement discussions can commence between us and your spouse’s solicitor. 

Agreeing on financial provision

We are alive to the fact that these are very uncertain times, and there is a risk that the value of assets may be reduced from their pre-pandemic level.  

Property tends to be one of the biggest assets in a marriage, and it is important that we obtain up to date current valuations in order to provide you with accurate advice. The property market has reopened and obtaining valuations can be arranged in a Covid secure way. 

Most shares and investments were hit hard. We will need to organise current valuations in most other assets, such as pensions, stocks or shares.  

More than six million employees have been furloughed during the pandemic, and you may be concerned about your own or your former spouse’s future job security. This potential change in income could have an impact on the division of assets and the resources you require to get through this difficult time. 

If you are self-employed or running your own business, you may also feel very uncertain about the future. It is likely that most businesses will be impacted, with those involved in leisure and tourism facing the biggest hit. What had been a profitable business could suddenly find itself struggling and potentially facing closure. 

This is a new crisis for us all to deal with and no one can say with certainty what economic impact there will be on assets and incomes over the next 12 months. It may be that you would wish to consider delaying any final settlement agreement for this reason. If that is the case then we can still look into setting up an interim arrangement, especially over ongoing maintenance and living arrangements in the meantime. 

Entering a final settlement agreement generally means just that, it is final. It is only in exceptional circumstances that a court would look at reopening an agreement. 

It is unlikely that COVID-19 will be treated as an exceptional circumstance. We know from the 2008 financial crisis that varying an existing settlement order on the basis of exceptional circumstances is not an easy task. 

There are differing views on the likely speed of the bounce back in the economy. In many respects, the impact on your matrimonial finances is likely to be very individual to your circumstances. It is clear that certain industries will be harder hit, and clients involved in those industries may decide to keep a final agreement under review. 

Other industries, for example, scientific, medical, and many web-based designers and businesses are able to continue largely without detriment. Whether you choose to proceed with your final settlement discussions now or simply want an interim arrangement in place, we can continue to assist.  

Formalising an agreement

In many circumstances, we will be able to reach an agreement out of court by way of negotiating with your spouse’s solicitor. During the pandemic, this process has not changed and an out of court agreement is normally the most cost-effective solution for our clients. If an agreement is reached, we will draft a consent order (your agreement in legal language) to reflect the settlement terms.

We will consult with you to advise you on the terms, and the document can be emailed or posted to you for your signature. Once signed by you and your spouse, the agreement can then be sent to the Court for consideration and approval. This is an application that we can make on your behalf without you having to attend court. 

If a dispute persists

If a financial settlement cannot be agreed then we will advise you on what steps you can take, and this can include mediation and potentially going to court.

Can mediation take place online?

During the pandemic, mediation cannot take place in a normal face-to-face way, but it is still possible for assessments (MIAM’s) and mediation to take place over video calls.  

Mediators have operated this type of service for a number of years (including with international divorce clients) and so you will not be at a disadvantage.

Mediation involves you and your spouse discussing your options with a trained mediator to see if a compromise and agreement can be reached. In most situations, it is necessary to attempt this before you take a dispute to court. 

If mediation is unsuccessful then we will advise you on issuing court proceedings.  

Are family courts operating?

The courts are still open for business during the pandemic, but they are operating in a different manner and respecting social distancing. The guidance from the courts is evolving rapidly and is likely to continue to do so as the pandemic continues to affect daily life. It will be possible for us to issue proceedings on your behalf and to represent you during those proceedings. You can rest assured that you will not have to put your financial separation on hold, with the potential hardship that could cause. We can continue to provide you with complete support in this area. 

For further information, please contact Fiona Yellowlees family law solicitor on 01626 202404 or email fionayellowlees@wbw.co.uk.