Financial Settlement After Separation: How We Secured £115,000 And A Pension Sharing Order 

This case study explains how our family law solicitors helped a client secure a financial settlement after separation, including £115,000 and a Pension Sharing Order, following court proceedings where matrimonial assets were disputed. 

Life during and after separation can be emotionally and financially difficult. This difficulty is made worse when there are no property or major physical assets involved, as it isn’t always clear what is classed as a matrimonial asset and how much money is being unfairly withheld from one of the parties. 

Many people assume that if there is no family home to divide, there is little or nothing to claim. However, financial settlements after separation can include pensions, savings, investments, shares acquired during the marriage and other matrimonial assets. Understanding your legal entitlement is often the first step towards achieving a fair financial settlement after divorce or separation. 

This is where matrimonial case law comes into play, and where swift support from solicitors can help. In this financial settlement case, our expert family law solicitors Stephanie Matthews and Clara Burns guided our client through a litigation process to achieve £115,000 from her ex-husband, as well as a pension sharing order.

Discover how we supported our client every step of the way, used our experience of case law to identify matrimonial financial assets, and worked assertively to achieve a fair, reasonable, and Optimal outcome. 

What is a financial settlement after separation? 

A financial settlement after separation determines how money, pensions, investments, savings and other matrimonial assets should be divided between separating spouses. While many people associate divorce settlements with the family home, valuable assets such as pensions, shares acquired during the marriage  , business interests and savings can also form part of the financial settlement.

Every case is different. Courts consider a range of factors, including the length of the marriage, each person’s financial needs, contributions to the family and future earning capacity before deciding what is fair.

What happened in this financial settlement case?

Our client initially contacted us by general consultation. She had been married for over 10 years and separated for over four years. Although there were no properties or physical assets between the parties, she was aware that the husband had bought shares in the early stage of the marriage for around £10,000, which she still believed he owned. She also knew he had a pension. 

Although our client was a stay-at-home mum who was not earning or financially contributing to the marriage, by law she is still entitled to a fair division of anything purchased as a matrimonial asset. Her role in bringing up their child and taking care of the family home is seen as equal. 

Since the separation, our client was considerably financially worse off than her ex-husband. So, using their knowledge of the law and previous case experience, Stephanie and Clara progressed her case to seek fair and reasonable redress. First, let’s take a quick look at what matrimonial asset law looks like.    

 

Financial settlements after separation: What does the law say? 

The Matrimonial Causes Act 1973 (Section 25) gives courts wide discretion to divide assets fairly based on needs and contributions. The core principle is that assets acquired during the marriage (the “matrimonial pot”) are usually shared equally.

When couples cannot reach an agreement themselves, they may need to apply to the Family Court for a Financial Remedy Order to determine how matrimonial assets should be divided. A Financial Remedy Order (also known as a Financial Order) can include savings, pensions, investments, shares acquired during the marriage and other assets built up during the marriage, regardless of whose name they are held in. The court will consider all of the circumstances of the case to ensure any financial settlement after separation is fair and reasonable. 

Key principles of UK matrimonial asset law

  • Matrimonial assets include any assets built up during the marriage, such as the family home, pensions, savings, and investments – regardless of whose name they are in.
  • The starting point is a 50/50 division of assets acquired during the marriage, as it is viewed as a joint partnership.
  • The court’s primary goal is to meet both parties’ financial needs, especially for housing and children. This means a 50/50 split may be adjusted.
  • Courts rely on established case law, using 50/50 as a starting point and cases regarding the treatment of assets where non-matrimonial wealth becomes mixed with marital funds.

 

Pushing for a swift resolution

Our first step was to seek full and frank disclosure of the husband’s financial assets and records. Here, we discovered he had sold the shares acquired during the marriage for more than £350,000 and currently had over £100,000 in savings and over £100,000 in his pension. 

We always aim to bring these cases to a swift and fair resolution, negotiating outside of the courts to minimise stress and help our clients move forward quickly. Resolving financial settlement disputes through negotiation is usually preferable, but where agreement cannot be reached, court proceedings may be necessary to achieve a fair outcome. With that in mind, we made an offer for half of the savings and pension. Unfortunately, the ex-husband rejected this with no counter, offering £0. He then issued court proceedings. Our client instructed us to proceed and represent her through litigation. 

Each party bears their own legal fees in family law cases. We were wholly transparent about this with our client, and while there was no guarantee of the outcome, we were confident of a positive resolution in line with matrimonial asset law and wouldn’t have proceeded without this. We gave our client confidence by communicating this clearly to her – also keeping her regularly updated on case expenditure throughout, ensuring the spend didn’t outweigh the predicted payout.

Supporting our client through Financial Order proceedings 

During court proceedings, full disclosure wasn’t obtained from the ex-husband. It was our client’s analysis of bank statements that enabled us to identify and raise this to the court. We always advise our clients to look through financial documents themselves, as well as us, because they are best positioned to spot any irregularities which we can then verify. 

While there was no increase in offer or opportunity to negotiate for the majority of the proceedings, the ex-husband did offer £10,000 just before the final hearing. This wasn’t nearly sufficient or close to what was fair and reasonable, and we were confident in advising our client that a much higher settlement was possible. We were fighting for a just payout that was in line with the law and capable of turning her financial situation around to support her and her child for the future. 

Ensuring full understanding throughout

Full transparency and clarity is essential. As our client’s first language was Polish, we arranged for an in-house translator to be present on all calls to ensure full understanding between her and our team. 

All official statements at litigation level had to be approved by an independent translator, which we arranged on behalf of our client. In addition, all discussions with the barrister were also translated and communicated clearly.

The outcome: Optimal resolution at the final hearing

Having spent more than half of the money he received from selling his shares, the ex-husband had £116,000 left. The judge made a final Financial Order requiring the ex-husband to transfer £115,000 to our client. With additional advice from a pension expert, the judge also gave a pension sharing order. Due to the length of time since separation, the pension order wasn’t a 50/50 split, but it still provides future financial reassurance.

At no extra cost, we attended the final hearing in person. This was not just a show of support for our client, who had endured an emotional case, but a way to assist her relationship with the barrister and make sure she felt as comfortable as possible. Our client was grateful for our physical representation on the day. By bearing witness to how and why the judge came to the outcome, it was easier for us to answer questions our client had both on the day and after the hearing. 

 

Can I claim a financial settlement after separation?

Even if you have already separated, you may still be entitled to a financial settlement depending on your circumstances. Assets acquired during the marriage – including pensions, investments, savings and shares – may still form part of the matrimonial assets available for division.

Stephanie’s advice for financial settlement claims

Never settle after separation until you are absolutely sure you know what assets you may be entitled to under matrimonial asset law. Disclosure of all assets is key before negotiations can take place, because it is very difficult to go back to change a financial order. This may be your only chance, so it’s vital that you understand the assets that are available. Using this case as an example, gaining legal support to have all bank accounts and pension values disclosed can help you understand what you could be entitled to. 

In many cases, other parties will try to hide assets acquired during marriage and/or offer less than what is fair and reasonable. It’s better to be sure and, if you can, invest in legal support to help you achieve a final resolution that can help you move forward with your life. 

Speak to Optimal Solicitors for financial settlement advice

The period during and after separation can be upsetting and stressful, especially when there is financial hardship. That’s why we always see litigation as a last resort. However, when the other party is unwilling to make a reasonable offer, our specialist family law solicitors are ready to support you with legal expertise, knowledge of established case law, and unwavering support to help you achieve a just resolution. 

Please don’t hesitate to contact us for honest advice about what you may be entitled to following divorce or separation. 

 

Frequently Asked Questions About Financial Settlements After Separation

What is included in a financial settlement after separation?

A financial settlement can include the family home, pensions, savings, investments, shares, businesses and other matrimonial assets acquired during the marriage.

Can pensions be divided after separation?

Yes. Courts can make a Pension Sharing Order where appropriate to ensure a fair division of retirement assets.

Can my former partner hide assets?

Both parties have a legal duty to provide full and frank financial disclosure. If assets are deliberately hidden, the court has powers to investigate and make appropriate orders.

Do I need to go to court?

Not always. Many financial settlement cases are resolved through negotiation or mediation, but court proceedings may be necessary if agreement cannot be reached.

How long does a financial settlement after separation take?

Every case is different. Where parties can agree, settlements may be reached within a few months. If court proceedings are necessary, the process can take considerably longer depending on the complexity of the assets and the court timetable.