Am I Allowed to Invest My Money While I’m Getting Divorced?

It can be difficult to accurately predict how long it may take to resolve any dispute concerning the matrimonial finances following separation. Although consideration should always be given to the various forms of out of court dispute resolution available when going through a divorce, court proceedings themselves will rarely take less than a year if a final, contested hearing is required.

For many, it is simply not practicable to have a moratorium on financial dealing within this sort of time period – assets need to be managed, shares or property may need to be sold, tax considerations will require nimble and speedy handling.

Whether you need to protect your wealth and/or reach a fair divorce settlement, our team of leading divorce lawyers in Milton Keynes can advise and guide you through the entire process. In the meantime, this article offers a helpful look of some of things to consider when thinking about finances and divorce.

In short, yes, there is no prohibition on the general day to day dealings of any particular asset. Best practice requires notification to be given to a party about how the assets may be dealt with, where possible, alongside a disclosure paper trail illustrating the dealings themselves.

If a party is concerned about the prospect of a dissipation of an asset, then they may consider a “freezing order” application. These court orders limit and control the use of a particular asset or group of assets to preserve them for later distribution by the court in matrimonial finance proceedings.

When considering how to divide the parties’ assets upon divorce, the court must give consideration to all available assets. These include assets held in one parties’ name, assets acquired prior to the marriage and those generated after separation, in addition to assets obtained “outside” of the marriage, e.g. inheritance.

When the parties are satisfied that the assets base has been fully disclosed and valued, the court’s starting point is consider dividing the total assets equally between spouses. The court has considerable discretion in determining the extent to which, if at all, the parties should depart from this assumption of equality. In making its assessment, the court can consider all the particular factors of a case but will consider the factors set out in s.25 Matrimonial Causes Act 1973.

Departures from equality are reasonably common, particularly where one party is continuing to care for children under the age of 18, has an illness or disability impacting their ability to work and where a significant proportion of the asset base has been acquired outside of the marriage.

The parties have a duty to undertake full, frank and clear disclosure of their finances in advance of any discussions on the division of assets following separation. In some circumstances, where both parties have their finger on the pulse of the family finances, this can be a “light touch” disclosure exercise, with the parties merely agreeing what assets are available and what they are worth on the current open market. However, this is likely the exception rather than the rule. For almost all marriages, a detailed disclosure exercise will be a valuable undertaking, enabling a party to divorce to obtain independent legal advice on the settlement options available. It is worth noting that the court and almost all other out of court dispute resolution forums will require disclosure before negotiations on settlement begin.

Ready to take the next step? As leading divorce lawyers in Milton Keynes, our team of family law specialists can advise and guide you from the moment we start working with you. We also have offices in in Bicester, Watford and London. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.