Why do you need to understand the law relating to finance?
The law provides firm guidelines for the negotiations within Divorce proceedings. This helps the negotiations towards an acceptable financial deal between you and your partner.
How the Courts Work
The Courts will always aim to find an equitable settlement between parties in a Divorce. During negotiations, either between the parties themselves or their representatives, they will be conscious of the principles the Court will apply if they cannot come to an agreement. This is helpful in focusing minds during discussions as the Courts will have the ultimate say if required. If one of you wants too much, or is not prepared to agree something that is fair and reasonable then there is a fallback option to the court to address the situation.
It is sensible to have any financial agreement made into a court order. This ensures that parties keep to what is agreed as it makes it legally binding and enforceable. Please note that legislation sets out what can actually be in the order and you need to understand exactly how that process works.
Court orders also provide protection from future claims. There have been a number of high-profile cases where ex-partners have returned to the courts long after the initial Divorce, as the circumstances of one party has changed (such as where you inherit money or become wealthy by other means). Even if you have no assets and no income, it is worthwhile having the court make an order so that neither of you can make claims against the other in the future.