Have you ever wondered how much a divorce costs? Well, all marriages are different and so too are all separations, so there is no set amount and the cost of each divorce will depend on legal fees and spousal support. For some, divorcing and going on alone is quick and easy, but for others, dividing up assets and reaching a settlement can be tricky, especially when there is a lot of money involved. It’s often up to the courts to decide how much an ex-spouse is owed. 

An unexpected increase in divorce fees will probably come into effect on Monday raising the cost of a divorce from £410 to £550.

Emails have been received by family lawyers from the Courts divorce units confirming the Ministry of Justices’ decision subject to parliamentary approval.

The proposed increase was not included in the list of fee increases announced by the government at the end of last year and has been met with opposition from family lawyers.More...

The next edition of our FAQ series sees us advise a soon-to-be divorcee that’s been threatened with legal action if they don’t move out of the family home.

Q: My wife and I haven’t been getting on for some time now. Recently, we’ve been discussing divorce. I have just received a letter from the divorce solicitors saying that I have to start moving out of the marital home immediately or I’ll be taken to court.

I’m well aware that we’ll have to split up soon and sell the house as part of the divorce proceedings, but aren’t I entitled to stay in my house during the short term at least? In separation, who should move out? The house is as much mine as it is my wife’s and I’ve nowhere to live currently.

A: What you’re describing, moving out of the family home, is one of the first steps in progressing a divorce – and it’s certainly one of the most delicate issues you’ll face. But you’re right, in the short term you are entitled to stay in your home.  More...

When it comes to a divorce, one of the biggest assets is often a pension. Since 1st December 2000, the court can grant a pension sharing order against either party giving shared rights to the pension through a legal arrangement.

But what is a Pension Sharing Order (PSO) and how can it affect you? Let’s take a look:

The Pension Sharing Order Process

If a marriage has come to an end and one partner is left without a pension entitlement, then a PSO distributes the assets that are held within an existing pension. Pension Sharing Orders allow a clean break between parties and make the need to start a new pension redundant.

As part of a divorce process, assets within a marriage are assessed and divided between the couple. Pension Sharing Orders mean that these assets also include the monetary value of any pensions – this allows for one party to get a percentage of the total value of the other person’s pension in the split.

Instead of earmarking this money for retirement, the pension is split using pension credit which can be transferred into an existing pension, a new pension or an extra pension in an existing scheme. More...

Divorce is a tricky business and it can be made even more complicated when a family business is involved. There are many ways that this situation can be sorted out, depending on a number of factors, but the most important thing to do is have the business properly valued.

How to Value a Business

Estimates are not good in this situation, so it is important that you have a fair valuation of your business. In order to accurately value a small business for divorce you need to take the approach that best matches your business model. There are three things you need to consider when valuing a small business, these are as follows:

1. Assets– if your business is asset heavy, then working out the cost of your buildings, machines, products, raw materials, etc., will help to create the core value of your business.

2. Cash flow – look at the forecast future of your expected revenues and costs to find a net profit (typically over 5 years) in order to achieve a terminal value. This figure should then take into account the riskiness of your business to bring in the predicted amount, thus giving your business a cash flow figure. More...