Marital breakdown: the risks of delay in sorting things with your ex.
Divorce is stressful and it can be a costly and emotionally draining process. However if a relationship breaks down it is still worth while taking legal advice on your options early on. It may save you a lot of money in the long run.
Consider the recent case concerning of a couple who separated after only a month of married “bliss”. Thirty years later, unbeknownst to the wife until much later, the husband died. She is now fighting his family for a share of his estate which , as they were still married when the husband died, she is entitled to do.
The case highlights the very real dangers of not putting your financial affairs in order on separation.
What a lot of people do not realise is that your spouse is your next of kin, irrespective of whether you are still a couple or not. They have a claim on your estate if you die intestate and can challenge your will if you have made one making little or no provision for them.
Your ex also has a right to live in the matrimonial home after separation. If they move out they can move back in when they choose. The remaining spouse can’t change the locks. These rights can only be taken away if they agree or the court orders.
Separated couples should also be aware that whilst married their finances are linked. If they are both on the mortgage simply moving out will not alter their legal obligations to the mortgagee, but that doesn’t help the person remaining in the property whose home may be at risk. If the mortgage goes into arrears it will impact on both parties’ credit rating. Having your name on the deeds may also affect your ability to borrow for a home of your own and may leave you liable for a 3 per cent levy for second homes.
Separated couples may find that their joint bank account is frozen or that the other party has withdrawn all of the funds.
The wealthier party is also at risk as regards wealth accumulated post separation whether through income, bonuses, gift or inheritance. The starting point when the couple do divorce is their assets as they are then , not when they split. Further, if the other party has dissipated their assets the wealthier spouse may be ordered subsequently to help them to rebuild their capital. Consider the case of Graham Mills who is currently fighting through the courts to protect his assets from his ex wife who has spent all her money and 13 years after they split is seeking an increase in the maintenance he pays her to make good the shortfall in her “needs”.
In all these cases expert and early legal advice is crucial. At the same time it is important to talk to your lawyer about making a will.