What Happens to Your Finances When a Civil Partnership Ends?

Obtaining a dissolution order legally ends a civil partnership, but it does not automatically resolve the financial relationship between former civil partners.

Financial claims may remain open unless an appropriate financial order has been made by the court.

What financial matters may need to be addressed?

The financial settlement may need to consider:

• The family home and other property

• Savings and investments

• Pensions

• Business interests

• Income and earning capacity

• Maintenance

• Debts and liabilities

• Other assets held individually or jointly

The appropriate outcome will depend on the circumstances of the relationship and the financial needs and resources of both civil partners.

Reaching a financial agreement

Many couples are able to reach an agreement through direct discussions, solicitor-led negotiations, mediation or another form of non-court dispute resolution.

A full understanding of the financial position is usually required before proposals can be assessed properly. This may involve exchanging information about income, property, pensions, savings, investments and liabilities.

Reaching an agreement privately does not, by itself, necessarily provide a final and legally binding conclusion.

Formalising the agreement

Where financial terms have been agreed, they can usually be submitted to the court for approval and recorded in a financial order.

A court-approved order can set out how assets will be divided and, where appropriate, dismiss future financial claims. This provides greater certainty than relying solely on an informal agreement between the parties.

Where an agreement cannot be reached, either civil partner may apply to the Family Court for a financial order. The court can then determine how the relevant financial issues should be resolved.

The timing of the financial settlement is also important. The final part of this series explains why financial arrangements should usually be considered before the final dissolution order is obtained.

Are you concerned about how the end of your civil partnership may affect your financial position? Elizabeth Stocker specialises in financial arrangements arising from relationship breakdown and can help you work towards a fair and properly documented settlement.