See reviews >
The recent budget announcement has raised many questions about its effects on divorce proceedings.
While budget changes do not affect the divorce process itself, consequential matters like financial settlements, property sales, and private school fees could be affected.
Our Family Lawyers, Grace Parry and Joe Ferguson, recently appeared on Radio Alty and answered questions on how the budget could impact divorce cases.
Listen to the full interview here.
The budget doesn't impact on the divorce process, but what it does potentially impact on is the financial remedy process including dividing financial assets, property, and other financial arrangements.
Clients often confuse the divorce and financial remedy processes, but you should think of them as two streams that run alongside each other.
The amounts you're taxed and, crucially, how you are taxed can have a massive impact on your financial remedy for divorce.
For example, adjustments in Capital Gains Tax (CGT) could affect cases involving business assets or properties as it would have a direct impact on the value of the net sale proceeds, for instance.
As Family Lawyers, we work closely with accountants and financial advisors to understand the implications of tax changes on financial settlements.
When we help a client with divorce, we do so based on the value of their assets. The recent budget has raised concerns about a possible slump in the property market, which can complicate asset division in divorce.
If your property value drops or if a house isn’t selling, there are options you can explore like:
If one party obstructs the sale or refuses to negotiate a fair price, the court has the power to issue an “order for sale.”
This allows the property to be sold under specific terms set by the court, ensuring that both parties can move forward.
Yes, it can form part of the wider financial settlement on divorce, known as a school fees order. When considering a school fees order, the court will look at each parent’s income, overall financial situation, and the affordability of the fees.
In addition to tuition, expenses like uniforms, school trips, and extracurricular activities will also need to be considered.
With VAT payable on private school fees from January 2025, there’s a likelihood that fewer parents will be able to afford private schooling for their children.
This change may lead to more applications for modifications of existing school fee orders and could influence future financial settlements regarding private education.
The best move is to get advice from both legal and financial experts.
Family lawyers can guide you through the legal aspects of your divorce, whilst accountants and tax advisors can explain the impact of tax changes on your assets and potential tax mitigation options.
Working with fellow professionals, we can help ensure you’re making informed decisions with confidence, having been suitably advised.
If you’re navigating a divorce and worried about the impact of the budget, our team is here to help.
Reach out to our Family Lawyers to discuss your situation and how we can help guide you through any potential issues:
Blog
Divorce and separation are among the most challenging experiences anyone can face. They bring not only legal complexities but also significant emotional and psychological hurdles. In our latest episode of MyFamily Pod , Family Lawyer Nichola Bright...
Read Blog
Blog
The best Christmas movies, whether streamed on Netflix, Amazon Prime, or caught on Freeview are often filled with festive cheer, love, family bonding and togetherness, but have you ever thought about what your favourite Christmas classic could...
Read Blog
Blog
The recent budget announcement has raised many questions about its effects on divorce proceedings. While budget changes do not affect the divorce process itself, consequential matters like financial settlements, property sales, and private...
Read Blog
Blog
It is important to make a Will if you wish to leave your estate according to your wishes (whether to your spouse, children, charity or otherwise). In England and Wales, the absence of a valid Will means that the law will determine who will benefit...
Read Blog
Blog
Attending family court can be daunting, especially if you are unfamiliar with the process. Whether you are going through a divorce or trying to sort out the arrangements for your children , understanding the process and knowing how to deal with the...
Read Blog
Blog
There is a myth that when you live with your partner for a long period of time, you are in a “ common law marriage ”. However, the reality is that there is no such concept in England and Wales. Whether you have lived with your partner for one year...
Read Blog
Joe joined Myerson’s Family Law team as an Associate in September 2024 and is known for his expertise in high-net-worth financial remedies and complex children cases, including those with international elements.
He advises on various family law matters, such as divorce, financial settlements, pre- and post-nuptial agreements, child arrangement disputes, and surrogacy. Recognised for his client care and discretion, Joe sensitively supports high-profile clients, tailoring his advice to their unique circumstances.
A member of Resolution, he promotes constructive approaches to family law while prioritising the needs of children. Joe’s insights have been featured in leading publications, and he engages with the legal community through his popular Instagram account and the Manchester Young Professionals Committee.
About Joe Ferguson >
