In divorce proceedings parties have a duty to provide full and frank financial disclosure. In practical terms, what is meant by financial disclosure in this context is that both parties must provide each other with details and evidence of their financial circumstances. As part of this couples must declare any personal belongings worth over £500.
This includes items such as handbags, watches, artwork, antiques, jewellery and so on. In cases where these assets are significant in value, this often becomes a sticking point when couples consider a settlement outcome and the negotiations surrounding this.
It is not unusual for people to feel a particular sentiment or value over possessions, particularly ones where one party feels they have worked hard to obtain them or where these assets are due to increase in value over time – such as certain designer handbag brands or watch collections. To the other party, it can be equally confusing as to why these assets would not be factored into how their joint finances are divided, particularly where these assets have been obtained throughout the course of the marriage.
The emotional attachment to these items, particularly when they are of significant value, can have an impact on how amicable matters are able to move forward in circumstances where the treatment of these assets in the ‘matrimonial pot’ is disputed.
In litigation, there may be interim applications for expert evidence and valuations sought.
Generally, any assets acquired during the course of the marriage are added to the overall matrimonial pot, and are therefore in theory, up for division on divorce. In terms of how a court would view these assets would turn on whether the parties’ needs can be met, and if so, how these ought to be treated in line with the sharing principle.
Nuptial agreements may be a helpful tool to consider for couples who have either already pre-acquired any significant assets or are likely to acquire these during the course of the marriage through inheritance, their own purchases, or any other means.
A nuptial agreement is a document created by couples before (pre-nuptial) or during (post-nuptial) a marriage or civil partnership outlining how assets, properties, and so on, would be dealt with if the relationship was to end. Whilst nuptial agreements are not legally binding in England and Wales, should the parties end up in Court in a dispute in relation to these assets, the Courts do place increasing influence on them.
Rayden Solicitors supports those wishing to protect their assets before, during and after a relationship. Please get in touch to speak to one of our experts.
