It has been reported that the number of people returning to the courts to boost their divorce settlements doubled last year.
Many couples fail to obtain a court order to formalise their financial agreement when they divorce. During hard times reduced incomes and depressed asset values leads divorcing couples to divide up assets informally, and often without legal advice to keep costs down. Without such an order legally severing respective financial claims, an ex-spouse can pursue a case against their former partner.
The high profile case in which Kathleen Wyatt won the right to seek money from her ex-husband Dale Vince, founder of green energy giant Ecotricity, 30 years after their divorce, has encouraged more people to pursue payouts.
It is, of course, preferable to reach an amicable agreement without going to court , but divorcing couples need to be aware that if they do this without following the correct procedures, then they might not get the “Clean break” that they want. It is fairly typical for one party to keep the family home whilst the other keeps their pension, but a few years later the partner without a pension income may regret that decision, and if there is no financial order in place finalising their financial agreement or dismissing their claims then they can go back for “a second bite of the cherry”
The publicity around the Kathleen Wyatt case should serve as a warning to divorcing couples to tie up loose ends and to seek legal advice.
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