Financial Settlements

What is a Financial Settlement

A financial settlement is a legally binding agreement that determines how a couple’s finances and assets are divided when a relationship ends and applies to unmarried couples (cohabitees), civil partners and married couples (as part of a divorce).

A financial settlement typically covers:

• Property (including the family home)
• Savings and investments
• Pensions and retirement funds
• Business interests
• Debts and any liabilities
• Maintenance payments (spouse or child)

The goal is to ensure a fair distribution of assets and financial responsibilities, often approved by a court through a consent order or financial remedy order. In some cases, a clean break order is included to prevent future financial claims.

Children arrangements are handled separately to finances and will often need a child arrangement order. Find out more on Child Custody & Child Arrangement Order.

What is a Financial Settlement in Divorce?

A divorce financial settlement is a more formal, court approved and legally binding agreement that decides how assets, income, pensions, property, savings, investments, debts and ongoing maintenance are dealt with during a divorce.

It can include securing a clean break order—where appropriate— which can end financial ties and prevent future claims. It can also include consent orders and financial remedy proceedings.

Even if you agree matters informally, without a court‑approved order you may still face claims in future. We help you formalise agreements and protect your position.

Find out more on Divorce Financial Settlement.

If you are not yet divorced, or have not started the divorce process you can find more information on Divorce Solicitors.

Financial Settlements for Unmarried Couples

Financial settlements for unmarried couples (sometimes called cohabitees) are dealt with differently to divorce. There is no automatic entitlement to a “50/50 split” or to spousal maintenance simply because a relationship ends. Unmarried couples do not have the same legal rights as married couples no matter how long the relationship has lasted. Instead, claims usually fall into two main categories:

• Property and ownership disputes (TOLATA claims under property and trust law), and
• Financial provision for children (under Schedule 1 of the Children Act 1989).

If a home or other asset is in one person’s name, or where the ownership shares are disputed, an application can often be made under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).

These claims focus on who owns what and in what shares, based on evidence such as:

• The legal ownership (sole/joint names) and any declaration of trust
• Deposit and mortgage contributions
• Payments towards renovations or major improvements
• The parties’ intentions and how finances were arranged during the relationship
• TOLATA can be used to seek a declaration of each person’s beneficial interest and, where appropriate, an order for sale.

Financial provision for children (Schedule 1 Children Act 1989)

Where parents are unmarried (or where a child’s financial needs are not adequately met), the court can make orders under Schedule 1 of the Children Act 1989 to secure financial provision for the benefit of a child.

This can be particularly important where one parent has greater resources, or where housing and additional child-related costs need to be addressed.

Schedule 1 applications can include orders for:

• Periodical payments (regular payments) where appropriate, including “top-up” type provision in suitable cases
• Lump sums (for example, to meet specific capital costs such as furniture, a car suitable for transporting the child, or other child-related expenses)
• Settlement or transfer of property to provide a home for the child (often structured so the property reverts to the paying parent at a later point, for example when the child is older/finishes education, depending on the order made)

Schedule 1 is not the same as a divorce financial settlement and is not designed to create ongoing financial claims between adults. Its focus is ensuring that children are properly provided for, including (where appropriate) suitable housing.

Our family law solicitors can advise on the right route for your circumstances and take early action to protect your position.

Find out more on unmarried couples.

How Our Family Law Solicitors Can Help

Whether you’ve already agreed terms of a financial settlement or are at the beginning of discussions, we can:

• Draft and submit consent orders (divorce) and clean break orders
• Negotiate robustly to achieve fair settlements without court where possible
• Represent you in financial remedy proceedings if court is needed
• Advise on cohabitation/separation disputes for unmarried partners
• Prepare separation agreements and pre‑/post‑nuptial or cohabitation agreements
• Guide on pensions, property transfers/sale, business assets, and international assets
• Provide clear cost estimates and transparent pricing throughout

What’s Included in Your Free 30‑Minute Consultation

• A 30-minute in-depth meeting with a qualified family law specialist
• A clear understanding of your legal position and options
• A tailored roadmap for resolving your situation
• An estimate of costs if you choose to proceed

Appointments are available in person at our offices in Sheffield, Barnsley, or Rotherham, or remotely via phone or video call. We accept clients from across England and Wales.

Why Choose Howells Solicitors

• Free 30-minute consultation for all new clients
• Affordable family law solicitors with fixed fees and transparent pricing
• Accredited by Resolution and the Law Society
• Recognised by The Legal 500 as a leading UK family law practice
• Rated 4.9/5 on Review Solicitors – trusted by families nationwide
• Remote appointments available
• Flexible appointments at times that suit you
• No jargon and everything explained in simple language

Contact us or call us on 0114 2235 807 to book your free appointment today.

Types of Financial Orders

• Consent Order – formalises an agreement and can include a clean break
• Clean Break Order – ends ongoing financial claims (where appropriate)
• Lump Sum Order – one‑off or staged payments
• Property Adjustment Order – transfer or sale of property
• Pension Sharing/Attachment/Offsetting – deals with retirement provision
• Spousal Maintenance/Periodical Payments or Maintenance Pending Suit
• Legal Services Payment Order – contribution towards legal costs in some cases

Find out more on What is a Financial Order in Divorce?

The Family Home

Outcomes of the family home depend on the needs of individuals involved, especially where children live. Ownership (joint tenants or tenants in common), equity, mortgage capacity and rehousing options all play a role. We’ll assess your options and negotiate or litigate to protect your position.

Learn more on What Happens to the Home After Separation?

Business Assets

Business interests (company shares, partnerships, family businesses) can form part of the marital pot. We help with valuation issues, liquidity planning, and solutions that minimise disruption while achieving fair outcomes.

Learn more on How Do I Protect My Business in a Divorce?

Pensions

Pensions are often significant. Options include pension sharing, attachment, or offsetting. We’ll coordinate with specialists where needed to protect your long‑term position.

Learn more on Pensions & Divorce

Online Divorce

Our Financial Settlement Fees

Our family law solicitors offer transparent and affordable prices to suit all financial circumstances. You will always be kept up to date with costs and they offer fixed fees for most areas, so you are always in full control.

Find a full list of our fees here.