Financial Settlements

When a marriage ends, a primary concern for many couples is how they will divide their assets, liabilities, and financial resources. To be able to do this, a financial agreement must be reached that determines how property, savings, investments, and debts will be divided. Agreements may also cover ongoing financial arrangements such as spousal support and child maintenance. However, reaching a financial settlement with your spouse may not always be plain sailing. If you are unable to agree to the terms of your separation or divorce, your case may need to be decided by a court.

At McCarthy + Co, our team has extensive experience in helping couples who are ending their marriage to reach a fair and equitable financial settlement. If you have come to the difficult decision to end your marriage, and you require assistance with any of the financial aspects of its closure, our team can help you to understand Ireland’s no-fault divorce system and the most advisable routes you can take to avoid a costly, protracted court case.

Reaching a financial settlement is dependent on numerous factors but can be achieved via the following methods:

• A Separation Agreement – if married or civil partners can agree on the terms by which they will live separately, they can enter into a legally binding Separation Agreement that sets out each partner’s rights and obligations, including the division of assets and financial arrangements. A legal separation is often the most desirable path forward as it enables you to address financial matters as soon as the relationship ends, allowing you to both to move on with your lives.
• A Judicial Separation – if a couple are unable to agree on the terms by which they will live separately, they can apply for a decree of judicial separation. The application can be made on one or more of the following grounds: adultery; unreasonable behaviour; having lived apart continuously for a year or more and both in agreement to the decree; having lived apart for three years; or not having a “normal marital status” for longer than a year. The court will rule on financial arrangements making this option less favourable compared to a Separation Agreement where both partners are in full agreement on the terms.
• A Decree of Divorce – some couples may decide not to formally separate after the end of their marriage. In this circumstance, it is not possible to apply for a divorce until the couple have lived apart for 2 out of the previous 3 years at the date of the application. The ease of the divorce process will then depend upon whether it is amicable or contested. Finalising a divorce tends to be much more straightforward when there is a Separation Agreement or decree of judicial separation in place.

In summary, then, a legal separation following the end of your marriage allows you to resolve financial matters much faster compared to the divorce process. However, legal separation does not give you the right to remarry. Financial settlements are much easier to reach when both couples agree over the terms of their separation. Couples who have not formally separated may find obtaining a decree of divorce more longwinded, depending upon how amicable relations are with your spouse.

Whatever the status of your relationship, be it amicable or contested, it’s highly advisable to seek legal counsel when attempting to resolve matters relating to financial settlements. You can contact our team for confidential support using our online consultation form today, and we will arrange a time for you to speak to one of our solicitors.