How do I Pay my Outgoings and Legal Fees Before there is a Financial Settlement in my Divorce?

By Karen Pritchard

Principal Associate

T: 01279 712552
E: kpritchard@nockolds.co.uk

Following a separation, it is common to be worried about how you will afford to live, and meet household outgoings and mortgage payments, particularly if your spouse was the main “bread winner”.

Occasionally, the financially stronger spouse will reduce their contribution to the household bank account that the other party is dependent on, or will stop their contribution entirely.

Very often, separating couples are able to agree the amount that one person will pay to the other to meet their outgoings pending a full financial settlement being reached (which would deal with long-term maintenance as well as the general division of their assets and liabilities)

However, where the couple is unable to agree this, it is possible for the party that requires an income from the other to make an application to the Court for what is known as interim periodical payments, that is, a regular payment of money pending a final settlement to meet their routine outgoings.

The purpose of interim periodical payments is to keep the recipient “afloat” and is very much a short-term fix until a final settlement is reached. The court (where an application for interim periodical payments has to be made) will endeavour to reach a fair outcome which takes into account the standard of living during the marriage, and the court must balance the amount sought by the recipient against the payer’s own income and essential outgoings, that is, the payer’s ability to pay the amount that is sought. The Court will be reluctant to allow provision for luxury items (where it isn’t affordable) or any expenditure which was not usually incurred during the marriage.

It is also possible to make an application at the same time for a payment for ongoing legal fees. For this application to be successful, it must be demonstrated that the financially-weaker party does not have any other means to meet their legal fees, and cannot borrow money to do so, and that appropriate legal representation cannot be obtained without the payment for legal fees.

If you have any queries please contact our expert Family team on 0345 646 0406 or fill in our online enquiry form and a member of the Team will be in touch.