While financial negotiations on separation are still possible, challenges encountered along the way will require careful consideration.

Where to start

The first step is to exchange financial disclosure with your spouse. This requires you to provide detailed information about your assets, liabilities, pensions and income.

You must consider the impact of the current economic climate during negotiations, so ensure you seek independent financial advice.

Bear in mind that the value of investments are likely to have decreased, the property market is uncertain and income may be unknown for those who are self-employed or facing potential job losses. Property valuations are currently not being carried out in person and mortgage capacities will have changed.

Therefore, separating spouses should carefully consider the timing of valuations of their assets. If you already have valuations, you may consider obtaining up-to-date valuations. However, others may seek to delay this.

Separation agreements

If you feel that your financial negotiations will not be affected, you could seek legal and financial advice and look to finalise the settlement. Alternatively, you could enter into a separation agreement.

A separation agreement typically sets out:

• who issues formal divorce proceedings and when

• who pay the bills

• what happens to the assets

• arrangements for childcare

While not legally binding, separation agreements are highly persuasive with the courts, providing various criteria are met. Therefore, negotiating any agreement should be taken seriously and you should seek legal advice before signing anything. These agreements can form the basis of a formal financial settlement. However, if the value of assets or either spouses' income changes significantly before this is filed with the court, further negotiations may be necessary to ensure a 'fair' settlement.

We do not recommend that any asset with substantial value, eg equity in the family home, is transferred prior to obtaining a court order.

  • Sam Hickman is a partner at award-winning law firm VWV, which has offices in Clarendon Road, Watford