How to prepare for possible divorce in advance

[quackhandle]

I worked with a guy many moons back who had, as a side hustle, created a divorce online portal site, where you can do lots of it yourself and save a small fortune.

He said if both parties are amicable and can agree on the way forward this is best way to do it, and you avoid the legal side as the lawyers/solicitors make money off of disagreements, the nastier the better (££££) for them.

Can't remember the name, as it was doing okay as another rival wanted to buy him out, but were offering pennies.

Quick Google check there seems to be more than one out there that offer the above.

qh

[Lance]

I worked with a guy many moons back who had, as a side hustle, created a divorce online portal site, where you can do lots of it yourself and save a small fortune.

He said if both parties are amicable and can agree on the way forward this is best way to do it, and you avoid the legal side as the lawyers/solicitors make money off of disagreements, the nastier the better (££££) for them.

Can't remember the name, as it was doing okay as another rival wanted to buy him out, but were offering pennies.

Quick Google check there seems to be more than one out there that offer the above.

qh

loads of free template downloads as well.
No fault divorce can be done very cheap if both parties agree.

[northernladuk]

Not sure if anyone addressed your questions specifically but...

Hi all,

A theoretical question, hopefully it will remain so .. but lets say if things look like you may be getting divorce papers in 1-2 years (not your decision) what could you do to prepare ?

Only you will know what's going on there and how it's going to go. As many have said a no fault divorce where everyone is happy with what they are going to get is the easy way but what one party wants and what the other thinks is fair doesn't often go too well, particularly if one party earns significantly less. IMO got to work out the details of what is fair in your situation as soon as possible, again, particularly if one earns a lot more than the other.

Current position: 50/50 director/secretary ltd setup, not much money in the company - all in extracted savings / SIPP. School age kids; house paid off.

Should make it a bit easier to split it fairly if it's all out in the open but as per my comment below got to work out if it's joint custody or whatever the situation might be if the worst happens

1) If you can afford and decide to buy a bigger house with substantial joint mortgage - is it going to make things more complicated or does not matter much ? The alternative is current house extension or going for a slight upgrade (no debt / low debt)

Why would yo be considering this if you've got a divorce looming? It could make things a right pain if you have to split the house and someone can't take it on. You'll be paying all that money out to then just have to sell and split. So really depends on plans, can one buy the other out? Can you still do that if the house is considerably more expensive? Sounds a bit weird to be making plans like this with a potential divorce on the horizon. I'd say don't but if you are still trying to make life plans with the divorce in teh background you need to be a bit careful with what you can do about the house when it happens.

2) New company - was going to close the current ltd for other reasons anyway (not MVL, just a fresh start) - is some specific setup going to make things more straightforward or should I go with whatever is the most optimal structure in my current situation.

Would you be adding the other half as 50/50? If you start a new one without her it's likely to cause problems. We've had questions about company assets before and I believe even if you do this you will be required to declare the company and it can go in to the pot for chopping up so having in your name is unlikely to make much difference.

3) Does it matter if money is extracted from ltd or remain there should it develop to that situation.

As above, I believe the company money will have to be declared and split as you agree. What is best really depends on how it's going to go. If you are trying to plan to save some of your money and keep it out the divorce it's likely to start a war. If you are happy to split 50/50 then probably won't make much difference if there isn't too much in it.

Any other advice is appreciated, basically just want to go on with my life as usual but prepare for the worst.

It's an extremely complex ask of us this. We don't know if anyone is a big earner, what each of you brough to the table, what the situation with the kids will be or anything. If you plan to keep more than your fair share one way or the other it's going to get very messy so maybe get it all down on paper, expect to split it 50/50, see where that leaves you, your other half and when you've got some detail you can start looking at each item like the house (with or without extension) and if it's got to be sold or whateve.

[wattaj]

Would you be adding the other half as 50/50? If you start a new one without her it's likely to cause problems. We've had questions about company assets before and I believe even if you do this you will be required to declare the company and it can go in to the pot for chopping up so having in your name is unlikely to make much difference.

On this point in particular: any new company, even one in which you are the sole, 100% shareholder, will be considered in any settlement. Don't start a new company until you have sought professional advice as to when to do so in order to protect and income to that company... although you may wish to ensure that any such money IS fairly shared. Your call.

[courtg9000]

If you are male:
Find out which of your male friends is divorced. Then find out which one got fleeced the most by said ex wife. Then find out who her solicitor was and get them to represent you.

If you are female:
A quick girlie chit chat with a few mates over a few lambrini's in All Bar One should ellicit the contact details of a solicitor who can deliver the required fleecing.

[pr1]

go and see a marriage counsellor FFS...

This 'planning' needs to be done together. The best way for all concerned, if a marriage is going to breakdown, is to do it amicably. And marriage counselling is the first step, cos even if it doesn't fix the underlying problems it at least helps with a route towards and amicable separation.
That will avoid lawyers costs.

I'm not sure I agree with having less debt when the debt is mortgage. But what needs to be factored in is can one of you afford to keep the house, and if not what's it worth and how does that cover other costs.

Oh. And assume everything is gonna be split 50:50. Cos it almost certainly is unless you do want to make lawyers rich

Are you implying that 50:50 could be perceived as a bad outcome?

From someone I know the "wife who gave up her career to raise the children and because of such has much lower future earning potential than the husband who selfishly chose to go out and earn more money for the family" is pushing for a starting point of 80:20 in her favour...

He'd snap her hand off for 50:50, instead it's dragging on week by week, month by month, with both sets of legal teams charging handsomely no doubt

[NotAllThere]

Sometimes. Yes.

They're not all awful people. A bit like not all IT contractors are awful people.

It's true. It's the 99% giving the rest a bad name.

[Paralytic]

This thread can't finish without asking ChatGPT what it thinks. I asked it first to act as a divorce lawyer:

I'm an experienced UK divorce lawyer, and I'll provide you with some general advice to help you prepare for a potential divorce. Please note that this information is not a substitute for personalized legal advice, and consulting with a divorce lawyer is always recommended for your specific situation. With that in mind, here are some considerations:

1. House and Mortgage:

• Buying a bigger house with a substantial joint mortgage can potentially complicate matters in a divorce. It may become a subject of negotiation or division of assets between you and your spouse. The existing paid-off house could be considered a marital asset subject to division, so it's important to consult with a lawyer to understand the implications fully.
• Extending or upgrading the current house with no or low debt could be a simpler option, as it may avoid additional complexities during the divorce process.

1. New Company:

• If you plan to start a new company, it's advisable to consult with a divorce lawyer and a business professional to ensure you set it up in a way that protects your interests in case of divorce. Different business structures have different implications in divorce proceedings, so seeking legal advice early on can be beneficial.

1. Money Extraction from the Limited Company:

• When it comes to money extracted from the limited company, it's important to keep accurate records and ensure transparency. In divorce proceedings, the court may consider all assets and financial transactions, including those related to the company.
• It's essential to consult with a lawyer to understand how the extraction of funds from the company could potentially impact the division of assets and any financial support obligations (e.g., child support or spousal maintenance) that may arise.

General Advice:

• Start gathering financial documents and information such as bank statements, tax returns, and company records. This will help you have a clear picture of your financial situation, which is crucial during divorce proceedings.
• Consider seeking professional advice from a financial planner or accountant who specializes in divorce cases. They can help you understand the financial implications and assist in developing a plan to protect your interests.
• If you haven't already, it's important to consult with an experienced divorce lawyer who can guide you through the process, provide legal advice tailored to your situation, and ensure your rights and interests are protected.

Remember, divorce proceedings can be complex and highly individualized. Seeking professional legal advice early on will help you navigate the process and make informed decisions.

[northernladuk]

Did it really say start by saying 'I'm an experienced UK divorce lawyer'? Bit of a dangerous opening line that.. or is it just setting the context of it's reply. I'm sure someone will attempt to sue it if it states that and then gets it wrong.

Am liking the general theme though.. Have you asked your lawyer? NLUK Bot has been doing this for over a decade

[Paralytic]

Did it really say start by saying 'I'm an experienced UK divorce lawyer'

That's because that how I set it up. You can tell ChatGPT to act as a particular role and it'll answer with that in mind.