Divorce Ancillary Relief: Common Mistakes and How to Avoid Them

So, you’re going through a divorce. Chances are, your focus is on getting the marriage officially over and done with.

But here’s something most people don’t realise… Your divorce decree is only the start. The really important part is getting your finances sorted properly.

And that’s where most people make critical mistakes that cost them dearly.

In Northern Ireland, 2,324 divorces were granted in 2022. But shockingly, only a small fraction of these couples properly finalised their financial settlement. This leaves them open to problems that can affect them years, even decades, after their divorce is finalised.

In this article, we’re going to cover:

• Understanding what ancillary relief actually means
• The most common financial mistakes that divorcing couples make
• Steps to protect your financial future and come out of the divorce process with a fair settlement
• Why you really do need legal assistance, even if you think you don’t

What Is Divorce Ancillary Relief?

Let me explain what ancillary relief actually is…

Divorce ancillary relief is the legal term for the process of sorting out your finances after a divorce. This includes the division of property, savings, pensions, investments and any ongoing maintenance payments. A website like https://www.paduffy-solicitors.com/family-law/divorce-ancillary-relief-northern-ireland/ can help with this.

Think of it like this: Divorcing is the legal ending of a marriage. Ancillary relief is the process of dealing with all of the financial entanglements built up during your relationship. If you don’t do this properly? You’re opening yourself up to serious issues down the line.

Negotiating an agreement over your finances can take place between solicitors without the need for court involvement. But if you’re unable to reach an agreement, or you want the court’s help and protection to make it legally binding, then a court application is needed.

Either way, getting this right is ABSOLUTELY CRUCIAL for your financial future. The consequences of getting this wrong can be devastating.

Mistake #1: Not Getting A Court Order

This one tops the list of mistakes every time.

You and your ex agree to split things up a certain way. You shake on it. You think it’s done. Wrong.

Here’s the issue: Without a court-approved Consent Order, your financial ties are technically left open indefinitely. Your ex could potentially come back years later (decades later, even) and make a claim against your assets.

Need proof? Check out the famous Wyatt v Vince case. A woman successfully claimed against her ex-husband’s multimillion-pound fortune over 20 years after their divorce. Why? Because they didn’t have a proper financial order.

Recent figures show that only a THIRD of divorcing couples even finalise their finances with a court order. That means two thirds of all divorcing couples are vulnerable to future claims!

Mistake #2: Forgetting About Pensions

Ready for a shocker?

Only 20% of couples discuss pensions when it comes to dividing up their assets on divorce. That’s just one in five couples properly considering what is often their second-largest asset after property.

Why does this matter? Pensions can be worth hundreds of thousands of pounds. Walking away without sorting them out as part of your financial settlement means you could be leaving a massive amount of your financial future on the table.

Women are worst affected by this. They typically build smaller pension pots than men due to career breaks for childcare and other family reasons. But if pensions aren’t properly dealt with during ancillary relief, it leaves them financially worse off in retirement.

Solution? Always get a pension valuation as part of your financial disclosure. Then ensure pensions are properly accounted for in your settlement via pension sharing or by being offset against other assets.

Mistake #3: Hiding Assets (Or Assuming Your Ex Hasn’t)

Hang on, there’s a bit of catching in both directions here…

On the one hand, some people try to hide assets during a divorce. On the other, some people make the mistake of assuming their ex is being completely honest without checking. Both can be equally dangerous.

Here’s the thing: When going through a divorce, both parties have a LEGAL OBLIGATION to be fully open and honest about their finances. That means everything. Bank accounts, savings, investments, business interests, property, everything.

Someone’s trying to hide stuff? The court can set aside any agreement you reach if it turns out your ex failed to disclose financial information. You end up with a worse outcome, on top of legal costs and a battered reputation.

On the flip side, you might be wrongly assuming your ex is being honest without verifying. You could be signing away far more than is fair in the divorce settlement without even realising. Rule of thumb is simple: Verify everything. Don’t just take your ex’s word for it. Use a solicitor to understand what full financial disclosure should look like.

Mistake #4: Rushing To “Just Get It Over With”

Divorce is an emotional minefield. At some point, you’re just going to want to get it over and done with.

Rushing your financial settlement, though, is one of the most expensive mistakes you can make. Recent research revealed that around 40% of divorcees felt their divorce was financially unfair, with one party leaving far better off than the other.

Why does this happen? Simple. Because people rush. They sign things without really understanding. They accept the first offer they get. They value speed over a fair outcome.

The issue with a court-approved Consent Order is that it’s EXTREMELY difficult to change later down the line. Once it’s signed and the court has given it the okay, you can’t just go back and say “but I didn’t understand that” or “my circumstances have changed”. It’s final.

My advice? Take your time. Get proper advice. Make sure you really do understand what you’re signing up to and the long-term consequences for your financial future.

Mistake #5: Not Using A Solicitor

Here’s one to make you sit up and pay attention: Only two in five divorcees say they use a lawyer for information, advice or support. Why? Because solicitors are expensive, right?

Wrong. The cost of NOT getting proper legal advice is usually far higher than the cost of hiring a solicitor in the first place.

A good family law solicitor will help you understand your rights, ensure you get full financial disclosure, spot assets you might have missed, negotiate a fair settlement and make sure everything is properly finalised with a court order.

Without this expertise, you’re pretty much on your own. It’s all too easy to accept a financial settlement offer that feels fair at the time, but actually significantly short changes you.

And FYI, solicitors don’t have to mean aggressive or confrontational. Lots of divorcing couples use solicitors to help them reach amicable agreements outside of the court process. Their job is to protect your interests, not create conflict.

Mistake #6: Agreeing To “Sort It Out Later”

Sometimes I hear couples think they can divorce now and sort the finances later. Big mistake.

Postponing your financial settlement leaves both parties open to uncertainty and leaves you vulnerable. What if your ex’s financial situation changes? What if yours does? What if your relationship changes and communication becomes impossible?

Deal with your finances along with your divorce and make sure you get a formal, court-approved financial order. Get it all wrapped up and filed away and then you can both move forward with certainty.

Getting Your Ancillary Relief Right

Look, getting divorced is hard enough without making expensive financial mistakes on top of it all.

The trick to getting your ancillary relief right is to understand it’s not just a tick-box exercise. It’s about properly protecting your financial future and making sure you get what you’re entitled to.

Always get a court-approved Consent Order, make sure you account for ALL assets including pensions, insist on full financial disclosure from your ex, take your time to understand exactly what you’re agreeing to and the long-term consequences, and use an experienced family law solicitor to guide you through the process.

The money you spend on proper legal advice now will pale in comparison to the financial damage you could face by doing it on your own. Divorce is emotional and stressful. But with the right approach to ancillary relief, you can emerge from the process with a fair settlement and the certainty to move forward with your life.