Going through a divorce can be a ride on an emotional rollercoaster. Once on the other side of the big dipper you may find yourself considering living with a new partner. While this can feel like a fresh chapter, it is important to understand the legal implications of cohabiting before your divorce is finalised, particularly if you have not yet achieved a financial settlement.
Will Living Together Affect Your Divorce Settlement?
The decision to cohabit with a new partner before your divorce is concluded can influence your financial settlement in several ways:
- Disclosure of Cohabitation: If you move in with your partner, their financial details may need to be disclosed as part of your divorce proceedings, particularly on the Form E financial disclosure. This may require difficult conversations with your new partner, who may not want their financial details disclosed, add complexity to negotiations and potentially reduce the amount your ex-spouse might agree to.
- Spousal Maintenance: Cohabitation can significantly impact your eligibility for spousal maintenance. Courts may view shared living arrangements as reducing your financial need, and your spouse is likely to argue that you and your new partner can share outgoings, so you no longer need to rely on them.
- Capital Settlements: If your new partner has substantial assets or income, your spouse might again argue that your financial needs are reduced due to this other financial support you now have access to, potentially affecting the division of capital. This could lead to a less favourable capital settlement based on your reduced needs.
Beyond the direct impact on your financial settlement, there are practical matters to address. If you are still named on a joint mortgage, you will continue to be legally responsible for the payments. This is likely to impact on your further mortgage borrowing capacity or render you unable to meet the running costs of a new home. It will also be worth checking your contractual responsibility for utility costs at your former matrimonial home, such as council tax or gas and electric.
A solicitor will be able to help you understand how your new relationship might influence your financial settlement and guide you through the best steps to protect your best interests.
At Herrington Carmichael, our Family team is here to provide expert advice tailored to your situation. Contact us to discuss your options and ensure you’re making informed decisions during this pivotal time.
