Carlsons Solicitors

As expected, the starting point of dividing assets in the UK is 50/50. Be that as it may, the financial settlement varies widely from case to case. That is because the different circumstances of the parties play a key role, as do their needs in deciding who gets what from the matrimonial assets. Financial claims arise from the divorce and sometimes one party gets a bigger share than the other. 

Dividing assets during a divorce is never a straightforward process. The following guide hopefully sheds some light on it. 

Defining matrimonial assets 

These assets represent the property that both partners have built up in the time of their marriage. As a common endeavour, both parties have worked to build up a financial product, which takes up many forms and outlines the matrimonial acquest. In most cases, the greatest part of the matrimonial assets is made up of pension and the matrimonial home that the parties share. 

Resolving financial issues 

These can be difficult to solve since the matrimonial assets funding the current household will then need to fund two. Courts often order lump sum payments or some other form of payment (for example periodic payment), which also go by the name of spousal maintenance. Courts must make it so that the parties are independent of one another, as soon as the divorce ends. Such is the aim of the Matrimonial Causes Act 1973. 

What are the main points UK courts consider in regards to dividing assets? 

• The financial resources that each party has – this includes earning capacity, income and other resources, which parties possess now, or they will in the near future. 
• Financial needs – each party has certain needs, obligations and responsibilities now and in the future, all of which the court needs to take into account. 
• Standard of living – the court always needs to consider what standard of living both parties have enjoyed in the years before their marriage broke down. 
• Age of parties to the marriage – in addition to the age of the parties to the marriage, the court also needs to consider the duration of said marriage. 
• Contributions of each party – this is very important. The court considers the contributions both parties have made towards the family, as well as what contributions they can make in the foreseeable future. This also includes looking after the home and caring for other family members. 
• Benefits that parties will not acquire – in regards to the nullity of marriage and proceedings of divorce, the parties may lose a chance to acquire certain benefits, mostly pension, and the court needs to take that into account. 

Divorce and income 

Each of the divorcing parties is under the duty to maximize their income, i.e. not just rely on the other party. Sometimes though one of the parties may not be able to work, because of health issues, or because they need to care for young children. If their earning capacity is not very high, their financial situation is going to be difficult, and the court needs to consider that. 

Adjustment of property 

The property, which both parties own jointly, may be transferred to the ownership of either one. Typically, these scenarios play out: 

• One party buys the other – when one party buys the other, it may be that the money is not even due for some years. 
• The house is needed for young children to use as home – if there are young children, they will need the house for their home. The court will often preserve the property if the primary caregiver can afford the upkeep. In that case, one of the spouses may need to wait for a share. 

Knowing more about dividing assets during a divorce is important in understanding this complex process. 

© Carlsons Solicitors

If there is one topic that many solicitors need to answer way too often, it is lease extension. Consequently, they are among the applications that see most requisitions on, which means that the more informed the public is about this topic, the better. There are many issues people encounter in regards to lease extensions, so the following guide should help anyone who wants to know more about the essential points surrounding lease extensions. 

• In regards to lodgement via e-DRS – if you have decided to apply via e-DRS, you have to be very careful. Incorrectly submitting can cause you quite a lot of headaches. Always go for the option ‘lease extension’, because that way you can capture the application against all title numbers and thus protect your property. It is a good idea to consult with an expert who knows this and that about the process. 
  
  

• The matter on fees – one of the most confusing things about lease extensions can be the fee you have to pay. To understand the assessment process behind the fees, you need to look at the different types of applications, as follows: 
  
  
  • Lease extension – under Scale 1, you should pay the fee on the sum of the premium in the deed/lease, plus any rent. In the case of no premium and rent, there is a minimal fee of £40. There is no reduction for e-lodgement since the fee does not qualify for that. 
    
    
  • Lease extension with transfer – lodging a lease extension and a transfer will determine the fees primarily based on the order to transactions you apply. For example, if you are the applicant and the transferee, you will pay only the fee of the lease extension itself. If you are the one who applies and you are also the transferor, you will pay two fees – one for the extension and one for the transfer. The latter is lower when you apply electronically. 
    
    

In any case, always be mindful of the fee you quote. If there is a mistake with that, there is the possibility for requisition, which will significantly slow down the application progress, as well as the registration process, and that is not something you want. 

• Prescribed clauses – one of the most common reasons why applications get rejected is because the prescribed clauses are nowhere to be found. Always keep in mind that you need to incorporate these. If the case of this extension is by way of a new lease, or perhaps it is a Deed of Variation, it should always contain the prescribed clauses for the process to initiate. 
  
  
• Possible encumbrances against the tenant’s title – dealing with any existing encumbrances against the existing leasehold is something you need to deal with, or else there will be a requisition and delays. If there is a registered charge, then you have to lodge a deed of substituted security or a discharge. As for restrictions, these must be withdrawn or cancelled. 
  
  
• Possible encumbrances against the landlord’s title – it is also possible to delay the process if there are any encumbrances on the landlord’s title. For any restriction present, you need to supply certificate/consent, especially if they affect the landlord’s title in any way. 
  
  
• Is the new lease subject to an existing lease? – At times, the new lease may be subject to an existing lease. In this case, it is not possible to get an automatic surrender and close an existing leasehold title. The lease will be registered as a concurrent. 

Knowing more about the process of lease extension is a good way to avoid the most common problems associated with it. If wish to get more info, check out https://www.carlsonssolicitors.com/

© Carlsons Solicitors 

You may feel like the time your lease expires is so further down the road that it barely needs any attention now. However, believe it or not, sometimes it can creep up quickly, leaving you with little time to negotiate a new lease. 

If you fail to plan for the renewal of your lease, you risk putting your company in a financially challenging situation. This is not something you want to face, so it is a good idea to consider the key aspects of leasehold enfranchisement. 

According to professional solicitors, there are a few mistakes people make during the renewal and negotiating process. Following are some of the most notable examples: 

1. You take too long to establish a game-plan 

This was already touched on, but it requires some further explanation because it is the most common mistake that people make in regards to their lease. If you don’t take the time to devise a plan, you will not manage to get the desired results. The idea is to drive the process, instead of allowing it to drag you. By taking the time to define your goals in regards to the lease and creating a timeline will open up the door to many options, none of which are impossible if you get on to it too late. 

<h2>2. Instantly agreeing to a lease extension with the landlord </h2>

A great number of tenants typically ask their landlord for a lease extension straight away. Landlords are glad to receive such offer because it gives the notion the tenant is willing to stay. While it is a good idea to ensure a smooth and easy process like this, it doesn’t hurt to allow your landlord to worry a little bit. You can go out there to look for some other options and let your landlord hear from the market that you are doing so. This will strengthen your negotiating position. 

3. Consider exit strategies for the new lease

If you are a company owner and you are to sign a new lease, it is only normal to think about how it is going to serve your needs over the term. However, expert solicitors recommend you pay somewhat equal attention to the potential of making an exit before the term. After all, having a back-up plan is always a good idea. One common strategy would be to sublease the place to someone else, though it can prove difficult to find the right tenant for this. Thus, planning ahead is crucial, with all of the tenant-improvement costs associated with reconfiguring the space for subleases. While it is true it may never happen, it is always a good idea to be able to exit without any problem. 

4. Get a good estimate of your tenant improvement costs

One of the major mistakes people make in regards to their lease extension is to underestimate the tenant improvement costs. Don’t find yourself in a situation where the estimated costs are lower than the real costs. If it is the estimated costs and not the real ones that make it to the lease agreement, you will pay a lot of overages. It is a good idea to bid the scope of work to come, to negotiate a better lease. 

5. Don’t fight over small things

Always bear in mind the negotiation process is a series of give-and-take. Getting the best deal means giving on certain issues and holding firm on others. It is essential to determine which is which so that you can establish a firm position and not fight over all the small insignificant things. 

Now that you know of these common mistakes when negotiating a lease extension, you are better prepared to handle the process or look to hire the right experts for the task. 

© Carlsons Solicitors

If you own a small or medium business and you ever face a dispute, it is likely that you will lose a lot of money, if you don’t consider the services of a solicitor. That is usually money you would like to keep, so there is not really anything to wonder about. Getting such an expert on board is necessary to resolve any issues – big or small.

Some people believe that instructing a solicitor to deal with a commercial dispute is somewhat costly. However, you should look at this the other way around – not instructing a solicitor to handle the case is something that will make you lose money. They will deal with the case before it has grown into a complicated problem, that can even ruin your business.

Sometimes it is the prevention of dispute that matters most 

When it comes to businesses, chances are they will be involved in a dispute at some point. Whether it is a customer, a supplier, or some competitor, there will be some cost to the business, which can impact the company negatively.

Most commercial disputes fall in the contractual category. They result from delayed payments or no payments at all between the customers and the suppliers. This makes small businesses particularly vulnerable in these situations since they do not possess the resources to handle severe disputes. Therefore, it is of utmost importance for them to prevent disputes. Possible ways to do this include:

- Minimising the mistakes of credit control 

- Excellent management of commercial arrangements 

Small businesses should speak to their lawyers and solicitors on how they can manage the contractual process better. They should also invest in updating relations with their suppliers and clients. These are the changes that one business can implement to minimise the chance of disputes arising in the first place.

Resolving business disputes the right way

According to experts, small and medium businesses that do not tackle their disputes the right way, do one of three things:

They simply ignore the issue, which is by far the worst strategy imaginable. 

They recognise the need to do something but decide to do so without the help of experts. This often leads to further problems, which may increase the loss.

They turn to advisors, who simply lack the expertise to handle such matters. For example, they often rely on their accountant or financial adviser, while they should be speaking to a legal expert instead. 

It is of utmost importance to recognise these potential pitfalls and work to avoid them. Not only do they lead to no efficient resolution, but also further the problems and cause potentially big losses. That said, a professional solicitor can be of real help, due to the fact they can identify the issues and advise the business on the different options. They will also do another important job: to explore whether some sort of settlement with the opposite side is possible.

Consider litigation

When the dispute enters the stage of legal proceedings, instructing a solicitor is perhaps the best option. Don’t end up in an ‘if only I had acted sooner’ situation since that can cost you money and can make the problem even bigger. One of the most important aspects of litigation is how you are going to finance it. Consider conditional/contingency fees, or ask if there is the option of funding together and placing insurance if the case fails.

Obviously, you don’t want to find yourself in a situation where the inappropriate handling of a dispute can harm your business. That is why you should always be preventive, act quickly if the case is unavoidable and consider the expert help from solicitors, who can find the best form of resolution.

If you are interested in reading more tips on the matter, visit Carlsons Solicitors.

© Carlsons Solicitors