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COVID-19 and its impact on Divorce financial orders

Pkwa divorce lawyer on covid effects on divorce financial orders

COVID-19 and its impact on Divorce financial orders

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The Covid-19 pandemic has brought hardships to just about everyone.

COVID-19 is not just a global health crisis – it is also having a devastating impact on the economy, jobs, stock market, businesses and the property market. Most assets would have depreciated sharply in value at this time.

For couples who are planning to divorce, or already going though one, COVID-19 has become one additional factor for consideration in divorce planning and strategy.

In ordinary circumstances, when it comes to divorce planning, couples accept that assets, investments, bank balances and stock markets fluctuate.  However, the destruction and mayhem caused by Covid-19 is unprecedented in history.

During this COVID-19 pandemic, what are some of the decisions you need to make on division of matrimonial assets and spousal and children maintenance?  The family lawyers at PKWA Law will help you understand some of the financial issues you should consider if you are contemplating a divorce or going through one during this COVID-19 crisis.

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For better or for worse – has COVID-19 affected you or your spouse financially?

First of all, it would be essential to consider seriously how much of an effect COVID-19 has or will have on your finances.

Once you have done a serious re-think about your finances and done a new valuation on matrimonial assets, you may find that that your previous thoughts on a settlement may no longer be viable with COVID-19.

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Get the latest valuation on matrimonial assets .

It is also critical to obtain new valuations on matrimonial assets. With the economy likely to fall into a deep recession, it makes sense that matrimonial assets are re-valued and divorce settlement strategies re-assessed. To reach a fair settlement, you need to have reliable and up to date valuations.

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Impact on division of matrimonial property

The loss of a job or suffering a pay cut would have a serious impact on how matrimonial properties are split.  If one party wants to buy out the other party’s share in the matrimonial property, parties must re-examine and decide if that is still viable if the person buying is now suddenly unemployed.

If the matrimonial property is to be sold in the open market, there may be challenges to getting it sold if social distancing measures are still in place and no one is viewing the property.

As divorce lawyers, we frequently find that spouses are not keen to sell the matrimonial home to the other spouse if property valuation is low.  Both spouses prefer to buy instead, in expectation that property prices will rise in the future.  So, the question of who buys the property is a tricky issue to be navigated.

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The position of bank loans

It is also uncertain whether banks will lend the amount required to buy over the property.  A lot will depend on valuation, interest rates and the buying party’s financial strength.

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Maintenance

Payment of spouse and children maintenance is another area that couples must look at now. Bear in mind that if you reach a agreement on maintenance based on the dire economic situation now, your spouse may ask for an increase in maintenance if the economy and your financial position significantly improves in the future.

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Contact PKWA Family Lawyers

If you are thinking about a divorce and you feel unsure about any of the financial aspects and you want to talk about the options available to you, our expert team of family law specialists are happy to assist.

PKWA Law has succeeded in helping clients win at the Court of Appeal on division of matrimonial assets.

Contact us at tel 6854-5336 or use the form below to reach us.

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ABOUT PKWA FAMILY LAW

 .PKWA Law - divorce lawyer Singapore

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At PKWA Law, our team of Family Lawyers are consistently named as leading Singapore family and divorce lawyers by respected legal publications such as Benchmark Litigation Asia Pacific, Asian Legal Business, Singapore Business Review and Doyle’s Guide to Leading Singapore Family & Divorce Lawyers. 

Contact us at tel 6854-5336 for a free first consultation.

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