Third party issues

Reaching a financial settlement on divorce does not always involve just you and your ex partner.
man and woman with finances illustration

In some cases, parents, family members, business partners, or trustees may claim an interest in property or assets. These third party issues can make financial proceedings more complex and need careful handling to achieve a fair outcome. 

What are third party issues?

Third party issues arise when someone other than the separating couple claims an interest in an asset that is being considered as part of the financial settlement.

A third-party issue can arise if this person or entity makes a claim either in relation to ownership of, or contribution towards, assets that are being dealt with by you and your ex-partner in your divorce.

It is crucial that the court resolves this issue before making any financial orders, both to determine what is in the ‘pot’ for division between you and to avoid claims being made by third parties once the financial division has already been ordered and implemented. 

Common examples of third party issues

  • Parents who paid all or part of a deposit on the family home.
  • Family members claiming money was a loan rather than a gift.
  • Trust assets where trustees argue the funds do not belong to either spouse.
  • Business assets where shareholders or partners claim an interest.
  • Property owned jointly with wider family members.
  • Farming or family business arrangements involving several generations.

What is an “intervener”?

Where there is a dispute about whether a third party has an interest in an asset, the Court will usually need to resolve that issue before it can make a final financial order. In many cases, one spouse supports the third party's claim while the other challenges it. The third party will often be formally added (or "joined") to the proceedings as an "intervenor" so that the court can determine the nature and extent of their interest.

Resolving the issue within the financial proceedings helps ensure that the rights of everyone involved are properly considered and reduces the risk of further disputes once a settlement has been reached.

Although this can make proceedings more complex, resolving these issues within the financial remedy proceedings can avoid further disputes later.

How third party issues affect financial settlements

The court must first decide what is in the pot of assets so that both parties are clear what is available for distribution between them in a way that is fair. If a third party brings a successful claim against some of these assets, then their interest will reduce the overall value of the assets that are available for sharing between you. Whether a third-party claim is upheld or not is often both fact-specific and evidence-driven. 

Why these cases need specialist advice

These cases often require detailed evidence, documentation and witness evidence from family members, trustees or business associates. They can have a substantial effect on the outcome of a financial settlement and often involve complex legal and procedural issues. Early specialist advice can help identify the strengths and weaknesses of a claim and assist in developing the right strategy from the outset.

How we can help

We have a longstanding reputation for handling complex intervenor cases where we act for either one of the divorcing parties or for the third-party intervenor. Our team has expertise in dealing with complex family, business, and trust structures, and we offer clear and practical advice from the outset. 

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FAQs

Third party issues arise when someone outside the couple — such as a parent, family member, trustee or business partner — claims an interest in assets being considered in a financial settlement on divorce.

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