The Importance of Financial Orders on Divorce

A common misconception is that the final order of divorce (formerly the decree absolute) automatically severs all financial ties between spouses. However, financial matters must be resolved separately with the agreement reached being recorded in a financial order. It is a matter of best practice to ensure that the financial order is made before applying for the final order of divorce to avoid any legal or financial complications in the future.

How a financial order can be made

A financial order can be made either by consent (such as through mediation or agreement) or in a court setting. The courts encourage parties to try to reach an agreement as to how to resolve their finances, without court intervention. However, it is accepted that this is not always possible. This is where solicitors play an important role. Seeking legal advice at an early stage is always recommended to ensure that you are equipped with the requisite knowledge prior to mediating with your spouse or entering into any agreement.

In the absence of a financial order, all financial claims remain open, meaning your spouse is free to make claims against your current assets and any future assets that you acquire, this includes claims on death. It is therefore vital to deal with financial matters and to ensure any agreement reached is embodied in a court order and submitted to the court.

The courts will not simply seal any financial order that is placed before them, particularly if this agreement has been reached outside the court arena. The courts, when approving a consent order, will want to ensure that any agreement reached between the parties is fair, reasonable and enforceable. To ensure each party is aware of the true financial position of the other, they should have full and frank disclosure of all assets before entering into an agreement.

It is important to note that an application for a financial order can be made only after the conditional order of divorce (formerly the decree nisi) has been granted. As there is a mandatory 20-week waiting period from the issue of the divorce application before the conditional order of divorce can be applied for. Parties are therefore encouraged to begin the divorce process promptly.

Benefits of seeking legal advice

Seeking legal advice at an early stage can provide clarity as to your rights and position following a marital breakdown. Understanding how the law applies to your circumstances can help you navigate financial matters with more confidence and avoid an unfair agreement.

At DFA Law, our family law specialists can provide expert legal advice on navigating divorce proceedings. For more information, call the team on 01604 609560 or email info@dfalaw.co.uk.