Financial settlements

Reducing the potential for future disputes

Providing certainty and clarity

The challenges of divorce include the intricacy of handling the terms of an agreement over dividing financial assets between you and your spouse. Ensuring that this agreement adequately meets your financial needs and fairly accommodates both parties is crucial. A widespread misunderstanding is the belief that once the divorce is finalised and the Final Order (what was previously termed the Decree Absolute) is received, all financial claims between the parties automatically come to an end. However, if the parties do not formally apply to close their financial claims against each other, these claims will remain open indefinitely. Even in the event of death, claims can still be made against an ex-spouse’s estate. It is crucial, therefore, to seek advice on how to address any financial claims by obtaining a clean break order or a financial order that outlines the division of assets between the parties.

A financial consent order is a legally binding document that outlines the financial arrangements between a divorcing couple. It brings legal finality to the financial aspects of divorce, protects both parties’ interests, and provides a clear and binding framework for their financial obligations and rights after divorce.

The main purpose of a financial consent order is to formalise the division of assets, income, and other financial matters.

The key elements covered in a financial consent order may include: what happens to the family home, division of other capital assets, maintenance payments, school fees, pension sharing or offsetting, and a clean break clause.

Financial consent orders

To obtain a financial consent order, both parties must agree to the terms and submit the agreement to the court for approval. The court will review the order to ensure it is fair and reasonable and, if satisfied, it will make the order legally binding. This prevents either party from making further financial claims against each other in the future and provides clarity and security in the division of assets and finances after divorce.

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