Divorce may untie the knot, but it doesn’t automatically resolve all the financial ties between you and your former spouse.
If you’re going through a divorce, you might be wondering whether you need a Divorce Financial Order, particularly if you’ve already agreed how to divide your finances. Even if things are amicable, it’s important to understand what happens next and how you can protect your financial future.
At Thomson & Bancks, our Family Law Team understands that divorce can be a challenging time, with lots to think about. Financial arrangements can sometimes slip down the priority list, but getting the right advice now could help you avoid unwanted surprises in the future.
So, what is a Financial Order, why does it matter, and could one be right for you?
What is a Divorce Financial Order?
A Financial Order is a court-approved document that sets out how money, property, pensions, savings, investments and, where appropriate, spousal maintenance will be dealt with following divorce.
When considering financial arrangements, the court takes into account a number of factors set out in Section 25 of the Matrimonial Causes Act 1973.
If you and your former spouse agree on the terms of the order, your agreement can usually be recorded in a Consent Financial Order. If you cannot agree, the court can be asked to decide the outcome.
The aim is to make financial arrangements clear, fair and legally enforceable, creating a clean break where possible.
Why is a divorce financial order important?
You might think that once your divorce is finalised, everything is settled. Unfortunately, that isn’t necessarily the case.
The Final Divorce Order ends the marriage itself, but it does not automatically prevent either person from making future financial claims against the other. Depending on the circumstances, financial claims may remain possible immediately after divorce, in the future or even upon death.
Without an appropriate Financial Order, even the friendliest agreements can leave loose ends.
For example, your former spouse may be able to bring a financial claim years later, particularly if circumstances change. That could come as an unwelcome surprise if you later buy a home, build a successful business, receive an inheritance or are lucky enough to win the lottery!
This is why a Financial Order is worth considering, even if you have very little in the way of assets at the moment. Putting the right arrangements in place can help provide greater certainty and protect your financial future.
Already agreed on everything with your former spouse? It’s still worth finding out whether your agreement should be formalised in a Financial Order.
What is a Clean Break Financial Order?
A Clean Break Financial Order takes things a step further by dismissing future financial claims between former spouses, where appropriate.
For many people, this can provide a welcome sense of finality. It allows both parties to move forward independently, with greater certainty about their financial future and less worry about potential claims further down the line.
However, a clean break isn’t suitable for everyone. For example, if ongoing spousal maintenance is needed, a different arrangement may be more appropriate.
Every situation is different, so it’s important to understand your options and what is right for you.
Take the next step towards financial peace of mind
A Financial Order might seem like just another piece of paperwork during an already difficult time, but it can make an important difference to your financial future.
It’s not simply administration for your solicitor to deal with. It’s the document that can help turn “we’ve sorted it between ourselves” into “this is legally binding, and we can both move on”.
For anyone going through divorce proceedings, taking advice about a Financial Order is an important step towards avoiding future disputes and starting the next chapter with fewer financial plot twists.
Why choose Thomson & Bancks Solicitors?
We know that going through a divorce can feel overwhelming. Alongside the emotional side of separation, there are often important decisions to make about your home, money and future.
At Thomson & Bancks, we want you to feel supported and confident about the decisions you make. Our Family Law Team is here to listen, help you understand your options and provide advice that takes your individual circumstances into account.
Whether you’re just beginning to think about divorce, have already reached an agreement with your former spouse or simply want to understand whether you need a financial order, we’re happy to help you explore the next steps.
We offer fixed-fee Family Law appointments for anyone looking for advice, including discussing the importance of a Financial Order. It’s an opportunity to talk through your situation, ask questions and get a clearer understanding of the options available to you.
As your local, trusted and dedicated solicitors, we have offices in Pershore, Tewkesbury and Stratford-upon-Avon, supporting individuals and families across our local communities.
We understand that no two families are the same, and we aim to make getting legal advice as straightforward and approachable as possible.
You matter to us. Get in touch today on 01386 562000 or complete our website enquiry form using the button below to discuss arranging a fixed-fee appointment.
Let’s help you take the next step towards a more certain financial future.
Frequently asked questions about Divorce Financial Orders
Do I need a Financial Order if my divorce is finalised?
It may still be important to resolve your financial arrangements after divorce. The Final Divorce Order ends your marriage, but it does not automatically prevent future financial claims. A solicitor can help you understand your circumstances and whether a financial order may be appropriate.
Can my former spouse make a financial claim years after divorce?
Depending on your circumstances, yes. If financial claims have not been properly resolved, your former spouse may be able to bring a claim in the future. This is why it’s important to understand the protection a Financial Order may provide.
Do I need a Financial Order if we agree on everything?
Even if you and your former spouse have an amicable agreement, it’s worth considering whether that agreement should be formalised in a Consent Financial Order. An informal agreement does not provide the same legal certainty as an order approved by the court.
What is the difference between a Financial Order and a Clean Break Order?
A Financial Order sets out how financial matters will be dealt with following Divorce. A Clean Break Financial Order goes further by dismissing future financial claims between the parties, where appropriate. A Clean Break is not suitable for every situation, particularly where ongoing spousal maintenance is needed.
Do I need a Financial Order if I have very few assets?
It may still be worth considering. Even if you have limited assets now, your circumstances could change in the future. A Financial Order can help address potential financial claims and provide greater certainty about your future position.
How can Thomson & Bancks help with a Divorce Financial Order?
Our Family Law Team can discuss the importance of a Financial Order and help you understand your options. We offer fixed-fee Family Law appointments, so get in touch to discuss your circumstances and arrange an appointment.
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