Divorce and Finance Consent Orders
Financial Consent Order Lawyers
A common misconception in respect of divorce is parties believe that once the divorce of the couple has been finalised and they have received their Decree Absolute that this ends any financial claims between them.
Sadly, this is not the case. During divorce proceedings, if the parties do not also make an application to close their respective financial claims on one another, the claims will be left open indefinitely, and even on death claims can be made from an ex-spouse’s estate – prolonging matters and causing further issues with financial settlements in the future.
It is therefore essential in these circumstances that you obtain advice on how to close those financial claims and either reach a clean break order between the parties or a financial order setting out who gets what. One of the trickiest aspects of a divorce is navigating the terms of an agreement covering how your financial assets will be shared between you and your spouse.
It is important to ensure that your financial agreement will provide you with sufficient income and assets in order to meet your need and that the agreement is fair to both parties. There are various ways to negotiate a settlement including:
- Mediation
- Voluntary financial disclosure of income
- Assets and liabilities
- Issuing proceedings in the family court
If you can reach an agreement with your spouse directly then it is a good idea to have this drawn up into a order of the court so that it is legally binding.
This is where the court approves your agreement and brings your future claims against one another to an end, allowing you to move forward with peace of mind.
What Does a Consent Order Cover?
A consent order will set out the exact terms of the financial agreement reached between you and your spouse, including:
- Who will own the family home going forward and who has responsibility for any mortgage
- Who will own any investment properties
- What will happen to your individual and joint bank accounts, building society accounts, and national savings accounts
- What will happen to any shares, PEPs, ISAs, TESSAs, bonds, stocks, unit trusts, investment trusts, and gilts held by you or your spouse
- Whether life insurance policies will continue
- The distribution of personal assets, cars, art collections, furniture, jewellery
- Who will take responsibility for any liabilities (loans, credit cards, overdrafts, hire purchase agreements)
- If either of you owns a business, what will happen to the business in terms of directorships, shares
- Whether there will be any sharing of pensions
- Consideration of all sources of income and whether monthly payments of spousal or child maintenance are agreed
Why Do I Need a Consent Order?
A consent order provides you with the security of knowing your financial agreement on divorce is legally binding.
This means that your spouse cannot make any further claims on your current (or future) capital, pensions, or income (save for child maintenance if applicable).
Are Prenuptial Agreements Legally Binding?
Whilst a prenuptial agreement holds no legal weight in English courts and Welsh courts, (meaning that the agreement is not legally binding) in the event of divorce, the court will take the prenuptial agreement into consideration when deciding how to split the assets of each party.
Reach out to Our Specialist Divorce and Finance Consent Orders Team Today
Family law matters can bring financial uncertainties, which can be very overwhelming. Our team of divorce and finance consent orders lawyers have extensive experience in financial matters, to help guide you along the way with confidence.
To chat with our team, call us on 0333 202 6433 or email us at [email protected].
