Financial Order After Divorce
Financial Order After Divorce
When parties are seeking a divorce, they need to consider how their assets ie. property, savings, investments, business interests, pensions etc. should be divided and whether maintenance should be paid. If the parties reach an informal agreement about these matters, it is important that the agreement is recorded in a Financial Consent Order that is approved by a Judge. There may be problems if a Financial Consent Order is not obtained eg:-
- If after a divorce, a party re-marries without a Financial Order in place, they will be prevented from making a financial claim in the future against their former spouse under the Matrimonial Causes Act 1973.
- After the family home, pensions can be one of the most valuable assets in a marriage. If one or both parties are approaching retirement age, the treatment of pensions can be extremely important. A pension cannot be shared by agreement. It is necessary for a Pension Sharing Order to be obtained from the Family Court.
- An informal financial agreement is not legally enforceable. If one of the parties reneges on an agreement, attempts to renegotiate it or drags their heels in the implementation of the terms of the agreement, the other party has no recourse to the Courts other than to make a financial application to the Court, if that party is still able to do so.
There is no statutory time limit on when one party can make a financial claim against the other party after divorce (subject to the party applying not having remarried). This means that a claim for financial provision can be pursued even after many years have passed since the dissolution of the parties’ marriage. A delay or failure to deal with financial matters arising from a divorce could have serious financial consequences especially if one party’s financial position has improved substantially since the parties’ divorce.
Parties getting divorced should take legal advice about financial matters and obtain a Financial Order.
For further information please contact Susannah Taylor.
This article is not intended to be comprehensive or to provide specific legal advice. It should not be relied upon in the absence of specific advice given in relation to particular circumstances.
