What is a Financial Order in Divorce?

A divorce will end a marriage; however, it does not deal with any shared property or finances. To do this, you will need a divorce financial settlement, along with a financial order. You don’t have to apply for a financial order to obtain a divorce. However, we advise separating couples to resolve existing or potential financial issues during the divorce process, and a financial order is the best way to achieve this.

What is a financial order?

Financial orders in divorce can sever the financial commitment between you and your ex, meaning neither person can make a claim on any finances in the future.
A financial order is made by the family court, and it sets out the separation of your finances and the division of your assets in the marriage. This may include:
• Properties
• Vehicles
• Pensions
• Savings
• Investments

Not only will financial orders deal with the distribution of your assets, but they will also deal with:
• Equalising pensions by way of a pension sharing order or otherwise.
• Transferring or selling property.
• Spousal maintenance.
• Child maintenance.
• If appropriate a clean break preventing financial claims against each other in future.

What are the type of financial orders in divorce?

Which financial order you will require will depend upon your circumstances and these are outlined below.

Clean break order

A clean break order prevents any future financial claims between both spouses. The agreement draws a line under the division of any assets. This means any future windfalls or inheritance cannot be claimed by an ex-spouse.
It is strongly advised to speak with a divorce solicitor regarding a consent order or any financial orders in a divorce to ensure the best outcome for your situation. It’s important to remember that even after a divorce is finalised, unless terms of settlement are properly finalised it could be still possible for financial claims to be made against a former spouse. A solicitor can also help negotiate the best financial settlement for your family.

Consent order

A consent order will list all assets and outline how these will be divided. It can also include to a clean break order to stop any future financial claims in the future. However, a consent order is only appropriate if both you and your ex-spouse reach an agreement on how assets should be distributed.

Financial remedy proceedings

If you or your ex-partner cannot reach an agreement about how your assets will be divided, then either of you can apply to court for a judge to impose a financial remedy order. These specific orders are listed below.

Lump sum order

This is an order for your ex-partner to pay you a lump sum or a series of lump sums.

Property adjustment order

This is an order relating to the matrimonial home or other property within your respective ownership. The Court can order a transfer of property between you or make an order for sale if deemed appropriate.

Pension sharing order
This is an order transferring pension provision from one spouse to the other usually to equalise pension provision for retirement.

Legal services payment order

This is an order requiring your former partner to contribute towards the legal costs of your case.

Maintenance pending suit

This is an order that your former partner provide you with emergency spousal maintenance whilst your case is ongoing.

How to apply for a financial order

Financial orders are complex and come with many procedural issues and will include court proceedings. It’s also difficult to decide which financial order you need which best protects your interests.

If a judge is not satisfied that the agreement reached is a fair outcome, they can refuse to make the financial order and as a result they may ask both parties to provide further information as to why they believe the agreement to be fair.
It is always advised to seek legal advised from a divorce solicitor, who can take you through the process and apply for any financial orders needed. This will ensure the financial the financial order suits your circumstances and is obtained successfully.

Our divorce solicitors can help with divorce proceedings, children matters and financial settlements and financial orders. They can support you through the entire process, and even help if you have dealt with a divorce yourself and are looking for support through the financial settlement or child custody stages.
The divorce team also offer a free legal consultation to new clients. You can book an appointment by telephone, video call or in person.

Request a call back below or call us on 0114 2235 807 to book your free consultation today.