Why should you always get a financial order in a divorce?
There is often a misunderstanding that financial matters are automatically settled
during divorce proceedings. However, while a Financial Order is not required to
finalise a divorce, it is highly recommended to address any existing and potential
financial issues at the same time. The most effective way to do this is by securing a
Financial Order.
What is a Financial Order?
A Financial Order is a separate application made to the court, normally after the
conditional order in the divorce process has been pronounced. Even though the
divorce and financial process are separate, they are often handled simultaneously.
Financial Orders are commonly based on agreement between the parties or using a variety of different ways, such as mediation, solicitor negotiation or court proceedings. This order sets out the separation of your finances and assets,
including properties, vehicles, pensions or savings.
Once both parties agree, they must seek independent legal advice to ensure that
their agreement would be deemed fair by the court. The solicitors will then draft the
legally binding Financial Order and submit it to the court for the approval of a judge. The judge will review the case, considering the section 25 of the Matrimonial Causes Act 1973 and a statement of financial information (Form D81) before making their decision. The judges must be satisfied that the outcome is fair for both parties and considers the financial needs of both partners and any children involved. A Financial
Order becomes legally binding only when a judge approves it.
The Importance of a Financial Order
If you’re the parent facing the prospect of your child moving away, it’s crucial to stay engaged in the process. Express your concerns clearly and consider how you might adapt to the new circumstances while still playing a meaningful role in your child’s life.
It is important to note that the other partner has the liberty to make a claim against
the other for finances in the future if a Financial Order is not put in place. There is no
time bar for making such a claim against an ex-spouse. This has been seen in the case of Wyatt v Vince [2015] UKSC 14, where couple did not secure a Financial Order during their divorced, believing it unnecessarily due to their limited assets at
the time. However, years later, the ex-husband became a multi-millionaire. The ex-wife successfully applied for a financial settlement 19 years post-divorced, as there
had been no Financial Order to prevent her from doing so and she secured over £40m from her ex-husband.
This case highlights the importance of finalising a Financial Order during the divorce process to avoid potential financial uncertainties and facing litigation in the future.