The importance of having a financial order in divorce

We are often asked whether it is necessary to have a financial order when both parties agree on how they will sort out their assets during a divorce, or the dissolution of a civil partnership. The answer is a clear and definite yes.

Not needing a financial order when there is an amicable divorce is a common misconception. Even when both parties are in full agreement, and even if assets have already been distributed or there are only a few to consider - a financial order is essential.

Avoiding future financial disputes

Divorce and separation are often emotionally charged and stressful times, and such important decisions, such as financial ones, need to be carefully considered and fair. The starting point for asset division is usually an equal split, but fairness can only be assessed upon full financial disclosure by both parties. Without a legally binding financial order, informal agreements can leave you vulnerable and may not provide the security you need for the future.

What does a financial order include?

A financial order offers protection and certainty, ensuring that both parties can move forward with peace of mind.

It sets out how key assets will be divided, including:

• Property – Will it be sold or transferred to one party? How the net proceeds of sale will be distributed?
• Savings and investments – How will they be split?
• Pensions – Will they be shared, offset, or left untouched?
• Financial support – Agreements in relation to child maintenance and spousal support
• A clean break clause – Ensuring no future financial claims can be made in relation to the marriage.

Protecting your future

One crucial factor to consider is that if you remarry, or enter into a new civil partnership, you may lose the right to apply for a financial order relating to your previous marriage or civil partnership. Without proper legal arrangements in place, this could lead to financial difficulties in the future.

Get advice now

To protect your financial future, it is highly advisable to secure a financial order before applying for the final order of divorce or dissolution. Seek legal advice early on to ensure you make informed decisions and avoid complications down the line.

At Owen White Catlin, our experienced family law team provides compassionate, expert guidance to help you achieve the best outcome. Contact us today to discuss your situation by emailing us at contact@owc.co.uk, calling us on 0208 890 2836 or filling in an enquiry form on our website.