Finances on Divorce

The legal termination of a marriage or civil partnership via divorce or dissolution does not automatically resolve financial matters arising from the relationship. Financial claims remain live until a final financial order is issued by the court under the Matrimonial Causes Act 1973 or the Civil Partnership Act 2004.

Even where parties have no assets to divide, it is essential to obtain a Clean Break Order to prevent future claims. This means that neither party can make any claims against the other in life or in death arising from the marriage or civil partnership.

You should also be cautious of applying for a Final Order in your divorce or dissolution proceedings without resolving financial matters, as this may adversely affect your rights relating to inheritance, pensions, and or property.

Pathways to Financial Resolution

Financial arrangements post-divorce or dissolution may be resolved by:

1. Consent: Where parties reach an agreement, whether directly, via solicitors, or through mediation a Consent Order is drafted and submitted for court approval.
2. Financial Relief Proceedings: If agreement cannot be reached, either party may apply to the court for a financial order. While negotiation is encouraged throughout proceedings, the court will determine the outcome if settlement proves impossible.

Our blog posts: Divorce and Finances: The Evolving Law And Why You Should Still Seek Expert Legal Advice and Express Financial Remedy Pilot: What You Need To Know provide further information about the process.

Resolving your financial affairs can be challenging, particularly where long-term relationships are concerned or there are complex asset structures. Even where matters are agreed, before approving and making any final orders the court will assess each case individually, ensuring that any proposed settlement is fair, meets the parties’ current and future needs, and provides adequately for any dependent children.

Our experienced family law team provides tailored advice on financial entitlements and represents clients in both negotiated settlements and contested proceedings.