How finances are settled in UK Divorce
I’m divorcing – do I need to do anything about the finances?
In short, yes.
This is a question that we are often asked by clients who have started Divorce Proceedings, closely followed by, “what if my ex-partner has no money?” The answer is still yes.
If you or your partner have property or pensions or there is an income disparity between the two of you it is always strongly advisable to deal fully with the finances .
You need a clear idea of the size matrimonial pot and an understanding of your options in dividing up that pot. Talk to us to make sure you know all your options.
What if we have already divided the assets informally?
In some cases, divorcing couples have already dealt with the matrimonial finances between themselves. This could be because there are no assets in question or simply because it was cheaper to resolve the issue between themselves than instruct a solicitor. Do you still need a Consent Order? YES!
Clean Break Order
If you or your ex-partner are not seeking any financial claims against each other and intend to only take what was yours from the marriage, this is called a “clean break.” It is better to have a clean break Court Order as it allows each spouse a certain level of protection.
Without a clean break Consent Order, your ex-partner would be able to make a financial claim against you provided they have not remarried. You may think that this is unlikely, but if your financial situation changes in the future, you may not be too surprised if you ex-spouse gets back into contact.
Your financial situation may change by either employment, inheritance or by winning the lottery, for example. A recent case heard at the Supreme Court allowed an ex-partner to pursue a financial claim against her ex-husband some 20 years after they divorced as there had been a substantial change in his financial situation and she had not remarried.
A Clean Break Consent Order is a relatively straight-forward Order that can be drafted on your behalf. Once agreed, it is then sent to the Court to be rubber stamped. Once the Court has approved the Consent Order, it becomes a legally binding document.
We can deal with your clean break order on a fixed fee basis.