Key Takeaways
- A final order legally ends a marriage, but it doesn’t divide a couple’s money. That requires a separate financial order approved by the court.
- Court figures show around 47,800 financial remedy applications in 2025 against roughly 110,000 divorce applications, indicating that well over half of divorces finish without a legally binding financial order.
- Until a binding financial order is in place, a former partner can bring a claim against income, property or a pension years after the divorce is finalised.
- An informal or written agreement isn’t enforceable on its own. It has to be turned into a court-approved order to carry legal weight.
A divorce ends a marriage. It doesn’t end the money. That distinction is easily missed in the middle of a separation. And it sits behind one of the more striking patterns in the official court data for England and Wales: most divorcing couples never formally settle their finances at all.
This article examines what the court data shows, why the gap exists, and what it means for those going through a divorce.
Why a divorce doesn’t settle the finances
The divorce itself and the division of finances are two separate legal processes. One ends the marriage. The other determines who keeps the family home, how savings and pensions are split and whether any ongoing maintenance is paid.
The final order deals only with the first of these. It confirms that the marriage has ended in law and doesn’t address money in any way. With that in mind, a couple can be fully divorced while their financial ties to one another remain entirely open, unless a separate financial order has been obtained and approved by the court.
What the numbers show
The team at Osbourne Pinner analysed the court’s own published data to establish how many divorcing couples formally resolve their finances. The gap is considerable.
In 2025, there were roughly 110,000 divorce applications in England and Wales, but only around 47,800 financial remedy applications.
Not every divorce requires a formal order, of course. Some couples have little to divide, and others resolve matters in different ways. Even accounting for that, the difference is wide enough to indicate that well over half of divorces conclude with no court-approved financial order in place.
Financial remedy applications have risen by close to a quarter since 2022, so the number of couples formalising their finances is growing. The longer trend complicates the picture, however. In 2006, there were more than 69,000 such applications a year. That’s well above the current figure, which makes the recent movement a partial recovery rather than a sustained climb.
The central finding is unchanged: the majority of divorcing couples don’t formalise the division of their money. The full breakdown appears in the accompanying divorce statistics analysis, which sets these figures alongside the trends in timing and joint applications.
The risk of leaving finances unresolved
The consequences aren’t hypothetical. Until a binding financial order is in place, either former partner can bring a claim against the other. Such claims can be made against:
- Property, including a home acquired or increased in value after the divorce
- Savings and investments built up in later years
- A pension, often one of the largest assets a couple holds
- Income, through an application for maintenance
There is no automatic time limit either. A claim can emerge years or even decades after the final order. A frequently cited example is the individual who builds a successful business long after separating, only to face a claim from a former partner whose finances were never formally settled. A clean break order, which dismisses future claims on both sides, is what closes that possibility off.
Why an informal agreement is not enough
A second common misunderstanding concerns private agreements. Many couples agree how to divide their assets. They set it down in writing and treat the matter as settled. This is a sensible starting point, but on its own this kind of agreement carries no legal force.
To become enforceable, an agreement must be converted into a consent order and approved by a judge. Without that step, a former partner who later disregards a private arrangement may face few practical consequences. Turned into a sealed order, the same agreement becomes something the court can enforce. The guide to financial settlement agreements in divorce explains how that process works in practice.
The timing question
Timing shapes when a financial order can be secured. A financial consent order can’t be approved until the conditional order stage of the divorce has been reached. That said, the groundwork can (and generally should) begin well before then.
The mandatory 20-week reflection period built into the divorce process provides a natural window to gather financial disclosure and negotiate, so that a consent order is ready to submit as soon as the court permits. Leaving the finances until after the final order is a recurring mistake, and applying for the final order before matters are settled can, in some circumstances, affect pension and other rights. The guide to how a financial order in divorce works sets out the sequence in more detail.
Whether the law may change
Reform is under consideration. In June 2026 the government published a consultation, “A Fairer End to Relationships”, proposing changes to how finances are divided on divorce. The Law Commission had earlier concluded that the current framework, which dates back to the Matrimonial Causes Act 1973, produces outcomes that are difficult to predict.
None of this has yet become law. The existing rules continue to apply, and any financial order made now remains valid regardless of what reform eventually brings. If anything, the review strengthens the case for resolving finances formally rather than leaving them to rest on a framework that could change.
Speak to a divorce and family law solicitor about a financial order
Ending a marriage without formalising the finances can leave both parties exposed for years, often at the point they believed the matter was behind them. A financial order is what turns an agreement into something enforceable and closes the door on future claims.
At Osbourne Pinner, our divorce and family law solicitors are experienced in negotiating and drafting financial orders, from straightforward consent orders to more complex settlements involving property, pensions and business assets, and can advise on whether a financial order is appropriate in a given situation.
Please note that this article is for informational purposes only and does not constitute legal advice. We always recommend speaking to a qualified divorce solicitor for advice tailored to your specific circumstances.
We offer a free 30-minute consultation wit appointments available via video call or in person at our offices in Harrow, Canary Wharf, Piccadilly Circus or Manchester. To arrange a consultation, call 0203 983 5080, email [email protected] or complete the form below. Osbourne Pinner does not offer Legal Aid.
