When a marriage ends sorting out the financial side of things is just as important as the divorce itself. Even if you and your ex-partner agree on who gets what, without a formal court order, financial claims can remain open for years.
In this guide, we explain what a financial order is, why it matters and how to secure one – along with how to get a free 30-minute consultation with a solicitor to help you protect your financial future.
What is a financial order?
A financial order is a legally binding document issued by the court that sets out how a couple’s assets, income, debts and pensions will be divided after divorce or dissolution of a civil partnership.
You can apply for a financial order whether you have agreed everything amicably or need the court to decide for you. Once the court approves the order, it becomes enforceable, meaning both parties must comply with its terms.
Without a financial order, either party could make a claim against the other in the future – even many years after the divorce has been finalised.
Types of financial orders
There are several types of financial orders available, depending on your circumstances:
- Consent Order – where both parties agree the terms and ask the court to formalise them
- Property Adjustment Order – transferring ownership of property, such as the family home
- Pension Sharing Order – dividing pensions between spouses
- Lump Sum Order – requiring one party to pay a fixed amount of money to the other
- Spousal Maintenance Order – providing ongoing financial support to a former spouse
In most cases, separating couples seek a Consent Order to formalise an agreement they have reached voluntarily.
Why do you need a financial order?
Many people mistakenly believe that once the divorce is finalised, financial matters are automatically dealt with. This is not the case. Divorce legally ends your marriage but it does not end your financial ties.
You need a financial order to:
- Prevent future financial claims from your ex-spouse
- Secure any agreement you have reached on dividing assets
- Provide certainty and clarity for the future
- Protect any future wealth you may acquire
Without a financial order, an ex-spouse could make a claim years later, even if you have remarried or significantly improved your financial situation.
When can you apply for a financial order?
You can apply for a financial order once the divorce application has been issued. However, the court can only approve the order after the Conditional Order (formerly known as the Decree Nisi) has been granted.
It’s often a good idea to negotiate financial matters alongside the divorce process so that everything can be finalised as soon as possible after the Conditional Order is in place.
What’s the process for getting a financial order?
The steps are usually:
- Negotiate an agreement with your ex-partner (this can be done privately, through mediation or with the help of solicitors).
- Have a solicitor draft the Consent Order, ensuring it accurately reflects your agreement.
- Complete a Statement of Information form (D81) setting out both parties’ financial situations.
- Submit the documents to the court for a judge to review.
- If the judge is satisfied that the agreement is fair, they will approve the order, making it legally binding.
If no agreement can be reached, either party can apply for the court to make a decision after formal hearings.
What does the court consider?
When approving or deciding on a financial order, the court’s primary concern is fairness. Judges consider a range of factors, including:
- The income, earning capacity, property and financial resources of both parties
- The financial needs, obligations and responsibilities of each party
- The standard of living enjoyed during the marriage
- The ages of both parties and the duration of the marriage
- Any physical or mental disabilities
- Contributions made by each party (financial and non-financial, such as caring for children)
- The welfare of any children of the family
Each case is assessed individually, based on its own facts.
Can a financial order be changed?
In some circumstances, financial orders can be varied. This usually applies to ongoing obligations, like spousal maintenance, rather than one-off settlements.
If your financial situation changes significantly – for example, through illness, job loss or a major change in needs – you can apply to the court to vary the terms. However, final settlements involving lump sums, property transfers or pension sharing are usually considered final and cannot be changed.
What happens if someone breaches a financial order?
If your ex-spouse fails to comply with a financial order, you can apply to the court to enforce it. Enforcement options depend on the type of breach but may include:
- Deductions from wages or bank accounts
- Seizing and selling assets
- Charging orders over property
- Committal proceedings (in extreme cases)
Having a formal, court-approved order makes it much easier to enforce your rights if problems arise.
Protect your financial future
A financial order isn’t just about dividing what you own today – it’s about securing your future and providing certainty for both parties.
If you’re going through a divorce, it’s crucial to get legal advice from an experienced local divorce and family law solicitor early and ensure that your financial settlement is properly documented and legally binding.
We offer a free 30-minute consultation to discuss your case. Contact us today via the form below, call 0203 983 5080 or email [email protected] to speak with a local divorce solicitor near you. We can speak with you via video call or welcome you to one of our local offices in London (Harrow, Canary Wharf or Piccadilly Circus) or Manchester City Centre.
