8 Different Types of Financial Orders in Divorce
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- Written by: Wembley Solicitors
If you're unable to reach an agreement with your ex-partner over finances following a divorce or civil partnership dissolution, you may need to apply to the family court for a financial order.
A financial order is a decision made by the family court about the distribution of finances, property, and pensions following a divorce or the dissolution of a civil partnership.
From lump sum orders to pension sharing, there are 8 types of financial orders that family courts can make during divorce or civil partnership dissolution.
Below are 8 key financial orders commonly used in divorce cases:
1. Pension Sharing Order
A Pension Sharing Order allows a pension to be divided between divorcing or separating partners, either as a percentage or a specific cash amount.
A Pension Sharing Order divides one spouse's pension into two parts, ensuring that both parties receive a fair share of the pension benefits accumulated during the marriage.
Pensions can be one of the largest assets in a divorce, and this order is important to ensure both parties are financially secure in the long term.
2. Lump Sum Order
A Lump Sum Order is often issued when the parties can't agree on asset division or financial responsibilities, allowing the Court to order one party to pay a fixed amount to the other.
The payment can be made all at once or in parts, depending on the court.
3. Property Adjustment Order
Property Adjustment Orders are issued to resolve property ownership issues during divorce.
Property Adjustment Orders settle the division of property, including the family home or investment properties, whether by selling, transferring, or dividing them.
This order is made after looking at each partner's finances and any children's needs.
4. Clean Break Order
A Clean Break Order is a court-approved legal financial agreement that ends all future financial obligations or ties between a divorcing couple.
A clean break order ensures that neither party can make future claims on the other's assets, income, or pension benefits.
5. Spousal Maintenance Order
A Spousal Maintenance Order is financial support provided by one ex-spouse to the other, lower-earning spouse after divorce to help sustain their living standard.
Payments are usually monthly and can be temporary or lifelong under a “joint lives order.”
6. Child Maintenance
A Child Maintenance Order outlines the financial support one parent must provide, covering essentials like living expenses, education, and healthcare.
Child maintenance can be direct payments, family agreements, or managed by the Child Maintenance Service.
While the Child Maintenance Service typically handles regular payments, the Court may intervene in cases involving high income or complex financial situations to ensure the child's needs are fully met.
7. Consent Order
A Consent Order is a legal financial agreement between divorcing parties that outlines how to divide the money, property and other assets after a marriage ends.
Consent Order is used when divorcing parties agree on how to divide money, property, pensions, savings, and investments. You need to apply for a consent order to make it legally binding.
8. Debt Allocation
Debt Allocation decides who pays off debts from the marriage. The court might order how to split joint debts, like mortgages or loans. It makes sure both parties are responsible for the marriage's financial obligations.
This order is key when debts are big, and both need to know who's paying them off.
Final Thoughts
The divorce can be emotionally challenging, but financial orders offer a practical solution for dividing assets and resolving financial matters, helping both parties to move on with their lives.
A financial order can cover a range of issues, such as selling or transferring property, arranging maintenance payments (either ongoing or as a lump sum), and dividing pensions. They aim to create a final, enforceable financial agreement.
If you're going through a divorce, consulting with a family law solicitor can help you navigate the complexities of financial orders and ensure that your rights and interests are protected.
If you need assistance with your divorce financial order, contact our divorce and family law solicitors at 0203 417 3700 for help with all financial matters.
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Legal Disclaimer
The information provided is for general informational purposes only and should not be taken as legal advice. While we make every effort to ensure accuracy, the law may change, and the information may not reflect the most current legal developments. No warranty is given regarding the accuracy or completeness of the information, and we do not accept liability in such cases. We recommend consulting with a qualified lawyer at Wembley Solicitors before making any decisions based on the information provided on this website.
