Financial Settlement in Divorce
- Details
- Written by: Wembley Solicitors
It is advisable to put financial order in place which outlines financial arrangements between both parties (you and your ex-spouse) when applying for a divorce.
If you are applying for a divorce and want to discuss your financial settlement options, contact our financial settlement solicitors at 020 3417 3700.
Our team of divorce and family law solicitors in London can help you make the right decisions during divorce, so you control your financial future.
- What is a financial settlement in a divorce?
- What are the types of financial orders in divorce?
- What is a consent order in a divorce settlement?
- What is a clean break order?
- How can we help with the financial settlement?
- Financial settlement solicitors in London
- Frequently asked questions (FAQs)
What is a financial settlement in a divorce?
The financial settlement is a key stage of the divorce process where the Court decides how to divide finances and other assets between both parties.
General people think that all the financial ties will automatically end once the marriage is legally ended but unfortunately this is not true.
The final order (previously known as the Decree Absolute) legally ends your marriage but it does not end your financial obligations to each other.
You can ask a Court to issue a financial order to divide your finances and assets if you and your ex-spouse cannot agree on how to divide money and assets.
The Court will follow the general guidelines as set out in section 25 of the Matrimonial Causes Act 1973 when deciding the division of assets.
What are the types of financial orders in divorce?
A “clean break order” and a “consent order” are two common types of financial orders in divorce matters. The most suitable financial order depends on the circumstances of your marriage.
Common types of financial orders are listed below:
- Property Adjustment Order
- Lump Sum Order
- Maintenance Order
- Pension Sharing Order
- Consent Order
- Clean Break Order
Speak to our family law solicitors on 020 3417 3700 to discuss the different types of financial orders available to you.
What is a consent order in a divorce settlement?
A consent order is a formal legal financial settlement agreement that explains how you are going to divide pensions, property, savings, and investments.
If both parties agree on how to split money and properties without going to Court, then they need to apply for a consent order to make it legally binding.
What is a clean break order?
When you divorce, a clean break order ends all types of financial ties between both parties (you and your ex-spouse) such as spousal maintenance and assets.
The clean break order ends all financial ties and prevents any future claims which means neither spouse can make a financial claim against the other once you put a clean break order in place.
How can we help with the financial settlement?
A team of financial settlement lawyers at Wembley Solicitors can assist with all of the legal aspects of reaching a financial order, including:
- Mediation Information and Assessment Meetings (MIAM)
- Non-contentious resolution methods (Alternative dispute resolution - ADR)
- Seeking a financial order from the Courts
- Interim financial orders to ensure immediate financial arrangements are put in place
- Dealing with non-disclosure of marital assets
- Crypto assets and cryptocurrency
- Engage forensic accountants
You can be assured that we will tailor our approach to your financial settlement needs. We will make sure that all of your martial assets are taken into account when reaching a financial settlement including any property, savings, possessions, pensions, shares, crypto assets and cryptocurrency, overseas assets, cars and other vehicles. To this, we will gather information on your lifestyle, current and future needs and those of your children, and your contribution to the marriage or civil partnership.
As a full-service law firm, we can also advise and represent you regarding any other legal matters, including in the areas of immigration, litigation, residential property, commercial property, and criminal law.
Financial settlement solicitors in London
Our team of divorce and financial settlement solicitors in London has extensive knowledge and experience in dealing with all types of complex divorce and family law matters.
One of the biggest priorities during the divorce process is reaching a financial settlement that fairly divides the marital assets and allows both parties to go their separate ways. Reaching an amicable financial settlement requires a willingness to negotiate and a full and frank financial disclosure.
At Wembley Solicitors, we have the family law expertise and financial contacts to make sure that your financial settlement meets your immediate and future needs, and those of your children, no matter how complex your marital finances and the degree of disclosure.
Our specialist divorce and family law solicitors offer a wide range of services including:
- Divorce/separation
- Financial settlements
- Children and child arrangement orders
- Non-molestation & occupation orders
- Prenuptial agreements
- Grandparents’ rights
- Cohabitation and Unmarried couples
- Domestic Abuse
Call on 020 3417 3700 to speak to our divorce and family law solicitors in Wembley, London today or fill in the enquiry form for immediate advice & assistance with your family law matter.
Frequently asked questions (FAQs)
A clean break order normally takes two months once you signed and sent it to the court. You can sign and issue a clean break order to the court on receipt of the Decree Nisi.
It will give you a piece of mind that your spouse cannot change their mind about the agreement.
When you divorce both parties need to agree on how to divide their assets and finances. You need to decide how you are going to divide pensions, property, savings, and investments.
Your wife might get a share of your pension, regular maintenance payments to help with children, and living expenses.
If you do not have a financial order in place then your ex-spouse may be able to make a financial claim against you in the future.
It may be advisable to obtain a clean break order even if you and your ex-spouse have no assets to divide to end all types of financial ties and prevent any future claims.
Where feasible, the legal system highly encourages separating couples trying to reach an agreement on these financial arrangements to do so outside of the courts. They do this by encouraging participation in non-contentious alternative dispute resolution (ADR) methods such as mediation. Before making an application for a financial order to the court, both parties are expected to attend a MIAM (this can be done separately). During a MIAM, a specially trained mediator explains the process and the option for reaching an agreement.
In some cases, the mediator may recommend that mediation is not suitable. A MIAM is not mediation, rather it allows the attending parties to decide on the best way forward given the options available. If a decision is made to commence a court application for a financial order, the court will require a court form proving attendance at a MIAM before proceedings (unless the parties are exempt from attending a MIAM).
One of the earliest steps in the financial settlement process is the completion of Form E (Financial statement for a financial order) as required under the Matrimonial Causes Act 1973 and Civil Partnership Act 2004. Both parties are legally required to list all of their financial assets without exception.
This form states, “Proceedings for contempt of court may be brought against a person who makes or causes to be made, a false statement in a document verified by a statement of truth”. If you are concerned that your partner is hiding some of their assets, let your Solicitor know immediately. They have a range of options available including:
- Engaging the services of a forensic accountant and specialists in uncovering crypto assets
- Requesting freezing orders
- Request a court hearing allowing you to show any evidence of non-disclosure
If the court makes a financial order but later discover a failure to fully disclose by one party, they will often vary the order in favour of the other party.
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