Why you need a financial consent order after divorce
Did you know your ex-partner could still claim money from you even after your divorce is finalised? It may seem unfair, but a financial consent order can protect your assets and prevent future claims.
When your divorce or civil partnership dissolution is finalised with a decree absolute, your legal ties are severed, but without a financial consent order, your ex-partner could still make claims against your assets. These claims could arise from any significant change in circumstances, such as:
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One partner developing a successful business
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Inheriting money or assets
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Building pension benefits
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Winning the lottery
Without a financial consent order, these claims can be made at any time, leaving you vulnerable. Protect yourself now by securing a financial consent order.
What is a financial consent order?
A financial consent order is a legally binding document that formalises the financial agreement between divorcing couples or those dissolving a civil partnership. It outlines how financial assets, such as property, savings, and pensions, will be divided.
A financial consent order can also prevent future claims from your ex-partner and sever all financial ties (known as a clean break order). The terms of the order will depend on your financial situation and what both parties agree to.
How to obtain a financial consent order
Couples can reach an agreement through direct negotiations, mediation, or solicitor-led discussions. Once an agreement is reached, a solicitor can help draft the consent order and submit it to court for approval.
The court’s role is minimal – it will simply review the financial consent order to ensure it is fair to both parties. Once the judge approves it, the order becomes legally binding after your divorce or civil partnership dissolution is finalised.
Avoid the courtroom
There is no need to attend a court hearing. The court will only review the consent order to ensure fairness. If the judge is satisfied, the order will be approved, providing peace of mind and protecting you from future financial claims.
For more information or a no-obligation consultation, contact Lisa Honey at Tees Solicitors.
Case study: Vince v Wyatt (2015)
The case of Vince v Wyatt highlights the importance of securing a financial consent order, even if you think it’s not necessary at the time of your divorce.
In this case, the couple married in 1981, had one child together, and separated in 1984. Their decree absolute was granted in 1992, but they never entered into a financial agreement (consent order). Ms Wyatt did not request financial support from Mr Vince at the time, and she raised the children alone in difficult financial circumstances.
In 1995, Mr Vince founded a green energy business, Ecoticity, which became highly successful, eventually being valued at £57 million. Meanwhile, Ms Wyatt’s financial situation remained modest.
In 2011, 27 years after their separation, Ms Wyatt applied for a lump sum payment, citing financial hardship. Mr Vince sought to have the claim dismissed due to the long delay since their divorce. However, the case went to the Supreme Court, which ruled that her claim could proceed, despite the lengthy delay.
The case ultimately concluded with Ms Wyatt accepting £300,000 as a full and final settlement. While the couple had no assets when they divorced, a financial consent order could have prevented this prolonged legal battle and the associated costs.
Don’t risk it – protect your financial future and avoid costly disputes by securing a financial consent order today.
