A financial order in a divorce is a legal document written by courts to set out how assets such as pensions, property, savings, and investments should be divided between divorcing couples. Financial orders can also be used to set out the terms of any maintenance payments (e.g. child maintenance) to be paid. If you have a financial order, you can be assured that your ex-partner cannot make a new financial claim against you in the future.
There are various types of financial order, including:
- Avoidance of disposition orders
- Maintenance pending suits (MPS)
- Periodical or lump sum payment orders
- Financial remedy orders
- Consent orders
- Clean break orders
A financial consent order is used if a separating couple can agree between themselves on how to divide their assets and just need this in a legally binding form. Financial remedy orders are used by courts to set out financial arrangements if a couple cannot reach an agreement between themselves and need the court to make a decision. Lastly, a clean break order severs financial ties between a couple, no matter how much time has passed since the divorce.
Do I need a financial order when I divorce?
If you agree with your ex-partner on how your financial assets should be divided and any maintenance arrangements, it is advisable to have a consent order in place to protect your financial interests. If you cannot agree with your ex-partner on how your financial assets should be divided and you need the court to decide, you will need to apply for a financial order.
Because financial orders and consent orders are legally binding, they ensure that any agreement reached must be adhered to. Having a financial or consent order in place removes the risk of future claims and disagreements in the future. It also means that the court can take action if your partner does not keep their side of the financial arrangement.
Can I get a financial order after decree absolute?
Yes, you can still apply for a financial order from the court even if you have a decree absolute or final order. However, it is worth considering the potential impact of any delay in reaching a financial agreement between divorcing couples.
How to get a financial order?
To get a financial order in the UK, you must first wait until you have your conditional order or decree nisi. Once you have this in place, you will need to complete the following steps:
- Attend a Mediation Information and Assessment Meeting (MIAM)
- Alternative dispute resolution
- Complete a financial order application form
- Pay the application fee of £275
- Send 2 copies of Form A to the court
- Attend a first appointment
- Attend a financial dispute resolution (FDR) appointment
- Final hearing
Note: remember, you can apply for a financial order either while your divorce is proceeding or after the divorce.
Attend a Mediation Information and Assessment Meeting (MIAM)
A MIAM is used to assess if mediation or another out-of-court resolution method can be used to find an agreement without the need to involve a court. You will need a copy of Form FM1 from your mediator confirming your attendance at a MIAM before applying for a financial order.
Alternative dispute resolution
If recommended following a MIAM session, mediation or collaborative law can be used to try to find an agreement with your ex-partner before applying for a financial order. Such methods can be highly effective, cheaper, and faster in reaching an agreed outcome on financial arrangements.
Attend a first appointment
The First Appointment (or First Directions Appointment) is a short court hearing at which the judge will discuss your application. They will normally review your application, determine the next steps to be followed, and set out any deadlines to be followed.
Before attending, you and your ex-partner must provide “full and frank disclosure” of your finances using Form E (Financial statement for a financial order).
Attend a financial dispute resolution (FDR) appointment
At the financial dispute resolution (FDR) appointment, you will be provided with help to come to an agreement on your financial arrangements with your partner. The judge will help you to identify and seek to resolve the main issues at hand with the aim of limiting the financial costs, reducing any delays and reducing any emotional impact on the parties. Depending on the outcome, you may need more than one FDR.
Final hearing
If you cannot reach an agreement at an FDR, the judge may request a final hearing where they will make a final on how to divide your finances. Final hearings can last for 2 to 3 days or more in complex cases. Final hearings require considerable preparation, and both parties are required to attend. The final hearing involves detailed opening submissions, cross-examination, questioning, and closing submissions. Having heard the details of the case, the judge may make their decision orally in the hearing or in writing within one week of the hearing.
What does the court take into account for a financial order decision?
The judge will take into account a wide range of factors before making a final decision on a financial order, including:
- Business interests
- Disability or health condition
- Family role (e.g. who is the main earner/carer in the home)
- Financial needs
- Financial responsibilities
- Living expenses
- Money
- Property
- The ability to earn of both parties
- The age of both parties
- The standard of living of both parties
It is important to note that the reason for the divorce or dissolution will not be taken into account when determining a financial order. The role of the judge is ultimately to recommend the fairest division of assets taking into account the needs of all parties concerned. They will consider the needs of any children within the relationship first and foremost, including their living and child maintenance arrangements. Where possible, the judge will seek to arrange a ‘clean break’ so that all assets are shared, and no financial ties remain.
