The Importance of a Financial Order upon Divorce | Kew Law

What is a Financial Order?

A financial order sets out how the matrimonial assets including property, pensions and bank accounts will be divided between the parties upon divorce. A financial order can be reached by the consent of the parties or determined by the Court within financial proceedings.

Why is a Financial Order Important?

A financial order ensures that both parties are awarded a fair portion of the matrimonial assets upon divorce. It also ensures that no further financial claims can be made by either party against each other, in respect of their finances. If the finances remain unresolved, parties can leave themselves exposed to possible future financial claims, even years after the parties are divorced.

Furthermore, where a financial order is obtained, if one of the parties fails to adhere to the legally binding terms, there are penalties for non-compliance. Where parties resolve their matrimonial finances by way of an informal agreement, this could mean there are difficulties in ensuring the other party complies with the agreement, or there may be difficulties in preventing the other party from subsequently seeking enhanced financial terms.

Financial orders can include a wide variety of provisions such as spousal maintenance, property transfers and pension sharing orders. This means that orders can reflect many different scenarios and can be drafted to reflect exactly what each party needs.

Even where there may be few or no assets from the marriage, it is advisable to obtain a clean break financial order to prevent an ex-spouse from making a financial claim against future assets.

Here at Kew Law LLP, our specialist matrimonial financial solicitors are happy to discuss the above issues with you at your convenience. Call us today on 0800 987 8156.

For more information check out our other blog about financial orders: Do You Need a Financial Order in Divorce or Dissolution? | Kew Law