posted 21st June 2023
DO I NEED A FINANCIAL CONSENT ORDER?
The short answer is – Yes you do.
A financial consent order is an incredibly important document as it brings about financial severance between the spouses. Without the order, a former spouse can make financial claims against you – even after the divorce has been finalised and years into the future.
It is not uncommon for one of the spouses to have a better understanding or control over the marital finances: this is a starting point that must be rectified. It is essential that both parties understand what they have by way of assets and debts, before they go on to discuss and agree what the fair settlement should be. It is also important to note here that what the parties may feel is fair, may not be fair in the eyes of the law. This is why it is crucial to engage a mediator/negotiator who has the requisite experience, skills and expertise to guide both parties through the process of financial disclosure and settlement negotiations.
Without the financial order, both parties are leaving themselves extremely vulnerable in the future to further claims being made against them – regardless of what they believed their agreement to be. The financial consent order is a legally binding order of the court, both parties are bound to adhere to its terms and no further claims can be made after its issue.
If the spouses cannot agree the terms of the settlement, a different course of action needs to be taken which would involve court proceedings.
It is most regrettable that spouses that part on civil terms, sometimes believe that neither of them would ever make a further financial claim on the other. Sadly this is very often not the case. Once a new partner comes into the picture for example, attitudes can change dramatically.
In summary, if both parties wish to achieve legally binding financial severance from each other and wish to negotiate the settlement by agreement, a consent order is the route to take.
