posted 20th October 2023
Financial Consent Orders: Frequently Asked Questions
What is a financial consent order?
A legally binding order of the court that formalises the financial arrangements between parties on divorce or dissolution. It sets out how assets, property and financial responsibilities are divided.
Why is it important?
It brings clarity, finality and enforceability. Without one, an agreement between the parties is not binding, and a former spouse can bring a financial claim years afterwards.
Who can obtain one?
Anyone going through a divorce or the dissolution of a civil partnership who has reached agreement on dividing assets, property and financial obligations.
Do I need a professional to obtain one?
The application is made up of several documents, one of which is the order itself. That is not something the parties can draft between them.
We draw up the order as part of the mediation, so there is no need to instruct a solicitor separately.
What should it include?
The division of assets, property ownership, spousal maintenance, child maintenance arrangements and any other financial matters requiring resolution. Clarity and specificity are essential to avoid later misunderstandings.
How is it enforced?
Once approved by the court it is binding. Where either party does not comply with its terms, the other can go back to court to enforce it.
Can it be changed after approval?
It depends on what is being changed.
Capital orders — lump sums, property transfers, pension sharing — are final once approved. They are not intended to be revisited.
Spousal maintenance is different. It can be varied up or down under section 31 of the Matrimonial Causes Act 1973 where circumstances change.
How does it differ from an order made after contested proceedings?
A consent order records terms both parties have agreed. An order made after contested hearings is imposed by a Judge.
The outcome is equally binding either way. The difference is the cost, the time and who decides the terms.
How long does it take?
That depends on the court's workload and is difficult to predict. Between two and twelve weeks is typical once the application is submitted.
Does it cover pensions?
Yes. Pension division can form part of the settlement, with any pension share dealt with through a pension sharing order which forms part of the consent order.
What if one party refuses to sign?
There is no order without agreement. Where one party will not sign, the options are further negotiation or mediation, or ultimately an application to the court for a decision.
Mediation is worth trying first. It resolves most of these situations at a fraction of the cost of a contested application.
If you have a question that is not covered here, get in touch for a free initial consultation.
