A question we are often asked is “do I need a financial consent order?” The answer is generally always yes.
It is a common misconception that the divorce process automatically deals with and concludes financial matters between separating spouses. The only way to achieve certainty with regard to financial matters is to obtain a financial consent order.
A financial consent order is a legally binding document that records the agreement reached between separating spouses in relation to the resolution of financial matters. The financial consent order sets out the arrangements for the division of capital assets, liabilities, pensions and income.
Even in circumstances where there are no matrimonial assets to be divided, a financial consent order is essential to achieve a “clean break”, effectively severing the financial ties between the parties and preventing any future financial claims. If a clean break is not obtained, those financial claims will remain open and may result in unwanted litigation several years down the line.
Whilst a financial consent order has to be approved by a Judge, there is no requirement for there to be ongoing court proceedings. If the parties are therefore able to reach an agreement, this can simply be drawn up into a financial consent order and submitted to court for approval.
Obtaining a financial consent order is vital to ensure finality with regard to the division of the matrimonial assets and each party’s financial claims.
For more information on the topic, please contact Richard Rigg.
