If you are seeking help with financial matters, you should speak to our team for advice that is relevant to your case.
What Is A Financial Order?
A financial order is a legal document that outlines how a couple’s finances will be divided when they get a divorce. It is also sometimes referred to as a “financial settlement” or a “consent order.”
A financial order can cover a wide range of financial issues, including:
- Division of assets, such as property, savings, investments, and pensions.
- Payment of ongoing maintenance to one party or the other.
- Payment of a lump sum to one party or the other.
- Payment of child maintenance for the children of the marriage.
A financial order can be agreed upon between the parties and then submitted to the court for approval. Once approved, it becomes legally binding and enforceable.
It’s important to note that obtaining a financial order is not always mandatory in a divorce. However, it is strongly recommended, as it provides certainty and finality in relation to financial matters and can help avoid any future disputes.
Why Is It Important In A Divorce?
A divorce financial order is important for several reasons:
- It provides clarity and certainty. A financial order provides clarity and certainty about how assets and finances will be divided between the parties, which can help to avoid misunderstandings and disputes.
- It offers legal protection. A financial order is a legally binding document that provides protection for both parties. It sets out the terms of the financial settlement, and if one party breaches the terms of the order, the other party can seek legal remedies to enforce it.
- It offers closure. A financial order brings closure to the financial aspects of the divorce, allowing both parties to move on with their lives without the worry of future financial claims.
- It secures future finances. A financial order can provide financial security for the future, by ensuring that each party receives a fair share of the assets and income, and by providing ongoing financial support if necessary.
- It can address situations related to tax. A financial order can address tax implications related to the division of assets and income, which can be complex and require careful consideration.
A divorce financial order is important because it provides clarity, legal protection, and closure. It is strongly recommended to obtain a financial order during a divorce to help avoid future disputes and provide certainty for both parties.
What Happens If I Don’t Have A Financial Order?
If you do not obtain a financial order during a divorce, there is a risk that your ex-spouse can make a financial claim against you in the future.
It may be recommended to consider obtaining a Clean Break Order even if there are no assets to divide, as this can help sever financial ties and prevent a former partner from making a claim for financial provision at a later time.
This blog post is information-only and should not be used in the place of legal advice. To discuss your own case, speak to our team.
How can you get help?
Our team of highly experienced family solicitors operate mostly in Birmingham and the Midlands, offering their expertise on a wide range of services.
To get in touch with our family law solicitors Mark Buttery and Laura Lambert, you can visit our contact us page, or contact us directly via the below details.
Laura Lambert: 07726329370 | [email protected]
Mark Buttery: 07726157297 | [email protected]