Many clients who come to see us about Divorce proceedings do not realise that it is also important to formally settle the financial aspects of their marriage alongside the divorce proceedings. Even where parties are amicable and are able to easily reach agreement as to how their finances should be divided, it is important to ensure that any agreement is made formally as a Court Order.

There are a number of ways that financial settlement can be dealt with on Divorce, including court proceedings where there is a dispute as to how the finances should be dealt with. The most common way is for parties to reach agreement, whether direct or through negotiation with the assistance of solicitors or mediators, which then needs to be consolidated into a Consent Order.

A Consent Order is a document prepared to confirm the financial settlement reached between the parties, which is then approved by the Court to become legally binding upon the parties.

The terms of the Consent Order will be specific to the parties individual circumstances and can include agreements as to what will happen to properties, pensions, savings and investments, debts etc, alongside other issues.

If a financial order, whether by Consent or following Court proceedings, is not made alongside the Decree Absolute of Divorce, it remains open to parties to make financial claims against each other in the future. It is also important to reach a financial settlement before any remarriage, as remarriage impacts upon the Orders that may be available in the future.

Put simply, it is best to resolve all issues at the same time to ensure no future problems and for peace of mind that everything is behind you.

If it is not possible to reach agreement as to how your finances should be resolved, Court proceedings can prove necessary in order to resolve the issues, with a Judge ultimately making a decision if you are not able to do so. However, Court proceedings can be costly and stressful and therefore should be a last resort.

If you are concerned about any of the issues raised in this article please contact the Family Department on 01756 799000.