How to Get a Divorce Financial Order
27 March 2017
When you get a divorce in England or Wales the Court can issue different types of Financial Orders. Divorce Financial Orders can specify how your divorce financial assets should be dealt with, and make the decision legally binding.
How to Get a Divorce Financial Order
If you and your ex are in agreement about a Financial Order, there is no need to go to Court. A Divorce Lawyer can draft the Financial Order that you want and send it to the Court along with the Court fee. As long as a Judge thinks that it’s fair, the Financial Order will be granted.
However if there is a dispute over the division of financial assets in your divorce, you will need to attend a Court hearing. A Judge will then make the decision for you, and will include any Financial Orders that are considered necessary.
Once the Judge decides it is too late to make any changes, so it’s always best to get advice from a Divorce Lawyer about your options instead of going to Court.
Types of Divorce Financial Orders
There are different Financial Orders available and they each do different things. The most common are Consent Orders and Clean Break Orders.
A Consent Order sets out the details of your financial settlement, such as how the property will be split and how any savings will be divided. Consent Orders also contain a clause that severs the financial ties between you. Without this, your ex would be able to bring a financial claim against you at any point in the future, despite the fact you are no longer married.
Clean Break Orders are similar to Consent Orders, but are for people who don’t have any assets to divide, but still want to ensure any financial commitments are cut. As the name suggests, it gives you a clean break from each other. Lots of people think they don’t need a Financial Order because they have no money to split, but without a Clean Break Order, your ex could legitimately demand further money from you in the future.
For more information see Consent Orders and Clean Break Orders.
Other Divorce Financial Orders include
A Periodical Payments Order, also known as a Maintenance Order, is when one person must provide the other with regular financial support. Money is often paid on a monthly basis, and the Court will state how long this should continue for. If the circumstances change, it’s possible to ask the Court to amend or stop the Order. Additionally, if the person receiving the payments dies or remarries, the Periodical Payment Order automatically ends.
Lump Sum Provision Orders are when one person must pay the other a lump sum of money. The Court will say how much the lump sum must be, and whether or not it can be paid in instalments. Often this is needed when one person is keeping a certain asset – such as the family home – and so the other person requires payment as a form of compensation. Or it may be that one person is much wealthier than the other, and so is ordered to give their ex-spouse a portion of money that he/she can live off.
Property Adjustment Orders say what should happen to property that is owned either solely or jointly. The Court can order a number of different things. For example, that the property be transferred into one person’s name, that the property be sold and the equity split in a certain way, or that the sale of the property be delayed until a certain time – such as the children finishing full-time education.
Pension Sharing Orders determine how each of your pensions should be split between you. Often one person has built up a larger pension than the other. If so, the Court may decide that the pension pot should be shared. The recipient will receive a percentage of the pension, and the transfer value will be calculated the day before the Order is implemented. It will be transferred to their own pension, or a new pension can be made.