Just 40% of divorcing couples obtain a financial order on divorce according to research published in 2023. The research, cited in the Family Law Journal, November 2024, stated that of the 100,000 people who divorce each year just 40,000 obtain a financial order in England and Wales. Of those, 15% are over 60 years of age, and 47% are aged 45 and above.
It is concerning that 60% of divorcing couples have not formalised their financial arrangements in a legally binding way. This could have significant implications for them in the future.
It’s entirely possible to issue divorce proceedings online without the assistance of a solicitor, however, if divorcing couples issue proceedings on their own, they should seek legal advice regarding their financial position before becoming exposed.
The court process is well defined. Each step of divorce proceedings is emailed by the court and as the required passage of time passes, and with a few clicks of the button, you can find you are divorced and have your Final Order (previously called Decree Absolute) with little fuss.
It is likely that you will have reached some sort of agreement in relation to finances with your ex-spouse and, therefore, you might think, wrongly, that as you are divorced your matter is completed.
However, many people do not realise is that any financial claim against each party remain open even after you have received your Final Order in the divorce, unless you have a financial order in place.
This means that many years after your separation and divorce you could be contacted as by your ex-spouse who might be is looking to make a financial claim against you.
At that time, you will need to disclose your current financial position with supporting evidence disclosing 12 months of your current bank accounts and all your assets as they are now. Many people are uncomfortable disclosing financial information to an ex-spouse.
Further, the court has a wide discretion in resolving financial matters and whilst you can argue that assets you accrued and acquired post-separation should not be treated as matrimonial assets the court can share any asset, however they have been acquired, if it is needed to meet the needs of their ex-spouse. All assets however they have been obtained will need to be disclosed.
If you have managed to build up a savings pot, pay off your mortgage, increase your pension for your retirement you could find that not only will you have to disclose this information you may also have to give a share of it to your ex-spouse, for example.
Pensions are generally dealt with as a separate asset and if there is a discrepancy in cash equivalent valuations of pensions then the court is likely to look at the pensions being shared by way of a pension sharing order. Contributions that have been paid in post-separation could potentially be shared with your ex-spouse in these circumstances.
It is possible for a Financial Order to be entered into years after divorce so if you have fallen into this category, have divorced but have not entered into a Consent Order regarding your finances then it is not too late and I would urge you to obtain legal advice about your situation without any further delay.
The Consent Order does two things:
- It sets out the agreement that has been reached in relation to finances (or for more historical agreements would record what had happened) and
- Dismisses your rights to bring claims against each other in the future meaning that any assets you obtain or acquire after the Order is in place will remain yours.
Our family team at Girlings Solicitors offer all new clients an initial appointment at a reduced fixed rate which covers a face-to-face meeting with a specialist solicitor experienced in family law and a follow up letter of advice. Please contact us today to arrange a mutually convenient appointment.
