Financial Remedy Order - Do you need one?

With divorce applications now being completed online, the quick and easy process has led some to forget about a fundamental aspect of separation; division of the assets of the marriage. Legal steps needs to be taken even if you have reached an agreement on who is to get what to prevent financial claims being made in the future. A Financial Remedy Order sets out the financial agreement.

What is a Financial Remedy Order?

A Financial Remedy order sets out how the finances within a marriage will be dealt with upon divorce. It may be as simple as both parties leaving the marriage with an equal division of the assets or it may be complex with properties being sold, pensions being shared and lump sums being paid. The division of assets of the marriage depends entirely on your circumstances and what assets are within the marriage.

There are two types of Financial Remedy Orders:

1. A Consent Order- which is made by agreement
2. A Financial Remedy Order- made by a Judge in financial proceedings

Why do I need a Financial Remedy Order?

When divorcing, you may both already agree how the finances will be divided and come to an agreement yourselves. The benefits of having a financial remedy order are:

• Once sealed by the Court it is a legally binding agreement
• It acts as final resolution of how the assets of the marriage are to be divided
• It provides clarity and certainty about the division of the assets
• Allows for each spouse to plan financially for the future
• Can prevents any future claims (dependent on the terms of the agreement reached)

It is important to remember that if you do not bring closure to your finances, financial claims between spouses remain “live”. This means that years down the line, your then ex-spouse could still make a claim against your finances.

How do I get a Financial Remedy Order?

Discussions about finances can take place at any time following separation.

If you and your ex-spouse reach a mutual agreement without the need for a judge to determine how the assets of your marriage are to be divided, you will need a Financial Remedy Order by Consent (also known as a Consent Order). Your solicitor will draft this document. If intervention by a judge is necessary, this will be dealt with as part of the overall Financial Remedy Proceedings process.  

You will need to have issued a divorce application before submitting any agreement to the court. In all circumstances it is the court’s role to decide if the agreement which has been reached is fair.

Do I need a Financial Remedy Order even if we do not have any financial assets?

The answer is yes. A Financial Remedy order by consent ensure that any potential financial claims between you and your spouse are brought to an end. It will ensure that your ex-spouse cannot make a claim to any future inheritances, increase in income or lottery wins years later.

I need a Financial Remedy Order Order, what shall I do?

Every divorce is unique. Our  solicitors can guide you through the financial remedy process, advising you on the complexities of your situation. If you need any advice please feel free to call us on 01634 728111 or contact us at enquiries@martintolhurst.co.uk.