Financial Orders on Divorce

A financial order is the court order that settles how money, property and pensions are divided when a marriage or civil partnership ends. It can deal with the family home, savings and investments, pensions, a business, debts and any maintenance one of you will pay the other. Once it is made, it is legally binding and can be enforced.

You need one even if you have agreed everything between you. Without it, either of you could make a financial claim against the other in the future, because the divorce itself does not end those claims.

Most couples reach agreement, through direct discussion, negotiation between solicitors, mediation or collaborative law. The agreement is then written into a consent order and sent to the court with a statement of information about your finances. A judge checks it is fair and approves it, usually without a hearing. This is quicker, cheaper and far less stressful.

Where agreement is not possible, either of you can apply to the court on Form A. Before doing so you will normally need to attend a mediation information and assessment meeting (MIAM), unless an exemption such as domestic abuse applies. The court then manages the case through a set series of stages, and a judge decides if you still cannot agree.

Every financial settlement starts with full and frank disclosure. In court proceedings this is done on a detailed financial statement called Form E, with supporting documents such as bank statements, payslips, pension valuations and property values. The same information is needed for an agreed settlement. If one person hides assets or refuses to cooperate, the court can order disclosure, draw conclusions from the gaps and, in serious cases, set aside an order later.

There is no fixed formula and no automatic 50/50 split. The court looks at all the circumstances, with the welfare of any children under 18 as its first consideration. It considers each person’s income, earning capacity, needs and resources, the standard of living during the marriage, your ages and the length of the marriage, and the contributions each of you made, including looking after the home and family.

For assets built up during a marriage, equal sharing is often the starting point, but it can be departed from where one person’s needs, particularly for housing the children, require it. Assets owned before the marriage or inherited can sometimes be treated differently. We explain how these principles apply to your situation, so you know what a realistic outcome looks like.

• Property adjustment orders: transferring or selling the family home or other property.
• Lump sum orders: one person paying the other a sum of money.
• Pension sharing orders: splitting a pension so each person has their own.
• Spousal maintenance: regular payments for a set period or longer, where one person needs support.
• A clean break: ending all financial claims between you. Read more about clean break orders.

A financial order can be approved once the conditional order has been made, and it takes effect when the final order is granted. It is usually wise to have your financial order in place before you apply for the final order, because becoming divorced first can mean losing rights such as spouse’s pension benefits if your former partner dies. If you plan to remarry, start your financial claim first: remarrying can stop you making some claims of your own later.

1. 1
   Mediation information meeting

   Usually required before court. Many couples go on to settle in mediation.

2. 2
   First appointment

   If you go to court, the judge reviews disclosure, narrows the issues and sets a timetable.

3. 3
   Settlement hearing

   A financial dispute resolution hearing where the judge gives a view to help you settle.

4. 4
   Final hearing

   Only if you still cannot agree. The judge hears the evidence and decides.

It depends on how much is agreed. An agreed consent order costs far less than contested proceedings, where several hearings may be needed. In financial proceedings each person normally pays their own legal costs.

We do not offer fixed fees for financial matters, but we give you a cost estimate before we start. Our hourly rates are on the family law pricing page, and court fees are payable on top.

Family lawyers who will help you reach a fair settlement and make sure it is properly recorded.

Kiran SarkariaAssociate SolicitorDivorce and financial matters are at the heart of her practice, built over more than ten years in private family law.Tracy TalbotAssociate SolicitorQualified as a solicitor in 2003 and a trained collaborative lawyer, and a member of Resolution.Adrian CoggonConsultantAdvises across family law and mediates financial arrangements as a Family Mediation Council accredited mediator.

Yes. An informal agreement is not binding, and without a court order either of you can make a financial claim in the future. A consent order makes your agreement legally binding.

Not automatically. What you are entitled to in a divorce is not set by a fixed formula. The court looks at needs, especially housing for any children, each person’s income and earning capacity, the length of the marriage, the contributions each of you made and other factors. Equal sharing of assets built up during the marriage is often the starting point, and the fair result can be more or less than half.

It might be sold and the proceeds divided, transferred to one of you with the other compensated, or kept until the children are older. The right answer depends on everyone’s housing needs and what can be afforded.

An order that splits a pension, giving the other person their own pension fund. Pensions can be one of the largest assets in a marriage, so they should always be valued and considered.

You will usually need to attend a mediation information and assessment meeting before applying to court, unless an exemption such as domestic abuse applies. You do not have to continue with mediation if it is not right for you.

The court can order them to provide it, and it can draw conclusions against someone who does not cooperate. If information is hidden, an order can sometimes be set aside later.

The general rule is that each person pays their own costs. The court can order one person to pay some of the other’s costs if they behave unreasonably, for example by refusing to provide disclosure.

Usually after your financial order has been approved. Applying earlier can mean losing some rights, such as spouse’s pension benefits, so take advice first.