Many people assume that once their divorce is finalised, all ties with their former spouse are brought to an end.
Whilst the legal marriage may have ended, that is not true when it comes to finances.
A surprisingly large number of couples reach an agreement between themselves about the family home, savings and other assets, only to discover later that their financial arrangements were never legally finalised.
This can leave the door open to future claims and create uncertainty long after the divorce itself has been concluded.
A Divorce Does Not Automatically End Financial Claims
The Final Order (formerly Decree Absolute) in divorce proceedings brings the marriage legally to an end, but it does not automatically prevent either party from pursuing financial claims against the other in the future.
To achieve that protection, a formal financial order approved by the court is required.
Without a financial consent order, an informal agreement, even one that has been followed for years, may not provide the certainty that many people believe it does.
Why This Can Become A Problem
At the time of separation, a couple may have limited assets and feel there is little worth arguing about.
They may decide to simply move on with their lives without seeking legal advice or obtaining a court order. However, circumstances rarely stand still.
A person may later receive an inheritance, develop a successful business, build up substantial pension benefits, or purchase property.
If financial claims have not been properly resolved through the court, past financial ties may continue to create potential risks years down the line.
Certainty and Peace Of Mind
A financial consent order records the agreement reached between separating spouses and, once approved by a judge, makes that agreement legally binding.
It provides clarity about what each party will receive and can also bring future financial claims to an end where appropriate.
For many clients, the greatest benefit is not the division of assets itself, but the reassurance that there will be no unexpected financial disputes years later.
“We Don't Have Any Assets” Is Not A Reason To Ignore It
One of the most common reasons people give for not obtaining a consent order is that there is little or no money to divide.
In reality, a consent order can be just as important in straightforward cases as it is in high-value divorces.
The absence of significant assets today does not mean there will be none in the future.
Taking steps to formalise matters can help avoid uncertainty and reduce the possibility of future disagreements.
Looking Ahead
Divorce is often about creating a fresh start. Ensuring that financial matters are properly documented and approved by the court can be an important part of achieving that goal.
A financial consent order is not simply an administrative exercise; it is a practical safeguard that can provide certainty, finality and protection for the future.
For most people, obtaining one is a sensible step towards drawing a clear line under the financial aspects of the marriage and moving forward with confidence.
If you are divorcing or have divorced without obtaining a financial consent order, our Family Law team can advise you on your options and help protect your financial future.
Contact us today to see how we can help.
Please note that we are unable to offer free legal advice. Our client services team are here to take your case details and explain any costs involved
If you would like to speak to our expert legal team about this, or any related subject then please contact our team by phone on 0207 936 6329, Email or by completing our Quick Contact Form below.
Please note that we are unable to offer free legal advice. Our client services team are here to take your case details and explain any costs involved