Do I Need a Divorce Financial Court Order?
As specialist family lawyers we are often asked why a husband, wife, or civil partner needs a financial court order as part of their divorce or dissolution of civil partnership proceedings.
In this blog, our family law solicitors explain why you need a financial court order and what might happen if you don’t get one.
Online and London Family Law Solicitors
For family law legal advice call the London family lawyers at OTS Solicitors on 0203 959 9123 or complete our online enquiry form.
Why do you need a financial court order?
There are many different reasons why you may need a financial court order. It is best to speak to a family law solicitor about your personal and financial circumstances so they can highlight the benefits of a court order and the drawbacks of not getting one.
Often people assume that a financial court order is unnecessary as they have reached an agreement with their ex-partner or already divided their assets. Family lawyers say that even in those circumstances, it can be important to apply to the family court for a financial court order.
If you are fortunate enough to have reached an agreement then our family law solicitors can help you convert your agreement into a formal court order and submit it to the court together with the required paperwork. The court will normally approve the court order without the need for a court hearing.
Examples of why you need a financial court order even though you have reached an agreement
Examples of why you need a financial court order even though you have reached an agreement include:
- You are going to be getting spousal maintenance and the mortgage company wants a financial court order as evidence of the spousal maintenance payments so they can take the maintenance payments into account when assessing your mortgage capacity to either buy a new property or to have the family home and mortgage transferred from joint names to your name
- You are getting a share of your spouse’s pension through a pension-sharing order. The pension administrators cannot implement the pension sharing order unless the no-fault divorce proceedings have been finalised and a financial court order has been made
- You are concerned that your husband or wife could be made the subject of a bankruptcy order and that a trustee in bankruptcy would challenge any verbal agreement to transfer assets to you as part of your agreed financial settlement. If the agreement is contained in a court order it is less likely that the order can be challenged
- You are worried that your husband or wife may change their mind at a later date and argue that your ‘agreement’ was not a final financial settlement. For example, if your spouse gets the family home and you get to keep the family business. If property prices fall and you work hard in the business and sell your shares for millions will your ex-spouse try to claim a share arguing that there was no agreement or that the agreement was unfair? Your ex-spouse can't argue there was no agreement if there is a financial court order in place and it is far less likely that a court would accept that an order approved by the court was unfair unless your ex-spouse could show that the court did not have accurate information when it was asked to approve the agreed financial court order
What happens if you don’t get a financial court order?
If you don’t get a financial court order at the time of your no-fault divorce proceedings it may be possible to get an order at a later date. By delaying, you may risk your ex-partner wanting more or not being willing to cooperate in getting an agreed order.
If you are not able to secure an agreed financial court order at the time of your divorce, or at a later stage, you risk your ex-spouse or civil partner making an application for a financial court order. Therefore, you have no financial security or peace of mind.
There was a court case involving a successful businessman who was pursued for a divorce financial settlement many years after his separation from his ex-wife. At the time of their separation and divorce, they had very few assets and neither saw the need for a financial court order. At the date of the financial settlement application by the former wife, the ex-husband was a very wealthy man through the growth of his business. In other cases, a spouse may have built up a pension after the separation but not obtained a financial court order and clean break. They are at risk of a divorce financial settlement application being made by their ex-spouse. The claim could include a request for a pension-sharing order.
Why family lawyers recommend you get a financial court order
Sadly, it is often assumed that family lawyers recommend that you obtain a financial court order as a ‘money-making exercise’ for the lawyers but that isn’t the case. There are genuine reasons why you may need a court order.
On other occasions, people assume that a family law solicitor wants to talk about applying for a financial court order so they can reopen your negotiations and encourage you to start expensive divorce financial settlement proceedings. That isn’t the case unless the agreement is manifestly unfair or it is likely that the court would not approve the proposed order because what you are asking the court to order is not legally possible or because the proposed order clearly does not meet one person’s needs. For example, after a 20-year marriage, one spouse walks away with all the assets and the other spouse gets nothing. Even in that example, the outcome may be fair if the spouse leaving with nothing is the beneficiary of a large trust fund that will meet their housing and income needs.
It is best to discuss why you need a financial court order and the risks of not obtaining one so you can make an informed decision.
Online and London Family Law Solicitors
For family law legal advice call OTS Solicitors on 0203 959 9123 or complete our online enquiry form.
Related Posts
How does the court divide assets on divorce?
Apply for Spousal Maintenance Payments