What Is a Financial Consent Order and Why Is It Important After Divorce
A financial consent order is a legally binding court-approved document that formalises the financial agreements reached between parties. A financial agreement should include all the relevant financial issues, so for example, the division of assets, property, pension, savings, debts as well as the potential for spousal and/or child maintenance.
While many separating couples can reach an agreement between themselves, it is important to understand that an informal agreement, even is signed, has no legal bearing and would not prevent either party from making financial claims in the future.
Even once a divorce has been finalised, a party could still make a financial claim subsequently, even years later, when financial circumstances may have significantly changed, and claims could be made against post divorce assets.
A sealed financial consent order would provide peace of mind as to finality as to the matrimonial financial issues, ensuring that both parties are protected from future disputes and claims.
At Greens Solicitors Birmingham & Worcester, our divorce and separation lawyers regularly advise clients on securing financial settlements that protect their interests both now and in the future.
What Is a Financial Consent Order?
A Financial Consent Order is a legally binding document that records the financial agreement reached between divorcing parties. It sets out how assets and finances will be divided and may include arrangements relating to property, savings, pensions, lump sum payments, or spousal maintenance.
Once both parties have agreed terms, and provided divorce proceedings have been issued, with the Conditional Order of Divorce granted, the financial agreement is submitted to the Court for approval. In most cases, the Judge will review the agreement without requiring either party to attend a hearing. If the Judge believes the agreement is fair and reasonable, the Financial Consent Order will be approved and become legally binding.
Why Is It So Important?
A Financial Consent Order provides clarity and finality after divorce. Without one, financial claims between former spouses can remain open indefinitely. This means that even years after a divorce has been finalised, one party could potentially make a financial claim against the other.
By formalising the agreement through a Court Order, both parties gain certainty about their financial position moving forward. It ensures that the agreed arrangements are recognised by law and prevents unexpected claims arising later.
What Happens Without One?
Many people assume that once a divorce is complete, all financial ties are automatically resolved. In reality, this is not the case. If no Financial Consent Order is in place, financial claims can remain open.
This can create significant risks if circumstances change in the future. For example, if one former spouse later receives an inheritance, builds a successful business, or experiences a significant improvement in their financial situation, the other party may still be able to make a claim. Informal agreements, even if written down, are not legally binding without court approval.
How Greens Solicitors Can Help
At Greens Solicitors Birmingham & Worcester, our experienced divorce lawyers provide clear, strategic advice on financial settlements following divorce. We can help negotiate agreements, draft Financial Consent Orders, and ensure that your financial future is properly protected.
If you are going through a divorce or have reached a financial agreement with your former spouse, it is important to seek legal advice before finalising arrangements to ensure all relevant issues are provided for.
Contact Greens Solicitors today for practical, supportive guidance.
