Divorce is one of the most stressful life events. There are a number of emotional, practical and legal considerations that need to be handled such as finances, property and arrangements for children.
If you are going through a divorce you may have been advised to consider putting a financial order in place, which outlines financial arrangements between you and your spouse.
In this article, our experienced Divorce and Family Law Solicitor, Noelle Heath, explains what is a financial order, the different types available and why you need one.
What is a Financial Order in Divorce?
A financial order in divorce is a document which outlines financial arrangements between you and your soon to be ex- spouse upon divorce. When the Court has approved and issued your financial agreement, the arrangements set out in it are legally binding in England and Wales.
When divorcing the Decree Absolute document signifies the legal end of the marriage but it will not end any financial obligation between you and your ex-spouse. In order to formalise your financial commitments with your ex-spouse you need to apply to the Court for a Financial Order.
Even if you and your ex-spouse have no financial assets to divide it is advisable to obtain a financial clean break order as not only do these orders record the arrangements for distribution of any matrimonial assets they also dismiss any claim that you or your spouse may have against each other in the future .
Types of Financial Orders in Divorce
It is advisable you apply for your financial order before your divorce is finalised (Decree Absolute).
Often, divorcing couples can come to an agreement between themselves on how the finances should be divided because their divorce is amicable, or they have very few assets to divide. However, in some cases a couple may not be able to come to an agreement on the finances and may need assistance either through Mediation or by negotiation with a Divorce Solicitor. In the event that the dispute cannot be resolved either spouse can issue an application to court and ultimately a Judge will make the final decision on the distribution of the assets and any claim for financial support .
There are several types of financial orders in divorce, but which one(s) is most suitable for you depends on the circumstances of your marriage. Before you consider a financial order, it is recommended you speak to our experienced Divorce Solicitor, Noelle Heath, to find out which one is most appropriate for your circumstances.
What Are the Different Types of Financial Orders in Divorce?
When you have agreed and finalised the divorce financial settlement with your ex-spouse, you should apply to the Court for a financial order to make the arrangements legally binding.
Types of financial orders you may come across are:
- Pension Sharing Order
- Property Adjustment Order
- Maintenance Order
- Lump Sum Order
The Different Types of Financial Orders Explained
The type of financial order you will need depends on your circumstances. Below we explain the different types of financial orders:
- Pension Sharing Order –Divorcing couples may be entitled to a share of each other’s pensions. If so, a Pension Sharing Order should be obtained to outline how much of a pension(s) will be given to you and your ex-spouse. There are various factors that affect how much pension you’re entitled to. It’s advisable you speak to our Divorce and Family Law Solicitor who can explain your pension rights to you.
- Property Adjustment Order –The Order outlines what should happen to the family home, whose name it should be in, and who has the right to live there.
- Maintenance Order – In some circumstances the person with the higher income may need to make regular maintenance payments to their ex-spouse to help with the cost of living. Not everyone is entitled to receive maintenance payments from their ex-spouse. Who is entitled to maintenance payments depends on numerous factors, such as the length of the marriage, the earning capacity of each person and the financial needs of each person . The maintenance payment can be set for a limited time or until one of the ex-spouses dies, remarries, or enters a new civil partnership. Maintenance Orders can also be acquired on an interim basis during the divorce process.
- Lump Sum Order – This is an Order that requires one person to pay a lump sum of money to their ex-spouse. Although the order is known as Lump Sum the money can be paid in instalments.
Contact our Divorce and Family Law team on 033 3344 9600 to discuss the different types of financial orders available to you.
Experienced Divorce and Family Law Solicitors
Morrish Solicitors is a long-established law firm based in West Yorkshire providing a range of legal services regionally and nationally. Our experienced team of Divorce and Family Law Solicitors will listen to your individual circumstances and work efficiently to achieve the most suitable solution or outcome for your needs. We can provide support and advice on a range of matters including:
- Property & financial affairs
- Disputes concerning children
- Cohabitation agreement
- Prenuptial agreements
- Civil partnerships
- Domestic violence
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