“No-fault” divorce was introduced in England and Wales in April 2022. By removing the need to prove fault or some wrongdoing by the other party, the intention was to make the legal process more straightforward and amicable. We explain why it is important to consider Financial Orders Following a “No-Fault” Divorce.
With the divorce process simplified, many people now apply online without solicitor involvement. This has also meant, however, that some couples agree financial matters without legal advice as to what might be fair. Without a court-approved Financial Order, then any agreement will also not be legally binding.
At a basic level, a Financial Order severs financial ties and protects from any future claims by the other party and so provides a “clean break.” They can also include how assets will be shared and any responsibilities for maintenance and liabilities.
What are some of the risks of not obtaining a financial order during a Divorce or Separation?
- Unenforceable Agreements – Whilst informal agreements can be great in the short term, if one party then changes their mind, there is no real remedy available without a legally binding order.
- Pensions issues – Pensions can be one of the most valuable assets in a marriage but are commonly overlooked. Without a financial order, pensions cannot be shared, potentially leaving one party without sufficient pension provision in retirement.
- Provision for Children – Child maintenance is generally dealt with through the Child Maintenance Service but there can be other costs such as school fees which become an issue if not provided for.
- Future Financial Claims – Without a financial order, a party may find themselves subject to financial claims many years after the divorce concluded. Even if there are limited assets at the time of divorce, it is still wise to secure a “clean break” financial order preventing future claims in case of a change in circumstances.
- Inheritance disputes – If an ex-spouse dies without a financial order, the surviving spouse may still be entitled to make claims on their estate, potentially causing issues with other beneficiaries leading to costly and lengthy legal battles.
Early advice from a family law solicitor can help parties understand how to navigate the process and understand their rights. A solicitor can also help convert any agreement reached into a consent order to be formalised by the court.
A solicitor may recommend the mediation process when couples want help reaching an agreement or where a couple cannot agree, the court can make decisions on how to divide assets fairly.
If you are considering, or in the process of a separation, DTM Legal can help you understand your rights and help formalise any financial arrangements, ensuring the best possible outcome for you and your family.
With offices in Chester and Liverpool our Family Law Team are your trusted partners for legal excellence and outstanding service in your local area. If you would like to give us a call, we provide an initial complimentary 30-minute consultation with the option to provide advice over the phone or in person.
Email a member of the team directly or submit an enquiry:
Colette Blackburn – colette.blackburn@dtmlegal.com
