In this blog, family law solicitor Angelique Holm answers your questions on financial consent orders.
If you would like specialist legal advice on your financial settlement or assistance obtaining a financial consent order, contact HopeHolm Family Law in London.
Telephone 0203 488 8620, email info@hopeholm.co.uk, or visit HopeHolm Family Law.
Financial consent orders
A financial consent order is made at the request of divorced or divorcing spouses or civil partners. It sets out the financial agreement reached and records the division of family assets. If a financial agreement cannot be reached, a husband, wife, or civil partner can ask the court to make a financial court order after financial disclosure and a contested final hearing
Obtaining a financial consent order
The process to obtain a financial consent order involves ten steps:
- Reach a financial agreement.
- Draft a financial consent order.
- Negotiate on the wording of the order.
- The husband and wife complete a financial statement of information setting out their financial and personal circumstances.
- The draft order is sent to any relevant third parties for approval, such as the pension administrator, where a pension sharing order is sought.
- The parties sign the draft order and financial statement of information.
- The draft order and financial statement of information are submitted to the court for approval, and the court fee is paid.
- If a conditional order of divorce has been made or the divorce proceedings have been finalised, the order is referred to a judge for approval.
- The judge raises any questions about the draft order, and the parties or their family lawyers respond to the queries.
- The court sends the husband and wife or their family law solicitors the sealed financial consent order.
A judge does not simply rubber-stamp the agreement reached between a husband and wife. The court can ask questions about either the wording of the draft order or whether the order meets the needs of both the husband and wife. That is why it is crucial to take legal advice on the wording of the financial consent order and for your financial statement of information to fully explain financial and personal circumstances and how they will be affected by making the financial consent order.
Reaching a financial settlement
You can reach a financial agreement in several ways:
- Through solicitor negotiations.
- Directly with your spouse.
- In family mediation.
The court process for obtaining a financial consent order is the same whether you reach an agreement through solicitors, directly, or in mediation.
Contents of a financial consent order
A financial consent order is bespoke to you and your personal and financial circumstances. The order will normally cover:
- An order for the family home’s sale, transfer, or deferred sale.
- The payment of a lump sum.
- Ownership of assets such as investments, shares, or a family business. The order can include the transfer of bank accounts or the sale or transfer of shares.
- The payment of spousal maintenance.
- Pension provision – this is normally dealt with by pension offsetting or the making of a pension sharing order.
- Private school fees order – relevant if children are privately educated.
- Whether future financial claims can be made. The order could be a clean break order, a deferred clean break, or further claims could be left open.
The precise details and wording of the order need to be worked out after you have reached a financial settlement. A divorce solicitor can expertly guide you on the subtle differences in wording and explain the massive difference some words can have on your financial future. That’s why it’s important to consult a divorce lawyer about what should be included in the order or to carefully negotiate revisions to a draft order prepared by your spouse’s lawyer.
Frequently asked questions on financial consent orders
Do I need a financial consent order?
Anyone who is getting divorced needs a financial consent order. That’s the case even if you do not own a property or do not have a large pension. If you do not obtain a financial court order, your ex-spouse could bring future financial claims, including claims against assets purchased or obtained after your separation.
Do I need a financial consent order if I have a memorandum of understanding?
If you reach a financial settlement in family mediation, you still need a financial consent order to convert your MOU into a binding court order.
I didn’t get a financial consent order when I got divorced. What can I do?
If you did not obtain a financial consent order when you obtained your final divorce order, you may still be able to obtain one. Speak to a specialist divorce solicitor about securing a financial order.
Will my financial consent order include child support for my children?
The court can order spousal maintenance and, in limited circumstances, child maintenance. In most cases, child support is paid voluntarily or after assessment by the Child Maintenance Service. Child support can be ordered by the court to cover the additional costs of a child with a disability, to pay school fees, to provide financial support for a stepchild, or where global spousal maintenance and child support have been agreed upon.
Will a financial consent order stop all further financial claims by my former spouse?
A clean break financial court order will stop further financial claims if it includes an immediate clean break. Other court orders can include a deferred clean break. This means further financial claims cannot be made after the sale of the family home, or the pension sharing order has been implemented, or spousal maintenance is no longer payable. Without legal advice, it can be difficult for a husband or wife to understand the technical wording in a financial consent order. That’s why it is sensible to get an expert financial lawyer to draft the order for you or to check it on your behalf.
Do I need divorce solicitors to prepare a financial consent order for me?
The family court does not require you to have a family lawyer advise you on the financial settlement or on the wording of the order, but it’s best to do so. A divorce solicitor will ensure that the financial negotiations achieve a fair financial settlement for you and that the wording of the financial consent order reflects the agreement reached.
How much does a financial consent order cost to obtain?
Contact HopeHolm Family Law for a quote for your financial consent order.
Please telephone us at 0203 488 8620, email us at info@hopeholm.co.uk, or visit HopeHolm Family Law.