What exactly are Financial Remedy Orders?

 

When starting a divorce or dissolution of a civil partnership in the UK, understanding what financial remedy orders are, is essential. This legal framework plays a key role in ensuring a fair division of financial assets and responsibilities between parties. This blog aims to demystify these terms and explain their significance in relation to the no fault divorce system now in place in England and Wales.

 

Many of you reading this blog may have chosen to file your divorce yourself on the Government digital portal. You may think that once you have received your final decree, your finances are also dealt with. I am afraid that is simply untrue. The divorce only allows you to remarry, nothing more.

The only hint that this is an issue is on the page asking if you are a sole or joint applicant when you sign up to start your divorce application.

Understanding Financial Remedy Orders

 

A financial remedy order is a broad term for any court order dealing with financial settlements between individuals in the process of divorcing or dissolving a civil partnership in England and Wales.  Until recently the courts used the term ancillary relief to cover financial applications.

It encompasses various financial aspects such as property distribution, maintenance payments, and pension sharing. The core aim is to achieve an equitable financial settlement, with special emphasis on the welfare of any children involved.

 

Financial Consent Order

 

A financial consent order is a specific type of financial remedy order. It’s an agreement reached voluntarily between both parties about how assets and finances should be divided. Most financial remedy orders are by consent. Once agreed and signed the order is reviewed and approved by a court to ensure fairness and legality. This order becomes legally binding once approved, offering both parties protection from future financial claims.

 

Clean Break Order

 

A clean break order is another form of financial remedy order, designed to sever all financial ties between the divorcing parties. It means that neither party can make a financial claim against the other in the future. This is particularly useful for ensuring long-term financial independence and security post-divorce. Only cases where there is no ongoing financial commitment can have a clean break order.

 

The Process of Obtaining These Orders

 

The process in obtaining any financial remedy order begins with an application to the court handling the divorce or dissolution. The process involves full financial disclosure by both parties, followed by negotiations and, if necessary, court hearings. A judge may decide in a final hearing if an agreement is not reached, resulting in a legally binding order.

You cannot get a financial remedy order on Gov.uk

 

Although you can now apply for divorce digitally on Gov.uk you cannot apply for financial remedy order digitally. You are still advised to have a solicitor or other qualified legal professional preapre this for you as they are not template documents and can be quite complicated, even with minimal assets.

 

Glossary

 

1. Financial Remedy Order: A legal order from a court that settles financial disputes in the context of a divorce or dissolution of a civil partnership.

 

2. Financial Consent Order: A voluntary agreement between divorcing parties on financial division, made legally binding by court approval.

 

3. Clean Break Order: An order that ends all financial commitments between divorcing parties, preventing future financial claims.

 

What can Influence a Financial Remedy Order?

 

The court considers several factors when determining these orders, such as the welfare of children, the financial needs and capabilities of both parties, the standard of living during the marriage, the duration of the marriage, and contributions made by each party.

 

The Importance of Legal Advice

 

Given that these orders will regulate the finances of the couple post-divorce, seeking legal advice is crucial. A family law solicitor can provide guidance, representation, and ensure that the settlement is fair and reasonable. You can get decent quality legal advice for a fixed fee without breaking the bank.

Financial remedy orders, including financial consent orders and clean break orders, are essential in achieving a fair financial settlement in divorce or dissolution cases. Understanding these terms and their implications, along with seeking professional legal advice, can greatly assist divorcing individuals in getting through this challenging process.

We offer two solicitor-led options to help you formalise your financial agreement. You can choose to instruct OLS Solicitors directly for a fully managed, solicitor-led service, or use our sister company Divorce-Online, which provides a fixed-fee online consent order or clean break order service for couples who have already reached agreement and want a more streamlined approach.

If you would like advice on obtaining a financial remedy order, please contact me on livechat, by phone or request a callback and we can guide you.

Lucy