Do I Need a Financial Consent Order After Divorce?

When going through a divorce, your focus can be on immediate concerns such as your housing arrangements and childcare. However, one of the most important steps is legally formalising your financial agreement. You can do this with a financial consent order. If you don’t do this, you may be leaving yourself open to future claims from your ex-spouse. Here we explain what a consent order is, why it matters, and how to get one in place following your divorce.

A financial consent order is a legally binding document that outlines how your assets, income, pensions, savings, and debts will be divided after divorce. In effect, it turns your financial settlement into a court order. Even if you and your ex-spouse agree on everything, this agreement needs to be formalised by the court to make it legally binding.

Without a consent order, your financial ties remain open, potentially even years after the divorce. That could allow an ex-spouse to return in the future and make a claim on your finances, including inheritance and business income. By getting a consent order, you gain financial certainty and finality. It protects you legally from any further financial obligations between you and your ex.

A financial consent order can include details about:

• the division of property
• pension sharing orders
• lump sum payments
• spousal maintenance (ongoing payments from one ex-spouse to another)
• the division of savings and investments
• who takes responsibility for any debts.

Importantly it can also include a clean break clause, which prevents future financial claims. The court will review the order to ensure it is fair and reasonable towards both parties before approval.

Once you have reached a financial agreement. and your divorce has reached the conditional order (formerly known as a decree nisi) stage, you can then apply for a consent order. The court cannot approve the consent order until that point in the divorce process. However, work should begin on the agreement early, especially if the financial situation is complex or includes significant assets such as pensions or property.

To apply for the financial consent order, you will need to submit a consent order, drafted by a solicitor, a Form D81 (Statement of Information), which sets out both parties’ financial positions, and the £60 court fee.

Both you and your ex must sign the order to confirm you both agree to the terms. The documents are then sent to the family court for review. If approved, the order becomes legally binding. Consent orders require precise legal wording and we highly recommend that a family law solicitor drafts the order on your behalf.

Once submitted to court, a financial consent order typically takes 4 to 6 weeks to be approved, assuming there are no issues or further questions from the judge.

You and your ex-spouse should work through your family law solicitors to reach an agreement. You can also use mediation to help with the process. Once you have reached an agreement, a solicitor should draft the legal consent order and submit it to the court for approval.

Once approved by the court, a financial consent order is permanent and enforceable. It remains valid indefinitely, and its terms can only be changed in very limited circumstances, such as if there was fraud or a major change in circumstances.

Even if you have no property, savings, or pensions to divide, you should still apply for a clean break order. This is a type of consent order that confirms neither party can make financial claims against the other in the future. This protects you from your ex seeking a share of future assets, such as a windfall, inheritance, or increased income.

A separation agreement is a written agreement made before or instead of a divorce, outlining how finances will be handled. While useful, it is not legally binding in the same way as a consent order. A financial consent order, on the other hand, is a court-approved document that has full legal standing.

If you and your ex-partner cannot agree, you should consider mediation to help resolve any disputes. You can also apply to the court for a financial order (also known as “ancillary relief”) where a judge will decide how your assets should be divided – based on factors such as your income, contributions, needs, and the welfare of any children.

A consent order is necessary to protect your financial future after divorce. It gives you legal certainty, prevents future disputes, and ensures that your financial agreement is enforceable by law.

To speak to a solicitor about drafting or applying for a consent order, get in touch with our expert family law team today.

As leading family law solicitors in Milton Keynes our team of specialists can advise and guide you from the moment we start working with you. In addition to our head office in Milton Keynes, we also have offices in Bicester, Watford, and London where we can arrange appointments to see you in person. Talk to us in confidence and find out where you stand.

Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.