What is a financial consent order?
A consent order is the legal document that sets out the terms of the agreed settlement reached between the parties in divorce proceedings. This could include your home, bank accounts (whether in joint or individual names), shares, other investments and pensions. A draft consent order must be reviewed and approved by a Judge, then sealed by the Court before it becomes a legally binding court order.
We don’t have any financial assets – do we still need a consent order?
You absolutely do, the Consent order doesn’t just record the terms of any split of assets you have agreed, it also contains wording that means that you both agree to dismiss any future claims against the other. For example, if one person was to inherit money years down the line and no consent order had been entered into at the time of the divorce, then the other person could still be entitled to claim a share of that inheritance.
What happens if we don’t have a Consent order?
Couples who agree as to how they will split their financial assets at the time of the divorce could feel that it’s an unnecessary expense to obtain a consent order. But it’s important to bear in mind that the divorce settlement they have agreed would not be legally binding without one. The real price of a consent order, therefore, is peace of mind that this particular chapter is over and cannot be revisited again in the future, unless you have to enforce the terms of a consent order.
What is a “clean break”?
The Courts will try where possible to achieve a clean break between the parties. This means that you will no longer be tied to each other financially. There may be some instances where a clean break is inappropriate or cannot be achieved, for example where one party seeks periodical payments such as spousal maintenance. You should always seek legal advice about what is the best solution to suit your own individual needs, as this will vary greatly from case to case.
We have a Final Order, we are divorced aren’t we?
There are a lot of misconceptions about this. Whilst you may be divorced on paper, you will not be divorced financially, and will remain financially tied to each other in the future. This means that in the future one party could make a claim in respect of finances against the other party, even decades after the divorce was otherwise “completed”. This becomes particularly problematic if either party chooses to remarry in the future.
If you are divorced already you should always ensure that a consent order was approved and sealed by the Court at the time, and you should ensure that you keep a copy of this document safe and for future reference. If you do not have a consent order it is not too late to resolve this as a consent order can be entered into even after Decree Absolute has been granted, and even if this was some years ago.
We have reached a financial agreement between us, that’s it isn’t it?
If you have reached an agreement with your spouse in relation to finances / children matters, you may believe that this concludes matters, but it does not. This is particularly important if the agreement was reached in mediation as you will only be provided with a document called a Memorandum of Understanding which in itself is not a legally binding or enforceable document.
The terms of the agreement must be drafted into a consent order and the consent order must then be filed at the Court, approved by a Judge and sealed with a court stamp.
How we can help
At BWK our experienced family team can support and advise as to how to turn your agreement into a draft consent order ready for submission to the Court. Please contact one of our family law experts via e-mail at info@bwksolicitors.co.uk or telephone on 01494 773377. We are currently offering 30 minutes free legal advice when you book an hour initial consultation. Appointments can be arranged for you at any of our offices, or virtually at your convenience.
