By Tulshi Shah, Divorce Solicitor, Vyman Solicitors

Getting divorced in England and Wales and resolving your finances are two separate legal matters. A final order in divorce ends the marriage, but it does not, by itself, determine how your finances should be dealt with or dismiss financial claims between former spouses.

Where a couple has reached an agreement about their finances, a financial consent order can record that agreement and make it legally binding once approved by the Family Court. Depending on the circumstances, it can also provide for a clean break after divorce and dismiss specified future financial claims.

This is particularly important where couples separate amicably, have already divided their assets or believe there is simply nothing to divide.

What Is a Financial Consent Order?

A financial consent order is a court-approved document recording the financial settlement agreed between divorcing spouses. It can deal with property, savings, investments, pensions, business interests, spousal maintenance and other financial arrangements.

Importantly, reaching an agreement privately is not the same as obtaining a court-approved financial order. Even where both spouses agree how their finances should be dealt with, formalising the divorce financial settlement through the court can be important in bringing financial matters to a legal conclusion.

What Wyatt v Vince Tells Us About Financial Claims After Divorce

The importance of formally addressing finances following divorce was highlighted by the Supreme Court decision in Wyatt v Vince [2015] UKSC 14.

Kathleen Wyatt and Dale Vince married in 1981, separated in the mid-1980s and divorced in 1992, when there were very limited financial resources between them. Mr Vince subsequently founded the renewable energy business Ecotricity and became a wealthy businessman.

Many years after their divorce, Ms Wyatt made an application for financial provision. The case reached the Supreme Court, which confirmed that there is no statutory time limit for bringing certain financial claims following divorce. Although the substantial delay was highly relevant to the nature and extent of any award, it did not prevent the application from proceeding.

The case was subsequently settled, but its wider significance remains: getting divorced does not necessarily bring financial claims between former spouses to an end.

Do I Need a Financial Consent Order If We Have No Assets?

This is a question I am frequently asked as a Family Law Divorce solicitor.

Clients may have no property, significant savings or substantial pensions. They may have agreed that each will keep what they have and see little reason to obtain a financial order.

But financial circumstances can change. Careers develop, businesses grow, property is acquired and wealth can accumulate over time.

Wyatt v Vince is an unusual case and does not mean that a former spouse will automatically succeed with a financial claim years after divorce. Every case is considered on its individual circumstances, and significant delay can be highly relevant.

What it does demonstrate is why couples should consider formally resolving their financial position rather than assuming the divorce itself has done so.

Consent Order or Clean Break Order?

A financial consent order and a clean break order are not necessarily the same thing.

A consent order records financial arrangements agreed between the parties and approved by the court. A clean break can dismiss certain future financial claims between former spouses.

Not every divorce will be suitable for an immediate clean break. For example, ongoing spousal maintenance may be appropriate. The right financial settlement on divorce will depend on the couple’s assets, income, needs and wider circumstances.

Is an Informal Financial Agreement Enough?

Couples frequently divide their finances themselves. The family home may have been sold, savings divided and both parties may have moved on.

Reaching an agreement amicably is positive, but an informal agreement does not necessarily provide the same legal protection as a court-approved financial order.

A properly drafted consent order records what has been agreed and, once approved by the court, makes the agreement legally binding.

It is also worth seeking advice if you divorced some time ago but never obtained a financial order. What should happen next will depend on your individual circumstances.

Divorce Solicitors in Harrow and London

At Vyman Solicitors, our experienced divorce solicitors in Harrow advise on divorce and financial settlements, from straightforward consent orders to complex matters involving property, pensions, businesses, investments and other significant assets.

Led by Zharna Sutaria, Director and Head of Family Law, our Family Law team supports clients at every stage of divorce, including negotiating financial settlements, preparing consent orders and advising those who have already divorced without formally resolving their finances.

If you have reached a financial agreement with your former spouse, are currently going through a divorce or are unsure whether your finances were formally resolved following an earlier divorce, speak to Tulshi or our Family Law team before taking the next step.

This article is intended for general information only and does not constitute legal advice. The law referred to applies to England and Wales. Individual circumstances vary and specialist legal advice should be obtained.