One of the most common misconceptions I come across when dealing with divorce and finances cases is about bringing to an end financial claims. I have had many conversations with clients who think that the divorce itself brings the financial claims to an end – it does not.
Even years after divorce, your assets could be at risk unless you sort out the financial claims within the divorce process. When you separate from your spouse, you can make a claim financially in respect of the assets. Financial claims can include a claim against a house, savings, pensions or income (spousal maintenance). Sorting this out is straightforward if you have agreed how the finances are to be dealt with. It involves filing an agreed order at the court (called a consent order), and providing to the court some basic information about your finances.
So for example if you have sold the house, divided the proceeds and you have decided to leave each other’s pensions and income alone, this can be included in a consent order to provide that there is a clean break. Without doing this, even after the decree absolute has been made, the financial claims remain live and are not time limited (although delay can have an impact on the success of a claim).
You should still consider having a consent order even if you do not currently have any assets … who knows what may happen in the future? You may receive inheritance or win the lottery! The consent order is like an insurance policy – it means that you have protection against claims in the future.
If you have done your own divorce, it is still possible to instruct a solicitor to prepare a consent order. The consent order can be filed at court any time after the decree nisi has been pronounced.
At Legal Studio solicitors, I can provide you with a free initial assessment to see whether a consent order is right for you and how to put it in place. I also offer fixed fees if you want to go ahead with a consent order.
Please contact specialist family finances solicitor, Angela Lally, for more information.
Posted: 16 September 2020