When couples decide to separate, one of the most important steps is agreeing on how the finances will be divided. This is where a financial consent order becomes very important, but what exactly is it, and why should you consider obtaining one?

What is a Financial Consent Order?

A financial consent order is a legally binding document approved by the Court which formalises the financial arrangements agreed by the parties following a judicial separation or divorce. This can include the division of assets, property, pensions, and maintenance payments. By obtaining a financial consent order, you ensure that your agreement is enforceable and that both parties are protected.

Why Do You Need a Financial Consent Order?

Even if you and your ex-partner reach a financial agreement privately, it carries no legal weight without a consent order. This means:

  • The agreement is not legally enforceable, allowing either party to ignore its terms.
  • If your circumstances change, for example, if you receive an inheritance or previously undisclosed assets are discovered, the other party may be able to apply to the Court to make a claim.
  • Without the Court’s approval, the financial arrangement remains open to challenge, potentially resulting in costly and stressful legal disputes in the future.

Therefore, having a consent order is essential for achieving legal certainty and finality, safeguarding you from future claims. This is commonly referred to as a ‘clean break order’.

When Should You Apply for a Consent Order?

If a mutual agreement is reached, a consent order should ideally be applied for after the conditional order (previously known as decree nisi) has been granted, but before the final order (decree absolute) is issued. This will allow the Court to review the financial agreement before the marriage is legally dissolved. While it is possible to apply for a consent order after the final order has been issued, it is advisable not to do so to avoid potential legal and financial complications thereafter.
In the event that the divorce is acrimonious or you are unable to reach an agreement amicably, exchange of financial disclosure and negotiations can take place prior to applying for the conditional order and once the order has been agreed, it can be submitted after the conditional order has been granted.

What Happens if You Don’t Get a Consent Order?

Without a consent order, any financial agreement you reach is essentially informal and not legally binding. This leaves you in a vulnerable position if disputes arise in the future and may result in lengthy, stressful, and costly Court proceedings. There has been an influx of cases recently where clients have thought that they have reached a financial settlement; however, months or years later, the other party have issued Court proceedings to make a financial claim.

Need Help with a Financial Consent Order?

Contact us today on 0118 9589711 or email us at info@barrettandco.co.uk to arrange a confidential consultation with one of our Family Law Solicitors to discuss your circumstances and the best way forward.