When a couple divorces in the UK, financial matters must be settled to ensure a clean break. A Financial Consent Order is a legally binding document that formalizes how financial assets, liabilities, and property will be divided between the two parties. This article explains the key aspects of Financial Consent Orders, the application process, and the timeline involved.
What is a Financial Consent Order?
A Financial Consent Order is a legal document that outlines the financial agreement between divorcing or separating spouses. Once approved by the court, it becomes legally binding, meaning both parties must comply with the terms. It covers areas like:
Division of assets: Including property, savings, and investments.
Spousal maintenance: If applicable.
Pensions: How these will be divided or shared.
Debts: Allocation of responsibility for debts.
Child maintenance: Although this is usually handled separately through the Child Maintenance Service (CMS), it can be included if both parties agree.
Why is a Financial Consent Order Important?
Without a Financial Consent Order, either party can make financial claims against the other in the future, even years after the divorce is finalized. This order ensures that both parties are clear on their financial obligations and rights post-divorce. It protects each spouse from future claims, providing certainty and security.
Steps in a Financial Consent Order Application
Agreeing on Financial Terms
Before applying for a Financial Consent Order, both parties must agree on how their finances will be divided. This agreement can be reached privately, through mediation, or with the help of solicitors. If the couple cannot reach an agreement, they may need to go to court for a judge to decide.
Drafting the Consent Order
Once the financial agreement is reached, a solicitor drafts the Consent Order, which sets out the terms of the financial settlement in a legal format. This document must be clear, comprehensive, and legally sound.
Submitting the Consent Order to Court
The draft Consent Order is submitted to the court alongside a Form A and a Statement of Information (Form D81). The D81 form includes details of both parties' financial positions and confirms that the agreement is fair and reasonable.
Review by a Judge
A judge will review the Consent Order to ensure that the terms are fair to both parties. If the judge is satisfied, they will approve the order without a hearing. However, if the judge feels that the agreement is unbalanced or unfair, they may request a hearing for further clarification or modifications.
Finalizing the Order
Once the judge approves the Consent Order, it becomes legally binding. Both parties must comply with its terms, and any breach can be enforced by the court.
Timeline for a Financial Consent Order
Agreement on financial terms: This can vary depending on the complexity of the assets and whether both parties cooperate. It may take anywhere from a few weeks to over a year period.
Drafting the Consent Order: This typically takes a few days to a week, depending on the solicitor’s availability.
Submission to the court: Once the order is drafted, it can be submitted to the court. The court generally takes 4 to 8 weeks to review and approve the order, provided there are no complications
A Financial Consent Order is essential for ensuring a clear and binding agreement regarding financial settlements after a divorce. It offers both parties protection from future claims and brings certainty to their financial futures. The process involves negotiating the financial terms, drafting the order, and obtaining court approval. While the timeline can vary, the typical process from agreement to court approval takes several months.
Consulting with a solicitor during this process is highly recommended to ensure that your agreement is fair and legally binding, protecting your financial interests moving forward.
