Often when people think of divorce it is the Final Divorce Order, formerly the Decree Absolute, that is seen as the end of the divorce process but it doesn’t account for assets like property, pensions or business interests. These finances will need to be dealt with under a separate part of the process known as a financial remedy order.
If you don’t have a financial remedy order in place then potentially your ex-spouse could still make a claim against these assets even though your marriage has ended. There isn’t a time limit on these claims and in some cases a claim has been made many years later. Reaching this financial settlement and agreeing the division of assets and other financial agreements, such as ongoing support allows couples to plan for their futures apart. Good specialist legal advice will be invaluable in ensuring you have an appropriate order in place and helping make sure that no assets are missed.
Thinking about your finances
For people who have multiple assets such as property portfolios, savings, businesses or pensions we suggest getting both legal and financial advice early, certainly before you apply for the Final Divorce Order. Lots of people worry that doing this will impact the acrimony of the divorce but in reality with the right professional support it means that you have all the information to partake in open and honest conversations with your spouse about your current and future finances. The court is able to make an order by consent if you are both in agreement and there will be no need to do anything else.
If you can’t agree then you will need to issue Financial Remedy Proceedings and the Court will look at different factors to decide how best to proceed. Some of the things they will consider include:
- Current and future assets
- Financial needs
- The family’s standard of life before the marriage breakdown
- The ages of each party and
- length of your marriage
Financial remedy orders can help with fresh starts
In summary a financial order can enable both former partners to begin new chapters of their lives with a clear view of their financial circumstances. At the Family Law Company we work collaboratively with our clients and other professionals to help find the best outcome for them and their family.
Need some advice? Get in touch today