Why you need a Finance Remedy Consent Order
When you’re going through a divorce, it is often an extremely sad and very stressful time. In their eagerness to simply ‘get it over with’, some spouses may miss out some crucial legal steps that could have a significant impact on their financial security in the future.
Say that and your ex-partner come to an amicable agreement about the division of your assets. You might even draw up and sign a document confirming these agreements between yourselves. However, it is vital to understand that nothing you agree is legally binding without a Financial Remedy Consent Order, which must be approved by a court. If not, you are leaving yourself open to future financial claims against your income, capital or pensions – even after your divorce is finalised.
Think about the future
This might not feel very important right now. You might not have substantial assets to split and you’re just ready to move on with your life. But let’s say you go on to inherit money or go on to accumulate considerable wealth in the future. Without a Financial Remedy Consent Order now, you could be leaving yourself vulnerable to claims on your now much more substantial assets – even if they were all accumulated long after your divorce was finalised!
At the end of the day, putting a Financial Remedy Consent Order in place is a much quicker process than a long, drawn-out and expensive court case down the line!
When applying for a Financial Remedy Consent Order, any agreements reached between yourselves, through mediation, or with the help of solicitors, will need to be drawn up in the correct legal format and submitted in court. Only then will they be legally binding.
To ensure that the agreement reached is fair and reasonable, it is imperative that both parties take independent legal advice.
Before any agreement is reached, both parties will need to fully disclose all their assets. This will ensure that the terms reached are not unduly favourable towards one partner and that both are left in a position to move on.
Once the Order has been approved, it is very difficult to change and neither party can make any new financial claims against the other. This enables the couple to move forward with their lives with peace of mind and financial security.
Who needs a Financial Remedy Consent Order?
We would recommend a Financial Remedy Consent Order for:
- Anybody going through a divorce, who has (or their spouse has) property, savings or assets in excess of £500, pension(s) or inheritance prospects.
- Those who, despite not possessing substantial wealth, would like a clean financial break.
- Those with children, who wish to ensure their children inherit their wealth and don’t want their ex-spouse bringing a claim later in life.
- Parties who are fairly amicable.
What are the alternatives?
If you and your spouse cannot come to an agreement, or relations are too hostile, the last resort will be to issue financial proceedings in court.
During these proceedings, a court will hear all the evidence and examine your respective finances and assets before handing down legally binding court order. The downside of going to court is that it takes matters out of your hands – and you may not be satisfied with the end result. Another downside is that court cases can be lengthy, costly and stressful, including a three-stage hearing process that can drag on for many months.
As specialist divorce lawyers who have seen first-hand the toll this process can take on our clients, we would always advise that you avoid litigation wherever possible.
Here to help
If you are separating from your spouse and would like advice on your options, our Family Law department would be happy to help. Please call us on 0330 221 8855 or email firstname.lastname@example.org to arrange an appointment.