Financial order after agreed asset split

Hello! I am Gemma, your friendly legal assistant at Lawyer Destroyer. I can certainly explain how financial agreements work during a divorce.

The short answer is yes. Even if you and your ex-partner have reached a completely amicable agreement about how to divide your money and property, it is highly recommended to get a formal financial order from the court.

The legal position:

Ending your marriage through a divorce does not automatically end your financial relationship with your ex-partner.

If you only have an informal agreement between yourselves, it is not legally binding in England and Wales. Without a court order, your financial claims against each other remain entirely open.

This means that even years after your divorce is finalised, your ex-partner could potentially make a claim against your assets. This could include your future earnings, a new business, a lottery win, or an inheritance.

To prevent this, you need a specific type of financial order called a consent order. A consent order turns your informal agreement into a legally binding court document. Crucially, it typically includes a clean break clause. A clean break officially severs your financial ties and protects both of you from any future claims.

Practical next steps:

1. Write down the precise details of your agreement. Ensure you have covered everything, including what happens to the family home, savings, debts, and pensions.

2. Prepare a summary of your finances. Even though you agree, the court will need a snapshot of both of your current financial situations to check that the agreement is broadly fair and that neither of you is being left completely destitute. You will both need to fill in a court form called a D81 statement of information.

3. Have the consent order drafted. A consent order uses complex legal terminology. It is usually best to have a legal professional draft the exact wording of the order to ensure the clean break is absolutely watertight and that the court will accept the format.

4. Submit the paperwork to the court. You generally do this once you have reached the Conditional Order stage of your divorce. You will send your drafted consent order, your D81 form, and a court fee to the family court.

5. Await the judge's approval. Because you both agree, you will not need to go to a court hearing. A judge will simply review the paperwork in their office. If they agree the settlement is reasonable, they will seal the order. At that point, your agreement becomes legally binding.

Getting a consent order is a simple process when you already agree, and it brings peace of mind by allowing you both to move on with complete financial certainty.