8 Different Financial Orders in Divorce
A number of Divorce Financial Orders are available, depending on the circumstances of the divorce. You might have matrimonial assets or money in the bank to divide up. A Divorce Solicitor is best placed to help you and determine which type of Financial Order is best for your circumstances.
Consent Order – This sets out how your assets are divided once you and your ex have come to an agreement. A Consent Order is only granted once a Judge views the agreement as fair and reasonable for both of you and any children. The Order contains a ‘clean break’ clause and works best for couples with matrimonial assets to divide.
Clean Break Order – This also ends your financial obligation to your ex. This Order works for couples who have no assets to divide but who still want to cut financial ties.
Pension Sharing Order – This decides how shares of pensions are split. Factors include age, length of the marriage, future career prospects and personal needs.
A Lump Sum Order – Requires one person to give the other a lump sum of money. Usually, the person making the payment gets to keep something else in return, such as a greater share in the family home, or another capital asset. The money may be paid in instalments where agreed.
Property Adjustment Order – Refers to the family home, whose name it is held in, who has the rights to live there and whether this is to be transferred to one party or whether it should be sold.
Maintenance Order – This determines how spousal maintenance must be paid to the financially weaker person and for how long.
Freezing Order – This type of Order freezes someone’s assets, meaning the assets can’t be disposed of or transferred to someone else’s name or an offshore account.
Enforcement Order – These Orders are necessary where you have a Financial Order but your ex fails to comply with the terms.
Cutting Financial Ties
While a Decree Absolute brings your marriage to a legal end, your ex can still make a financial claim against you in the future. This can include any money you receive from an inheritance, or assets you accumulate over a long period of time.
Another reason to get a Divorce Financial Order is simply because divorce is a complex legal process and loose ends need to be tied up. Financially, you will have to consider:
- How are you going to split the equity of your home?
- Is there a pension that should be shared?
- How much child maintenance is going to be paid?
- Is one person going to provide the other with spousal maintenance?
Unsurprisingly, not all divorce cases are amicable. Some even have very few, or no matrimonial assets to divide, whereas others are complex and stressful situations for everyone involved, especially children.
Our Divorce Solicitors can take the difficulty out of the equation. We will provide you with clear options, assessing your situation and taking a sensitive approach to your needs.