Different Types of Financial Orders
These are some of the key Financial Orders:
- Consent Order
- Clean Break Order
- Lump-Sum Order
- Maintenance Order
- Pension Sharing Order
- Property Adjustment Order
Here’s some more information about each of these Financial Orders so you can see which ones may best suit you and your situation.
A Consent Order is a Court Order that sets out the financial agreement between you and your partner after a divorce. This will finalise how your assets and debts should be divided. A Consent Order will make the agreement legally binding and enforceable by the Court.
In some cases, couples can decide how their finances will be divided by themselves but most couples need someone else there to help them work through the issues. This can be achieved with negotiations through Mediation, a Divorce Solicitor or a Judge.
The Judge will only grant a Consent Order if the agreement is fair and reasonable to both people. The Consent Order will contain a ‘clean break’ clause - this clause ends the financial commitments that exist between you and your former partner meaning that your former partner cannot make any financial claim against you in the future.
If an agreement cannot be reached, then you will have to go Court where a Judge will decide on your behalf.
Clean Break Order
A Clean Break Order is similar to a Consent Order in that it severs the financial obligations between you and your former partner. A Clean Break Order is used where there are no matrimonial assets to divide, but you still want to cut the financial ties between you.
If you get a divorce and you don’t get a Consent Order or a Clean Break Order, you may still be bound by financial obligations between you and your former partner. In real terms, this means that if your former partner doesn’t remarry, they could demand money from you in the future if you come into an inheritance, become very successful or win the lottery.
A Lump Sum Order is where one person will pay to the other a lump sum of money. This is often ordered by the Court where one person will keep something in return for their payment, such as the family home. In this instance, the property would be transferred into their name and a lump sum would be paid to the other person for their share of the value of the property.