A Complete Guide to Divorce Financial Settlements in England & Wales
By Laker Legal Solicitors — Trusted Family Law Experts
Why a Financial Order is Essential
When you get divorced, it’s easy to assume that once the Final Order (previously called the Decree Absolute) is granted, your legal ties are completely cut. But, unless you also get a financial order, that assumption could cost you, sometimes years down the line.
A financial order ensures that both parties understand exactly how money, property, and other assets are to be divided. More importantly, it protects you from future financial claims from your ex-spouse. Without one, you remain financially vulnerable, even if you believe everything is settled.
What is a Financial Order?
A financial order is a legally binding document approved by the Family Court during or after divorce proceedings. It sets out how assets, income, pensions, and other financial matters will be shared between the couple. It can provide a clean financial break between the parties.
Once granted by a judge, the financial order becomes legally enforceable. Both parties must follow the terms of the order, and any breach can be challenged in court.
What Can a Financial Order Include?
A financial order can cover a wide range of financial issues, including:
- What happens to the family home and other property
- Division of savings, shares, or investments
- Allocation of pensions
- Ongoing spousal maintenance (where necessary)
- Lump sum payments
- Responsibility for debts
- Whether a clean break is to be achieved
The court will only approve a financial order if it believes the terms are fair and both parties have disclosed their full financial circumstances.
Common Types of Financial Orders
Consent Order
A consent order records an agreement reached between you and your ex-spouse. It’s typically used when you’ve already decided how to divide your finances and want to make that agreement legally binding. Once signed by both parties and approved by the court, the order prevents future claims and enforces the agreed terms. Remember, it must be fair.
Clean Break Order
A clean break order legally severs all financial ties between you and your former spouse. After this order is granted, neither of you can make a financial claim against the other in the future. Even if one of you wins the lottery or inherits wealth later, no further claim can be made.
Maintenance Order (Periodical Payments / Spousal Maintenance)
This order requires one person to make regular payments to the other, usually where there’s a significant income imbalance or where one party needs support for a period of time following divorce. If there isn`t such a claim, there will be a clean break order.
Pension Sharing and Lump Sum Orders
In cases involving pension wealth or complex assets, the court may make a pension sharing order or instruct one party to make a one-off lump sum payment to the other to achieve a fair outcome.
What Happens Without a Financial Order?
You may think your agreement is fair, informal, and final — but without a court-approved order, it has no legal weight. This means your ex Spouse can return months or years later to make a claim on your current or future wealth.
The most well-known example is the Wyatt v Vince [2015] case. In this case, a woman successfully claimed a financial settlement from her ex-husband 18 years after their divorce — because no financial order had been made.
Why Timing and Legal Closure Matters
Let’s say you divorce amicably and divide everything informally. You move on with your life, build a business, and accumulate wealth. Years later, your ex-partner finds themselves in financial difficulty and makes a claim for a share of your assets, and they win.
That’s exactly what happened to Tom.
Tom and his ex-wife divorced over a decade ago. At the time, neither had significant assets. They agreed between themselves to go their separate ways.
But years later, Tom grew a successful company. His ex-wife returned to court, arguing that she had sacrificed her career for the marriage and was entitled to a share of his success.
Because they had never obtained a clean break financial order, the court allowed the ex Wife`s claim. Tom had to settle for a significant lump sum, one that could have been avoided with a simple court-approved order at the time of divorce.
This case shows that even the most amicable divorces need to be finalised legally, and the earlier, the better.
How to Get a Financial Order
If you and your ex agree on terms, a solicitor can draft a financial consent order and submit it to the court. You’ll both need to provide financial details of your respective positions, and if the judge is satisfied that the agreement is fair, it will be approved without the need for a court hearing.
If you can’t agree, the process becomes more involved. One party must apply for a financial remedy order, triggering a series of court hearings where a judge will decide how finances are split. This process includes full disclosure, negotiations, and potentially a final hearing.
At Laker Legal, we support you every step of the way — whether you need us to draft a simple order or represent you in a complex financial dispute.
When Should You Apply for a Financial Order?
You can apply for a financial order any time after the divorce application is issued. However, most people apply once the divorce reaches the conditional or final stage. You can even apply after your divorce is finalised — but we strongly advise against delaying. You can only apply for a financial order by consent once there has been a conditional order made by the Court.
Acting early avoids future complications and strengthens your position if circumstances change.
Why Choose Laker Legal Solicitors?
At Laker Legal, we help people like you protect what matters most. Our experienced family law team advises on financial settlements ranging from straightforward asset splits to high-net-worth divorce cases involving pensions, properties, and businesses.
You can expect:
- Clear legal advice in plain English
- Transparent costs
- Expert guidance on clean break agreements
- Strong representation in court, if needed
- Total discretion and support throughout
We work nationwide and offer remote appointments to make things as convenient as possible for you.
Start Protecting Your Financial Future Today
Divorce is a fresh start — but only if it’s done right. Let us help you put the legal foundations in place so you can move forward with certainty.
