A financial order is a legally binding court order setting out how finances will be dealt with following a divorce or the dissolution of a civil partnership. It may cover property, pensions, savings, debts, maintenance and future financial claims.

The divorce process does not resolve these matters automatically. Even after the final order legally ends your marriage, financial claims between you and your ex-partner may remain open.

A financial order can record an agreement you have reached together or set out a decision made by a judge where agreement is not possible. In both cases, the order provides clarity about your responsibilities and protects your financial position for the future.

Our family law solicitors advise on agreed and contested financial applications, from straightforward clean breaks to financial settlements involving businesses, property portfolios, pensions, trusts and international assets.

What Does a Financial Order Do?

A financial order turns arrangements between you and your ex-partner into a legally binding settlement. It confirms what will happen to your assets and whether either person must provide ongoing financial support.

There are two main ways to obtain a financial order:

• By agreement: you and your ex-partner agree how your finances should be dealt with. The terms are drafted into a consent order and sent to the court for approval.
• Following a dispute: where you cannot reach an agreement, either person can apply to the court. A judge can ultimately decide the outcome and make a financial order.

An informal financial agreement is not the same as a court order. Even where both parties intend to follow the arrangement, it will not provide the protection or enforceability of an approved order.

A financial order only becomes binding once it has been approved and sealed by the court. A judge will review an agreed consent order rather than approving it automatically.

Why Might You Need a Financial Order After Divorce?

One of the most common misunderstandings about divorce is that the final order also ends the couple’s financial ties. It does not.

Without a financial order, one person may still be able to bring certain financial claims against the other in the future. This could remain relevant even if there were few assets to divide when the divorce took place.

A financial order can:

• Make an agreed financial settlement legally binding
• Confirm what will happen to property, pensions and other assets
• Set clear deadlines for payments or property transfers
• Establish whether spousal maintenance will be paid
• Provide a clean break from future financial claims, where appropriate
• Give both parties greater certainty as they plan for the future

A clean break order may be particularly important where ongoing maintenance payments are not necessary. A clean break formally dismisses future financial claims between the parties rather than leaving them open indefinitely.

You may also need an order to implement parts of your settlement. For example, pension providers generally need a pension sharing order before they can divide pension benefits.

Our solicitors provide strategic legal advice on financial settlements that are fair, workable and suitable for each person’s long-term circumstances.

What Can a Financial Order Include?

The contents of a financial order will depend on the assets involved, the needs of each person and whether ongoing financial support is required.

A single financial order may combine several types of provision.

Property adjustment orders

A property adjustment order determines what will happen to the family home or another property. The court may order that a property is:

• Sold and the proceeds divided
• Transferred from one person to the other
• Retained by one party, subject to agreed conditions
• Sold at a later date, such as when a child reaches a specified age (often referred to as a Mesher order)

These orders may also deal with investment properties, holiday homes and overseas property.

Lump sum orders

A lump sum order requires one person to pay a fixed amount to the other. Payment may be made at once or through a series of instalments.

A lump sum may be used to balance the division of property, meet housing needs or provide one person with capital as part of the wider settlement.

Pension sharing orders

A pension sharing order transfers a specified percentage of one person’s pension benefits to the other. The recipient receives a pension entitlement in their own name.

Pensions can be among the most valuable assets in a marriage, but given their unique nature their value is not always immediately clear. Specialist pension advice may be needed where there are defined benefit schemes, public sector pensions or several substantial pension arrangements.

Spousal maintenance and periodical payments

A periodical payments order requires one person to make regular payments to the other. This is commonly known as spousal maintenance.

The order may apply for a fixed term or continue until a specified event. In deciding whether to make an order for maintenance, the court will consider the recipient’s financial needs and the other person’s ability to pay.

Interim maintenance can also be ordered while financial proceedings are ongoing.

Clean break orders

A clean break order dismisses financial claims between former spouses. It may take effect immediately or after other parts of the settlement, such as a lump sum payment or property transfer, have been completed.

A clean break will not be suitable in every case. For example, ongoing maintenance may be needed where one person cannot yet meet their reasonable living costs independently.

Other financial matters

A financial order may also deal with:

• Savings, investments and bank accounts
• Business interests and company assets
• Trust interests and other financial resources
• Debts and liabilities
• Valuable personal belongings
• The timing and method of payments
• Responsibility for costs connected with a sale or transfer

Child maintenance is usually dealt with separately. However, the housing and financial needs of dependent children remain central to the wider financial settlement.

How Does the Court Decide What Is Fair?

There is no automatic formula for dividing finances in divorce. The court considers the full circumstances of the family and aims to reach an outcome that is fair.

The starting point is the factors set out in section 25 of the Matrimonial Causes Act 1973. These include:

• Each person’s income, earning capacity, property and other financial resources
• Their present and future financial needs and responsibilities
• The standard of living enjoyed during the marriage
• The ages of the parties and the length of the marriage
• Any physical or mental disability
• The contributions each person made to the welfare of the family
• The value of any benefits one person will lose because of the divorce

The welfare and needs of dependent children are considered first. This commonly includes the need for secure housing and sufficient income in both households.

The court considers financial and non-financial contributions. Caring for children and managing the home can be treated as equally important to earning income or building assets.

An equal division may be appropriate in some cases, but it is not guaranteed. The eventual financial order will depend on factors such as the available assets, each person’s needs and whether assets were built up during the marriage.

Where the finances include businesses, significant pensions, trusts, inherited wealth or overseas assets, the court may need detailed valuations or specialist evidence before it can assess a fair outcome.

How Do You Apply for a Financial Order?

The application process depends on whether you and your ex-partner have already reached an agreement.

You can apply for a financial order after divorce proceedings have started. However, the court cannot usually approve a consent order until the conditional order has been made. A financial order may then take effect at the appropriate stage of the divorce.

Applying where you have reached an agreement

Where both parties agree on the financial settlement, a solicitor can prepare a draft consent order.

The order sets out how property, pensions, lump sum payments, maintenance and future claims will be dealt with. It is submitted to the court alongside a summary of each person’s financial situation.

A judge will review the agreement and decide whether it appears fair. The judge may approve it, ask for further information or raise questions about particular terms.

Neither party will usually need to attend a hearing. Once approved and sealed, the consent order becomes legally binding.

Applying where you cannot agree

Where no agreement has been reached, either party can start financial remedy proceedings by completing Form A.

Before applying, you will usually need to attend a Mediation Information and Assessment Meeting, commonly called a MIAM. This is a meeting with a mediator to consider whether family mediation or another form of non-court dispute resolution could help.

Exemptions may apply, including in some cases involving domestic abuse, exceptional urgency or other circumstances where mediation is deemed unsuitable. Behaviour described as narcissistic abuse may fall within the domestic abuse exemption where it involves controlling, coercive, psychological or economic abuse.

Once Form A has been issued, the court will set a timetable for disclosure and court hearings. The main stages are:

1. Exchange of Form E and supporting documents
2. The first appointment
3. The financial dispute resolution appointment
4. A final hearing, where necessary

Many cases are resolved through negotiation before the final hearing.

What Is Form E?

Form E is the main financial disclosure document used in contested financial proceedings.

Both parties usually complete one. The form provides a detailed account of their finances, including:

• Income and benefits
• Property and mortgages
• Bank accounts and savings
• Investments
• Pensions
• Business interests
• Debts and liabilities
• Trust interests
• Future financial needs

Supporting documents must also be provided. These commonly include bank statements, payslips, tax returns, pension valuations, mortgage statements and property details.

Form E allows both parties and the court to understand the complete financial position. Full and accurate disclosure is essential. A person must not leave out assets because they believe those assets are personal, inherited or unrelated to the marriage.

After the forms have been exchanged, each party may raise questions or ask for further documents. The court will decide which requests are necessary and proportionate.

What Happens at the Court Hearings?

Contested financial proceedings usually involve up to three main court hearings. Each has a different purpose.

The first appointment

The first appointment is primarily a case-management hearing.

By this stage, both parties will usually have exchanged Form E. The judge will identify the main points of disagreement and decide what further information is needed before meaningful negotiations can take place.

Directions may cover:

• Replies to questionnaires
• Property valuations
• Business valuations
• Pension reports
• Evidence about borrowing capacity
• Further bank or company documents

The judge will also consider whether the case is ready to move towards a financial dispute resolution appointment.

The first appointment is not normally used to decide the final division of assets.

The financial dispute resolution appointment

The financial dispute resolution appointment is a without prejudice hearing designed to help the parties reach an agreement.

Both sides present their positions to a judge. The judge considers the documents, hears the main arguments and gives an indication of the outcome they believe another judge might reach at a final hearing.

This indication is not binding. Its purpose is to give both parties a realistic basis for negotiation.

Discussions usually take place outside the courtroom throughout the appointment. Where terms are agreed, the lawyers can prepare a consent order for approval.

The judge who deals with the financial dispute resolution appointment will not normally be the judge who decides the case at a final hearing. This is because the appointment is held on a “without prejudice” basis, which means the parties can make offers and explore possible settlement terms freely. If the case does not settle and goes on to a final hearing, those offers will not be shown to the final hearing judge or used to influence the final decision.

The final hearing

A final hearing takes place where the parties remain unable to agree.

Before the hearing, both parties prepare evidence setting out their position and the order they want the court to make. At the hearing, they may be questioned about their finances and evidence.

The judge then considers:

• The assets and financial resources available
• The needs and earning capacity of each party
• The welfare of any dependent children
• The arguments made by both sides
• The factors set out in family law

The judge will decide the outcome and make a binding financial order. This may include provisions for property, pensions, lump sum payments and periodical payments.

A final hearing gives the court the power to bring the dispute to an end, but it also removes control over the outcome from the parties. For this reason, settlement remains possible throughout the court process and can be reached at any point before judgment.

How Long Does a Financial Order Take in a Divorce?

The timescale depends largely on whether the financial order is agreed or contested.

An agreed consent order is usually the faster route. Once the terms have been settled, the documents can be submitted to the court for approval. The processing time will depend on court capacity and whether the judge needs any further information.

Contested proceedings take longer because both parties must provide disclosure, attend appointments and complete any valuations or expert reports ordered by the court.

The overall timetable may be affected by:

• The complexity of the assets
• Delays in financial disclosure
• The need to value a business or property
• Complex pension arrangements
• Trusts or international assets
• The availability of court appointments
• Whether an agreement is reached before the final hearing

A straightforward case may resolve during negotiations or at the financial dispute resolution appointment. A case that proceeds to a final hearing can take considerably longer.

Taking a structured approach from the outset can reduce avoidable delay. This includes preparing Form E properly, providing the required documents on time and identifying the main financial issues early.

How Much Does a Financial Order Cost?

The cost depends on whether the application is made by consent or through contested court proceedings.

As of July 2026, the court fee is:

• £62 for an application by consent
• £321 for a financial order application that is not by consent

These are separate from the fee for the divorce application itself. Court fees can change, so the current figure should be checked on the government website before submitting an application.

Legal fees will depend on the work required. Drafting and submitting a straightforward consent order will usually cost less than representing someone through disclosure, several court appointments and a final hearing.

Costs may increase where the case involves:

• Business interests
• Substantial or complex pensions
• Property portfolios
• Trusts
• Overseas assets
• Disputes about disclosure
• Expert valuation evidence

In financial remedy proceedings, the usual position is that each party pays their own legal costs. However, the court can make a costs order where a person has acted unreasonably or failed to comply with court rules and directions.

Do Both Parties Have to Agree to a Financial Order?

No. Both parties only need to agree where the financial order is being made by consent.

If you reach a financial agreement, the proposed terms must be approved by the court before they become binding. A judge can refuse to approve an agreement or ask for more information if the terms do not appear fair.

Where you and your ex-partner cannot agree, either person can apply for a financial order. The court can then manage the case and, if necessary, decide the outcome at a final hearing.

A refusal to negotiate does not prevent a financial settlement from being reached. It may simply mean that the court process is needed to obtain disclosure and move the case towards a decision.

Can a Financial Order Be Changed Later?

Some financial orders can be varied, while others are intended to provide finality.

Spousal maintenance and other periodical payments may sometimes be changed where there has been a significant change in circumstances. For example, the court may consider a substantial change in income, financial needs or earning capacity.

The court may increase, reduce, extend or end maintenance, depending on the terms of the original order and the circumstances at the time of the application.

Capital orders are generally much harder to change. These include:

• Lump sum orders
• Property adjustment orders
• Pension sharing orders

A clean break order is intended to prevent future financial claims and cannot ordinarily be reopened simply because one party later regrets the agreement.

In exceptional circumstances, an order may be challenged where there was fraud, serious non-disclosure or another fundamental issue affecting how it was made. These cases are fact-specific and require prompt legal advice.

What Happens If a Financial Order Is Breached?

A financial order is legally binding. If one party does not comply, the other may be able to apply to the court for enforcement.

A breach may involve:

• Failing to pay a lump sum
• Missing periodical payments
• Refusing to transfer property
• Delaying the sale of the family home
• Failing to sign documents
• Ignoring another obligation in the order

The correct enforcement method will depend on the provision that has been breached and the assets or income available.

In some cases, a solicitor’s letter or negotiation may resolve the issue. Where this is not effective, the court has powers to enforce payment or require compliance with the order.

It is important to act promptly. Delay can make enforcement more difficult, particularly where assets are being moved or a person’s financial situation is changing.