Applying for a Financial Order: Divorce

A financial order is a legally binding court order that sets out how money, property, pensions and maintenance will be dealt with following divorce or the dissolution of a civil partnership. It can be used to record an agreement you have already reached, or to resolve financial matters where an agreement cannot be made.

Getting divorced does not automatically end your financial ties. Even after the final order in the divorce process, one party may still be able to make future claims unless financial matters have been resolved properly through a financial order. This is why taking legal advice at an early stage can be important, even where your finances appear straightforward.

At JMW, our family law solicitors advise on all aspects of financial orders, including consent orders, clean break orders, pension sharing, lump sum payments, property adjustment orders and spousal maintenance. We provide clear, strategic advice to help you protect your financial interests and work towards a fair outcome.

Whether you have already reached an agreement with your ex-partner or need support through contested financial proceedings, we will guide you through the legal process with clarity and confidence.

To speak to our family law team in confidence, call 0345 872 6666 or complete our online enquiry form to arrange a call at a time that suits you.

How JMW Can Help

When you are dealing with finances during divorce proceedings or a civil partnership dissolution, it is important to understand how any agreement will be made legally binding. A financial order provides certainty, protects your financial interests and ensures that money, property, pensions and maintenance are dealt with clearly.

Our family law team advises on:

• Preparing a consent order where an agreement has already been reached in mediation or between the parties directly 
• Clean break orders to end ongoing financial ties where appropriate
• Financial orders involving the family home, savings, bank accounts and other assets
• Pension sharing orders and the treatment of pensions within divorce
• Lump sum orders and property adjustment orders
• Spousal maintenance and periodical payments
• Financial disclosure, including Form E and supporting documents
• Applications for a financial order where agreement cannot be reached
• Representation during financial remedy proceedings, including the First Appointment, financial dispute resolution appointment and final hearing
• Enforcement where one party breaches the terms of a financial order
• Applications to vary certain financial orders where circumstances change

We provide clear, strategic advice at every stage, whether you need a draft consent order approved by the court or support through contested court proceedings. Our focus is on helping you understand your options, protecting your financial position and working towards a fair outcome.

JMW has more than 40 specialist family lawyers based in Manchester, Liverpool and London. We work with clients nationally and internationally, advising on financial orders involving straightforward agreements through to complex financial circumstances, including business interests, pensions, trusts, property portfolios and overseas assets.

Our family law team is recognised by leading legal directories, including the Legal 500, Chambers & Partners and Spear’s 500, a measure of our proven expertise in high net worth divorce, complex financial cases and matters involving business assets, pensions and property.

Meet Our Team

Our family law team advises on financial orders following divorce and civil partnership dissolution, helping clients formalise agreements, resolve financial disputes and protect their long-term financial interests.

Case Studies

What Is a Financial Order in a Divorce?

A financial order is a court order that sets out how money, property, pensions and ongoing financial support will be dealt with following divorce proceedings or the dissolution of a civil partnership. It can reflect an agreement reached between the parties, an agreement made in mediation or it can be decided by the court where an agreement cannot be reached.

The divorce process and the financial settlement are separate. This means that even once the final order in divorce has legally ended the marriage, financial ties between you and your ex-partner may remain unless they are dealt with through a financial order.

A financial order only becomes legally binding once it has been approved and sealed by the court. This is important because an informal agreement between you and your ex-partner will not usually be enforceable in the same way as a court order.

These orders can include various provisions, depending on your financial circumstances and what is needed to achieve a fair outcome. These may include:

• Clean break order: ends ongoing financial claims between the parties where this is appropriate
• Lump sum order: requires one party to pay a lump sum to the other either immediately or within a certain time frame
• Property adjustment order: deals with the family home or other property, including transfer, sale or changes in ownership
• Pension sharing order: divides pension benefits between the parties
• Spousal maintenance order: requires one party to pay ongoing financial support to the other
• Periodical payments order: provides for regular payments, usually for a fixed period or until a further order is made
• Maintenance pending suit: provides short-term financial support while financial proceedings are ongoing

The right financial order will depend on the assets involved, each person’s income and financial resources, whether there are children involved and the needs of both parties. A family law solicitor can help you understand which type of financial order is suitable and how it should be structured.

What Can a Financial Order Include?

A financial order can deal with a wide range of financial matters following divorce or civil partnership dissolution. Its purpose is to set out clearly how money and property should be divided, whether any ongoing financial support should be paid and whether future financial claims should be dismissed.

Depending on your circumstances, a financial order may include arrangements for:

• The family home, including whether it should be sold, transferred or retained by one party
• Other property, including investment properties or overseas assets
• Savings, bank accounts and investments
• Pensions, including pension sharing
• Business interests
• Personal belongings, where these have significant value
• Debts and other liabilities
• Lump sum payments from one party to the other
• Spousal maintenance or periodical payments
• A clean break, where both parties’ future financial claims are dismissed

The court will consider the full financial circumstances of both parties before approving or making a financial order. This includes income, earning capacity, financial resources, housing needs, the standard of living during the marriage or civil partnership, and the welfare of any children involved.

Child maintenance is usually dealt with separately from a financial order, but it can still form part of the wider financial picture. Where children are involved, their housing and financial needs will be a central consideration when working towards a fair outcome.

When Is a Financial Order Needed?

A financial order is needed if you want your financial arrangements to be legally binding following divorce or civil partnership dissolution. This applies whether you have reached an agreement with your ex-partner or need the court to decide the outcome.

Many people assume that once the final order has been made in the divorce, their financial ties automatically come to an end. This is not the case. The final order ends the marriage, but it does not dismiss financial claims between the parties.

A financial order may be needed where:

• You have reached an agreement and want it recorded in a legally binding consent order
• You want a clean break so future financial claims are dismissed
• You own property together and need to deal with sale, transfer or ownership
• One party is making or receiving a lump sum payment
• Pensions need to be shared or protected
• Spousal maintenance or periodical payments are required
• There are business interests, trusts, investments or other financial resources to consider
• You are concerned about future claims being made after divorce

Even where there are limited assets, a financial order is still necessary to end the financial claims arising from the marriage. A clean break order can provide certainty and help ensure that neither party can bring financial claims later if their circumstances change.

Taking legal advice before finalising any agreement allows you to protect your financial interests, and put an order in place that fully reflects your individual circumstances.

How to Apply for a Financial Order

The process for applying for a financial order will depend on whether you and your ex-partner have reached an agreement.

If an agreement has been reached, a solicitor can prepare a draft consent order setting out the terms. This is sent to the court with a summary of each person’s financial circumstances. A judge will then review the agreement and, if satisfied that it is fair, approve and seal the order. Once sealed, the consent order becomes legally binding.

If an agreement has not been reached, one party can apply for a financial order through the court. This starts the financial remedy process, where the court sets a timetable for disclosure, negotiation and, if needed, a final decision.

The process will usually involve:

• Attending a mediation information and assessment meeting, unless an exemption applies (for example, cases involving domestic abuse)
• Completing the application for a financial order
• Paying the required court fee
• Providing full financial disclosure, usually through Form E
• Attending the first appointment, where the court considers what further information is needed
• Attending a financial dispute resolution appointment, where the court helps the parties try to reach an agreement
• Proceeding to a final hearing if agreement cannot be reached

Not every case reaches a final hearing. Many financial proceedings are resolved through negotiation, solicitor-led discussions, mediation or at the financial dispute resolution appointment. However, preparing properly from the outset will ensure that your position is clearly presented if court proceedings are needed.

What If a Financial Order Cannot Be Agreed Upon?

If you and your ex-partner cannot reach an agreement, either party can apply for a financial order through the court. This does not mean the court will immediately decide the outcome. The process involved in contested proceedings is designed to clarify each person’s financial circumstances, narrow the issues and encourage agreement where possible.

Both parties will usually need to provide full financial disclosure through Form E. This sets out details of income, property, pensions, bank accounts, debts, personal belongings, business interests and other financial resources. Supporting documents are also provided so that each party and the court have a clear picture of the finances.

The court process usually involves three main stages:

• First appointment: the first hearing, where the court identifies what further information is needed. This may include replies to questionnaires, property valuations, pension reports or other expert evidence.
• Financial dispute resolution appointment: a hearing designed to help both parties reach an agreement. The judge will usually give an indication of the likely outcome, but will not impose a final decision at this stage.
• Final hearing: if agreement is still not reached, the case proceeds to a final hearing. A judge hears evidence from both parties and makes a legally binding financial order.

Many cases settle before the final hearing, particularly once disclosure has been completed and both parties understand the strengths and risks of their position. We provide clear advice throughout the process, helping you prepare properly, negotiate effectively and protect your financial interests.

Q

How are financial orders enforced?

A

If one party does not comply with a financial order, the other party may be able to apply to the court for enforcement. The right approach will depend on what the order says and how it has been breached.

Enforcement may be needed where an ex-partner has failed to pay a lump sum, missed spousal maintenance or periodical payments, refused to transfer property, or failed to take steps required under the court order.

The court has a range of powers to deal with non-compliance. We can advise on the most appropriate route, so you are able to take clear, proportionate action to protect your financial interests.

Q

What is the difference between a financial order and a financial consent order?

A

A financial order is the general term for a legally binding court order that deals with finances following divorce or civil partnership dissolution. It can be made after an agreement has been reached, or after contested financial proceedings where the court decides the outcome.

A financial consent order is a type of financial order used where both parties have already reached an agreement. A solicitor prepares the draft consent order and submits it to the court for approval. Once approved and sealed by the court, it becomes legally binding.

In simple terms, all financial consent orders are financial orders, but not all financial orders are made by consent. Visit our dedicated page on financial consent orders to learn more.

Q

Can financial orders be changed later?

A

Some parts of a financial order can be changed later, but others are intended to be final. For example, spousal maintenance or periodical payments may be varied if there has been a significant change in financial circumstances.

Other parts of a financial order, such as a lump sum order, property adjustment order or pension sharing order, are usually more difficult to change once they have been made. This is why it is important to take legal advice before agreeing to the terms of any financial order.

If your circumstances have changed, or your ex-partner has asked to vary an order, a family law solicitor can advise on your options and the likely approach of the court.

Q

Is a financial order still needed for couples with no assets?

A

A financial order is still important even where there are no significant assets. This is because divorce does not automatically dismiss future financial claims between spouses or civil partners.

Where there are no assets to divide, a clean break order may be appropriate. This can confirm that neither party can bring financial claims against the other in the future, giving both people certainty as they move forward.

This can be particularly important if one person’s financial position improves after the divorce, for example through inheritance, business growth, property ownership or increased income.

Q

Are court proceedings necessary?

A

Court proceedings are not always necessary. If you and your ex-partner have reached an agreement, a solicitor can prepare a draft consent order and submit it to the court for approval. In many cases, this can be dealt with without either party attending a contested hearing.

The court still needs to approve the consent order before it becomes legally binding. A judge will consider whether the agreement is fair, based on the information provided about each person’s financial circumstances.

If agreement cannot be reached, one party may need to apply for a financial order through the court. Even then, many cases resolve before a final hearing through negotiation, mediation or at the financial dispute resolution appointment.

Q

What happens if one party breaches the financial order?

A

If one party breaches a financial order, the other party should take legal advice on enforcement. The response will depend on the type of breach, the terms of the order and whether there is a genuine reason for non-compliance.

For example, the issue may involve unpaid maintenance, failure to pay a lump sum, delay in selling or transferring property or refusal to provide information required by the order.

In some cases, the matter can be resolved through correspondence or negotiation. In others, an application to the court may be needed. We can help you understand the options available and take steps to enforce the order where necessary.