What Are My Financial Options On Divorce?
Posted on 19th June 2020
What is a financial order?
The process of obtaining a financial order is described in more detail here but a financial order is a Court Order which sets out the financial arrangements between you and your ex-spouse. The Order granted will depend entirely on your individual circumstances.
The Different Types of Financial Orders:
This type of order sets out exactly how your assets and debts should be divided. Some couples will decide between themselves how assets and debts should be split whereas others require the expertise of a divorce solicitor to negotiate how assets and debts should be split. When a decision cannot be reached through negotiations the matter will have to go before the Court for the Judge to make a decision on your behalf.
Once the decision as to how any assets and debts will be split, has been reached the Judge will make this agreement legally binding by setting it out in a consent order. Both parties must be aware that the judge will only ever grant a consent order where the division of assets is considered fair and reasonable. Consent orders are specifically for divorcing couple who have assets to split.
A Clean Break Order
A clean break order is different to a Consent Order as it allows financial ties to be cut between you and your ex in circumstances when there are no matrimonial assets. This type of order is important because even though it may seem like there are no assets worth splitting, without either a clean break or consent order you ex can demand money from you in the future unless they remarry.
Can my ex demand money from me after divorce?
Yes, as mentioned unless your ex has remarried the Law in England and Wales states that whilst the Decree Absolute ends the marriage your financial obligations will continue indefinitely unless the Family Court grants you a “clean break.”
A Pension Sharing Order
if you or your ex have a healthy pension pot then a Pension Sharing Order may be an option for you. The Pension Sharing Order will entitle you to a share of each other’s pensions and outline how the pot should be split. However, your ability to do this will depend on your age, length of marriage, future career prospects and your personal needs.
Property Adjustment Order
This type of order sets out exactly what will happen to the family home, down to who will live in it and whose name the property will be held in.
Such an order will establish what spousal maintenance is to be paid and for how long. The amount of maintenance available will again depend on the length of the marriage and your individual circumstances.
Lump Sum Orders
As the name suggests such an 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 the family home. The money can be paid in instalments.
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