The division of assets is the most complicated part of the divorce process. Following the breakdown of marriage, a settlement of financial matters and assets needs to be arranged between the separating couple.
However, if both parties can not agree to the terms of the financial settlement through negotiations, mediation, or alternative dispute resolution, they can apply to the court for a financial order.
What is financial settlement?
A financial settlement in the context of divorce covers the distribution of assets and debts plus any ongoing financial commitments such as spousal maintenance and child maintenance.
In simple words, the financial settlement is ‘who gets what’ and aims at sorting out immediate and future financial matters. The parties seek to separate assets, divide up pension and finances, and settle on financial provisions between them.
Agreeing on the divorce financial settlements
Distributing assets and finances do not have to be a time of argument and distress as there are several ways to reach a financial settlement. Separating couples can reach an agreement through mediation, a collaborative process, or with the help of a solicitor.
Most divorce solicitors can help you get a fair and reasonable financial settlement considering all the financial matters. If the financial settlement is not reached, the couple can move to court to resolve any area of dispute.
Court Proceedings
Take the matter to the court if all attempts at mediation are unsuccessful. The court will consider the immediate and future needs of each spouse and relevant children to make a reasonable financial settlement.
What orders can the court make?
The court has the power to make the following orders
- Periodical payments
- Property adjustment order
- Pension sharing order
- Secured provisions
- Lump sum
What is a consent order?
A consent order is a court order that records the division of marital assets and liabilities as agreed between the separating couple. It is a legally enforceable document that dismisses the possibility of future claims from either party.
The importance of financial consent orders
Applying for the consent order makes the terms of the financial agreement legally binding, eliminating the risk of your ex-spouse making any claims for a share of your assets or property in the future.
Seek expert legal advice to make sure that the terms of financial settlements are fair before applying for the consent order. Once the consent order is issued, you have no legal right to change the terms of the financial settlement.
What happens if a consent order is breached?
If one of the parties fails to comply with the terms of the consent order, the other party can ask the court to enforce the order.
If there has been a breach, the court will order the person to meet the terms of the order and cover the legal costs of bringing the court to the case. In some situations, if the person can not pay regular payments to the ex-spouse, the court will allow him to stop the payments until he gets a new job.
Disclaimer:
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Connaught Law and authors accept no responsibility for loss that may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Connaught Law. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Connaught Law.
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