What is a Financial Consent Order?

A financial consent order is a legal document that confirms a financial agreement between divorcing parties. It is approved by the court and makes the terms legally binding, preventing either party from making a future financial claim against the other.

Importance of a Financial Consent Order

1. Legally Binding: Ensures that any financial agreement reached is legally enforceable.

2. Finality: Provides closure on financial matters, preventing future claims.

3. Protection: Safeguards your assets, pension, and inheritance from future claims.

4. Clarity: Clearly outlines the division of assets, maintenance payments, and other financial responsibilities.

When to Obtain a Financial Consent Order

A financial consent order should be obtained after reaching a financial settlement but before the divorce is finalised. It is crucial to ensure that all financial matters are settled before the decree absolute is granted, as this finalizes the divorce.

How to Obtain a Financial Consent Order

1. Reach an Agreement: Both parties need to agree on how assets, debts, pensions, and other financial matters will be divided. Mediation can be used if parties struggle to agree.

2. Draft the Order: A solicitor typically drafts the financial consent order, detailing the agreed financial settlement.

3. Application to Court: The draft order and a financial statement (Form D81) outlining both parties' financial situations are submitted to the court.

4. Review by a Judge: The court reviews the order to ensure it is fair and reasonable. If approved, it becomes legally binding.

5. Implementation: Once approved, both parties must adhere to the terms of the order. Non-compliance can lead to legal consequences.

Fairness and Reasonableness of the Financial Consent Order

It is crucial that the financial consent order is considered fair and reasonable by the court, as this determines whether the judge will approve it. The court evaluates the agreement to ensure that it does not disproportionately favor one party over the other and that it adequately provides for any children involved. Factors such as the length of the marriage, the parties’ ages, their future earning capacities, and any health issues are taken into consideration. If the judge finds the agreement to be unjust or biased, the consent order may be rejected, and the parties may be asked to renegotiate their terms. Therefore, having a solicitor help in preparing the order can help anticipate and address any issues that might be viewed unfavorably by the court, ensuring a smoother approval process.

Legal Assistance

• Solicitors: It is highly recommended to use a solicitor to draft the order and guide you through the process. This ensures the agreement is thorough and legally sound.

• Mediators: If agreement on financial matters is difficult, mediators can facilitate discussions and help reach a compromise.

Costs

• Court Fees: There is a court fee for filing a financial consent order, currently set at £58.

• Legal Fees: Costs can vary widely depending on the complexity of your financial situation and the level of legal assistance required but you can usually get one written for £300-400

Tips for a Smooth Process

• Full Disclosure: Ensure both parties fully disclose their financial circumstances to avoid future challenges.

• Realistic Settlements: Agree on a fair and practical settlement that reflects both parties’ needs and circumstances.

• Legal Advice: Seek legal advice early to understand your rights and obligations.

• Work with a divorce coach alongside your legal professional. The more you can take the emotions out of the situation, the more likely it is that you can come to an agreement that is fair and reasonable without having to go to court.

Conclusion

Obtaining a financial consent order is a crucial step in the divorce process in England. It ensures that all financial matters are resolved legally and permanently, offering peace of mind and legal protection for both parties involved. If you would like to work with me alongside a legal professional, book a free call.