When a marriage comes to an end, it is natural to focus on obtaining the divorce itself. However, many people are unaware that resolving the legal status of the marriage and resolving financial matters are separate issues under English law.
A term that often arises during the divorce process is a Consent Order. But what is it, and do you need one?
What Is a Consent Order?
A Consent Order is a legally binding court order that records the financial agreement reached between divorcing spouses or civil partners. Once approved by a judge, it becomes enforceable and sets out precisely how financial matters will be dealt with.
A Consent Order can include provisions relating to:
- Property and the family home
- Savings and investments
- Pensions
- Lump sum payments
- Spousal maintenance
- The division of debts
- A clean break between the parties
Isn’t My Divorce Enough?
This is one of the most common misconceptions.
Obtaining a Final Order (formerly Decree Absolute) legally ends the marriage, but it does not automatically end the financial claims former spouses may have against one another. Financial claims can remain open unless they are dismissed by a court order.
This means that even years after a divorce, one former spouse may still be able to make a financial claim against the other in certain circumstances.
What If We Have Already Agreed Everything?
Many separating couples are able to reach agreements amicably without the need for court proceedings. However, an informal agreement is different from a court-approved order. A Consent Order provides a mechanism for the agreement to be considered and approved by the court.
What Is a Clean Break Order?
Often, a Consent Order will include a clean break provision.
A clean break is designed to dismiss future financial claims between former spouses, allowing each person to move forward independently once the agreed settlement has been implemented.
For many people, achieving a clean break provides reassurance that future earnings, savings, inheritances and assets are protected from potential claims by an ex-spouse.
Do I Need a Consent Order If We Have No Assets?
Possibly.
Many people assume that if there is no property, pension or significant savings, there is no need for a Consent Order. However, the issue is not only what exists today but also what may exist in the future.
A properly drafted Consent Order may prevent future claims arising if either party’s financial circumstances improve significantly after the divorce.
Seeking Advice
If you are separating or divorcing, obtaining legal advice at an early stage can help you understand your options and make informed decisions about your future.
Our family law team regularly advises clients on divorce, financial settlements and Consent Orders. If you would like to discuss your circumstances and understand the options available to you, we would be pleased to assist.
This article is intended for general information only and does not constitute legal advice. Specific legal advice should be sought in relation to individual circumstances.
