We often find that some clients can be a little confused about the meaning of Divorce and what exactly it entails. A Divorce (or Dissolution of Marriage) is a decree by a Court that a marriage no longer exists. Once a couple is Divorced, they are free to remarry.
During the Divorce process, the Court may decide how the couple’s property and assets are divided and whether Spousal Support is necessary. If children are involved, a Child Arrangement Order may also be put in place outlining when both parents have their children.
Understanding the meaning of Divorce – does it sever financial ties?
It is important that couples understand the meaning of Divorce, and what it could mean for their finances in the future. One of the biggest misconceptions in Family Law is that Divorce severs all financial ties. Many people are surprised to find this is not true. To completely sever financial ties with your ex, you will need to get a Financial Order in place. Without this, either party could potentially make a financial claim against the other later in life.
What is a Financial Order?
A Financial Order (otherwise known as a Consent Order) is a type of Court Order which details how you and your ex-spouse will deal with your finances upon Divorce. The order can outline how you will share property, pensions, and other assets when you Divorce. It may even describe how you will deal with liabilities such as loans and credit card debt if necessary. Having a Financial Order in place is the only way to sever Financial ties entirely going forward.
A Financial Order (otherwise known as a Consent Order) is a type of Court Order which details how you and your ex-spouse will deal with your finances upon Divorce. The order can outline how you will share property, pensions, and other assets when you Divorce. It may even describe how you will deal with liabilities such as loans and credit card debt, if necessary.
Having a Financial Order in place is the only way to sever financial ties entirely going forward. The good news is, even if you got Divorced 10 years ago there is no time limit on getting the Financial Order in place.
If I marry someone who hasn’t got a Financial Order, can their ex claim on my assets?
The short answer is, yes they can! If you are living with your spouse who has been married and Divorced, and they do not have a Financial Order – your assets will become included in any claims that their ex may make.
Because you are living with your husband or wife, your income, property, and any other assets you have will need to be disclosed if their ex decides to make a financial claim. This is why we always advise clients to get a Financial Order when Divorcing to sever financial ties. If you are engaged and your partner has been married before, have the conversation and ensure they have a Financial Order in place to protect you both in the future.
How do I get a financial order?
If you would like to get Financial order, you and your spouse must agree on your financial arrangements and ask the Court to make them legally binding. The Order has to be carefully worded to ensure that it is legally watertight and achieves the financial objectives you seek.
If your relationship has broken down and you want to discuss Divorce and the benefit of a Financial Order with a Specialist Family Law Solicitor, we welcome you to contact our team who will support you through the legal process. Send us a confidential message via our online contact form to see how we can help you.