Family law myths number 2: does my Final Order in the divorce mean I am protected financially?

Deciding matrimonial finances

Couples should take advice and should try to agree the division of the matrimonial finances part of the divorce process. They should record their financial arrangements in a consent order prepared by a solicitor for the court to consider.

Judges do not simply rubber stamp their approval on financial remedy orders filed by the parties, but they will need to consider that the order satisfies the criteria under section 25 of the Matrimonial Causes Act 1973 and case law. When the judge approves the parties’ financial remedies the parties claims for capital and pensions will be dismissed immediately. In cases where there is a clean break, the parties’ income claims are dismissed too or where spousal maintenance has been ordered there will be a specified term for the maintenance payments.

There is not a limitation period for the timeframe for a former spouse to make claims although remarriage can limit the newly married spouse’s financial claims and the provision that will be paid to them.

Therefore, if clients are getting divorced it is essential to have a good understanding as to how the finances should be divided, the potential for financial claims and how to properly record the division of matrimonial finances so that financial claims can be dismissed as part of the process.

Otherwise there is a risk of couples being divorced but still bearing the risk of financial remedy claims being made against them. There have been cautionary tales whereby ex‑spouses have gone on to create significant wealth, sometimes millions of pounds, which whilst is has not been shared has not been immune from matrimonial claims from marriages many years before, where the financial remedies were not resolved with the Court’s approval. For peace of mind parties should take independent advice at the outset to be protected for the future.