Finalising a divorce is often seen as the last step in ending a marriage. But in truth, the legal process of ending the marriage is only half the picture. Without a final financial order, your financial ties remain very much intact, even after the marriage has legally ended.
Too many people assume that once the divorce is complete, everything is sorted. But unless you have a court-approved financial order in place, you remain linked to your former spouse, often in ways that could come back to affect you years down the line.
What Is a Financial Order?
A final financial order is a legally binding document, either imposed on the parties at the end of the case, or made by the court at the parties’ request and by agreement, that sets out how you and your former partner will divide assets such as property, savings, pensions, and other financial responsibilities. It can also cover ongoing payments such as spousal maintenance.
There are several different types of financial orders, depending on your circumstances:
- Lump Sum Orders
- Property Adjustment Orders
- Pension Sharing Orders
- Periodical Payments Orders
- Clean Break Orders
Each plays a vital role in ensuring your financial separation is fair, secure, and final.
The Hidden Dangers of Divorcing Without a Financial Order
Securing the legal end of a marriage is not enough. A divorce does not, by itself, sever your financial relationship. Without a financial order, either party can bring a financial claim against the other years or even decades after the divorce has been granted.
And it’s not just theoretical. There have been real cases where individuals successfully claimed large settlements from their ex-spouse’s post-divorce wealth because no financial order had ever been made at the time of separation. In the case of Vince & Wyatt, a former spouse sought, and was granted, a financial award 21 years after the marriage had ended because financial claims had not been closed by way of a final financial order at the time of the divorce.
So even if you think there’s nothing to argue over right now, it’s impossible to predict how your or your ex’s financial position might change in future. A final financial order gives you certainty and protection.
Financial Freedom Starts With Closure
One of the biggest emotional benefits of a final financial order is the sense of closure it provides. Without one, the lingering threat of future claims can impact every financial decision you make from buying a home to starting a new relationship or planning for retirement.
You might assume that an informal agreement with your ex will hold, particularly if the split was amicable. But informal agreements aren’t legally enforceable. If either of you changes your mind or fails to follow through, you’ll have little protection in law. A formal financial order removes this uncertainty. It clarifies what each party is entitled to and ensures that any agreement is properly recognised by the court.
Why a Clean Break Matters
An Income Clean Break financial order is especially powerful. It confirms that no further claims can be made against one another, now or in the future. For couples with no need for ongoing maintenance or support, an income clean break can be the simplest and most effective route to full financial independence. Even in cases where there aren’t many assets to divide, it’s still worth formalising the agreement through a Clean Break Order. It guarantees that neither party can return later to claim part of any future earnings, inheritance, or property.
Where it has been agreed that maintenance should be paid, a final financial order will generally provide for a Capital Clean Break, which means that neither party can make a claim against the other’s assets, and only look to alter the maintenance being paid.
Why Do So Many People Skip It?
Many people going through a divorce assume that reaching a final order ends all obligations. Others simply want to move on quickly, and some are put off by the idea of further legal fees. But the statistics paint a worrying picture. Thousands of divorces take place every year, yet a much smaller number include a corresponding financial order. Without one, you’re left legally vulnerable. The truth is that the long-term financial cost of not having a financial order often far outweighs the short-term expense of putting one in place.
Mediation and Consent Orders
For many, the idea of court can feel overwhelming. The good news is, that many financial orders don’t require a court appearance at all. If you and your ex can reach an agreement, perhaps through mediation, a solicitor can draft a Consent Order, which can then be approved by the court. Once approved, this Consent Order becomes a legally binding financial order, protecting both parties and closing the door on future claims. It’s a simple, straightforward way to secure a fair outcome without conflict.
Your Future Deserves Certainty
The emotional toll of divorce is hard enough without the added stress of financial uncertainty. A legally binding financial order brings clarity, protection, and peace of mind. Whether your split is straightforward or complicated, whether your financial situation is modest or complex, the message is the same: don’t leave your future exposed. Without a financial order, a divorce is unfinished business. By formalising your financial arrangements, you can move on with confidence, free from the fear of future disputes, and with the certainty you need to start the next chapter of your life.
Supporting You With Financial Clarity and Confidence
When it comes to financial matters during divorce, one size never fits all. That’s why we offer tailored advice designed around your unique situation, so you can move forward with clarity and peace of mind.
Whether you’re dividing property, navigating spousal maintenance, or working through more complex issues involving businesses or international assets, we take a thoughtful, strategic approach to protect your financial interests. Our focus is always on helping you reach a fair outcome and ensuring long-term financial security.
Divorce can feel overwhelming, but getting the right financial order in place gives you the certainty you need to plan your next chapter with confidence.