Divorce is a challenging and emotional process. Therefore, ensuring that divorcing couples reach a financial settlement is crucial for several reasons.
But, first things first…
What is a Consent Order?
A financial consent order is a legal document that outlines the financial agreement reached between divorcing couples in England and Wales. Once it is approved by a judge, it becomes legally binding and enforceable.
While the divorce process in the UK has become quicker and more accessible – especially with the introduction of no-fault divorce – many people wrongly assume that the final order (formerly Decree Absolute) ends all legal ties. In reality, financial claims between spouses remain open until a legally binding financial settlement is approved by the court.
Without a formal financial consent order, either party can make a claim against the other at any point in the future, even years after the divorce.
Finalising your financial settlement promptly provides both parties with much-needed financial security and peace of mind, allowing you to plan for the future more effectively.
Although online divorces without legal advice may seem cost-effective, they can leave parties financially vulnerable in the long term.
Failing to Obtain a Consent Order Can Be Risky
Imagine you and your spouse agree to divorce online without legal advice. You receive the final order in the divorce, but do not obtain a financial order – perhaps because you believe there are no significant assets or your spouse is unwilling to engage. You agree informally that one of you will keep the family home and move on.
Five years later, your former spouse experiences financial hardship and applies for a financial order, claiming they received nothing in return for their share of the home. Despite your written agreement, the court may not uphold it – especially if there was no legal advice or full financial disclosure at the time. You could be ordered to pay a lump sum or even sell the property.
With a consent order, it is unlikely that this claim could progress. And, if it did, the consent order is likely to be upheld.
A Divorce Consent Order Case Example: Wyatt v Vince
The case of Wyatt v Vince illustrates the risks of failing to obtain a consent order. The couple divorced in 1992 without a financial settlement. Years later, Mr. Vince became a millionaire, and Ms. Wyatt successfully brought a financial claim against him, ultimately receiving a £300,000 settlement. The Supreme Court ruled that her claim could proceed despite the long delay.
This case demonstrates the importance of formally severing financial ties at the time of divorce.
How to Obtain a Consent Order
Here’s how to obtain a financial consent order with the help of a divorce solicitor:
- Draft the Consent Order: Agree on how to divide assets such as property, savings, pensions, and investments. This agreement is then drafted into a consent order, which both parties must sign.
- Fill in the Statement of Information Form: This form provides the court with details about your financial situation. It details what your current financial situation is, and what your financial situation will be if the consent order is approved. This involves both parties providing information about all their financial assets and liabilities, such as the value of their interest in property, the value of their pensions, and the total value of their savings and investments, etc.
- Submit the Forms: Send the signed forms, along with the £60 fee, to the court. One party will also need to file a Form A ‘Notice of an application for a financial order’ with the court. This form notifies the court that you are seeking a financial order. If you have a solicitor, they can complete this form on your behalf.
- Court Approval: A judge will review the consent order to ensure it is fair. If approved, it becomes legally binding. If not, the judge may ask you to explain how you reached the agreement, so the courts have more context and understanding of your situation.
Can a Consent Order be Rejected by Court?
Once a draft consent order has been filed with the Court, it is referred to a judge to review and ensure that the terms are fair and reasonable.
If a Judge disagrees with a consent order, for example, because it appears unfair for one party, they can reject the draft order regardless of what the parties have agreed.
How Often Do Judges Reject Consent Orders?
While we cannot say ‘never’, it is rare that a judge rejects a consent order.
When this does happen, it is usually because legal advice has not been taken, the order is considered unfair, or there was an error in the application.
What Happens if You Breach a Consent Order?
This is a legally binding document. So, failure to comply with a consent order could lead to consequences such as a fine, attachment of earnings, or even imprisonment.
Read more: What Is A No Fault Divorce? How to Get a Divorce in the UK
Why You Should Instruct a Solicitor
While it is possible to draft a consent order yourself, it is highly advisable to have a solicitor prepare it. Here’s why:
- Legal Advice: Solicitors can provide valuable legal advice on your options and use precedents to ensure the order reflects what each party wants.
- Expertise: Solicitors have the expertise to ensure that all necessary details are included and that the order is fair and enforceable.
- Avoiding Pitfalls: Vital terms could be missed, such as a clean break clause preventing future claims, or unenforceable clauses could be included.
2025 Legal Updates: What’s New?
Recent reforms in UK family law have introduced several changes that impact financial settlements. These include:
- Non-Court Dispute Resolution (NCDR): Courts now expect parties to attempt mediation or collaborative law before litigation. Failure to do so may result in cost penalties.
- Greater Weight for Pre- and Post-Nuptial Agreements: These now carry more legal authority, offering couples more control over their financial futures.
- Early Financial Disclosure: Courts encourage early and full disclosure to avoid delays and disputes.
Need Help With a Financial Settlement or Consent Order?
Given the complexities and potential risks involved in reaching a financial settlement, it is crucial for divorcing couples to seek professional help. Instructing a solicitor to help negotiate a financial settlement and prepare the consent order can save time, reduce stress, and ensure a fair and legally binding agreement.
By taking these steps, couples can protect themselves from future disputes and financial claims, providing a solid foundation for moving forward with their lives
If you need assistance with negotiating a financial settlement or preparing a consent order, our team of experienced solicitors is here to help. Contact us today to ensure your financial future is secure.
