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When a marriage or civil partnership breaks down, sorting out financial arrangements can be one of the most challenging aspects of separation. Many people assume that dividing assets is straightforward, but in reality, financial arrangements must be formalised through the correct legal process to ensure they are enforceable. This is where a Financial Remedy Order comes in. It is a court order that sets out how financial matters will be resolved following divorce or dissolution.
In this blog, we will break down what a Financial Remedy Order is, why it matters, and when you should consider applying for one.
What exactly is a Financial Remedy Order?
A Financial Remedy Order is a legal document issued by the family court that details how assets, income, and property will be divided between separating partners. It is often sought after divorce or dissolution proceedings have begun, but it can also be relevant if financial matters remain unresolved after separation.
The order can include provisions for the transfer or sale of property, the division of savings and investments, pension sharing, lump-sum payments, and ongoing financial support such as spousal maintenance. It ensures that the financial settlement is legally binding, giving both parties certainty and preventing future disputes.
Why do I need a Financial Remedy Order?
Without a Financial Remedy Order, nothing is stopping an ex-spouse or partner from making a financial claim in the future – even years after the divorce is finalised. For example, if your circumstances improve significantly, such as receiving an inheritance or increasing your income, your former partner could attempt to claim a share.
A Financial Remedy Order provides legal closure, confirming that all financial ties have been settled. This protection is essential if:
- You have property or assets to divide
- You have pensions or savings that need to be allocated
- One party will be paying ongoing support
- You want to ensure neither party can make future claims
Even if you and your former partner agree amicably on financial arrangements, it is still wise to formalise them through the court.
What types of orders can be included in a Financial Remedy Order?
A Financial Remedy Order can be tailored to the specific needs of each case, but it generally covers:
- Property adjustment orders – setting out who will own or occupy the family home or other property.
- Lump-sum orders – one party makes a one-off payment to the other.
- Pension sharing or pension attachment orders – dividing pension rights between parties.
- Spousal maintenance – ongoing payments from one party to the other, often where there is a significant income disparity.
- Orders for the sale of property – specifying when and how a property should be sold.
Each case is unique, and the court will decide based on fairness, the needs of both parties, and the welfare of any children involved.
When should I apply for a Financial Remedy Order?
It is generally advisable to apply for a Financial Remedy Order once divorce or dissolution proceedings are underway, but before they are finalised. This is because a financial order can only be made after the court has issued a conditional order (previously called a decree nisi) and before the final order (previously decree absolute).
In some cases, you may apply after the divorce has been finalised, but this is not ideal because it leaves a period where financial claims can still be made. Early application ensures that financial matters are settled promptly, avoiding unnecessary uncertainty.
What happens if we already have a financial agreement?
If you and your former partner have already agreed on how to divide your finances, you can apply to the court for a consent order. This is a type of Financial Remedy Order that formalises your agreement, making it legally binding.
Even if both parties trust each other and are confident in the arrangement, a consent order is highly recommended. Without it, the agreement remains informal, and either party could try to change it later.
What factors will the court consider?
When deciding on a Financial Remedy Order, the court applies a legal test based on section 25 of the Matrimonial Causes Act 1973 (or the equivalent legislation for civil partnerships). The court’s priority is the welfare of any children under 18, but it also considers:
- The income, earning capacity, and property of each party
- The financial needs and obligations of each party
- The standard of living enjoyed during the marriage or partnership
- The age of each party and the length of the marriage or partnership
- Contributions made to the welfare of the family (including non-financial contributions such as caring for children)
- Any disabilities or special needs
- The conduct of each party (in rare cases where it would be inequitable to ignore it)
The aim is to achieve a fair outcome, which may not necessarily mean an equal split.
How long does the process take?
The time it takes to obtain a Financial Remedy Order depends on whether you have an agreement in place. If you are applying for a consent order, the process can be relatively quick – sometimes just a few weeks.
If there is no agreement and the matter proceeds to a contested hearing, it can take several months or even over a year. This is because the court will require full financial disclosure from both sides and may need to hold multiple hearings to resolve disputes.
Is mediation or negotiation an option?
Yes. The court actively encourages separating couples to resolve financial matters outside of court if possible. Mediation can help you reach an agreement on financial arrangements in a less adversarial and often quicker way.
If mediation is successful, you can then ask the court to approve the agreement in the form of a consent order. This combines the benefits of a negotiated settlement with the security of a legally binding order.
What if my financial situation changes after the order is made?
Life circumstances can change, and in some cases, it is possible to vary certain parts of a Financial Remedy Order. For example, spousal maintenance can often be increased, reduced, or stopped altogether if there is a significant change in income or needs.
However, other parts of the order – such as lump-sum payments or property transfers – are generally final and cannot be changed once made. It is essential to consider the long-term implications when negotiating or agreeing to a settlement.
What happens if someone doesn’t comply with the order?
A Financial Remedy Order is legally binding. If one party fails to comply, the other can apply to the court for enforcement. The court has various powers to ensure compliance, including ordering the sale of assets or deducting payments directly from wages.
Non-compliance should not be ignored, as delays in taking action could make enforcement more difficult.
How does a Financial Remedy Order relate to child arrangements?
A Financial Remedy Order deals specifically with the financial aspects of separation. Child arrangements – such as where the children will live and how much time they will spend with each parent – are dealt with separately, usually through a child arrangements order if agreement cannot be reached.
However, the court will always consider the needs of the children when deciding on financial matters, ensuring that they are adequately provided for.
Should I get legal advice before applying?
Although it is possible to apply for a Financial Remedy Order yourself, the process can be complex. There are strict rules about financial disclosure, deadlines, and court procedures. Mistakes can lead to delays or an outcome that is less favourable than it could have been.
Seeking advice from a qualified family law professional can help you understand your rights, prepare your case effectively, and ensure that the order covers everything necessary to protect your financial future.
Final thoughts
A Financial Remedy Order is an essential step in finalising the financial aspects of a divorce or civil partnership dissolution. It not only formalises agreements and provides clarity but also offers long-term protection against future claims.
Whether you are dividing property, securing pension rights, or arranging spousal maintenance, applying for a financial order ensures that the terms are legally binding and enforceable. Acting promptly and seeking professional advice can make the process smoother and give you the best chance of a fair and lasting settlement.
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