Reaching a settlement as to finances post-divorce does not have to be ‘messy’ and contentious. In fact, the court highly encourages parties to reach an agreement outside of court, but what happens if you do manage to reach an agreement either between you or, after mediation? Is the paperwork provided by the mediator enough? Is a signed record of the agreement reached between you enough? The short answer, no!
In order for an agreement reached to be legally binding, it has to be drawn up into a Financial Order and approved by the Court. The Order, when filed at the Court, is to be supported by a Statement of Information (D81 form).
What happens if I do not get a Financial Order?
If you do not have a Financial Order made by the Court, the financial claims between yourself and your spouse are not extinguished (despite divorce proceedings having potentially been concluded). This means that either party could make a financial claim against the other in the future (in life or death).
Do I need a solicitor?
To ensure that the Order is drafted correctly and contains all of the required terms, a solicitor should prepare the Order reflecting the terms of the agreement reached.
Both parties are recommended to take independent legal advice as to the terms of the order.
What happens when the Order is filed at the Court?
A court fee is payable to lodge the documentation with the court.
Once lodged, the Court will review the draft Order and the Statement of Information form (D81). The D81 sets out the financial positions of both parties both before the implementation of the Order and, afterwards. This allows the Court to consider whether the agreement reached is fair and reasonable for both parties. The Court are not there just to “rubber stamp” the Order hence it is important that documents are correct.
The Court may ask further questions of the agreement reached but, if the Court is content that the Order is fair and reasonable in all the circumstances, the Court will make a sealed Order.
What do I do with the Order once received?
Keep the sealed Order received from the Court in a safe place as, this details the final financial arrangements between yourself and your spouse.
There may be further steps that need to be taken after the Order is sealed in order to implement the terms of the Order. For example, transferring property from one spouse to the other or implementing Pension Sharing Orders. It is recommended that you take legal advice as to any further steps you need to take after the Order has been made.
Questions?
If you have any questions relating to financial settlements upon divorce, contact our family team who are here to help. Book a free 30-minute discovery call online or visit us at any of our offices in Blandford, Bournemouth, Crewkerne, Dorchester, Poole, Swanage, and Wareham.
