Financial Matters after Divorce

The introduction of “no fault divorce” in 2022 has, to a large extent, taken the heat out of the divorce process by no longer requiring details for the reason of the breakdown of the marriage. 

It is, however, all too easy to go through that divorce process, especially if solicitors have not been instructed without giving thought at the time to financial and property issues that arise out of the marriage breakdown.  

The Court will not take the initiative in resolving these issues and I see many situations where the divorce itself has been concluded, but there are formal steps taken to sort out financial issues.  Sometimes informal arrangements are made between spouses which they both consider to be entirely satisfactory. 

It is important, however, to remember that such matters cannot be regarded as closed unless and until there is a Court Order in place.  There is no time limitation on making applications to the Court to deal with orders and people can receive an unpleasant surprise if they think all these matters were sorted out several years ago, only to find that they are very much still alive. 

If you have reached an agreement with your spouse, whether it be in mediation or by private discussion, it is very important to make sure that that agreement is set out in the form of a Court Order and approved by the Court, otherwise it can represent a very serious loose end.  

Achieving finality is very important, especially when assets, especially pensions, will very likely continue to grow in value post-separation. 

I would very much urge anyone who either thinks they have reached agreement or still has to reach an agreement, to take legal advice with a view to achieving that very necessary finality.