Financial Orders in Divorce - How Assets Are Divided

Financial Orders in Divorce

Getting divorced means untangling your financial lives. A Financial Remedy Order from the court provides a clean break and certainty about the division of assets and ongoing support.

Types of Financial Orders

Lump Sum Orders

One-off payment from one spouse to another.

Property Adjustment Orders

Transfer of property between spouses, such as the family home.

Pension Sharing Orders

Division of pension assets between spouses.

Periodical Payments (Maintenance)

Regular payments for spousal support.

Clean Break Order

Ends all financial claims between spouses.

What the Court Considers

The court applies Section 25 factors:

• Welfare of children - First consideration
• Income and earning capacity - Both spouses
• Financial needs and obligations
• Standard of living - During the marriage
• Ages and duration of marriage
• Contributions - Financial and non-financial
• Disabilities - Physical or mental
• Conduct - Only if severe ('gross and obvious')

Is It Always 50/50?

Not necessarily. The starting point for matrimonial assets is often equal division, but the court can depart from this based on:

• Children's housing needs
• Significant earning disparity
• Pre-marital assets
• Inheritances (depending on circumstances)
• Length of marriage

Matrimonial vs Non-Matrimonial Assets

Matrimonial Assets (Usually Shared)

• Family home
• Joint savings
• Pensions accrued during marriage
• Assets built up together

Non-Matrimonial Assets (Sometimes Protected)

• Inheritances (especially recent ones)
• Assets owned before marriage
• Gifts from third parties

Protection isn't guaranteed - needs always come first.

The Process

1. Financial Disclosure

Both parties must provide full disclosure using Form E:

• All assets, property, pensions
• Income and earning capacity
• Debts and liabilities
• Future needs

2. Negotiation

Try to agree settlement:

• Direct negotiation
• Mediation
• Solicitor-led negotiations
• Collaborative law

3. Court Proceedings (if needed)

• FDA (First Directions Appointment)
• FDR (Financial Dispute Resolution)
• Final Hearing

Making It Binding

To be enforceable, your agreement needs:

• Consent Order approved by court, OR
• Full court order after contested hearing

Without a court order, claims remain open indefinitely.

Cost Warning

Contested financial proceedings are expensive. Reaching agreement through mediation or negotiation saves significant costs.

Get Help

MCR Solicitors helps clients achieve fair financial settlements. Call 0161 466 1280.