Financial remedy order
It is important to note that finalising divorce proceedings by obtaining the final divorce order (formerly referred to as the decree absolute) does not sever the financial ties that arise from a marriage, and these will remain in place indefinitely until a court approves a financial remedy order.
This can create problems if one party to the marriage comes into money by way of inheritance or lottery winnings for example, after the divorce has been finalised but before a financial remedy order has been approved by a court.
It is always beneficial to record a financial agreement in a financial remedy order which, once approved by a judge, is legally binding and enforceable. This order will protect you against future claims being made by your spouse as a result of the marriage.
Proceeding with financial disclosure
The standard procedure is for the parties to exchange financial disclosure in full prior to negotiations so that the value of the matrimonial assets can be calculated, and legal advice can be provided setting out what each party may be entitled to.
Proceeding without financial disclosure
In some situations, where both parties have good knowledge about the matrimonial finances, they may be tempted to avoid financial disclosure to save time and legal fees. You may have even negotiated between you to reach an agreement that both of you are happy with.
However, in this situation, you must be confident that your spouse hasn’t hidden any assets. The only way to ensure nothing is missed is by exchanging financial disclosure through bank statements, evidence of income and evidence of pension valuations.
While it’s possible to proceed with an agreement without exchanging financial disclosure, it is not advisable. If you approach a matrimonial solicitor with an agreement but refuse to exchange disclosure, you will likely be advised to explore your spouse’s finances. If you choose not to follow this advice, you may be asked to sign a disclaimer confirming your contentment to proceed against your solicitor’s recommendations.
If you have little or no knowledge of the matrimonial finances, it is essential to request disclosure from your spouse. Even if you ended the marriage on good terms, your lack of knowledge could be exploited, leaving you with less than you are legally entitled to.
The implications of re-marrying before the final financial court order
If you are the respondent in the divorce and re-marry before you have a final financial court order you may find you’re prevented from making a financial application, so it is worth enquiring with a solicitor before any re-marriage takes place.
If you would like to discuss financial disclosures or thinking about separating from your partner, please contact Cheryl Haywood or a member of our family team.
Financial remedy order
It is important to note that finalising divorce proceedings by obtaining the final divorce order (formerly referred to as the decree absolute) does not sever the financial ties that arise from a marriage, and these will remain in place indefinitely until a court approves a financial remedy order.
This can create problems if one party to the marriage comes into money by way of inheritance or lottery winnings for example, after the divorce has been finalised but before a financial remedy order has been approved by a court.
It is always beneficial to record a financial agreement in a financial remedy order which, once approved by a judge, is legally binding and enforceable. This order will protect you against future claims being made by your spouse as a result of the marriage.
Proceeding with financial disclosure
The standard procedure is for the parties to exchange financial disclosure in full prior to negotiations so that the value of the matrimonial assets can be calculated, and legal advice can be provided setting out what each party may be entitled to.
Proceeding without financial disclosure
In some situations, where both parties have good knowledge about the matrimonial finances, they may be tempted to avoid financial disclosure to save time and legal fees. You may have even negotiated between you to reach an agreement that both of you are happy with.
However, in this situation, you must be confident that your spouse hasn’t hidden any assets. The only way to ensure nothing is missed is by exchanging financial disclosure through bank statements, evidence of income and evidence of pension valuations.
While it’s possible to proceed with an agreement without exchanging financial disclosure, it is not advisable. If you approach a matrimonial solicitor with an agreement but refuse to exchange disclosure, you will likely be advised to explore your spouse’s finances. If you choose not to follow this advice, you may be asked to sign a disclaimer confirming your contentment to proceed against your solicitor’s recommendations.
If you have little or no knowledge of the matrimonial finances, it is essential to request disclosure from your spouse. Even if you ended the marriage on good terms, your lack of knowledge could be exploited, leaving you with less than you are legally entitled to.
The implications of re-marrying before the final financial court order
If you are the respondent in the divorce and re-marry before you have a final financial court order you may find you’re prevented from making a financial application, so it is worth enquiring with a solicitor before any re-marriage takes place.
If you would like to discuss financial disclosures or thinking about separating from your partner, please contact Cheryl Haywood or a member of our family team.