No Assets in a Divorce: Is a Financial Order Still Needed?
What is a financial order?
It’s a common misconception that when you divorce, financial ties with your ex-partner will automatically be cut off. But this isn’t the case. In fact, the only way to fully separate your finances is by putting a financial order in place.
A financial order is a legally binding document which sets out how assets and finances will be dealt with following divorce proceedings.
Do I need a financial order to get a divorce?
There is no legal obligation to have a financial order written up, but it is strongly recommended that you do.
Although the introduction of no fault divorce has arguably made the process of ending a marriage easier from a legal perspective, it hasn’t affected the rules around financial orders and settlements.
This means that your final order (previously known as the decree absolute) will still only put a legal end to your marriage, not your financial commitments to one another.
Why should I consider a financial order?
Many people assume that if there are no assets to distribute in a divorce, a financial order won’t be needed. But a financial order serves multiple purposes and it could protect your finances in the long term, even if you currently have no assets to share.
One of the main benefits of a financial order is that it will stop your ex-partner from making claims against your future wealth. This could include any increase in earnings, inheritance received or lottery winnings.
And although it’s not nice to think about, a financial order will stay in place until after your death. So your loved ones won’t have to worry about financial claims being made against your estate when you pass away, giving you and them peace of mind.
Which is the best financial order for me?
If you’ve ever looked into getting a financial order, you’ll know that there are varying versions. And it can be difficult to know which one is right for you.
Where there are no assets involved and you and your ex-partner just need to end your financial commitment to one another, a clean break order is often the best option.
A clean break order will remove all your rights to each other’s finances, and it will be legally binding. This means that if one of you tries to claim further financial provisions from the other, the terms of the order can be enforced by law.
How are financial orders put in place?
A financial order will only become valid in the eyes of the law if it has been court-approved. This is where an experienced divorce solicitor can help you. They will be able to put your financial order into writing and send it to court on your behalf for approval.
If you’re looking for a specialist divorce and family law solicitor, we can help. We’ll put you in touch with a qualified solicitor who will make sure your financial order is worded in a way that will leave no room for future claims against you.
Get in touch by phone or make an enquiry online to find out more.
