Reached a Financial Agreement With Your Spouse? Here’s What You Should Do Next
Posted on in Family Law
In circumstances where individuals going through divorce or dissolution proceedings discuss financial matters between themselves, they may reach an agreement. Divorce itself does not dismiss financial claims, and therefore, when an agreement is reached, it is very important that those terms are formalised within a Financial Consent Order, which is binding and enforceable.
How can I obtain a Financial Consent Order?
A Financial Consent Order is a formal Court document that should incorporate all terms that have been agreed between you and your spouse.
Someone with legal expertise should draft the document to ensure it accurately reflects what has been agreed and covers all areas. A Statement of Information (Form D81) will also need to be completed to set out both of your financial positions pre and post implementation of the agreed terms. Once the documents have been agreed by both parties, they will need to be signed and filed at Court for a Judge to consider.
Whilst the Courts wish to uphold your autonomy to decide how the matrimonial finances are dealt with, the Judge who reviews the documents has overall discretion whether to approve the agreement reached between you. They will consider the terms agreed alongside the summary of your financial positions and can raise queries if they deem it necessary.
The agreement must be fair to both parties and meet your respective needs. It is therefore strongly recommended that both parties seek their own independent legal advice when preparing the necessary documents. Once the Financial Consent Order is approved, it is legally binding and enforceable, meaning both parties must abide by the terms contained within it.
Why do I need a Financial Consent Order?
As the divorce proceedings themselves do not dismiss financial claims, if the financial agreement you have mutually reached is not formally recorded within a Financial Consent Order, this effectively leaves financial claims open. Either you or your spouse could bring a financial claim against the other at any time in the future.
It is advisable to obtain a Financial Consent Order to provide you with reassurance that all matters arising from the divorce have been formally dealt with, providing you with protection for the future. If you have a sealed Financial Consent Order that has been approved by a Judge, you can bring the matter back to the Court’s attention to enforce the agreement if your spouse has failed to implement any of the term(s).