Financial Matters

Take control of your finances

The divorce process itself need not be a stressful one, but it can become very stressful if you misunderstand what is involved in obtaining a divorce and what this really means for you in terms of any financial settlement.

Many people believe that a divorce automatically includes the settlement of finances and assets and for this reason decide not to obtain a document call the Final Order. A Final Order effectively brings to an end any financial claims that you or your ex-partner can have against each other following divorce.

Implications of not obtaining a Final Order can be complicated. For example, if one party receives an inheritance or wins the lottery after the divorce and no Final Order has been obtained the other party may have a claim on that ‘new money’. Even if they don’t have a claim, you may still have to bear the cost of defending their action through the Courts.

If you and your ex-partner have no assets then things are relatively simple to resolve by entering into a Consent Order, which would effectively dismiss any financial claims you have against each other arising from your marriage. Likewise, if you have already reached an agreement between yourselves amicably then it would still be advisable to embody it in a Consent Order to protect yourselves in the future.

Informal financial agreements are not legally binding unless written into a Court Order. Friendly agreements can often start out very amicably but can often break down over time, especially when one or the other party re-marries. One party could go back on their word and although you can attempt to prove that you had an agreement to the court, the cost of doing so, is likely to be significantly higher than if you had had the matter dealt with properly at the time of the agreement.

If you have decided to divorce or you are divorced; see to it that your financial matters are properly concluded by obtaining a Court Order bringing your joint financial relationship to an end. Failing to deal with matters properly now could cost you a lot more in the future. McKinnells are here to help.

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