Family & Divorce
What are Financial Consent Orders?
Though the introduction of the ‘No-Fault Divorce’ procedure provides for a more amicable divorce process, couples who are looking to separate still face the challenge of negotiating over finances, assets and children.
If mismanaged or overlooked, this aspect of a divorce can have grave consequences for either party, leaving them at a significant disadvantage. It is therefore imperative that divorcing couples consider obtaining a financial consent order.
A consent order is a legal document that confirms the full financial agreement reached by a couple. Consent orders usually set out how assets will be divided, and can include any other financial arrangements such as child maintenance payments. It also allows for separating couples to deal with pensions and/or any tax liabilities relating to transfer of assets.
Couples need apply to the court to finalise the agreement reached to ensure it is legally binding. The consent orders usually contain a clause to prevent ex-spouses from making subsequent financial claims against each other. This reduces the risk of exposure to future claims and provides closure.
Yvonne Taiwo, a Paralegal in the Family team, said:
“In light of the rising cost of living, obtaining security by means of a financial consent order is more important than ever before. Divorce proceedings by nature are emotionally challenging, but with the appropriate legal guidance, a consent order can operate to facilitate a division of assets that is reasonable and fair for both parties.”