Do we need a Financial Court Order?

It is our advice that, once you have agreed to divorce, then you need a court order setting out how your assets have been divided or are going to be divided.

Pension

Pension Sharing Orders are regularly sought. They are an asset which should not be ignored. If either spouse or civil partner is going to have a claim on the others pension then that can only take place within a court order and with a Pension Sharing Annex.

Binding

Once the Court Order has been approved by a Judge it becomes binding. This means that, save for exceptional circumstances neither of you may refer the matter of finances back to court in the future

Enforceability

Once the Court Order has been approved by the Judge, then it becomes enforceable. This means that if your ex-spouse or ex-civil partner do not take steps which they have been ordered to do, then you may refer it back to the court. The court can take enforcement action and usually, the court will also make your ex-spouse or ex-civil partner pay your costs.

Inheritance and unexpected windfalls

A Court Order will be drafted so that it is in “full and final settlement of all claims arising”. Again, save for in exceptional circumstances, if there is a court Order then it limits the claims which your ex-spouse or ex- civil partner may make against you.

A Cautionary Tale

A husband and wife separated. There assets were limited and they dealt with the division, themselves. The wife was advised by her divorce solicitors to obtain a court order. The wife gave clear instructions that she did not want one, the finances were sorted and it was a waste of money. Not two years later, the wife’s parents both died and she received a substantial inheritance. The husband took the matter to court and not only was he awarded a substantial lump sum, but he also received a pension sharing order, against the wife’s pension.

In 2015 the Supreme Court was faced with the case of Wyatt -v- Vince [2015] UK SC14. In this matter there had been a passage of some 28 years before the ex-wife brought a claim against the Husband. The court allowed the application to proceed.

Conclusion

In the circumstances, now matter how limited your financial circumstances, we would always advise that there is a properly drafted court order which is approved by the Court.

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