Navigating a divorce can be both emotionally and mentally taxing. In addition to dealing with the breakdown of the relationship, there are multiple practical needs to address, decisions to make and agreements to reach.
Who (if anyone) will remain in the family home, for example? Where will the children live? Aside from the question of with whom the child would live, the question of who’ll get what when it comes to the division of property and assets is often one of the hardest points to agree on.
Divorce can be an incredibly confusing process, and the division of assets is no exception. Many divorcing couples may not be aware that the splitting of finances is regarded as a separate matter, and the dissolution of the marriage can be legally rubber stamped even if there’s a dispute over how property and other assets should be split.
Couples who are able to decide how finances should be split between themselves will find it quicker and cheaper to close the door on this chapter of their lives. The first step to achieving this is to agree a financial settlement. This is a document which outlines exactly how assets like pension pots, property, investments and savings will be split and is agreeable to both parties.
What exactly is a Consent Order and why is it important in legal settlements?
A consent order is a legal order which confirms the details of the financial agreement made between the divorcing couple. It may also include other key information, such as maintenance payments.
Obtaining a consent order makes the financial agreement legally binding. If the consent order isn’t obtained, it isn’t legally binding and can’t be enforced by the courts if problems arise in the future.
Whilst it is possible to get divorced without a consent order, it isn’t recommended, even if you have very few shared assets to split.
In addition to holding each person to the terms of the financial agreement, a consent order also ensures that claims can’t be made against you in the years to come. Without a consent order, your former spouse could make a claim against you years from now. That means if you become wealthy by building a successful business for example, receive a large inheritance or win the lottery, you could be made to share some of that wealth with your ex-partner.
A consent order takes that possibility off the table, giving you financial peace of mind for the next stage of your life.
What key elements should be included in a Consent Order?
Because the consent order is a legally recognised version of your financial agreement, it should provide a full and complete breakdown of how your assets will be split, and covers things like:
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- Property
- Pensions
- Investments
- Savings
- Vehicles
- Businesses
- Assets such as furniture and artwork
The consent order should also outline any maintenance payments to be made including any spousal support or child maintenance.
It will be broken down into several components. These include:
Recitals: Recitals are agreements that the couple has reached for example, that neither will make a claim against an asset that is wholly owned by the other party.
Undertakings: Undertakings are actions that one person has agreed to take. This could be to pay off a credit card debt for example, or to clear any overdue loan payments.
Orders: Orders are instructions from the court which outline required actions such as requiring a property to be sold or the ownership of an asset to be transferred from one party to another. It will also outline maintenance to be paid.
How does signing a Consent Order affect your legal rights and obligations?
A consent order is legally binding. Once signed, you are bound by the terms of the consent order and expected to uphold them. A consent order is enforceable by the court, so if you fail to adhere to the terms of the order, you could be subject to legal action.
Signing a consent order means you’re unable to make a future claim against your former spouse, and vice versa.
What are the potential consequences of not adhering to a Consent Order?
A consent order is a legal order which both parties need to abide by. Failing to adhere to the terms of the order, for example by refusing to sell or transfer an asset as ordered by the court could have serious legal ramifications. Any departure from the order could result in further legal action being brought.
What legal advice should you seek before agreeing to and signing a Consent Order?
You should always seek the advice of a family solicitor before signing a consent order to ensure that your best interests have been considered. Navigating the division of assets, coming to a fair financial agreement and then applying for and signing a consent order can be a complex process. Getting it wrong can be costly, could mean that you don’t get what is fair and may result in the judge refusing to sign off on the order.
If you’re going through a divorce, you can apply for a consent order when the decree nisi is granted. National Legal Service’s experienced divorce finance solicitors can help you to negotiate an agreement with your former partner and draft a consent order to be submitted to the courts for approval. You’ll also need to complete a financial disclosure document, and we can help with that, too.
Contact us to speak to a member of our team in confidence.
