In England and Wales, the legal end of a marriage is only one half of the process. While a divorce legally changes your marital status, it does not automatically settle your divorce financial obligations. Without a court-approved agreement, your former spouse could theoretically make a claim against your assets, including future inheritances or business successes, many years after the divorce is finalised.
At ED Legal, Eliza Dumitrescu provides expert guidance to ensure that your settlement is not only fair today but also protects you for a lifetime.
The Power of a Consent Order
When a couple reaches an agreement on how to divide their assets (such as the family home, pensions, and savings), this is recorded in a “Consent Order.” This document is submitted to the court to make the agreement legally binding.
A judge will review the proposal to ensure it is fair to both parties and prioritises the needs of any children. Once sealed by the court, it prevents either party from changing their mind or making fresh demands later, providing the certainty needed to move forward.
Achieving Finality with a Clean Break Order
For many, the ultimate goal of a settlement is a clean break order. This is a specific type of court order that severs all financial ties between you and your ex-spouse forever.
Once a clean break order is in place:
- Neither party can claim a share of the other’s future income or assets.
- Claims against future inheritances or windfall gains (like a lottery win) are dismissed.
- Spousal maintenance is usually ended (either immediately or after a set transition period).
This is particularly vital in 2025’s economic climate, where protecting your individual pension growth and new investments is a top priority for those rebuilding their lives.
Understanding Your Divorce Financial Obligations
The law regarding divorce financial obligations is governed by the Matrimonial Causes Act 1973, but it is constantly being refined by new case law. In 2025, the courts are placing more weight on:
- Pre-Marriage Assets:Recent rulings have clarified that assets brought into the marriage (like an existing property) may be protected, provided they weren’t “intermingled” with family finances.
- Standard of Living:The court aims to ensure both parties can meet their housing needs, which often means an equal split isn’t always the “fair” outcome.
- Pensions:Often the second most valuable asset after the home, pensions are now more frequently “shared” at the point of divorce to ensure both parties have a secure retirement.
Why Informal Agreements are Risky
We often see clients who have “amicably” agreed on a split without involving the court. While this may work in the short term, an informal agreement does not legally end your divorce financial obligations.
If your ex-spouse encounters financial difficulty five or ten years from now, they could still apply to the court for a financial remedy. Only a sealed, clean break order provides a permanent shield against such claims.
How ED Legal Can Support You
Whether you are at the beginning of negotiations or have already reached an agreement and simply need it formalised, Eliza Dumitrescu offers the professional reliability you need.
We help you navigate the complexities of “Full and Frank Disclosure” to ensure your settlement is robust and enforceable!
