Why do you need a Consent order? When a couple is thinking about getting a divorce, they often do not realise that the divorce process and the family finances are handled separately.
It is alarming to many individuals that a divorce does not end the financial relationship with a former spouse.
Therefore, if an individual is getting divorced and does not get a financial order formally dismissing all financial claims, their former spouse still can make financial claims against them in the future (if they have not remarried) even after several years have passed.
If parties do not apply to the courts for a financial order, it leaves their finances open to a potential claim in the future.
Talk to Tollers today for expert legal advice regarding a financial consent order.
What is a Consent Order?
A consent order is a legally binding document that sets out the agreement which parties reach setting out the terms of the financial settlement. Once the terms of the order are agreed upon, both parties will sign it and then submit it to the court for the Judge to approve.
It will set out how all the assets (property, investments, pensions, businesses etc.) are to be divided and the amount of any maintenance that is to be paid.
An informal agreement reached directly between the parties, even if signed by them over the kitchen table, will not be binding and could result in one party making further financial claims at a later date. Consent Orders are formal, legal documents that record a financial agreement between two parties.
The procedure of having a consent order drawn up is usually straight forward and it can all be submitted online. It does not usually require the parties to attend any court hearings.
The consent order can make provision for a range of financial orders, depending on the nature of the agreement reached between the parties,
- Lump-sum payments
- Pension provisions such as pension attachment orders and pension sharing
- Maintenance- whether spousal and\or if agreed, child maintenance
- Property adjustment orders to include the sale of the property.
If a party fails to comply with the terms set out in a consent order, the terms can be enforced through the court if necessary.
To avoid the risk of a former spouse making a financial claim against your assets at a later stage, speak to one of our specialist family lawyers on how to formalise your agreement.
What information needs to be provided for a consent order to be approved?
A Statement of Information Form (D81) must be completed by both parties, which details the current financial position. The form requires the following information:
- Income (e.g., earnings, benefits, maintenance, rental income)
- Pension (e.g., a CETV – Cash Equivalent Transfer Value – will need to be provided for each pension held by both parties)
- Assets (e.g., business assets, properties, bank accounts, vehicles)
- Debts (e.g., loans, credit cards)
- Whether a party has any intention to cohabit or remarry
Talk to Tollers
If you would like further legal advice regarding a consent order, speak to one of our professional divorce lawyers today.