What Is A Financial Consent Order And Why Do I Need One?

• Published date: 05 July 2023
• Subject Matter: Family and Matrimonial, Family Law, Divorce
• Law Firm: Weightmans
• Author: Yasmin Kibble and Libby McKean

We provide guidance on all aspects of a financial consent order and explain how you can apply for one.

What is a consent order?

A consent order is a legally binding document sealed by the court that sets out the terms of a financial agreement reached between parties in divorce or dissolution proceedings. This can be as complex or as brief as is required by each couples' individual circumstances.

The guidance given to couples considering divorce or dissolution on the gov.uk website does refer to the need to obtain a financial order to make a financial settlement legally binding and so enforceable if one party defaults, but unfortunately it does not explain that this is not the only reason why a financial order is crucial. Unfortunately, many people do not fully appreciate the need for an order, especially if an agreement is reached and no difficulties are anticipated in putting practical arrangements in place.

Why is a financial consent order important?

Enforcement

An agreement embodied in a court order is important in the event that one party defaults on the agreement. If the agreement is contained within an order, parties can apply to the court for this to be enforced. Without such measures, it may be difficult to hold an ex-spouse to an agreement reached.

Future claims

However, equally crucially, If your claims are not formally dealt with in an order, which includes a clause to record that all future claims are dismissed, your spouse or partner may be able to bring a case against you in the future, even many years after the divorce or dissolution has been finalised.

In the case of Wyatt v Vince, the wife issued her claim 19 years after their divorce was finalised. At the time of the divorce, the couple were virtually penniless and they took no action in relation to resolving the financial aspects upon their divorce. In their minds, there was nothing that needed to be sorted out.

In the years following the divorce, the husband built up a multi-million pound business. The wife was entitled to bring a claim as no order had been made previously to prevent her from doing so.

Although she did not succeed in getting a large award, the court found that she was able to proceed with her claim despite the years that had passed since their divorce. An agreement was ultimately reached between the parties which provided the wife with a lump sum of '300,000.

For many people, there is a future anticipation of an inheritance or chance of receiving a windfall such as...