The majority of financial orders on divorce are made as a result of parties being able to reach an agreement between themselves, meaning that the order is made ‘by consent’.
It is extremely important that you obtain a financial order to formalise and record the agreement you have reached with your spouse as this will sever all financial ties between you both in life and in death. The agreement you have reached will be recorded within a Consent Order.
What is a Consent Order?
A Consent Order is a legally binding document detailing the agreement you have reached with your spouse. Both parties are obligated to adhere to the terms of the Order.
Once you and your spouse have come to an agreement, a solicitor will draft a Consent Order for you to ensure that the order accurately details the agreement you have reached, ensuring that all financial aspects are covered. The Consent Order will then need to be signed by you both. The Consent Order will then need to be submitted to the Court for approval by a Judge, alongside a form called a Statement of Information Form (sometimes referred to as a D81), which contains a summary of your financial positions. The Judge will be checking that the agreement you have reached is fair in your circumstances and meets both of your needs. Once approved by a Judge, you will receive a sealed copy of the Consent Order from the Court. This is then a legally binding Order and enforceable.
It should be noted that the Court does not have to approve a Consent Order if it has concerns that it is not fair to both parties and the Court may request further information and amendments to the Consent Order. It is therefore very important that you receive independent legal advice in relation to the Consent Order to make sure it is drafted in a way in which it is unlikely that a Court will not approve it.
Do I need a Consent Order?
If you divorce without reaching a financial agreement which is recorded within a Consent Order, and approved by the Court, it is possible that your ex-spouse may still be entitled to make a financial claim against you at any time in the future – even many years down the line. Having a Consent Order provides parties with security and peace of mind. A Consent Order ensures that if either party fails to comply with the agreed terms, the other party can take legal action to enforce the agreement. Having a Consent Order in place enables parties to move forward with confidence and peace of mind.
If you wish to discuss financial agreements and Consent Orders, please contact our Family Law team who will be happy to help.