One of the most common myths among clients is that their former spouse cannot make a claim or obtain a financial order after Decree Absolute (now known as the Final Divorce Order) has been pronounced in their divorce proceedings.
This article is part of a series of articles that aim to debunk the top 10 myths and misconceptions around divorce and finances that we have come across with our clients.
Financial Order after Decree Absolute (Final Divorce Order)
This myth can lead to one of the most common problems for parties in divorce proceedings – finding that many years after getting divorced, a former spouse has returned to make a financial claim against the assets that have been built up in that time.
To tackle this issue, we need to first establish what a Decree Absolute/Final Divorce Order is and the impact it has, before looking at the reality of severing financial claims.
What is a Decree Absolute (Final Divorce Order)?
A Decree Absolute/Final Divorce Order is the final order in divorce proceedings and confirms the date on which your marriage was legally dissolved.
The pronouncement of a Final Divorce Order has several consequences for inheritance. For example, if you have a Will, on your death it will take effect as though your former spouse had died during your lifetime. The Final Divorce Order may also affect your ability to claim a widow/widower’s pension from your former spouse. However, the facts of your individual matter will determine the exact impact of the Final Divorce Order and independent legal advice should be obtained on this point.
How do I protect myself against future financial claims following a Decree Absolute/Final Divorce Order?
To dismiss the financial claims that a former spouse may have against you, you will need to have a financial order approved by the Court. This usually comes in the form of a Consent Order and until approved by the Court, there is not a full, final and binding clean break concerning your financial arrangements.
Unless a financial order is approved by the Court, both you and your former spouse will be able to bring financial claims against one another and could remain exposed to that risk for the rest of your lives. The submission of a financial order stops that from happening and protects your position. Without this, therefore, your spouse could still obtain a financial order after the Final Divorce Order.
It is especially important to be aware of this if your financial position has changed since the divorce, as any assets that have increased in value or new assets that you have acquired since the divorce could be open to a claim from your ex-spouse for financial provision.
Finally, you must also be aware of the “re-marriage trap”. Following the pronouncement of the Final Divorce Order, if you decide to re-marry without having an approved financial agreement, then you may be prevented from applying for a lump sum, property adjustment (such as a sale or transfer of property) or spousal maintenance against your previous spouse. Your claims for a financial order after the Final Divorce Order may therefore be more limited.
To see the full series of our Top 10 divorce finance myths, please click here.