What is a financial order?
A financial order is type of Court Order. It sets out how your finances will be organised after divorce, including how assets and debts will be split. Crucially, it’s legally binding.
There are a few different types of financial order in the UK. If you’re divorcing amicably and agree on how your finances should be organised, you can obtain a Consent Order. This makes what you’ve agreed legally binding.
If you can’t agree, either you or your ex will need to make a formal application to the court for a financial order. There are also Pension Sharing Orders and Maintenance Orders.
The last type of financial order to know about is a Clean Break Consent Order. This stops either spouse from making future claims against the other for things like pensions or lottery wins.
Attending a Mediation Information and Assessment Meeting (MIAM)
If you and your spouse can’t reach an agreement and communications have broken down, you may have to attend a Mediation Information and Assessment Meeting (MIAM). This must be done before you can officially apply for a financial order. There are a few exceptions however, such as for victims of domestic violence or where there are child protection concerns.
At a MIAM, a professional family mediator will do the following:
• Explain the advantages, disadvantages and costs of mediation
• Assess whether mediation is a suitable and safe option for you
• Provide information on other options for resolving the financial dispute.
If you go ahead with mediation and reach an agreement, a consent order can be drafted by your divorce solicitor.
Still can’t agree? How to apply for a financial order
If an agreement hasn’t been reached, the next step is to apply for a financial order from the court. There are some forms to complete, starting with a ‘Notice of intention to proceed with an application for a financial order’. Your divorce solicitor can assist with these forms, or handle them on your behalf. There’s a lot of information to provide and documents to prepare, so professional help will be invaluable.
Once your forms are submitted, here’s a brief timeline of what happens next:
1. First appointment. This is where the court looks at the key points of agreement and disagreement between spouses in your case. The judge can then make directions to help progress the case. The financial order can be declared there and then if you both agree, or the hearing adjourned to give you more time.
2. Financial Dispute Resolution (FDR). If the case isn’t resolved at the first appointment, an informal hearing will be held. You’ll be expected to make a proposal to your spouse about what financial order would be fair, and they’ll get to explain their own expectations. No decision is made, but the judge should give you an indication of what court order will be issued.
3. Final hearing. This is where the financial order will be made by the court, detailing how finances should be shared. You’ll have the opportunity to give evidence, cross-examine and provide witnesses if necessary. The order will then be made and implemented.
If you need expert representation and legal advice you can count on during this process, get in touch with Liverpool divorce solicitor Tracey Miller Family Law.