What is a financial order and how does it work?
In the UK, when a couple decides to get a divorce, they have to go through a legal process to divide their assets and finances.
This process is called a financial settlement or a financial order.
A financial order is a legally binding agreement that outlines how the couple’s assets and finances will be divided between them. This agreement is usually reached through negotiation, mediation, or court proceedings.
A financial order is important because it protects both parties’ financial interests and ensures that all assets are divided fairly. It also prevents one party from making financial claims against the other in the future.
A financial order can cover a range of issues, including the division of property, savings, investments, pensions, and maintenance payments.
A consent order is a type of financial order
One type of financial order is the consent order.
A consent order is an agreement reached between the divorcing couple that is then approved by the court. It is a legally binding document that sets out how the couple’s finances will be divided.
The consent order must be fair and reasonable to both parties and should take into account their individual circumstances.
To obtain a consent order, the couple must first reach an agreement on how their finances will be divided. This can be done through negotiation, mediation, or collaborative law. Once an agreement has been reached, the couple can apply for a consent order by submitting the agreement to the court.
The court will then review the agreement to ensure that it is fair and reasonable. If the court is satisfied that the agreement is fair, it will issue a consent order. Once the consent order is issued, it becomes legally binding, and both parties must comply with its terms.
A consent order can be a cost-effective and efficient way to reach a financial settlement. It is also less stressful and time-consuming than going to court.
However, it is important to seek legal advice before entering into a consent order to ensure that the agreement is fair and reasonable (find out more about our online consent order service).
In conclusion, a financial order is an important legal document that sets out how a divorcing couple’s finances will be divided.
A consent order is one type of financial order that is reached through negotiation and is approved by the court.
It is a cost-effective and efficient way to reach a financial settlement, but it is important to seek legal advice before entering into a consent order to ensure that the agreement is fair and reasonable to both parties.