Blue Stephenson
March 2026
Personal Law
While a divorce legally ends your marriage, it doesn’t automatically resolve your financial ties. "Financial Remedy" is the legal process used to fairly divide your assets, property, and pensions. Whether you have reached an agreement or need the court’s intervention, this process ensures your financial future is protected and legally secure.
When a couple cannot agree on how to split their assets, they can apply for a Financial Remedy Order. This is a court-led process where a judge decides how your resources should be shared. When you divorce, the Family Court can make several different orders as it deems to be appropriate; this includes (but is not limited to) a lump sum order, property adjustment order, periodical payments order, pension sharing order, and an order for sale. Even if you do agree to the division of finances, you still need the court to approve a "Consent Order" to make that agreement legally binding and to prevent future claims.
There are two primary ways to resolve your financial affairs during or after a divorce. Which path you take depends largely on whether you and your spouse/former spouse can reach an agreement.
This is the ideal path and the one most people take. If you and your spouse can reach an agreement, either between yourselves or through your solicitors, your lawyer can turn that agreement into a formal document called a "Consent Order."
How it works: Once drafted, the Consent Order is sent to a judge for approval.
The Benefit: In most cases, this can be done without you ever needing to step foot in a courtroom.
The Result: Once approved, the agreement becomes legally binding and prevents any further financial claims from being brought in relation to the marriage.
To ensure that any agreement reached is fair and reasonable, it is crucial to ensure that full and frank disclosure of any assets, income and debts is exchanged with your spouse/former spouse before entering into any settlement.
If an agreement simply cannot be reached, or the other spouse/former spouse will not cooperate, the court has the power to step in and impose a settlement. This is the formal "Financial Remedy" process.
Financial Disclosure: Before making a decision, the court will require both parties to provide full "financial disclosure," showing all assets, debts, and income.
The Order: Based on what is considered "fair" under the law, the judge will make an order that both parties must follow.
It is a common misconception that getting a Final Order of divorce ends your financial obligations to one another. Without a court-approved Financial Order, the financial ties between you and your former spouse would remain open and your former spouse could potentially make a claim against your assets, including those received or acquired post-separation such as a lottery win many years down the line.
To ensure a "clean break" and total financial independence, you must have a court-approved Financial Order, whether agreed by consent or imposed by a judge.
Non-court dispute resolution (referred to as NCDR) provides an alternative for parties to resolve any disputed issues without having to involve the court. Before making any application to the court for a financial remedy, you must demonstrate that NCDR has been considered unless a valid exemption applies, for example due to issues of domestic abuse.
There are various different forms of NCDR, the most common of which are stated below.
Mediation: A neutral third party helps you and your spouse to negotiate. This is often the most cost-effective and least stressful way to reach a settlement. A lawyer can then help you to formalise any agreement reached at mediation and make this legally binding.
Arbitration: A private way of resolving a dispute where an independent arbitrator makes a binding decision. While more common in complex cases, it offers a faster alternative to the court system.
Whether you are on good terms with your spouse or facing a difficult disagreement, early legal advice is vital. A solicitor will help to ensure that any agreement you reach is fair, protects your long-term interests, and, most importantly, is drafted correctly so the court will approve it.
Navigating the financial side of a divorce can feel overwhelming, but you don't have to do it alone. Whether you are looking to formalise an agreement which you have already reached with your spouse/former spouse, or need help navigating a contested application, our experienced family law team is here to support you and help you navigate the process.
