Final order divorce/dissolution: Does it end your financial ties?

Does the final order in a divorce/dissolution end my financial ties?

Divorces conclude by applying to the Court for a final order, previously known as the Decree Absolute. Once a Final Order has been made, you are no longer legally married to your former spouse and, should you wish, you are able to re-marry or enter into a new civil partnership. It is common misconception however that by virtue of being divorced, you are protected against any future financial claims from your ex-spouse. This is simply not the case and it is vital that you deal with your financial ties alongside any divorce proceedings.

What do I need to do?

Typically, in most cases, it will be appropriate to obtain a Clean Break Order once you have divided your assets/liabilities as agreed or by order of the Court. A Clean Break Order is a type of financial order that severs the financial ties between spouses and prevents any future claims being made by one spouse against the other insofar as matrimonial claims are concerned. It effectively draws a line under the division of assets after your divorce.
It should be noted that Clean Break Orders are not appropriate in all cases, for example when one party seeks for spousal maintenance to continue after the divorce has concluded.

What could happen if I do not obtain a Clean Break Order?

In the absence of a Clean Break Order, there are scenarios whereby your ex-spouse can make a claim against you. For example, this could be where you have separated but divorced years later where one party has accrued further assets. This could also apply where one ex-spouse has received winnings from the lottery or inheritance. An ex-spouse could therefore make a claim against future assets that have been accrued following any divorce proceedings, which can of course make life very difficult, particularly where you have moved on and entered into a new relationship, perhaps with joint assets with your new partner.

How can we help?

As above, your divorce only deals with the ending of your marriage. It does not extend to financial settlement issues. It is very important that those matters are considered alongside divorce proceedings. You are able to agree to a financial settlement between you, following which we can assist with drafting the necessary legal paperwork and ensuring that your financial ties are severed through a Clean Break Order. Alternatively, if you cannot agree, we can assist you by negotiating with your spouse, advising you accordingly and reaching an agreement that is right for you. In those cases where that is not possible, we can represent you in financial remedy proceedings where you require the Court to make decisions.

If you are unsure as to what you need to do next or if you have any questions about divorce/financial settlement issues, please contact us on 01482 323697 to come and see one of our solicitors for advice tailored to your circumstances.