A divorce expert has highlighted how having a simple and affordable financial agreement in place when separating can avoid major issues down the line.
Parting ways with a spouse can be a very stressful time, which can lead to arguments and upset.
But James Brien, from Easy Online Divorce, says having a consent order will save further heartbreak.
He explained: “It’s a common misconception that your finances are dealt with as part of your divorce proceedings – but that isn’t the case.
“A former spouse can make a financial claim even after a divorce because it is only the legal ending of a marriage or partnership.
“This is what makes a financial consent order such an important and powerful document.”
Lottery winner Nigel Page, who scooped a £56 million Euromillions jackpot in 2010, experienced this first-hand.
Despite his ex-wife leaving him for another man a decade earlier, she sued and got a £2 million out-of-court settlement.
Mr Page was exposed because the former couple did not sign a legally-binding consent order at the time of their divorce.
“Without such an order, either of you could claim against the other many years after your divorce,” said Mr Brien.
“Lottery wins, inheritances or the proceeds of building up a successful business are all at risk without a consent order.”
Even though it can be a time of great upheaval and high emotion, divorce is always more straightforward and less expensive if you agree with your partner, according to Mr Brien.
A financial consent order can be put in place for as little as £399.
But he added: “If there is disagreement between the two parties then it will require a judge to make a decision – and could result in both parties being hit with an eye-watering legal bill of up to £35,000.”
Mr Brien outlined the different types of financial orders that can be made by a court:
Property adjustment
This decides ownership of any property, which could be by the sale and division of proceeds, or the transfer of ownership.
Lump sum
An agreement is reached by the court to transfer a sum of money, either in one go or via instalments.
Spousal maintenance
Not to be confused with child maintenance, payments can be organised over a specific period, until one of the parties dies or until one of them remarries.
Pension sharing
This is usually done by creating two separate pension pots for the parties involved, which divides the financial ties between couples as quickly as possible.
The Easy Online Divorce expert said: “There is also something known as a ‘clean break’ settlement, which signifies that neither of the parties involved in the divorce has ongoing financial obligations to the other side.
“It is the simplest form of consent order and can begin immediately or after certain things have taken place, such as payments made or the ownership of a property transferred.”
