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Apr 2025
What financial orders can a court make on divorce?
If you invite the court to make a financial award in a divorce case there are a number of options available and the Judge dealing with your case has a lot of discretion over the orders that can be made. In reaching a decision, a Judge will try to ensure that the financial needs of both parties are met.
If there are children involved, then the court will always prioritise their needs. Financial orders deal with capital and property, maintenance and pensions. The court will put together a combination that it feels deals fairly with the situation. While the starting point is a 50:50 split, where one party is in a financially weaker position, for example, because they have given up their career to care for children, then they may receive a larger share of the available assets.
The courts can make the following orders…
Consent order:
The court prefers that couples agree divorce arrangements between themselves, including in respect of financial matters. If you cannot come an agreement easily, you can go through mediation to try and resolve issues. If you are able to find an acceptable solution, then this will be put in writing and put before the court for sealing into a consent order.
This means that your agreement will become legally binding. It is important to ensure you have a court order in place, even if you are able to separate amicably, because without a court order it is open to your former spouse to make a financial claim against you at a later date, even many years into the future.
Clean break order:
If you do not have assets to divide in a divorce, you should obtain a clean break order so that your financial liabilities to each other are ended.
Property adjustment order:
This includes property as well as other valuable items such as cars or investments. If the matrimonial home is transferred to one party, then the other party is likely to receive a larger share of other assets by way of compensation.
Sale of property order:
The court may order that a property be sold so that the proceeds of sale can be split in a specified way between the parties. This is more likely if there are no children involved. If there are children living in the home, then the court can defer sale until the youngest reaches 18.
Lump sum order:
Payment of a lump sum by one party to the other can be either in return for another asset or to support a party who is less financially resilient, giving them the means to retrain or allowing them to stay at home with children while they are young.
Child maintenance order:
This is a regular payment to provide for the children of the family, generally made to the parent who has the main day-to-day care of them. This option is only available to the court if there is a maximum assessment in place with the Child Maintenance Service (CMS). Otherwise the CMS will deal with child maintenance matters.
Spousal maintenance order:
Maintenance to a spouse may be ordered where one party needs ongoing financial support and it can be shown that the other party has surplus income to provide that support. The court prefers that the parties work towards a point where they can financially support themselves, so a spousal maintenance order may be for a set period of time only, this is known as a ‘term order’. The intention is usually that the party receiving the spousal maintenance will transition to independence.
Pension sharing order:
A pension sharing order allows part of a pension to be put aside for the other spouse, so that it becomes theirs. They can transfer it if they wish and draw on it once they reach retirement age.
Earmarking pension order:
Part of one spouse’s pension is paid to the other spouse once the pension holder retires. This is a less popular option as the second spouse has no control over when the pension will start and could lose out if the person dies.
Pension offsetting order:
The court can offset the value of the pension against other assets, for example, giving one party a greater share of the available capital while the other gets to keep their whole pension.
Get in Touch
For expert legal advice on family law, divorce law or estate planning, contact Chadwick Lawrence today. Our specialist family law solicitor team is here to help with any questions or issues you may be facing. We offer consultations over the phone, via video call or in person at one of our offices across West Yorkshire.
Call us: 0800 015 0340
Email us: family@chadlaw.co.uk
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