When you are going through a divorce, it’s best to deal with your financial matters prior to the decree absolute.
Even if the agreement is that you will both walk away with nothing, it is best you record this into a consent order. With an ever increasing number of clients coming to see us after a divorce to discuss their financial position, this short blog will highlight why it is essential to always consider your financial position.
Divorce is Separate to Financial Settlements
The divorce process is, in most circumstances, a paper-based process between the couple or their legal representatives and the relevant court. This only ends the marriage. It does not deal with any financial issues.
If you divorce without dealing with your financial position then you need to be aware that your financial claims remain open. At any point in the future (even if years have passed) your ex-spouse may be able to make a claim against you.
What Can Go Wrong
Many clients have approached me and stated that because they have nothing to share they didn’t bother dealing with the financial aspect upon divorce. Whilst at the time of the divorce there may have been no real assets, what if this position was to change? What if you were to win the lottery or inherit a large sum of money?
Other clients tell me that they directly agreed a financial settlement with their ex-partner and therefore never formally placed before the court. What if this position breaks down, or if a new partner comes along or you later realise that you didn’t get a good deal of the settlement?
The simple answer to ensure that you never have to deal with the above issues is to have a divorce solicitor draw up a consent order and have it sealed with the court so that it is effective upon pronouncement of decree absolute.
Call the divorce solicitors at Slater and Gordon for a consultation about your finances on divorce on freephone 0800 916 9055 or contact us online.