Posted 14 Oct, 2024

Reaching a private financial agreement with your spouse during divorce can make the process smoother and less stressful. However, without a legally binding consent order, the agreement is not enforceable, leaving both parties vulnerable to future financial claims. Here’s why securing a consent order is essential, even when both parties agree on financial matters.

What is a Private Financial Agreement?

A private financial agreement is an informal arrangement between divorcing spouses regarding the division of assets, property, and financial responsibilities. This can include agreements on:

✔ Property division.
✔ Savings, pensions, and investments.
✔ Spousal and child maintenance.
✔ Business interests and other financial assets.

While these agreements may be reached amicably, they do not have legal standing unless approved by the court in the form of a consent order.

Why a Consent Order is Necessary

Legal Protection Against Future Claims

Without a consent order, there is nothing preventing either party from making future financial claims - even years after the divorce is finalised. This means your ex-spouse could demand additional money if your financial situation improves.

✔ Pros: Prevents unexpected future claims.
✖ Cons: Without it, financial agreements remain at risk.

Enforceability in Court

A consent order is a legally binding document. If one party fails to uphold their obligations (such as failing to transfer assets or make agreed payments) the other party can enforce the order through the courts.

✔ Pros: Provides a legally enforceable financial settlement.
✖ Cons: Private agreements alone are not recognised by the courts.

Certainty and Finality

A consent order ensures financial closure, meaning neither party can make financial claims against the other in the future. This is crucial for those who want to move forward with confidence, knowing their financial settlement is secure.

✔ Pros: Offers a clean break and long-term financial security.
✖ Cons: Delays in obtaining a consent order can leave finances unprotected.

How to Obtain a Consent Order

Step 1: Reach an Agreement

Before applying for a consent order, both parties must agree on how to divide finances. This can be done independently, through mediation, or with the help of a solicitor.

✔ Pros: Encourages amicable resolution without court battles.
✖ Cons: Negotiations can be difficult if one party is unwilling to compromise.

Step 2: Drafting the Consent Order

A solicitor will draft the consent order, outlining the agreed financial terms. This must be clear, fair, and in line with legal requirements for court approval.

✔ Pros: Ensures legal accuracy and compliance.
✖ Cons: Involves solicitor fees, but these protect against costly future disputes.

Step 3: Submitting the Order to Court

The consent order is submitted to the court alongside Form D81, which provides financial disclosure. A judge will review the agreement to ensure it is fair and reasonable before granting approval.

✔ Pros: No court hearing required in most cases.
✖ Cons: May take several weeks for approval.

Why Legal Advice is Essential

Even when both parties agree on financial arrangements, legal guidance ensures:

✔ The agreement is legally binding and enforceable.
✔ All financial assets are properly considered.
✔ Future financial risks are minimised.

At Endeavour Law, we specialise in securing legally binding financial agreements through consent orders, ensuring long-term financial security. If you have a private financial agreement and need to make it legally enforceable, our team is here to help.

Finalising a financial settlement with a consent order provides certainty and protection for the future. By securing a legally binding agreement, you can move forward with confidence, knowing your finances are protected.