With the divorce process now being undertaken online, many couples are dealing with their separation themselves. However, this has led to a rise in couples overlooking the financial side of their marriage. It is commonly misunderstood that the final divorce order (formerly known as the decree absolute) severs all financial ties – but that is not true!
A well-known case, Wyatt v Vince, highlights exactly why resolving finances properly at the time of divorce is so important.
What were the facts of Wyatt v Vince?
Wyatt v Vince involved a couple who married in the early 1980s, lived modestly, and separated after just a few years. At the time of their divorce, there were no significant assets to divide, and crucially, no formal financial order was put in place by the court.
Years later, the husband went on to build a highly successful green energy business and became a multi-millionaire. Decades after the divorce, the wife brought a financial claim against him—despite the long passage of time.
The case ultimately reached the Supreme Court who confirmed that because no financial order had ever been made, the wife was still legally entitled to bring a claim.
So claims don’t expire automatically?
No! – there is no automatic time limit on financial claims following divorce in England and Wales. Without a formal financial order that is approved by the court, either party can potentially make a claim in the future – even years after the divorce.
In Wyatt v Vince, the passage of time did not prevent the claim from being brought.
What is a Financial Order?
A financial order is a legally binding document approved by the court that sets out how assets, income, pensions, and other financial matters are to be resolved following divorce. You can find out more about the types of orders made in our blog here.
One of the most important provisions in a financial order is the clean break as it prevents further claims from being made.
Why is a financial order so important?
A properly drafted financial order—especially one that includes a clean break—ensures that neither party can make future financial claims against the other. This creates certainty and allows both individuals to move on with their lives.
Even if there are few or no assets at the time of divorce, circumstances can change dramatically. A financial order protects any future wealth you may build, whether through business, career progression, or inheritance.
Without a formal agreement, misunderstandings and disputes can arise years later. A financial order clearly documents what has been agreed, reducing the likelihood of costly and stressful litigation.
A common misconception is that financial orders are only necessary for wealthy couples. Wyatt v Vince shows that this is not the case. Even where there are minimal assets, formalising the financial position is still essential.
How we can help
Wyatt v Vince serves as a powerful reminder that divorce does not automatically end financial ties. Without a court-approved financial order, those ties can remain in place for many years—sometimes with unexpected consequences.
Taking the time to formalise financial arrangements at the point of divorce is not just a legal step—it is an investment in long-term security and peace of mind.
If you are going through a separation or divorce, seeking legal advice and ensuring a financial order is in place can help you avoid uncertainty in the future. Contact us today to arrange an appointment.
