When divorcing, it is not only the legal ending of the marriage that needs to be addressed, but also the matrimonial finances. Financial orders set out the settlement reached and can include a variety of provisions. This article explores the different options available to help you understand what financial provision you may need.
Maintenance Pending Suit
This is a temporary order providing interim financial support until a final financial order is made. It ensures that the lower-earning party can meet their basic needs during the legal process.
You can also apply for a Legal Services Order for help paying legal fees in the interim too.
Lump Sum Order
A lump sum order requires one party to pay a specific amount of money to the other. This may be a single payment or made in instalments. A common scenario is the payment of a lump sum to one party in recognition of their share of the family home.
Lump sums are also used to balance the division of assets or to meet specific needs, such as housing or debt repayment.
Property Adjustment Orders
This order dictates what will happen to any you own, such as the family home. The court may order the sale of a property, transfer ownership to one party, or postpone a sale until a specific event occurs like the youngest child of the family turning 18.
Spousal Maintenance Orders
Also known as periodical payments, this order provides ongoing financial support from one party to the other. It is typically used when there is a significant income disparity and helps the lower-earning party to transition into financial independence.
Periodical payment orders are rarely made on a lifetime basis anymore and are often reviewed periodically to reflect changing circumstances.
Pension Sharing Orders
Pension sharing orders divide pension assets between the parties, ensuring that both have adequate retirement funds. This is particularly important when one party has significantly more pension savings than the other. Usually, it is necessary to involve a pension expert to analyse the best and fairest way to share pensions and the likely income each party would receive.
Child Maintenance Orders
Whilst child maintenance is usually arranged through the Child Maintenance Service (CMS), the court can make periodical payments for the benefit of a child in specific cases, such as when private school fees or other significant expenses need to be covered. The court can also grant ‘top-up’ orders where a part earns more than £156,000 per year.
Clean Break Orders
A clean break order ensures that neither party has any ongoing financial obligations to the other. This is often recommended as it ensures all ties are severed and there can be no further claims.
How Are Financial Remedy Orders Decided?
When determining a financial settlement, the court consider several factors, including:
• The welfare of any children involved.
• The income, earning capacity, and financial resources of both parties.
• The standard of living during the marriage or partnership.
• The length of the marriage or civil partnership.
• The contributions made by each party, including non-financial contributions such as childcare.
How can we help?
Financial orders can significantly impact your future financial security, so it is important to seek expert legal advice. We can guide you through the process and help you achieve a fair outcome.
Contact us today using the links below.
