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The importance of financial orders during Divorce.
The importance of making legal financial orders has again been thrust into the spotlight and should serve as a warning to anyone undertaking divorce proceedings. During a recent case the courts granted an ex-wife permission to make a financial claim against her ex husband of 20 years, since their divorce he has become a successful businessman worth millions, through use of correct financial orders this claim and any future claim would have been avoided.
In the aforementioned case the ex-wife wanted to make a financial claim on her ex husband who had gone from a person with little assets to a multi-millionaire, having been divorced in 1992 the ex wife became a full time single mother looking after their eight year old son, living of very little in terms of income.
The outstanding point with this ruling is that a significant amount of time has passed, some 20 years, enough time for anyone to have a change in fortunes, the reason why this has been allowed is that in family law there is no time limit for a financial claim to be made if financial orders have not been completed.
The purpose of a financial order is to conclude the financial matters between both parties following a divorce, this is a formal arrangement made and recognised in court. The order will generally include details of payments to be made either as a lump sum or ongoing, pensions, distribution of fixed assets it will also normally make provision ensuring that no further claims can be made unless in certain circumstances.
In the case mentioned earlier, where it appears no assets were present at the time of the divorce, it is still the case that orders can be drawn up these are generally referred to as clean break orders.
This case is unusual, it's very rare that an ex-partner will go from nothing to multi-millionaire, or perhaps win the lottery, but the possibility of inheritance changing someone's financial situation is very real, and financial orders should be drawn up in all cases.
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