Online divorce and financial claims – parties beware

Online divorce services in the UK have made it easier and more affordable for couples to formalise the end of their marriage, however while these services offer convenience, they can also create a false sense of security regarding financial claims.

Many individuals mistakenly believe that finalising their divorce online automatically resolves all financial matters between them and their ex-spouse. This misconception can lead to serious financial and legal issues down the line.

If you’re considering or have already completed an online divorce, here’s what you need to know to protect your financial interests.

Does a divorce automatically end financial claims?

No. In the UK, obtaining a divorce does not automatically sever financial ties between you and your ex-spouse. Without a legally binding financial agreement, often referred to as a “financial order” or “consent order,” financial claims remain open indefinitely.

This means your ex-spouse could make financial claims against you in the future, even many years after the divorce, if no financial order has been secured.

What is a financial order?

A financial order is a legal document approved by the court that sets out how financial matters between divorcing couples are resolved. It covers areas such as:

• Division of property, savings, and investments
• Pension sharing
• Spousal maintenance
• Child maintenance (to some extent)

A financial order provides certainty and ensures that neither party can make further claims against the other in the future.

Common misconceptions

“Finalising the divorce ends all financial ties”

This is one of the most widespread misconceptions. While the divorce legally ends the marriage, it does not address financial matters. Without a financial order, claims remain open.

“We don’t need a financial order because we’ve agreed informally”

Informal agreements, even if written, are not legally binding. Your ex-spouse could change their mind in the future and pursue a financial claim. Only a court-approved financial order provides legal certainty.

“If we have no assets, we don’t need a financial order”

Even if you currently have no significant assets, a financial order can protect future earnings, inheritances, or lottery winnings.

“Online divorce services include financial agreements”

Most online divorce services focus solely on processing the divorce itself. They rarely include assistance with financial matters unless explicitly stated. Always verify what is included in the service you choose.

How to protect your financial interests during divorce

Seek legal advice early

Before starting the divorce process, consult a family law expert to understand your financial rights and responsibilities.

Obtain a financial order

Whether you agree amicably or require assistance, ensure a financial order is submitted to the court. If both parties agree, a consent order is typically straightforward and cost-effective.

Use mediation or arbitration if needed

If disputes arise, consider alternative dispute resolution (ADR) methods like mediation or arbitration to avoid lengthy and costly court battles. This is now something the Court expects the parties to engage in where a dispute arises.

See our ADR guide here for further information.

Beware of DIY solutions

While DIY and online services may appear cheaper, they often lack the comprehensive advice needed to protect your financial future.

FAQs

1. Can I apply for a financial order after my divorce is finalised?

Yes, you can apply for a financial order even after the divorce is complete, provided neither party has remarried. However, it is always better to resolve financial matters during the divorce process to avoid complications down the line.

2. Is a financial order necessary for child maintenance?

Child maintenance is typically handled separately through the Child Maintenance Service (CMS). However, financial orders can include provisions for child-related costs, such as school fees or lump-sum payments.

3. What happens if my ex-spouse makes a financial claim years later?

If there is no financial order in place, your ex-spouse can apply to the court for financial provision. For example, in the landmark case of Wyatt v Vince (2015), an ex-wife was able to make a financial claim decades after the divorce because no financial order had been secured.

4. Do we need to go to court for a financial order?

If you and your ex-spouse agree on the division of finances, you can submit a consent order to the court for approval without attending a hearing. Only contested cases require a court hearing.

5. Can I include pensions in a financial order?

Yes, pensions are often one of the largest marital assets and can be divided through a pension sharing order as part of the financial order.

6. What if my ex-spouse refuses to agree to a financial settlement?

If agreement cannot be reached, you can apply to the court for a financial remedy order. A judge will decide on the fair division of assets.

Online divorce services can be a convenient way to simplify the divorce process, but they should never replace tailored legal advice. Understanding and addressing financial matters is essential to ensure long-term security for both parties. To protect your interests and avoid future disputes, always seek legal advice and ensure a financial order is secured as part of your divorce process.

For expert guidance and support with financial matters in divorce, contact our experienced family law team today.