What are the Financial Remedy Orders in Divorce?

When arranging your finances on divorce there are different orders that are available to you by virtue of your marriage. The terminology used can seem daunting however below we have provided short explanations for the different orders you may come across in your divorce so that you feel better prepared for discussions with your Solicitor, Mediator or the Court.

divorce order

The usual orders for financial remedies available are as follows:

  1. Property Adjustment Order.
  2. Lump Sum Order.
  3. Maintenance/Periodical Payments Order.
  4. Child Maintenance Assessment or Child Maintenance Order.
  5. School Fees Order
  6. Pension Sharing Order.
  7. Clean Break Order. 
  8. Consent Order and Statement of Information.
  9. Agreements and Undertakings in an Order.

Below Trainee Solicitor at SRB, Noor Kureshy, details each order and what it means for your divorce.

Property Adjustment Order

This order can do the following:

  • Transfer property from one party to the other (or to a child of the family or for the benefit of such a child).
  • Settle property for the benefit of one or both parties (or a child of the family).
  • Vary a nuptial settlement for the benefit of one or both parties (or a child of the family).

Lump Sum Order

This refers to a cash lump sum payment that is made from one party to the other or a child of the family. This is useful to adjust the division of cash assets when resolving finances. 

Although it is referred to as a lump sum, it can be paid in instalments with agreement from both parties or as ordered by the court.

Maintenance/Periodical Payments Order

A spousal maintenance order outlines payments to be made from the spouse to the other spouse to assist with their living costs. This can be for a transitional period or until retirement or during joint lives. 

The order can be varied if there is a change in circumstance and parties can apply for interim maintenance orders while the finances are being settled.

Child Maintenance Assessment or Child Maintenance Order

In the first instance, you can check the amount that the Child Maintenance Service would calculate for Child Maintenance. You may agree on an appropriate payment for your children and it can be documented in a Child Maintenance Assessment or in a Financial Remedy Consent Order.  In certain circumstances the court can decide and impose an order for child maintenance where the children are in education after secondary education, have special needs or there is a top-up order as the paying parent is a high earner.

School Fees Order

A School Fees Order can be agreed upon and included in a Financial Remedy Consent Order or decided by the courts if an application is made to the court.

Pension Sharing Order

Pension Sharing Orders divide rights under a pension scheme so that each spouse has their own independent rights under that scheme or under two separate schemes. 

A Pension Expert can be instructed to advise what an appropriate split is. We provide the recommendation to our clients, following the Pension Advisory Group guidelines that where combined defined benefit pension Cash Equivalent Values exceed £100,000 or there are other special considerations, specialist advice with a Pension Expert Report on valuation and division is needed.

Clean Break Order

An order which confirms that both parties have ended all financial ties to each other. This also prevents either party from bringing a claim for further financial provision in the future unless there has been a failure to disclose, duress or mistake.

Consent Order and Statement of Information

The Consent Order, also known as a Financial Remedy Consent Order, is an order that records the financial agreement between both parties rather than decided and imposed by the Court. Parties may agree without issuing proceedings or during court proceedings.

All of the different types of Order are recorded in the Financial Remedy Consent Order. Where a Financial Remedy Consent Order is reached, this must be sent to the court with a Statement of Information which is an overview of the finances of the divorcing couple before the order and after the order is implemented. The Statement of Information enables the court to consider if the order is fair or whether there are concerns which will lead to the court asking questions about the Financial Remedy Consent Order.

Agreements and Undertakings

In addition to the orders, the Financial Remedy Consent Order is likely to include agreements and undertakings in the Order. An agreement sets out the intention of the former spouses and is not enforceable like an order. An undertaking is an enforceable promise to do something. An undertaking will have a warning that both former spouses will sign acknowledging the enforceability of the undertaking.

Support from the Family Team

We understand that separation and divorce can be incredibly difficult experience. You have many decisions to make at a time when you are not at your best. 

We in the Family Team, provide, with kindness and care, legal advice, planning and strategy, practical support with clear Next Steps and referral to other professionals for emotional support, taxation, valuations, financial and pension advice. We tailor our approach based on your individual needs. 

You are important to us.  The Family Team work with you, in a clear, open, honest and empathetic way to help you achieve a “Good Divorce”

For further information please get in touch with a member of the SRB Family Law team in Teddington and Twickenham by telephone on 02088916141 or by email at familyteam@srb.co.uk to arrange an initial meeting.