It’s a common assumption that once a divorce is granted, all financial ties between the couple automatically end. Unfortunately, this couldn’t be further from the truth, and it’s a misunderstanding that can have serious consequences years or even decades down the line.
Without a sealed financial order, whether reached by agreement or imposed by the court, your former spouse can potentially make financial claims against you long after you’ve moved on with your life. This means assets you acquire after separation, businesses you build, property you buy, or inheritances you receive could all be at risk. Other risks include:
- Potential applications for lump sums, property adjustments, or pension sharing
- Stress, legal fees, and uncertainty long after the emotional upheaval of the divorce has passed
The problem is widespread, yet it remains one of the most overlooked traps in family law. In this article, our family law team explains why securing a financial order is essential, regardless of your current financial position, and what can happen if you don’t.
The Legal Position: Why Financial Claims Don’t Automatically End
Financial claims on divorce arise under the Matrimonial Causes Act 1973. The relevant provisions include:
- Sections 23-24: which govern lump sum payments, property adjustment orders, and spousal maintenance
- Section 24B: which deals with pension sharing orders
- Section 31: which covers the variation of certain financial orders
It is crucial to realise that the court’s power to make financial orders, and your former spouse’s ability to apply for them, only ends when one of the following occurs:
- The court grants a Financial Remedy Order (including a Clean Break Order)
- Either party remarries (though this creates its own complications, which we’ll address)
- Either party dies
Until a financial order is sealed by the court, these claims remain active. The divorce itself does nothing to extinguish them.
What’s at Stake? The Real-World Risks
Failing to secure a financial order exposes you to several significant risks:
- Later claims on post-divorce assets
- You may buy a home, build a business, inherit money, or save into a pension—assets that an ex-spouse may later claim part of.
- Ongoing financial risk and unpredictability
- Without a clean break, either party could apply for spousal maintenance years later.
- Difficulties with remortgaging or buying property
- Lenders often ask whether a clean break is in place.
- Complications if either ex-partner remarries
The Landmark Case: Wyatt v Vince
The case of Wyatt v Vince [2015] UKSC 14 is perhaps the starkest illustration of why failing to obtain a financial order can be so problematic.
- The couple divorced in 1992.
- No financial order was ever made.
- Over 20 years later, the ex-wife made a financial claim after the husband became a multimillionaire.
The Supreme Court allowed the claim to proceed, stressing that without a financial order, claims do not expire.
A Practical Example
Consider this scenario, which reflects situations we regularly encounter:
Sarah and Tom divorced amicably in 2018. They had no significant assets at the time, they’d been renting their home, had modest savings, and neither had substantial pensions. Because there was “nothing to divide,” they decided not to bother sorting out the financial side of things. The divorce was processed online, the Final Order was granted, and they both moved on.
By 2025, Sarah’s circumstances have changed considerably. She’s inherited a property from her parents, her small business has grown significantly, and she’s remarried. Tom, meanwhile, has faced financial difficulties.
Tom now brings a claim for financial provision, seeking a lump sum payment, a share of Sarah’s business assets, and a portion of the inherited property.
Because no clean break order was ever made, Tom’s application can be heard by the court. The fact that seven years have passed since the divorce, that Sarah has remarried, and that all of her current assets were acquired after the relationship ended don’t automatically bar the claim.
A simple consent order in 2018, which might have cost a few hundred pounds, would have provided complete protection.
What You Should Do: Practical Steps to Avoid Issues
Always Obtain a Sealed Financial Order
Even if neither party owns assets at the time of divorce, a clean break order is essential. It’s a relatively simple and inexpensive process that provides invaluable protection. Think of it as insurance, you hope you’ll never need it, but you’ll be grateful you have it if circumstances change.
Ensure Full Financial Disclosure
Both parties should exchange full and frank disclosure of their financial circumstances. This includes all income, assets, liabilities, and pensions. Proper disclosure is essential for two reasons: it ensures the agreement is fair at the time it’s made, and it provides protection against the order being challenged later on grounds of non-disclosure.
Use Professional Legal Advice
Whilst it’s technically possible to draft your own consent order, we strongly advise against it. DIY consent orders are frequently rejected by the court for failing to meet the required standards or for being unclear about what claims are being dismissed. A regulated, family law solicitor can ensure the order is properly drafted and includes all necessary provisions to protect both parties.
Finalise the Finances Before or Alongside the Divorce
One of the most common mistakes we see is couples who complete the divorce but plan to “sort out the finances later.” Sometimes “later” never comes, or by the time they get around to it, circumstances have changed so significantly that reaching agreement becomes much more difficult. The financial order should ideally be finalised before or alongside the divorce proceedings.
Essential Checks Before Moving On
Before entering a new marriage or making significant financial commitments, you should verify:
Do You Have a Sealed Financial Order?
If not, deal with it immediately.
Does the Order Dismiss All Claims?
For complete protection, your financial order should include:
- A capital clean break (dismissing claims for lump sums and property adjustment)
- An income clean break (dismissing claims for spousal maintenance)
- Dismissal of pension sharing claims
- Dismissal of all other claims under the Matrimonial Causes Act 1973
Was Full Disclosure Provided?
Ensure that both parties exchanged proper financial disclosure before the order was made. This protects against the order being set aside later.
Does the Settlement Reflect Current Circumstances?
If your financial circumstances have changed significantly since separation but before obtaining the order, you may need to update your disclosure to ensure the court will approve the agreement.
Have Pensions, Property, and Maintenance Been Properly Considered?
Pensions are often the second most valuable asset after property, yet they’re frequently overlooked in divorce settlements. Make sure pension sharing has been properly addressed, even if the decision is not to make an order, this should be explicit in the paperwork.
Common Questions About Financial Orders
No. Only a sealed financial order or remarriage (which has limited effect) ends the ability to make claims. Time alone doesn’t extinguish these rights.
Yes, absolutely. The process is straightforward and relatively inexpensive, but it provides essential protection against future claims if either party’s circumstances improve.
Potentially, yes, if no financial order is in place. Inheritances received after divorce can be considered part of your financial resources in any subsequent financial remedy proceedings.
You don’t need your former spouse’s agreement to obtain a financial order. If they won’t engage in negotiations, you can make an application to the court for a financial remedy order to be imposed.
This is a nuanced area. Your own remarriage blocks your ability to apply for certain financial orders against your ex-spouse (such as spousal maintenance), but it doesn’t automatically prevent them from bringing claims against you. Only a sealed financial order provides complete protection.
Related Articles:
- Why Financial Remedy Disputes are On the Rise – What Separating Couples Should Be Aware Of
- Why the Remarriage Trap Could Be a Costly Pitfall in Divorce Proceedings
- What Are Mesher Orders in UK Family Law: A Guide for Separating Couples
- Divorce for High Net Worth Couples: Splitting Businesses, Crypto, and NFTs
Talk To Our Specialists
Failing to secure a financial order during divorce is one of the most common and potentially costly mistakes people make. Whether you have significant assets or none at all, a clean break order provides certainty, financial independence, and protection from future claims.
If you’re divorced but don’t have a financial order in place, or if you’re currently going through separation and want to ensure your finances are properly resolved, our family law team can help. We can review your position, advise on your options, and ensure you achieve a final settlement that protects your interests.
At Rose & Rose, our family law solicitors in Kingston Upon Thames can provide clear, practical guidance on all aspects of financial remedy proceedings. Whether you’re negotiating a consent order or require representation in contested financial proceedings, we have the expertise to support you.
Talk to our specialist Family Law team via the links below or contact us at 0208 974 7490 or info@roselegal.co.uk.
This blog post is not intended to be taken as advice or acted upon. If you are seeking legal advice, please contact our team of solicitors.
