Stands to reason, right?
If I’m divorced, then surely that means that there’s a complete “clean break” between me and my other half, and that neither of us can now pursue any financial claims against the other?
Many people understandably assume this to be the case, but again, as I think Bronski Beat may have once put it, “It ain’t necessarily so..”.
In England & Wales, a Decree Absolute of Divorce does formally bring a marriage to an end, but it doesn’t automatically mean that neither spouse can make any financial claims against the other from that point on.
In order to finally conclude all financial issues between spouses on divorce or separation, the only way that this can occur is if there is a final order of the court, which confirms the terms of a financial settlement, and the fact that is intended by all concerned to be a “full & final” settlement of all current and future claims.
In the majority of cases, such an order is not obtained following a gruelling and contested Court battle, will much wailing and gnashing of teeth, and substantial legal fees, but is instead obtained “by consent”, with both parties agreeing the terms of settlement between them.
In these cases, a document (called a “consent order”) which sets out the terms of agreement reached is prepared (usually by solicitors), signed by all parties and then sent on to the Court, seeking judicial approval of the settlement terms reached. A District Judge will usually consider the paperwork via the post, and there will not even need to be a Court hearing in order to finalise these matters.
Without a final order of the Court in respect of marital finances (either by consent, or otherwise), it remains possible for either party to bring financial claims before the Court in respect of their marriage, often many many years after the divorce itself has concluded.
A person’s right to seek financial remedies against a former spouse is only lost in the event of that persons death or (in some circumstances) if that party re-marries. In the absence of death or re-marriage, the right to make financial claims in relation to a marriage persists.
There have therefore been notable cases in he past where a former spouse “pops up out of the woodwork”, perhaps where their former husband has won the lottery or has become the director of a multi million pound business in the meantime, and has tried to pursue a financial settlement upon Divorce, albeit many years after the parties had separated or divorced.
Whilst succesfully pursuing a case in these circumstances is not without its difficulties, it is still possible.
Many people appear to be blissfully ignorant of the above however, and simply divorce, without first obtaining any form of court order, in the mistaken belief that their ex will then be prevented from pursuing any claims in the future, if they happen to win the lottery or come into money many years after the divorce.
If you can reach agreement with your ex as to how your marital finances are to be resolved (even if this is on the basis of you both walking away and making no financial claims upon the other), I cannot stress enough how important it is to try and finalise that agreement via the making of a “clean break consent order” upon Divorce.
Whilst it may cost you both a few hundred pounds in the short term, it could potentially save you thousands in the long term (or even millions, if the lottery gods decide that it “Could be You” in the future).
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