When going through a divorce, the focus is naturally on the immediate future: where to live, how to manage day-to-day costs, and ensuring the children are settled. However, recent data from the Family Courts suggests a significant number of couples might be overlooking a critical piece of the puzzle.
In 2024, there were over 111,000 divorce applications in the UK, yet only 45,000 included a financial application. While the numbers for 2025 show a slight increase in people engaging with the financial remedy system, a vast disparity remains. This means thousands of couples are finalising their divorce without a formal financial order in place.
What is a Financial Order?
A financial order is a legally binding document issued by the court that outlines how assets—such as the family home, savings, investments, and pensions—will be divided. Crucially, it can also include a 'clean break' clause, which prevents either party from making financial claims against the other in the future.
Why is it so important?
Without a financial order, your former spouse could potentially make a claim against your assets or income years, or even decades, after the Decree Absolute has been granted.
One of the most overlooked elements in these cases is Pension Sharing. Pensions are often the second largest asset after the family home, yet without a formal order, they cannot be split. Failing to address this can leave one party with a significant shortfall in retirement.
If you are currently navigating a separation, don’t leave your long-term financial security to chance. Ensuring a financial order is in place isn't just about the here and now—it's about protecting your future.
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