We Have Reached a Financial Agreement – Do We Need a Court Order?

In a word – YES!  We see many clients who question the need for a Court Order in circumstances where financial matters have been agreed following separation or divorce and clients are worried about spending more money on what they sometimes see as a pointless exercise.

However, as the recent case of Wyatt v Vince highlights, unless and until there is a Court Order in place either confirming the terms of the agreement reached and dismissing future financial claims or simply dismissing future financial claims, it remains open for either party, even years after the separation or divorce, to make a financial claim.

Harjit Rait, a Senior Solicitor in the Family Law Team at Chadwick Lawrence states “I cannot stress enough how important it is to ensure that the terms of any financial settlement are properly recorded in a Court Order.  Although each case is fact sensitive, it is often the case that such Orders include a ‘clean break’ clause meaning that future financial claims are dismissed.  This provides individuals with some financial certainty and security for the future meaning that they can move on without the worry of a future application from their former spouse or partner. It does not have to be an expensive exercise to get an agreement made into an order of the court and thus provide certainty.”

Whether or not Ms Wyatt, 18 years after the divorce, will be successful in her application for financial provision remains to be seen but the fact of the matter is, Ms Wyatt is able to make the claim so long after the separation and divorce.  The Court is obliged to hear the claim and decide the claim based on both what is fair but also taking into account the needs of the parties.  Therefore, even though Ms Wyatt has not been actively involved or contributed to the success of Mr Vince’s business, which came to fruition after the separation, she did care for the children of the family  and that is a factor the Court will take into account.

Chadwick Lawrence has one of the most experienced Family Law Teams in the region.  For advice on any aspect of your separation or divorce, in particular the financial implications, please don’t hesitate to contact us on 0800 387 747 to speak to one of our specialist lawyers.