FINANCIAL GUIDE
Financial Orders in UK Divorce
Complete Guide to Financial Settlement | Updated 2025
Getting divorced does NOT automatically divide your assets. Without a financial order, either spouse can make financial claims against the other indefinitely - even years after the divorce is finalised.
Types of Financial Orders
| Order Type | Description | Example | Final? |
|---|---|---|---|
| Lump Sum Order | One-off payment from one spouse to another | £100,000 to equalise assets | Yes |
| Property Adjustment Order | Transfer of property ownership | Family home transferred to wife | Yes |
| Periodical Payments | Regular maintenance payments (spousal) | £1,500/month for 5 years | Variable |
| Pension Sharing Order | Division of pension benefits | 40% of husband's pension to wife | Yes |
| Pension Attachment Order | Portion of pension income when it's paid | 25% of pension income to ex-spouse | Yes |
| Clean Break Order | Ends all financial ties between spouses | No further claims possible | Yes |
Section 25 Factors
Courts must consider these factors (from the Matrimonial Causes Act 1973) when deciding financial orders:
1
Income, earning capacity, and financial resources
2
Financial needs, obligations, and responsibilities
3
Standard of living during the marriage
4
Age of parties and duration of marriage
5
Physical or mental disability
6
Contributions made to the family welfare
7
Conduct (only if inequitable to disregard)
8
Loss of pension benefits
The Financial Order Process
By Agreement (Consent Order)
If you and your spouse agree on finances:
- Complete Form E (financial disclosure)
- Negotiate settlement terms
- Draft consent order
- Submit to court for approval
- Judge reviews and approves
By Court (Contested)
If you cannot agree:
- File Form A to start proceedings
- Exchange Form E disclosures
- First Directions Appointment (FDA)
- Financial Dispute Resolution (FDR)
- Final Hearing if still unresolved
Key Considerations
Clean Break
Courts prefer clean break orders where possible - ending all financial ties between spouses. This provides certainty but isn't always achievable.
Needs-Based
UK courts focus on meeting each party's needs rather than strict equality. The primary carer of children often has priority housing need.
Pension Sharing
Pensions are often the largest matrimonial asset after the home. Pension sharing orders split pensions at source.
Navigate Your Financial Settlement
Calculators, templates, and expert guidance for UK divorce finances.