A financial consent order is a legally binding document that outlines the financial settlement reached by divorcing or separating couples in England and Wales. It is approved by the court and formalises how assets, income, pensions, liabilities, and future financial claims will be managed and divided following the end of a marriage or civil partnership. Though this document offers crucial protection and peace of mind, many individuals submit consent orders that are vague, lack essential details, or fail to properly reflect the agreement. This can lead to disputes, uncertainty, or even financial vulnerability in years to come.
Ensuring that your financial consent order is clear, comprehensive and legally robust demands careful attention to what should be included. This blog explores the key elements that ought to be included when drafting one, to help avoid ambiguity and ensure enforceability.
Background Information and Intentions
Every consent order should begin with a brief but thorough background. This part sets the context for the order and shows the court that the agreement reached is fair and reasonable for both parties. It provides basic details such as the names of both parties, the date of marriage or civil partnership, the date of separation, and the reasons for divorce or dissolution.
In this section, it is also helpful to outline the primary intentions of the parties—for example, a clean break or ongoing financial support. Judges look for indications that both individuals understand the implications of what they are agreeing to, particularly concerning the finality of the arrangements. Including intentions ensures a more holistic understanding of why financial decisions were made.
Details of Income and Expenditure
While the financial consent order itself does not need to attach detailed financial disclosure, the accompanying Form D81 (Statement of Information for a Consent Order) does involve a breakdown of each party’s income and outgoings. It is useful, however, that the order reflects the reality of those figures. For example, if one party agrees to forgo maintenance based on their current employment and financial independence, that context should be logically consistent with any narrative expressed within the consent order.
Additionally, any spousal or child maintenance arrangements should be matched to the needs and earnings clearly detailed in support documentation. Ambiguity around income may later be used to challenge or revise the order, leading to further litigation.
Clear Division of Capital Assets
One of the most essential components of a financial consent order is the explicit division of capital assets between the parties. This includes the family home, secondary properties, savings accounts, investments, pensions, cars, and personal belongings of high value.
For real estate, specifics matter. If one party is transferring their share of the family home to the other, the order should name the property using its legal description and address, identify who will retain it, and explain how and when the transfer should occur. If the property is to be sold, the order must state who is responsible for managing the sale, who will instruct estate agents, a target timetable, and how the proceeds will be divided.
When listing savings and investments, include the name of the financial institution, account numbers, and current balances. Describing specific assets helps eliminate ambiguity that could lead to misinterpretations. It’s also important to clearly indicate whether each party retains certain assets or whether they will be sold or shared.
Liabilities and Debt Responsibility
Liabilities are just as important as assets in a financial settlement. A comprehensive consent order will address all debts—both joint and individual. These include mortgages, personal loans, credit card balances, car financing, and any undocumented borrowing such as outstanding family loans.
Clear definitions should explain which party is responsible for each debt, and whether the debt will remain in joint names or be refinanced in one party’s name within a specific timeframe. Omitting this information leads to one person being pursued for a debt they believed the other had agreed to pay.
Furthermore, if a party is to indemnify the other against any responsibility for a specific liability, this must be precisely worded and included in the order. Peace of mind stems not only from knowing who is getting what, but also from understanding who bears what financial risk going forward.
Spousal Maintenance Provisions
If one party is to provide ongoing financial support to the other, spousal maintenance (also called periodical payments) needs to be addressed in specific terms. Orders should specify the amount of maintenance, the frequency of payments, the method of payment (bank transfer, standing order), and the duration of the maintenance period.
It is important to include clauses about when these payments should commence and what events would bring them to an end. This can include remarriage of the receiving party, death of either party, or a pre-agreed review period. Including break clauses or step-down provisions for spousal maintenance can offer flexibility while managing future uncertainties.
If no spousal maintenance is to be paid, a ‘clean break’ clause is vital. This confirms that both parties relinquish all current and future claims against each other’s income or assets. A clean break can only be made for couples with no dependent children and no ongoing financial entanglements such as joint mortgages. Its inclusion prevents former spouses from making claims long after the divorce is finalised.
Child Maintenance and Financial Support for Children
Where children are involved, even in cases of shared care, financial support needs to be included. This includes standard Child Maintenance Service (CMS) level payments if applicable, or private arrangements where one party provides ongoing support.
The consent order should clarify the number and ages of the children as well as their living arrangements. Support obligations—whether weekly, monthly, or lump-sum payments for specific purposes—should be crystal clear. Specify who pays, how much, and how often.
It is also relevant to state if either party is expected to contribute to school fees, medical costs, extracurricular activities, or help financially when children turn 18 (for example during university education). Even if the current arrangement does not require support beyond the CMS minimum, making present and future expectations unambiguous can alleviate disputes as children’s needs evolve.
Also, be aware that while courts in England and Wales no longer routinely impose child maintenance terms into financial consent orders (this is often handled via the CMS), private agreements that go beyond CMS minimums can still be included and upheld for up to 12 months before being subject to changes via the CMS.
Pension Sharing and Retirement Planning
One often overlooked but highly significant area of a financial consent order is pensions. Pensions can be among the most significant long-term financial assets and merit thorough assessment and careful drafting.
Courts in financial remedy cases frequently issue pension sharing orders, where one party receives a portion of the other’s pension pot, transferred into a pension in their name. Orders should name each pension scheme, the provider, the value of the pot, and the percentage or specific amount to be transferred.
Technical precision here is critical. Any pension sharing annexes referred to in the order must be completed correctly and submitted with the order. Failure to do this can nullify the pension share and delay final closure.
Alternative pension provisions such as offsetting (where one party keeps more capital, and the other retains their pension) need similar levels of clarity. Judges will only approve offsetting where there is strong rationale and accurate valuations of the pensions concerned. As these decisions can seriously affect retirement income, getting appropriate expert financial and legal advice is essential.
Clean Break or Continuing Claims?
A keystone of a strong financial consent order is making clear whether there is a complete financial separation—commonly known as a clean break—or whether financial obligations persist.
Including a clean break clause signals to the court and both parties that no future financial claims can be made. This can include claims against property, inheritance, income, or pensions. Such clauses should be explicitly worded to cover not only capital and income, but also inheritance, business holdings, and assets acquired after the order is made.
If ongoing commitments like maintenance are involved, the order should indicate that claims continue only to the extent detailed, and no broader claims exist. Full mutual release helps each party move on financially and emotionally.
Timeframes and Deadlines for Implementation
Many disputes follow from unclear timing around transactional activities. A well-drafted order includes explicit timeframes for implementing asset transfers, paying lump sums, or removing one party from shared liabilities. Including these time elements—such as “within 60 days of decree absolute” or “on or before 31st January 2024”—ensures both parties and any professional involved (like solicitors or financial advisors) are working toward an enforceable timeline.
Also consider including details about what happens if deadlines are missed. Will interest accrue on late lump-sum payments? Will the non-defaulting party be entitled to additional relief or enforcement measures?
Third-Party and Administrative Details
Every robust consent order will include the names of relevant third parties such as banks, mortgage lenders, pension funds, or investment brokers. Wherever a transfer, discharge or refinancing is required, third-party consent or action is often imperative to completion.
To streamline the process, orders should also stipulate who pays what portion of the legal fees involved in executing the order. If conveyancing is required or a pension actuary must be instructed, decide in advance who will bear those costs.
Additionally, the document should contain standard declarations for each party—confirming they understand the order, entered it voluntarily, received independent legal advice where relevant, and acknowledge that the court’s approval makes it binding and enforceable.
What Makes a Consent Order Effective?
Above all, a consent order is stronger when it anticipates and prevents future disputes. This is only possible when the order fully reflects the complexity and nuance of each party’s finances. Vague orders invite interpretation, while detailed clauses offer clarity and closure.
Care must be taken in thought, structure and language. Not only must the order set out financial agreements precisely, it should also use terminology recognised and accepted by the court, avoiding colloquial expressions and assumptions that advisers or spouses may share but which may not carry legal weight.
Given the importance of this document, most people benefit from getting a solicitor to draft or review it, even if they have reached an agreement amicably. For those with substantial income, complex asset structures or children, financial advice from an accountant or pension specialist may also be appropriate.
Conclusion
Financial consent orders are more than formalities. They safeguard your financial future by clarifying rights and obligations at the end of a significant relationship. What they include—and more importantly how clearly and thoroughly they include it—can make a lasting difference to the ease or difficulty of life post-divorce.
Taking the time to detail the division of assets, support arrangements, debt responsibilities, and clean break intentions ensures that uncertainty is minimised, enforcement is easier, and both parties can confidently move forward. Whatever your circumstances, clarity supports closure. And a well-crafted consent order is a vital step toward both.