Although a divorce signals the end of the legal marriage between people, it does not sever the financial commitments that exist between you and your ex-spouse.
When a family separates, they need to work out how the finances are separated between the parties. For example:
- Do you jointly own a family home? Will this be sold or will one person remain in the family home? How will the equity be divided between you?
- Are there pensions that should be shared or rebalanced?
- Will one person be paying child maintenance to the other person and how will the child maintenance be calculated?
To end financial ties with your ex-spouse, you will need to apply to the Court for a Financial Order. This is important to do even if you currently have little or no current assets, as it will protect any wealth that you may develop in years to come. Without a Financial Order, there can always be a risk that your ex-partner could make a financial claim against you.
It is possible for you to make an informal financial agreement between yourselves, or you may wish to use the services of a mediator for a mediated financial agreement. If you are not able to agree then you can take the case to court for legal financial order where the court will make the final decision.