Getting divorced is one thing. Working out who gets what is another thing entirely, and it is usually the part that causes the most pain. If you and your ex cannot agree on finances, the court can impose a settlement. The range of orders available is broad and the court has a lot of discretion in how it uses them.
Clean Break Orders
A clean break order severs all financial ties between you and your ex. No ongoing maintenance payments, no future claims. It is a line drawn under the marriage financially. Courts prefer clean breaks where possible because they allow both parties to move on. However, a clean break is not always realistic, particularly where there are young children or where one spouse has been out of the workforce for years.
Even if you agree on everything amicably, it is worth getting a clean break order through the court. Without one, either party can come back years later and make a financial claim. There have been cases where an ex-spouse has claimed a share of lottery winnings or a pension decades after the divorce because no clean break order was ever made.
Spousal Maintenance
If one spouse cannot support themselves financially after divorce, the court can order the other to make regular payments. This might be for a fixed period, to give the receiving spouse time to retrain or return to work, or it might be open-ended in cases where that is not realistic, for example if one spouse is elderly or has a long-term health condition. The amount depends on need and ability to pay. There is no formula.
Lump Sum Orders
The court can order one spouse to pay the other a lump sum. This is often used alongside a property transfer, to equalise things. For example, one spouse keeps the house and the other receives a lump sum to reflect their share of the equity.
Property Adjustment
The court can transfer property from one spouse to the other, or order that a property be sold and the proceeds divided. The family home is usually the biggest asset and the most argued-about. The court will consider what the children need, whether either spouse can afford to buy the other out, and whether it is practical for one spouse to stay in the home.
Pension Sharing
Pensions are often the second biggest asset after the house, and sometimes bigger. The court can make a pension sharing order, which transfers a percentage of one spouse's pension to the other. The receiving spouse gets their own pension pot. Pension offsetting is an alternative, where one spouse keeps their pension and the other gets a larger share of other assets to compensate.
Getting proper financial advice on pensions during divorce is essential. A pension worth £200,000 in a defined contribution scheme is not the same as a pension worth £200,000 in a defined benefit scheme, and treating them as equivalent is one of the most common and expensive mistakes in divorce settlements.
Always check the terms of your specific agreement, as individual contracts can vary. This article is for general guidance only and is not legal advice.
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