Ending a marriage or civil partnership and dividing the money are two separate steps. GOV.UK’s guide, which covers England and Wales (Scotland and Northern Ireland have different options), says you and your former partner need to agree how to separate pensions, property, savings and investments — and that an agreement only becomes enforceable once a court approves it.
If you agree: the consent order
GOV.UK explains that a consent order is the document that turns an agreement into a legally binding one, and that a court cannot enforce an agreement that has not been made legally binding. You and your ex-partner draft the order, sign it, complete a statement of information form, and one of you files a notice of an application for a financial order. The court fee for a consent order is £62 according to the GOV.UK guide, and there is usually no hearing: a judge approves it if they think it is fair, or can ask you to change it.
Timing matters. The court cannot approve a consent order before the conditional order (decree nisi), and GOV.UK says it is usually simpler to ask before the final order (decree absolute), because if you ask afterwards “there may be financial consequences, particularly for pensions”. The order only takes effect once the final order is made.
Mediation and the MIAM requirement
In England and Wales you generally need to attend a Mediation Information and Assessment Meeting (MIAM) before applying to the court to decide your finances, except in certain cases such as where there has been domestic abuse. GOV.UK gives the usual MIAM cost as around £120 and says a mediator can decide mediation is not suitable. Legal aid may cover mediation for some people.
What you agree in mediation is not itself legally binding. GOV.UK says the paperwork you receive at the end can form the basis of a consent order, but you still need the court to approve that order.
If you cannot agree: a financial order
Where agreement fails, either of you can ask the court to make a financial order (Form A). GOV.UK describes three stages: a first appointment, usually 12 to 14 weeks after applying; a financial dispute resolution appointment to help you settle without a final hearing; and, if you still cannot agree, a final hearing at which a judge decides. Before the first appointment both sides complete Form E, a financial statement covering property, debts and estimated future living costs, and gather supporting documents such as pension and loan paperwork and payslips. The court fee is £321 per the same guide.
What the judge considers
Section 25 of the Matrimonial Causes Act 1973, which applies in England and Wales, requires the court to have regard to all the circumstances of the case, giving first consideration to the welfare of any child of the family under 18. It then lists specific matters, including each party’s income, earning capacity, property and other resources; financial needs, obligations and responsibilities; the standard of living before the breakdown; the age of each party and the length of the marriage; any disability; contributions to the family’s welfare, including looking after the home or caring for the family; and conduct in the narrow circumstances the section describes.
GOV.UK adds that the reason for the divorce is not taken into account and that judges will usually try to arrange a “clean break”, so that the parties no longer have financial ties to one another.
Maintenance and tax
GOV.UK says the court sometimes orders the person with the higher income to make maintenance payments, which can run for a limited period or until one person dies, marries or enters a new civil partnership, and can be changed if circumstances such as employment alter. It also says Capital Gains Tax is usually not payable on assets transferred between spouses or civil partners before the divorce or dissolution is finalised, but may be payable on transfers made after it; if a tax question arises, HMRC or a tax adviser is the right source.
FAQs
Does the final order (decree absolute) settle the finances automatically?
No. According to GOV.UK, dividing money and property is a separate step. Without a court-approved consent order or a financial order, an informal agreement cannot be enforced by a court.
Can I get help with the court fee?
GOV.UK says you may be able to get help with court fees if you are on benefits or a low income, and legal aid may help with costs in certain situations, for example if you are separating from an abusive partner.
Do these rules apply in Scotland or Northern Ireland?
No. The GOV.UK guide relates to England and Wales and states that options in Scotland and Northern Ireland are different; take advice on the law of the relevant nation.
Bottom line
In England and Wales, agreeing your finances is only half the job: a consent order approved by the court is what makes an agreement enforceable, and a financial order is the route when you cannot agree. Whichever you use, deal with the timing around the final order carefully, and take independent legal advice for anything involving pensions or a family home. This article is general information, not legal advice.
Sources
- GOV.UK, “Money and property when you divorce or separate: If you agree”
- GOV.UK, “Money and property when you divorce or separate: Get help agreeing”
- GOV.UK, “Money and property when you divorce or separate: Get the court to decide”
- GOV.UK, “Money and property when you divorce or separate: Maintenance payments”
- legislation.gov.uk, “Matrimonial Causes Act 1973, section 25”