Severing Financial Ties After Divorce

One of the most important steps following divorce is formally severing financial ties with your former spouse. Without a court order, both parties remain able to make financial claims against each other — sometimes years after the marriage has ended.

Financial matters in divorce cover property (including the family home), pensions, savings, investments, business interests, and ongoing income. The court’s starting point is equality, but it will consider the specific circumstances of each case when determining a fair outcome.

The key legislative framework is set out in the Matrimonial Causes Act 1973, which gives the court wide powers to make financial orders. These include lump sum orders, property adjustment orders, pension sharing or attachment orders, and periodical payments (maintenance).

Where parties can agree on finances, their agreement can be submitted to the court as a consent order. This converts their agreement into a legally binding court order, providing the finality and enforceability that a private agreement alone cannot achieve.

A clean break — where all financial ties are formally ended — is generally preferred where possible, as it provides certainty and protects both parties from future claims. However, this may not always be achievable, particularly where one party has significantly lower earning capacity.

At Terence Ray Solicitors, our family team advises on all aspects of financial settlements following divorce, working towards the most practical and equitable outcome.

Call 020 3367 1430 or email info@trsolicitors.co.uk.