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Warning: The Dangers of Divorce Without a Financial Settlement

Many couples get divorced without ever ending their financial ties by turning their financial settlement into a legally binding court order. This comes with potential consequences. This article explores the dangers of getting a divorce without a financial settlement.

Table Of Contents

    Can I get a divorce without a financial settlement?

    Yes, you can finalise a divorce without arranging a financial settlement in the UK. However, it is important to carefully consider the implications of doing so.

    Once the Decree Absolute (Final Order) is issued, any financial ties are not automatically severed, which means that either party could make a financial claim against the other in the future unless a financial order is in place.

    If a financial settlement is reached after the Decree Absolute, there could be unintended consequences, especially regarding pensions and inheritance rights. For example, following the Decree Absolute (Final Order), some pension rights for spouses may be lost.

    Getting a divorce without a financial settlement could affect your financial claims

    For instance, if you were to remarry before settling your finances from your previous marriage, you might lose the right to make any financial claim against your ex-spouse.

    Therefore, it is generally recommended to resolve financial issues and have a financial settlement approved by the court in the form of a consent order before applying for the Decree Absolute (Final Order). This ensures both parties have certainty about their financial situation and can prevent future claims.

    The Dangers of DIY Divorce

    As many couples seek to streamline their divorce process and cut costs, the concept of a “Do-It-Yourself” (DIY) divorce has gained traction.

    The dangers of moving forward with a DIY divorce without a financial settlement can range from minor inconveniences to serious, life-altering consequences.

    Divorce is a legal process with potentially serious financial implications if you don’t understand the process and deal with your finances.

    Here are main potential dangers to getting a divorce without a financial settlement:

    1. A lack of legal guidance
    2. Legally binding decisions
    3. Potential for conflict
    4. Risk of financial loss

    1) Lack of Legal Guidance

    In a DIY divorce, you’re essentially navigating the legal process without professional assistance.

    While this can save on solicitors fees, it might also leave you vulnerable to errors and omissions.

    Financial matters in a divorce can be complex, involving issues such as property division, spousal support, and child support.

    Reaching a financial settlement that is both fair and reasonable is a complex task.

    Without expert advice, you may overlook significant aspects, which can lead to an inequitable distribution of assets.

    Furthermore, not getting support or advice from experts can leave you in the dark if any of the following happens:

    • What happens if my ex hasn’t disclosed all of his assets?
    • What happens if my ex breaches the agreement we’ve reached?
    • What happens if my husband transfers money out before the divorce?
    • What happens if the Judge rejects our financial agreement?

    2) Binding Decisions

    One of the most notable dangers of proceeding with a divorce without settling financial matters is the potential permanence of the decisions you make.

    Once a divorce is finalised, reversing or modifying the financial arrangements can be a complex, time-consuming, and costly process.

    It’s vital to understand that decisions made during divorce proceedings often have long-term implications.

    Don’t leave your finances to chance. Find out what you’re entitled to in a divorce and then research examples of typical divorce settlements to get you on the right track.

    Not receiving court approval to end your financial ties is the #1 mistake couples make who opt for a DIY divorce.

    3) Potential for Conflict

    Unresolved financial issues are a common source of conflict during and after a divorce.

    If financial matters are not properly addressed in the divorce process, disputes can re-emerge down the line, causing stress and potentially leading to legal battles.

    4) Risk of Financial Loss

    Without a thorough understanding of your financial situation, and a formal financial settlement, there’s a risk of suffering financial loss.

    This could be through an unfair division of assets, or by inadvertently taking on more debt than you anticipated.

    It’s also possible that future assets or earnings could be claimed by your ex-spouse if the financial ties were not completely severed during the divorce.

    Having expert divorce settlement solicitors by your side can ensure you achieve a fair and equitable distribution of all assets and protect your financial future by removing the prospect of financial claims.

    Related Questions, Answered..

    EntitlementWhat is a wife entitled to in divorce?

    We’re often asked, what am I entitled to in a divorce, to which the answer is always… it depends.

    Divorce is a complex issue. Various factors need to be considered before we can begin to answer this question.

    Knowing your rights and obligations post-divorce is essential, as how can you reach a fair and reasonable settlement if neither party knows their entitlements?

    The starting point for the division of money and assets is always 50/50, but this does not mean that all assets are shared equally.

    Need some guidance on what’s fair and reasonable? Here are 4 typical UK divorce settlement examples to help give you some ideas.

    ConsiderationsWhat considerations does a Judge make?

    Whilst there are no exact rules on what a divorce settlement should look like, there is a set of principles couples can follow to reach a fair settlement.

    The Judge reviewing your financial order will look at a range of aspects, including the needs of both parties, future earning potential, standard of living, the role within the marriage, and much more.

    There are too many factors to list here, however, we have an entire article on the factors a Judge considers when deciding on a financial order, that you’ll very useful if you’ve started a DIY divorce.

    DIY SettlementCan you get a divorce settlement without solicitors?

    For many couples, DIY divorce offers them a simpler and more affordable way to get divorced. This may work for a minority of couples, maybe from a short marriage who can walk away with what they brought to the marriage.

    A financial settlement is another matter. It’s how you divide money and assets following a divorce.

    If you can reach a fair settlement between you, you can spend £400-£700 on having this agreement drafted into a legally binding court order. So, yes, you can reach what is known as a kitchen table agreement and submit the order to the court.

    However, you will need to spend roughly £500 on a solicitor to prepare the order first. If you visit local solicitors this could cost £1000-£3,000.

    Solicitor Drafted Consent Order For £449

    If you have a formal agreement in place with your ex-partner and wish to formalise it into a legally binding court order without spending thousands, our online service is ideal for you.

    How we can help you

    If you haven’t done so already, use our free divorce settlement calculator to get an insight into what you are entitled to and how specific assets can be divided.

    While a DIY divorce might seem appealing, especially when you’re eager to move on, it’s essential to take a step back and consider the potential consequences.

    Unresolved financial issues can turn what was meant to be a straightforward process into a protracted, expensive ordeal.

    It’s recommended to seek legal advice before proceeding with a divorce, especially when there are significant financial matters at stake.

    This doesn’t necessarily mean you’ll need to hire a lawyer for full representation, but even a consultation can provide valuable insights and help you avoid potential pitfalls.

    Remember, divorce isn’t just about ending a relationship; it’s also about safeguarding your financial future.

    Be cautious, be thorough, and don’t rush the process.

    Get a free initial consultation by calling 01793 384029 or speak to a live chat adviser.

    Start Your Divorce Online – £249

    This service is the quickest and easiest way to get divorced. Our team of divorce experts handles all aspects of your divorce and keeps you updated on the progress, each step of the way.

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