The Dangers of Divorce Without a Financial Settlement

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.

How we can help you

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.