Types of Financial Orders in Divorce & Family Law

Going through a separation or divorce brings uncertainty about your financial future.

Understanding the different types of court orders available helps you protect your interests and make informed decisions about your settlement.

What is a financial order?

A financial order on divorce is a legal document that sets out how assets, property, and finances will be divided between divorcing spouses. Financial orders can either be made by agreement between spouses, known as financial consent orders, or imposed by the court if an agreement cannot be reached through negotiation or mediation.

While the decree absolute legally ends your marriage, it does not sever the financial ties between you and your ex-spouse. This means that you can divorce without sorting out your finances, but doing so leaves financial obligations open, allowing either party to make financial claims in the future.

To protect both parties and provide long-term certainty, it’s important to formalise any financial agreement through a consent order approved by the court. Once the court seals the order, whether by agreement or after a contested hearing, the arrangements become legally binding and enforceable across England and Wales.

Financial Orders on Divorce

A financial order on divorce sets out the financial arrangements between the parties, as approved by the judge.

The type of financial order you require depends on your respective circumstances and needs:

• Financial Consent Order: A financial consent order is an agreement between divorcing parties about financial arrangements that has been approved by the court, making it legally binding and enforceable. Without a consent order, your agreement isn’t legally binding. Either party can make claims against the other’s assets in the future, potentially including against inheritances, lottery wins, or properties purchased years later. The consent order includes all agreed financial provisions (property division, lump sums, pensions, maintenance), clear dismissal of further claims (clean break) where appropriate, an implementation timetable specifying exactly when each provision takes effect, and cost provisions. Both parties must provide complete financial disclosure through Form E. The court reviews the order for fairness and can refuse approval if it appears unfair, fails to meet children’s needs, or hasn’t properly considered all relevant factors.
• Maintenance Order (Periodical Payments Order): The court considers numerous factors before deciding whether to order one party to pay regular maintenance payments to the other, including the length of the marriage and each party’s earning capacity and financial needs. Maintenance payments can be time-limited or payable until death or remarriage/new civil partnership. They can also be made on an interim basis, pending a final financial order. The court may include a s28(1A) bar preventing any future extension of a time-limited term, creating certainty that payments will definitely end on the specified date. Time-limited orders typically run for 3 to 5 years but can be shorter or longer depending on circumstances. Capitalised maintenance involves paying a larger lump sum instead of ongoing payments, achieving a clean break.
• Pension Sharing Order: Pensions can be a significant asset, and on divorce, one party may be entitled to a share of the other’s pension. A pension sharing order specifies how a pension will be divided, typically expressed as a percentage of the Cash Equivalent Transfer Value (CETV). The receiving party either becomes a member of the existing pension scheme or transfers their share to a new pension provider of their choice. The pension credit becomes entirely independent from the original pension holder. Different pension types have vastly different values in practice. Implementation typically takes 4 to 6 months after the order is granted. The pension credit cannot be accessed until the recipient reaches the scheme’s normal pension age. Sometimes, parties agree to “offsetting”, where one person keeps their entire pension whilst the other receives a larger share of other assets, typically property.
• Property Adjustment Order: A property adjustment order specifies what should happen to the family home and other properties, including whose name it should be in and who has the right to live there. The court can order immediate transfer of property into one person’s sole name, require one party to buy out the other’s share, direct the sale of property with specified division of proceeds, or delay the sale under certain conditions (see Mesher Orders and Martin Orders below). The order addresses any existing mortgages, secured loans, or other charges on the property. If you’re keeping the family home, you must demonstrate you can remortgage in your sole name, as lenders assess affordability differently than when you applied jointly.
• Mesher Order: This specific type of property adjustment order postpones the sale of the family home until a specified trigger event occurs, most commonly when the youngest child reaches 18 or completes full-time education. The property typically remains in joint names with one parent (usually the primary carer) having the right to occupy. When the trigger event occurs, the property is sold, and the proceeds are divided according to predetermined percentages. Courts are increasingly reluctant to make Mesher Orders because they create significant problems. The occupying parent cannot move without selling, limiting career or relationship opportunities, whilst the absent parent has capital tied up without control or benefit for many years. The order must specify who pays the mortgage (usually the occupying parent), buildings insurance, repairs, maintenance, and major improvements.
• Martin Order: This deferred sale order allows the occupying party to remain in the property for life, or until they choose to leave, remarry, or cohabit with a new partner. The absent party retains an interest in the property that crystallises when these events occur. Martin Orders are appropriate when the occupying party’s need for housing is likely to be permanent or very long-term, particularly for older spouses with limited earning capacity who sacrificed their careers during a long marriage. Orders typically specify that the right to occupy ends if the occupying party cohabits for a specified continuous period, commonly 6 to 12 months. The absent party may have capital tied up for decades without access, potentially their entire lifetime if the occupying party never remarries or moves. The occupying party usually bears responsibility for all repairs, maintenance, building insurance, and improvements.
• Lump Sum Order: This requires one party to pay a lump sum of money to the other, although the court can order the sum to be paid by instalments. Lump sum orders equalise asset division when one person keeps more valuable assets, compensate for future loss of pension rights, enable one party to purchase their own home, buy out a spouse’s share of a business, capitalise future maintenance obligations, meet immediate needs such as purchasing furniture or vehicles, or cover legal costs. If the lump sum derives from property sale proceeds, payment is contingent on that sale completing, and the order specifies exactly when payment is due. Courts can order lump sums to be paid by instalments when the payer doesn’t have all the capital immediately available but will over time from business profits or expected bonus payments. The order specifies the instalment amounts and payment dates clearly.
• Order for Sale of Property: This directs that the specified property be sold, with proceeds divided according to the court’s determination. The court uses this when spouses cannot agree on whether to sell property or how to divide proceeds. The order specifies who can live in the property until completion of the sale and whether they must contribute to mortgage payments and other outgoings during this period. Orders typically specify how the property should be marketed, who chooses the agent if parties disagree, and what happens if one party rejects an offer. The order may give one party ultimate decision-making authority over sale terms to prevent obstruction. The order specifies who bears sale costs, including estate agent fees and legal costs.
• Tomlin Order: This specific type of consent order keeps the detailed terms of the financial settlement in a confidential schedule attached to the order, rather than in the body of the order itself. The court order simply records that proceedings are stayed (paused) except for enforcing the terms in the schedule. Tomlin Orders are used when parties want to keep specific financial details private, particularly relevant for high net worth individuals, business owners, or public figures, as court orders are public documents. The confidential schedule can also include terms beyond what a court could order, such as agreements about business arrangements, non-financial matters like who keeps pets or personal items, or confidentiality clauses. The schedule is signed by both parties but isn’t filed as a public court document, though the terms remain fully enforceable. The actual court order must still include appropriate dismissal clauses preventing future claims.
• Child Maintenance: This is a regular payment from the non-resident parent towards the children’s living costs. In most cases, this is now handled by the Child Maintenance Service (CMS) rather than courts, using formula-based calculations determined by the paying parent’s gross income. Courts only make child maintenance orders in limited circumstances: for children in school or further education over age 16 (up to 20), when annual gross income exceeds £156,000, alongside consent orders where both parties agree the amount, for disabled children requiring additional support, or when maintenance is for step children. Court-ordered maintenance offers flexibility to consider circumstances that the CMS formula doesn’t address, such as paying private school fees directly or covering specific additional costs. Child maintenance is entirely separate from contact arrangements. Paying maintenance doesn’t grant contact rights, and being denied contact doesn’t exempt you from paying.

Children Arrangement Orders

There are two main types of orders the Family Court can make concerning children’s living and care arrangements:

• Child Arrangements Order: This order confirms with whom the child(ren) will live and can specify that the child lives with more than one person if appropriate. It also states with whom the child(ren) will spend time, the frequency of that contact, and how the child will spend time with a relevant person. The court may order that contact be supervised (either informally by a family member or formally at a supervised contact centre), occur at a particular location, or be indirect only through telephone calls, video calls, letters, or emails. The order specifies precise arrangements including specific days and times (for example, alternate weekends from Friday 6pm to Sunday 6pm), holiday arrangements, and handover locations. Conditions can include neither parent consuming alcohol before or during contact, attendance at parenting courses, or drug and alcohol testing. Orders often include a progression plan where contact starts supervised, then progresses to unsupervised daytime contact, and finally builds to overnight stays. The child’s welfare is paramount. Courts apply the welfare checklist under section 1 of the Children Act 1989, considering the child’s wishes and feelings, physical and emotional needs, the likely effect of any change, and the capability of parents to meet the child’s needs. If a parent breaches the order, enforcement mechanisms include warning notices, unpaid work orders, compensation for financial loss, or in serious cases, imprisonment for contempt of court.
• Prohibited Steps Order: This prevents the person against whom the order is made from doing something concerning a child. Common scenarios include preventing the child’s removal from the country, preventing specific medical treatment such as circumcision or cosmetic procedures, preventing a change in the child’s surname, stopping a change of school without agreement, or preventing introduction of the child to a new partner who poses risks. The prohibited action must fall within the realm of parental responsibility, and the order must clearly define what is prohibited. Vague prohibitions aren’t enforceable. For orders preventing international removal, the court activates a port alert notifying all UK border authorities not to allow the child to leave the country. This is backed up by surrender of passports to the court or the applicant’s solicitor. Orders can be time limited or continue until the child reaches 16 or 18. Breaching a Prohibited Steps Order is contempt of court, potentially resulting in fines or imprisonment. For international removal, criminal charges may also apply under the Child Abduction Act 1984.

Protective Orders in the Family Court

The Family Court can make protective orders to ensure the safety and well-being of family members:

• Non Molestation Order: This is an injunction preventing your current or ex-partner from displaying violent or threatening behaviour towards you and/or your children, including harassment and intimidation. The order’s wording is adapted to specific circumstances to ensure protection. It may prohibit direct contact (approaching you, telephoning you, coming to your home or workplace), indirect contact (contacting you through social media, email, or asking others to make contact on their behalf), being within a specified distance of you (commonly 100 to 200 metres from your home, workplace, or children’s school), or damaging or threatening to damage your property. Non Molestation Orders typically last 6 to 12 months but can be extended on application.
• Occupation Order: The court can make this order to enforce, declare, or restrict a person’s rights to occupy the family home. An Occupation Order is a short-term solution and has no bearing on the final financial settlement, which is determined separately. These orders can require someone to leave the family home (even if they’re a legal owner), allow someone to return to the family home they’ve been excluded from, regulate who can occupy which parts of the property, or require someone to stay away from the property and a defined surrounding area. The court applies a “balance of harm” test under sections 33 to 38 of the Family Law Act 1996, weighing the harm likely to be suffered by the applicant and any children if the order isn’t made against the harm the respondent would suffer if the order is made. Occupation Orders initially last up to six months (or 12 months in some circumstances) and can be extended.

Which type of financial order do you need?

Understanding which court orders apply to your situation is crucial for protecting your interests and achieving a fair settlement.

Every case is different, and the combination of orders you need depends on your specific circumstances, assets, income, children’s needs, and long-term goals.

If you’re facing separation or divorce, seek specialist family law advice as soon as possible. Decisions made now affect your financial security for decades. Gather full financial information about all assets, income, pensions, and debts.

Consider all options, including negotiation, mediation, and collaborative law, before court proceedings.

Always convert any agreement into a legally binding, clean break consent order. Verbal agreements and informal arrangements are not enforceable and leave you vulnerable to future claims.