Why a financial order matters after divorce. What recent UK Case Law teaches us and how to protect yourself
Introduction
Many people are surprised to learn that getting divorced does not end their financial relationship with their former spouse. The divorce final order closes the marriage. It does not close the finances. Unless a financial order has been approved by the court, the legal and financial ties between former partners remain open, no matter how many years have passed- basically, you’re still ‘financially married’.
Recent UK case law has highlighted just how serious this can be. Claims have been allowed decades after the divorce was finalised, even where both people had moved on with new lives, new partners and new financial circumstances.
This blog explains why a financial order is essential, what the courts have recently said, and how mediation gives separating couples the safest and most affordable way to secure long term financial clarity.
1. What a financial order actually does
A financial order is the legal document that records how you and your former spouse have decided to divide your finances. It is approved by a judge and becomes binding on both of you.
A financial order can set out agreements about:
- property
- lump sums
- savings and investments
- pensions
- spousal maintenance
- child maintenance (in limited circumstances)
- debt arrangements
- clean break provisions
Although every divorce is unique, the goal of a financial order is simple. It provides certainty, protects both people from future claims, and creates a clean break wherever this is appropriate.
An informal agreement, even a written one, is never legally binding until it is approved by the court.
2. Why an informal agreement is not enough
Many separating couples agree informally what should happen to money, property and pensions. This may feel fair and amicable at the time. However, informal agreements do not prevent future financial applications.
Without a court sealed financial order, either person can apply for:
- a share of property
- lump sum payments
- pension sharing
- spousal maintenance
- a share of assets acquired after the divorce
This applies even if:
- You have been divorced for many years.
- You had no money or assets at the time of the divorce.
- You have remarried.
- You have built a new family.
- You both believe everything was settled.
The courts have repeatedly confirmed that the right to claim remains open until a financial order is approved.
3. The public understanding gap
Research from the University of Bristol in 2025 found that knowledge about how finances are dealt with on divorce is very low. Large numbers of people believe that once the divorce is granted the finances are automatically settled. They are not.
The study showed that:
- Many people believed incorrectly that assets are always split 50/50.
- Many believed the divorce itself ends financial claims.
- Even people who had been divorced were unsure of their rights.
This lack of understanding is one reason why so many people are vulnerable to renewed financial claims long after divorce.
4. Key case law: what recent judgments show
LIN v PAR (2023)
Perhaps the clearest modern example is the case of LIN v PAR. The couple separated more than twenty years earlier. Both had moved on. Both believed the finances had been settled informally. No court order had ever been obtained.
When the former wife brought a claim more than two decades later, the court confirmed that she had the legal right to do so because there was no financial order.
The consequences included:
- stress and uncertainty for both people
- legal costs
- disruption to new family units
- risk to assets acquired long after the marriage
The case has become a warning for anyone who has divorced without a financial order.
QW v GH (2025)
In this case, the wife issued financial proceedings ten years after the divorce. The husband argued that too much time had passed. However, the court confirmed that delay does not prevent a claim if no order has been made.
The judge explained that the court’s duty is to achieve fairness, not to punish delay. Because the financial ties had never been legally closed, the application could proceed.
TA v SB (2025)
This case involved vulnerable parties and significant procedural delays. Despite the passage of time, the court confirmed that until there is a sealed order, financial claims remain open. Even complex circumstances and long histories do not remove the court’s jurisdiction.
Wyatt v Vince (Supreme Court)
Although older, this remains the strongest illustration of the risk of not having a clean break. The couple separated in the 1980s, had no money at the time, and did not obtain a financial order. Decades later, after the husband became a multimillionaire, the former wife brought a claim which the Supreme Court confirmed could go ahead. She ultimately received a substantial settlement.
The principle is clear. Past, present or future assets can be considered unless a financial order containing a clean break has been approved.
5. Why the financial order protects both people
A financial order is not just about protecting assets from future claims. It also:
- prevents misunderstandings
- ensures clarity about pensions and long term security
- gives both people certainty to rebuild their lives
- protects new partners and children
- avoids future legal disputes
- supports emotional closure
Most importantly, it gives both people the ability to move forward with confidence.
6. Pensions and other hidden risks
Pensions are often the largest asset in a marriage after property. They are also the most commonly overlooked.
Without a financial order, pension claims remain open indefinitely. This applies to:
- defined benefit pensions
- workplace pensions
- private pensions
- future pension growth
A financial order ensures that pension sharing, offsetting or clean break arrangements are clearly recorded.
Other commonly overlooked areas include:
- inheritances
- business interests
- investments acquired after the separation
- debts and liabilities
Mediation helps couples identify and deal with these issues calmly and clearly.
7. Why mediation is the safest and most practical route
Mediation allows separating couples to discuss finances in a supportive, confidential environment. It is designed to reduce conflict and support informed decision making.
Mediation provides:
- a structured process for financial disclosure
- space to explore options
- guidance on what outcomes are realistic
- a memorandum of understanding once agreements are reached
- support to obtain a solicitor drafted financial order
It is faster and more affordable than solicitor negotiation or court proceedings.
Typical mediation timeline: 1 to 3 months
Typical mediation cost: 250 to 1,000 pounds
Government vouchers of 500 pounds are often available for eligible families.
Typical court timeline: 43 weeks
Typical court cost: 14,561 pounds plus VAT
Mediation supports people to make decisions together, rather than decisions being made for them in court.
8. What if you divorced years ago with no financial order?
If you have been divorced for some time, you can still obtain a financial order.
The process is straightforward.
- Attend a MIAM (Mediation Information and Assessment Meeting).
- Begin mediation to discuss financial arrangements.
- Reach an agreement.
- Have the agreement drafted into a financial consent order.
- Submit it to the court for approval.
You can do this even if:
- you have not spoken for years
- you believe you had nothing to divide
- you have remarried
- your children are now adults
- the relationship ended amicably
There is nothing unusual about addressing finances long after the divorce. The important part is obtaining the legal protection that was missing.
9. What a clean break actually means
A clean break order ends the financial relationship completely. Once granted, neither person can make any future financial claims.
A clean break may not be suitable in every situation, for example where spousal maintenance is required or where there are ongoing financial responsibilities. However, most people want clarity and closure, and the clean break provides exactly that.
Without it, the risk of future claims remains.
10. Why this matters emotionally as well as financially
Financial uncertainty creates emotional uncertainty. Many people feel anxious when they realise that their financial relationship with their former spouse is not yet closed.
A financial order provides:
- clarity
- stability
- emotional closure
- protection for new relationships
- peace of mind
Whether you are newly separated or divorced many years ago, securing a financial order is one of the most important steps you can take to protect your future.
11. How Brighter Future Mediation can support you
At Brighter Future Mediation, we help families resolve financial matters with clarity, compassion and confidence. Our online mediation service means you can engage from home at a time that suits you, with transparent pricing and a supportive, trauma informed approach.
We provide:
- full financial mediation
- support with financial disclosure
- drafting of memorandums of understanding
- guidance on obtaining solicitor drafted consent orders
- child focused, accessible practice
- fixed fees and clear processes
You remain in control of your decisions throughout.
If you have no financial order in place, whether you divorced this year or decades ago, we can help you move forward with certainty.
Call to action
If you want clarity, closure and protection for your future, we are here to help.
Book a free consultation today.
Visit: www.brighterfuturemediation.co.uk
Call: 0333 240 8038
Government £500 mediation voucher available.
Correct at the time of first publishing, December 2025. This article is for information only and is not legal advice.
