Consent Orders vs Financial Orders In Divorce And Dissolution of Civil Partnerships
Before we look at the differences between these two types of order, let’s first focus on some important similarities.
Consent orders and financial orders are both legally binding and enforceable – after they have both been approved by the judge and bear the court seal.
So always get expert legal advice from an experienced family lawyer before agreeing to anything. Read more here about:
- protecting your financial interests
- dealing with matrimonial assets including pensions
- refinancing mortgages and transferring titles
- estate planning.
What Is A Consent Order?
A financial consent order is a voluntary and mutual agreement between you and your former spouse or civil partner setting out the terms of an agreement reached.
Once you reach an agreement, a consent order can be drafted then agreed with the other party. It will set out:
- recitals (agreements) dealing with any matters the court lacks the jurisdiction to order
- undertakings where the court has no jurisdiction to make an order or to enforce certain actions
- the orders the court is being asked to make.
Once signed by both parties, the draft consent order is submitted to the court for approval.
The court then reviews the agreement to ensure it is fair and reasonable. If satisfied, the court will approve the agreement and seal the document as a court order, making it legally binding.
Consent orders are used when you both agree on financial matters – without the need for a contested court hearing. This can cover the same areas as a financial order, such as property, pensions, investments and maintenance.
It is only by obtaining a sealed order that the financial claims the parties each have against the other can be dismissed – either from the date of the order, or on a set date in the future (depending on the terms of the agreement reached).
What Is A Financial Order?
A financial order is made by the court. Like a consent order, it outlines how assets, money, property and liabilities should be divided – but the decisions are taken by the court, rather than by you and your former spouse or civil partner.
Financial orders can include arrangements for spousal maintenance, lump sum payments, division of property, pension sharing and other financial matters.
They are typically sought when couples cannot agree on how to divide their financial assets and pensions.
Getting a financial order involves a series of court hearings where evidence is gathered and presented to the court.
Ultimately, a judge decides how the assets should be divided if the parties cannot agree on a settlement (either between themselves or through non-court dispute resolution, such as mediation).
Find out more here about applying for a financial order in a divorce or in a dissolution of a civil partnership
Key Differences Between Consent Orders And Financial Orders
Court involvement – financial orders involve more extensive court intervention to resolve disputes. Consent orders require less judicial involvement since the parties have already agreed terms, and the court generally needs only to approve the agreement.
Cost and time – consent orders are generally quicker and less expensive than financial orders because they avoid lengthy legal proceedings.
Flexibility – consent orders can provide you with the opportunity to tailor your arrangements, without the need for a court-imposed decision.
Obtaining A Consent Order (Form D81)
To apply for a consent order, you will need to complete and send to the court Form D81. This form is also known as a ‘Statement of Information for a Consent Order in relation to a financial remedy’.
Form D81 is designed to provide the court with detailed information about each person’s:
- assets – such as property, savings, investments and valuable items
- liabilities – any debts or financial obligations, such as loans, credit card debts or mortgages
- income – including earnings, benefits and any other sources of funding
- pensions – information on pension arrangements and their current value.
In this respect, Form D81 is similar to Form E, which is used when applying for a financial order in the contested court process. However, Form E requires a much higher level of detail – whereas Form D81 summarises agreed financial disclosures.
But Form D81 is not to be underestimated. It must be filled out accurately and honestly, reflecting your financial situation (and that of your former spouse or civil partner).
Even if the financial settlement appears straightforward and you both agree fully, the court still needs this documented evidence to ensure all decisions are made by the judge with a full understanding of the financial implications. So it pays to get specialist legal advice.
How Long Does It Take To Obtain A Consent Order?
Obtaining a consent order is cheaper and quicker than applying for a financial order.
However, court approval can still take several weeks once the documents have been signed by both parties and submitted to the digital court financial remedy portal.
It can take longer if the documentation is incomplete or inaccurate. A good family lawyer can help to speed up the process.
Here are the various steps involved:
- Reaching an agreement – how long it takes to agree the division of assets, liabilities and responsibilities depends on how willing you are to compromise.
- Drafting the order – a solicitor usually does this to ensure it accurately reflects the agreed terms and is properly prepared.
- Completing Form D81 – you and your former spouse or civil partner both need to complete and sign this form.
- Submissions – the consent order and Form D81 must be submitted to the court.
- Review by the court – times for this can vary. It might take around two or three weeks…or longer if the court is very busy.
- Approval and sealing – if the judge is satisfied with the agreement, they will approve and seal the order – making it legally binding. If the judge has concerns or requires more information, there might be delays. You might have to revise the order, based on the judge’s feedback.
Next Steps: Get Expert Help
• Consult an experienced family lawyer. Professional advice is invaluable. Book a chat with a family lawyer to discuss your situation.
• Financial Planning. Start planning for your post-divorce financial future. Consult an independent financial adviser.
• Support Systems. Divorce can be emotionally taxing. Support from professionals, friends, and family is crucial during this time.
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