Many people believe that the mere fact of divorce brings an end to both parties’ financial claims, but this is not the case. There is a risk a party can find themselves facing a claim for financial provision many years after a divorce has been finalised.
The court decision in the well-publicised case of Vince v Wyatt confirmed that financial claims cannot simply expire over time. That case involved a couple who separated in the 80’s and divorced in 1992 after which the ex-husband established a successful business. In 2011 his ex-wife issued a claim for financial provision and secured a lump sum payable from wealth he had acquired post separation, to buy herself a mortgage free home.
‘Clean Break Order’
It is essential to ensure that if an agreement is reached in respect of financial provision within divorce proceedings that the agreement is recorded in an order that is approved by the court. This is necessary even if the agreement is that there is to be no financial provision; it is important to ensure that there is an order that reflects this, something which is often referred to as a ‘clean break order’.
We have a strong and consistent reputation advising clients in respect of financial provision and we are able to assist you should you seek to secure an order that is simply reflective of an agreement reached between you and your spouse.