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Published: 19 August 2025
Last updated: 19 August 2025
When a couple marry, or enter into a civil partnership, they become financially tied to each other.
When a couple separates, the financial tie can only be cut by a Court Order setting out the terms of the financial arrangements agreed, known as a Financial Remedy Order. An agreement made ‘over the kitchen table’ will not cut the parties’ financial ties with each other unless an Order is obtained.
Does a divorce end financial ties in the UK?
The final order of divorce does not cut the financial ties that were created on marriage. Unless there is a Financial Remedy Order the parties remain entitled to bring financial claims against each other even after they are divorced.
What is a Financial Remedy Order?
A Financial Remedy Order is usually prepared alongside the divorce. It sets out the parties’ financial agreement. The aim is to divide the assets fairly taking into consideration a range of factors. It provides for certainty, clarity, is binding and, in the event of a breach, enforceable. It deals with all the assets of the marriage, including pensions. It will usually dismiss any future financial claims that the parties may have against each other. It cuts the financial tie and protects future assets.
The risk of not obtaining a Financial Remedy Order
In circumstances where divorcing parties do not obtain a Financial Remedy Order, assets acquired by either party, post-divorce, including property and pensions, are exposed to the risk of a financial claim, no matter what has been said or ‘agreed’ at the time of separation. This risk is potentially indefinite. Although some parties obtain a Financial Remedy Order years after their divorce, it is not advisable. It is best to deal with all issues, including financial matters, when divorcing.
What is a Separation Agreement?
A Separation Agreement can be entered into when parties separate, whether they are planning to divorce later or not.
A Separation Agreement may be an option for a couple who want a trial separation, are unable to formalise their separation by way of a divorce due to cultural or religious reasons or have been married for less than a year and so are unable to divorce.
Is a Separation Agreement Legally Binding in the UK?
A Separation Agreement can set out how the parties have agreed to divide the assets of the marriage, but it is only a contract, not a Court Order. It cannot divide pensions as only a Court Order can do that.
As it is not a Court Order it will not cut the financial ties made on marriage. It does not dismiss the parties’ future financial claims against each other, so claims are left open. It is not enforceable as anything other than a contract.
If both parties obtain independent legal advice, are fully informed as to the financial assets of the marriage and it is drafted by a solicitor, it may be influential should one party bring a financial claim against the other later.
The cost of obtaining a Separation Agreement is usually similar to that of an agreed Financial Remedy Order.
It is important to have a document setting out your financial agreement, but it must be drafted by a specialist solicitor who can provide targeted advice so that an informed decision can be made.
If you would like to talk to a member of the team to discuss a Financial Remedy Order or a Separation Agreement, get in touch by calling 0800 652 8373 or fill out an enquiry form.