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Financial Claims After Divorce
5 Jul 2016
Financial claims after divorce?
At Grainger Appleyard Solicitors we pride ourselves on providing comprehensive advice to all of our clients undertaking divorce proceedings. This means advising our clients on the financial implications of their divorce, not just now, but in the future too. Contrary to popular belief, obtaining the final decree of divorce (called the ‘Decree Absolute’) does not automatically end financial claims and there is no time limit on when claims can be made following divorce.
The recent decision in the highly publicised case of Vince v Wyatt serves as a stark reminder of this. The Court ruled that a wife (who never remarried) was entitled to pursue a financial claim against her ex-husband despite the divorce having been finalised more than 20 years ago. The couple originally divorced in 1992. At the time they had no assets. However, in 1995 the husband founded a renewable energy company and by the time of the wife’s claim, he was a millionaire. The wife was eventually awarded some money and the husband was also ordered to pay the wife’s legal costs.
Whilst the facts of this case are extraordinary, the ruling will affect anyone who has been divorced in England and who has not ensured that there is a financial order in place. It doesn’t have to be a large windfall such as a lottery win or inheritance. Even a modest change in your financial circumstances since divorce could result in an expensive claim from a former spouse no matter how long ago you were divorced from them.
If there is an agreement at the time of the divorce, or no money or assets to divide, get any agreement committed to in writing and approved by the court. This is called a consent order and should record the fact that after decree absolute there can be no further claims. If you want to avoid unwanted claims in the future, it is essential to obtain this court order. It is not sufficient merely to obtain a divorce or rely on verbal, informal agreements.
If both parties agree to a consent order, the procedure is very straightforward and does not usually require any attendance at Court. We can offer you a fixed price for the work allowing you to plan your future with the comfort of knowing that really is the end of the matter.
For detailed advice on your case contact a member of our family team on 01302 327 257.