Divorce is never just about ending a marriage.
It is also about creating a secure financial future. A financial settlement on divorce is a legally binding agreement or court order that sets out how money, property, debts, pensions, and maintenance responsibilities will be divided. Without one, financial ties remain open, leaving both parties exposed to future claims.
We guide you through this process with clarity and expertise, helping you achieve a settlement that is fair, sustainable, and built around your long-term needs.
What Does a Financial Settlement Cover?
Divorce financial settlements, also called a financial remedy order or consent order, typically include:
- Division of the family home and other property
- Savings, investments, and pension entitlements
- Any debts or liabilities
- Maintenance arrangements for children or a former spouse
- Business interests, shares, or overseas assets
Even if you and your ex-partner agree privately, it is essential to formalise the settlement through the court. Only then does it become enforceable and offer protection against future disputes.
How Is a Financial Settlement On Divorce Reached?
There are two main routes:
- Agreement Between Parties:
Many couples reach an agreement themselves or with the help of mediation support. A consent order is then drafted and submitted to the court, along with a summary of finances. Once approved, both parties are legally protected. - Court Proceedings:
Court proceedings can be time-consuming and complicated. Judges must consider a wide range of factors, such as the length of the marriage, income and assets, contributions made during the relationship, standard of living, and the needs of any children. Because of this, the process can quickly become stressful and costly. Working with an independent financial adviser often helps couples avoid this route by reaching fairer, quicker agreements.
It is always best to finalise the settlement during the divorce process. Otherwise, financial claims may still be made in the future, even years later.
Common Challenges and Risks
Dividing finances on divorce can be complex. Some of the most common challenges include:
- Accurately valuing pensions, businesses, or overseas assets
- Understanding the long-term consequences of offsetting pensions against property
- Managing legal costs and delays if court becomes involved
- Adjusting to changes in income and lifestyle after divorce
The risks are even greater if a settlement is not formalised. Informal agreements may collapse, and either party may be exposed to future claims. Assets are then assessed at their value at the time of the claim, not the time of divorce, which can have serious consequences.
Overlooking pensions is another major issue. Pension sharing appears in only a small percentage of divorce settlements, leaving one spouse at risk of significant financial disadvantage later in life.
How We Can Help
We understand that making decisions around financial settlements on your divorce can feel daunting, this is why getting the right advice is important.
We provide independent, specialist advice designed to protect your financial future. Our support includes:
- Asset Valuation – ensuring all pensions, property, savings, and business assets are fully considered.
- Divorce Pension Sharing – explaining your options and highlighting the long-term impact of different approaches.
- Divorce Mediation Support – background financial expertise to strengthen negotiations and avoid drawn-out disputes.
- Cashflow Forecasting – modelling how different settlements will affect your lifestyle.
- Tax Planning – avoiding unnecessary costs when dividing or transferring assets.
- Post-Divorce Planning – building a fresh financial plan for income, investment, and retirement.
We also work alongside solicitors and mediators to provide the clarity you need at each stage.
Why Choose The Divorce IFA?
Our founder, Phil, is both a Chartered Financial Planner and a Resolution Accredited Independent Financial Adviser. With over two decades of experience, he combines technical expertise with a supportive, down-to-earth approach. He has advised everyone from professionals and business owners to high-net-worth individuals with complex financial arrangements.
Our focus is simple: to help you make informed choices, avoid costly mistakes, and move forward with confidence.
Take the Next Step
A financial settlement on divorce is about more than dividing assets. It is about securing your independence and peace of mind. With the right advice, you can achieve a settlement that is fair, practical, and future-proof.
Whether you are negotiating privately, attending mediation, or looking to understand your pension options, we are here to help.
Book a confidential consultation today by calling 0800 092 1229, and take control of your financial future.
