Divorce & Financial Settlements

Dividing money, property and pensions on divorce: section 25 factors, consent orders, contested financial orders, and court fees.

Family & Personal

England & Wales

Introduction

Divorce itself does not divide the money — that requires a financial settlement under the Matrimonial Causes Act 1973. If a couple agree, the agreement is only enforceable once embodied in a consent order approved by the court (fee £62); a judge will make it binding only if satisfied it is fair. If they cannot agree, either spouse applies for a financial order (fee £321) and the court decides how assets are split after full disclosure on Form E. In either route the court must have regard to all the circumstances under s.25 MCA 1973, giving first consideration to the welfare of any minor child of the family, and weighing income and earning capacity, needs, standard of living, contributions and more. Timing matters: a financial order typically cannot be made before the conditional order, and asking only after the final order can have financial consequences — particularly for pensions.

In Brief

Divorce does not settle the money — you need a financial order. If you agree, a judge approves a consent order (£62) if it is fair, usually sought after the conditional order and before the final order (waiting until after the final order can hurt, particularly on pensions). If you cannot agree, apply for a financial order (£321): after Form E disclosure the court divides assets under the s.25 factors, giving first consideration to any minor children's welfare. The divorce application itself costs £628.

Core Principles

Section 25 Factors — The court must consider all the circumstances of the case, first consideration being given to the welfare while a minor of any child of the family under eighteen, then factors including each party's income, earning capacity, property and other financial resources, and their financial needs, obligations and responsibilities (MCA 1973, s.25).

Agreements Need a Court Order — A private agreement is not binding: 'If your agreement is not legally binding, a court cannot enforce it if there are any issues later.' A consent order — a legal document confirming how you will divide property, money, pensions and savings — makes it enforceable.

Judicial Scrutiny of Consent Orders — A judge approves a consent order to make it legally binding only if they think it is fair; if not, they can require changes.

The Contested Route — If you cannot agree, you apply for a financial order and the court decides how assets are split, after each party gives full disclosure of property, debts and future living costs on Form E. This usually takes longer and costs more than agreeing.

Timing Around the Divorce — Apply for a financial order or consent order approval after the conditional order (the court typically cannot make a financial order before it) and before the final order — asking after the final order can carry financial consequences, particularly for pensions.

Equality and Fairness — The 'yardstick of equality' means no discrimination between breadwinner and homemaker (White v White [2001] 1 AC 596); fairness is assessed through needs, compensation and sharing (Miller; McFarlane [2006] UKHL 24), and only matrimonial property is ordinarily shared equally (Standish v Standish [2025] UKSC 26).

Nuptial Agreements — A freely made pre- or post-nuptial agreement with full appreciation of its implications will usually be upheld unless unfair in the circumstances (Radmacher v Granatino [2010] UKSC 42).

Claims Do Not Die With Delay — Financial claims survive the divorce until dismissed by an order; a claim brought years later can still proceed (Wyatt v Vince [2015] UKSC 14) — a key reason to get a clean-break consent order even with few assets.

Key Statutes

Matrimonial Causes Act 1973

1973

Divorce, Dissolution and Separation Act 2020

2020

Welfare Reform and Pensions Act 1999

1999

Matrimonial and Family Proceedings Act 1984

1984

Leading Cases

White v White

[2001] 1 AC 596

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Miller v Miller; McFarlane v McFarlane

[2006] UKHL 24

Radmacher v Granatino

[2010] UKSC 42

Wyatt v Vince

[2015] UKSC 14

Standish v Standish

[2025] UKSC 26

Common Scenarios

Amicable split with a house and two pensions

Agree the division (mediation can help), have a solicitor draft a consent order recording it, sign it with a statement of information form, and ask the court to approve it — usually after the conditional order and before the final order. The fee is £62. Once approved as fair, it is enforceable, and a clean-break clause prevents future claims.

Spouse refuses to disclose finances

Apply for a financial order (£321). Both parties must complete Form E showing a breakdown of property and debts, including an estimate of future living costs, with supporting documents such as mortgage agreements and pension statements. The court can draw adverse inferences from non-disclosure and will decide the split under the s.25 factors.

Divorced years ago, no financial order made

Financial claims were never dismissed, so either ex-spouse can still apply — as in Wyatt v Vince, where a claim proceeded almost two decades after the divorce. Remarriage and delay affect what is awarded. The lesson: obtain a consent order with a clean break at the time of divorce, even when assets are modest.

Frequently Asked Questions

Is our financial agreement binding without going to court?

No. A court cannot enforce an agreement that is not legally binding. You make it binding with a consent order — a legal document confirming your agreement on property, money, pensions and savings — which a judge approves (fee £62) if satisfied it is fair. If the judge does not think it is fair, they can ask you to change it.

When should we apply for the financial order?

You can ask the court to approve a draft consent order when you apply for divorce or any time after, but it is usually simpler after the conditional order (the court typically cannot make a financial order before it) and before the final order — applying after the final order can have financial consequences, particularly for pensions. The consent order only takes effect after the final order.

How does the court decide who gets what?

Under s.25 MCA 1973 the court has regard to all the circumstances, giving first consideration to the welfare of any minor child of the family, and weighing each party's income, earning capacity, property and financial resources, needs, obligations and responsibilities, the standard of living, ages, duration of marriage, contributions and conduct where relevant. Case law adds the equality yardstick (White) and the needs/compensation/sharing framework (Miller; McFarlane).

How much does it all cost?

Court fees: £628 to apply for the divorce itself, £62 for a consent order, and £321 to apply for a contested financial order. Legal adviser fees vary with experience and location; mediation or agreeing directly is usually far cheaper than a contested application, which also takes longer.

Important Deadlines

Ask the court to approve a consent orderWhen you apply for divorce or any time after — usually after the conditional order and before the final order

Financial order application relative to the divorceThe court typically cannot make a financial order before the conditional order; applying after the final order may have financial consequences, particularly for pensions

Financial claims after divorce with no orderNo fixed limitation — claims remain open until dismissed by a court order (Wyatt v Vince), though delay and remarriage affect outcomes