When couples commence divorce proceedings, they often have their sights set on achieving decree absolute, as this is what dissolves the marriage and makes someone single.

However, decree absolute does not place a bar on financial claims being made against either former spouse.  This means that, even after the marriage has been dissolved, financial claims against assets such as income, pensions, property, business etc. can still be made.  The only way to finalise financial claims is to enter into a clean break (otherwise known as a consent order) which is a legally binding.

Verbal agreement is not enough to eliminate financial claims after divorce

It’s a common misconception that if spouses reach a verbal agreement on finances,  it is sufficient to protect them in the future.  It isn’t – and this is exactly what happened in the widely reported recent case of Glenn Briers.

No consent order leaves financial claims open

In 2002, after 18 years of marriage, Mr Briers separated from his wife, followed by divorce in 2005.  By this time Mr Briers had established a well-known fashion brand, Lambretta, that was turning over approximately £1 million per year.   He says he agreed a final settlement with his former wife meaning she would keep the former matrimonial home (valued at around £700,000 – with no mortgage) and would receive a yearly income of £10,000.  Mr Briers thought that was the end of the matter and his business continued to grow. However, the agreement was never written up into a consent order and there was no financial disclosure of each party’s assets and needs.  This meant that his ex-wife’s ability to make matrimonial financial claims was left open.

Ex-wife awarded £2.5 million 10 years after divorce

In 2015 Mrs Briers brought financial claims against her husband.  Mr Briers defended the claims on the basis that matters had been concluded upon separation.  The court found in Mrs Briers’ favour and awarded her £2.7 million of Mr Briers’ now 10 million pound fortune.  Mr Briers appealed the decision but his appeal was disallowed and Mrs Brier’s has won her financial award.

So, if you are getting divorced and want to make sure that there can be no comeback on you for future financial awards, please remember that the decree absolute is not enough! Both you and your spouse need to fully disclose your assets so that consideration can be given to your respective positions, a fair settlement can be reached and it is embodied into a legally binding order.  Without this, your former spouse may very well pursue you for more in the future.  It is also worth noting that if you simply separate from your spouse financial claims remain open whilst ever you are married!

Bradie Pell

You can find out more about financial matters relating to divorce and separation on our web pages.

If you wish to speak to a solicitor regarding any divorce or family related issue, please contact us to arrange a free initial consultation in which we can discuss your options.

Bradie Pell, family law solicitor.