Divorce Without Financial Settlement: What You Need To Know
Divorce is rarely straightforward. Even when both parties agree to part ways, the question of finances has a way of complicating everything. Some couples believe they can simply avoid the process of a financial settlement altogether - either to save money, time, or because they think there’s nothing to divide. But that assumption can lead to serious consequences later on. Not only is divorce without financial settlement risky, but it can leave both parties legally and financially exposed for years after the final divorce order (previously decree absolute) is granted.
What Does Divorce Without Financial Settlement Mean?
When a marriage legally ends, the financial ties between spouses don’t automatically dissolve with it. A financial settlement, also known as a consent order when agreed voluntarily, is the legal mechanism that cuts those ties. Without it, one spouse could potentially make a claim against the other long after the divorce is final. Property, pensions, future earnings - everything remains technically up for dispute.
Maybe you think that’s irrelevant because there’s nothing substantial to divide right now. But what happens if one of you inherits money years later? Or builds a successful business? The other spouse could still have a legal right to pursue a share unless a financial settlement or court order says otherwise.
Can You Get A Divorce Without A Financial Settlement?
Technically, yes. The courts don’t force you to arrange a financial settlement before granting a divorce. Many couples proceed with the legal dissolution first and only tackle finances later - sometimes months, even years down the line. But this approach can backfire.
Not only is it dangerous from a financial standpoint, but it’s also emotionally exhausting to have that loose end hanging over you. Every new asset you acquire remains vulnerable. Worse, the longer you wait, the harder it can be to negotiate a fair outcome, particularly if circumstances have changed.
If you’re unsure how to proceed, it’s worth seeking legal support for ending your marriage. Professionals who specialise in family law can help you weigh your options and prevent mistakes that could cost you later.
Why Is A Financial Settlement So Important?
Divorce without financial settlement is like leaving a door unlocked. You may feel safe, but you’re not. A settlement brings finality. It confirms, in legal terms, who gets what and prevents future claims. Without it, there’s no guarantee that what’s yours today will remain yours tomorrow.
Here’s what’s often at stake:
- Property rights – Even if one spouse moves out, they may still have a claim on the family home years later.
- Pension entitlements – Retirement savings can be divided, but only through formal orders.
- Future income or inheritance – Any significant wealth acquired post-divorce could still be contested.
And to be fair, a financial settlement isn’t just about dividing assets. It’s about peace of mind. Knowing that neither party can come back with claims years down the road brings clarity and closure.
What Happens If You Skip The Settlement?
It’s tempting to avoid the paperwork and costs. But without a settlement, you remain financially connected. That means either spouse could apply to the court for financial provision at any point - even decades after the divorce.
There have been cases where ex-spouses resurfaced decades later, seeking a share of assets that didn’t even exist at the time of separation. Those claims might seem unreasonable, but without a clean break order, they’re legally valid. The emotional and financial strain of dealing with such claims can be devastating.
How To Protect Yourself
The best way to avoid these risks is to formalise an agreement, even if you believe there’s nothing worth dividing. A consent order can confirm that neither party will pursue claims in the future. It doesn’t need to be contentious or expensive if both parties agree.
Still, drafting and submitting such an order requires precision. Courts will only approve an agreement that is fair and properly documented. That’s why turning to a comprehensive guide to financial settlements is often the smartest first step.
Our solicitors can help couples reach a settlement without going through a drawn-out court process. It’s worth exploring this option if you want to avoid conflict while still securing financial closure.
Final Thoughts
Divorce without financial settlement is possible, but it’s rarely wise. Not only does it leave the door open for future claims, but it also creates uncertainty around your finances. Whether you own significant assets or not, having a clear, legally binding agreement protects you from unexpected disputes years down the line.
If you’re contemplating divorce, the financial aspects deserve just as much attention as the legal dissolution itself. Securing the right guidance early on can save you from complications later.
