When a marriage ends, emotions run high, but so too can the financial stakes.
For high-net-worth families, the challenge often lies not in deciding if wealth should be protected but in determining how to do it in a way that is both fair and future-proof.
One common misunderstanding is that once the divorce is finalised, the financial ties are cut.
In reality, that is not always the case.
Without a financial order approved by the court, those ties may quietly linger and resurface years later when circumstances have changed.
What is a financial order?
In short, it is a legal document that sets out exactly how your finances are divided post-divorce. It can deal with:
- Property, including second homes and investment portfolios
- Business assets and directorships
- Trusts, shares, and other investments
- Pensions and income provision
- Lump sums or ongoing maintenance
Depending on your situation, the order might include:
- A clean break order, which draws a line under all financial claims – now and in the future
- A property adjustment order – if there are decisions to be made about who keeps what property
- A pension sharing order – to ensure a fair division of long-term pension assets
Why bother if things are amicable?
We often hear, “We’ve agreed on everything – we don’t need a court order.”
Without one, however, either party could bring a claim in future, even decades later.
That risk sometimes only grows if one person’s wealth increases, whether through inheritance, business growth, or new investments.
For families managing large estates, trusts, or cross-border interests, this lack of finality can cause problems, not just for you but for your children, advisers, or future partners.
What the process looks like
Fortunately, it is not as complicated as it might sound if matters can be agreed between divorcing parties :
Step one – Agree the terms
This can be done through conversation, mediation, or with help from your legal team.
We often liaise with wealth managers, accountants, and trustees at this stage to make sure the full picture is clear.
Step two – Put it in writing
We will prepare the financial order in the correct format and make sure both sides are happy with the wording before it is sent to court. We will also help with the Statement of Information Form (D81) which needs to accompany what is sent to the court.
Step three – Court approval
Once the fee is paid, a judge will review the order and, assuming it is fair and properly structured, approve it.
From that point on, it is legally binding.
Timing matters
Ideally, the financial order is dealt with during the divorce.
Leaving it until later leaves you exposed, especially if your financial circumstances change.
Once assets start moving, it becomes harder to untangle who’s entitled to what.
The risk of doing nothing
In several cases, individuals have faced claims on post-divorce wealth because no financial order was made at the time of the divorce.
In some instances, these have involved multi-million-pound settlements years after the parties thought everything had been resolved.
For those with family businesses, estate plans, or wealth tied up in complex structures, the consequences can be far-reaching.
No one wants a surprise court claim arriving just as you are preparing to pass on assets to the next generation.
We work closely with all clients, including those with high net worth, to help manage the financial aspects of divorce with discretion and clarity.
If you are already in the process of divorce or separation or are just starting, we can help you protect what matters and move on with confidence.
For further advice and support with managing your finances during a divorce or separation, please contact Alison Green, Head of our Family & Relationship Team on alison.green@mackrell.com or 0207 240 0521.
Alison Green