What is a Financial Order?
A financial order is a legally binding decision made by a court about how money, property, pensions, and other assets should be divided between partners when a marriage or civil partnership ends. These orders are designed to ensure a fair financial settlement following a divorce or separation, helping both parties move forward with clarity about their financial responsibilities and entitlements.
The main purpose of a financial order is to set out clear arrangements for dividing finances, such as the family home, savings, investments, debts, and ongoing financial support like maintenance payments. If you and your ex-partner cannot agree on how to split your assets, you can ask the court to make a financial order. This process is governed by the Matrimonial Causes Act 1973, which sets out the legal framework for financial settlements in divorce cases.
There are several different types of financial orders that the court can make, depending on your circumstances. These include:
Lump sum orders: One partner must pay a fixed amount of money to the other.
Property adjustment orders: Decides what happens to property, such as transferring ownership or selling the family home.
Maintenance orders: Arrangements for ongoing financial support, either for a spouse or children.
Pension sharing or attachment orders: Deals with how pension assets are divided.
Understanding exactly what your financial order says is essential before seeking any changes. Each order can have different terms and conditions, and not all financial orders can be changed once they are made. Reviewing your order carefully will help you determine whether it can be varied and what steps you need to take. If you are unsure about the details, it may be helpful to seek legal advice or guidance.
Knowing the type and terms of your financial order is the first step in deciding whether you can apply to change it, and what evidence you may need to support your application. For more information about the court process and your options, visit Money and property when you divorce or separate: Get the court to decide – GOV.UK. If you wish to read the legal framework in detail, refer to the Matrimonial Causes Act 1973.
When Can You Change a Financial Order?
Changing a financial order made during divorce or separation is not always straightforward. The courts in the UK expect financial orders to provide finality and certainty for both parties. However, there are certain situations where you may be able to apply to have an order changed, known as a “variation” of the order.
What Circumstances Justify Changing a Financial Order?
Generally, you can only change a financial order if there has been a significant change in circumstances since the order was made. Minor or predictable changes – such as routine fluctuations in income – are unlikely to be enough. The courts will look for substantial developments, for example:
Loss of employment or a dramatic drop in income that could not have been foreseen at the time of the order.
Serious illness or disability affecting your ability to work or care for children.
Discovery of new, relevant information that was not disclosed during the original proceedings.
Unexpected windfalls or financial losses, such as winning the lottery or suffering a business failure.
For a detailed exploration of what the courts consider a significant change, see Significant change in circumstances.
Legal Grounds for Applying to Vary a Financial Order
Not all financial orders can be changed. The type of order you have matters. Orders for ongoing payments, such as spousal maintenance or child maintenance, are most commonly varied. Lump sum orders or property adjustment orders are generally final and can only be changed in very limited circumstances.
The main legal basis for varying a financial order is set out under the Matrimonial Causes Act 1973. The court will consider whether the change you are applying for is justified and fair in light of the new circumstances. For an example of how the courts approach these applications, see Variation of Financial Orders under the Matrimonial Causes Act 1973.
Importance of Timing and Time Limits
Timing is crucial when applying to change a financial order. There are strict time limits on financial settlements, and missing these deadlines can make it much harder – or even impossible – to have an order varied. If you believe your circumstances have changed significantly, it’s important to seek advice and act quickly.
What Is Not Enough to Justify a Change?
It’s important to understand that the courts will not vary an order for minor or expected changes. For example, routine pay rises, normal increases in living costs, or disagreements about the original outcome are not usually sufficient grounds. The change must be significant, unforeseen, and have a real impact on your ability to comply with the order or on your financial needs.
Practical Steps and Further Advice
If you think you have grounds to change a financial order, you may need to apply to the Family Court. The process can be complex, so it’s a good idea to seek legal advice or consult reliable guides such as Family Court for practical information on how to proceed.
Understanding when you can change a financial order is essential to protecting your financial interests after divorce or separation. If you are unsure whether your situation qualifies, exploring these resources and seeking professional advice can help you make informed decisions.
How to Apply to Change a Financial Order
Changing a financial order after divorce or separation is a formal legal process, and it’s important to follow the correct steps to ensure your application is considered by the court. Below, you’ll find a step-by-step guide to applying for a variation, details on the forms and documents you’ll need, the role of financial disclosure, and what you can expect during the court process.
Step-by-Step Guide to Applying for a Variation
Assess Your Reasons for Change
Before applying, consider whether your circumstances justify a change in the order. Common reasons include a significant change in income, loss of employment, remarrying, or new financial responsibilities. Not all financial orders can be changed – some, like lump sum payments, are usually final. For more background on the types of orders and when they can be changed, see the Financial Order guidance.Check the Relevant Rules
Applications to vary financial orders are governed by the Family Procedure Rules 2010. These rules set out the procedures you must follow, including which forms to use and what information to provide.Prepare Your Application
To apply for a variation, you’ll usually need to complete a specific court form (such as Form D50 for variation of an order for periodical payments). The exact form depends on the type of order you wish to change. You’ll also need to set out clearly why you believe the order should be varied, providing evidence of your change in circumstances.Gather Supporting Documentation
The court will require up-to-date information about your finances. This includes recent payslips, bank statements, details of assets and debts, and any other relevant financial documents. Providing accurate and complete financial disclosure is essential, as the court relies on this information to ensure any changes are fair to both parties.Submit Your Application to the Court
Once your forms and documents are ready, submit them to the family court. There may be a fee for making the application, although exemptions may apply in certain circumstances.Serve the Application
You must ensure the other party receives a copy of your application and supporting documents. This allows them to respond and provide their own financial information.
The Role of Financial Disclosure
Providing full and honest financial disclosure is a crucial part of the process. Both you and your ex-partner will need to share detailed information about your financial circumstances. This transparency helps the court make a fair decision and prevents delays or disputes. Failure to disclose all relevant information can result in penalties or your application being refused.
What to Expect During the Court Process
After your application is submitted, the court will usually schedule a hearing. Both parties will have the opportunity to present their case and provide evidence. The judge will consider all the information, including your reasons for requesting a change, the financial disclosure from both sides, and the needs of any children involved.
The court has wide powers to vary, suspend, or discharge financial orders, but will only do so if there is a good reason. For more on the court’s powers in these cases, you may wish to read about the Crown Court and its approach to setting aside financial orders.
Possible Outcomes
After considering your application, the court may:
Agree to vary the order as you’ve requested.
Make a different variation, based on what the judge thinks is fair.
Refuse to change the order if they do not believe your circumstances justify it.
If the order is changed, both parties must comply with the new terms. If you have concerns about enforcing the new or existing order, you can learn more about enforcement options in the Family Procedure Rules 2010.
Next Steps and Related Topics
Understanding how to change a financial order is just one part of the wider process of financial settlements after separation. For more guidance on dividing assets, the types of orders available, and what to do if you can’t reach an agreement, see the official Financial Order information.
If you’re unsure about any step of the process, it’s a good idea to seek legal advice or consult the court’s guidance to ensure your application is as strong as possible.
Common Reasons for Changing Financial Orders
Changing a financial order after a divorce or separation is only possible in certain circumstances. Courts in the UK expect financial orders to provide certainty, but they also recognise that life can change unexpectedly. Below are some of the most common reasons people seek to vary a financial order, along with practical advice on what these changes could mean for you.
Loss of Employment or Significant Change in Income
If you or your former partner lose your job or experience a significant reduction in income, it can become difficult to meet the terms of a financial order, such as regular maintenance payments. The courts may consider these changes a valid reason to apply for a variation, especially if the change is beyond your control and likely to last for some time. However, temporary fluctuations in income are less likely to justify a change.
Illness or Disability
A serious illness or disability can affect your ability to work or increase your living costs. If either party is affected in this way, the court may agree to adjust the financial order to reflect the new circumstances. This could involve reducing payments, changing the way assets are divided, or making other adjustments to ensure fairness.
Discovery of Hidden Assets or Misrepresentation
Sometimes, one party may discover that the other failed to disclose all their assets or income during the original proceedings. If this happens, you can ask the court to revisit the order. The legal basis for such an application is set out in case law, such as the court’s powers to set aside a financial order discussed in Variation of Financial Orders. This process can be complex, so it’s important to seek legal advice if you believe assets were hidden or misrepresented.
Changes in Property Value or Debt
Financial orders often involve the transfer or sale of property, or the division of debts and other financial responsibilities. If the value of a property changes dramatically, or if new debts come to light, this can affect the fairness of the original order. For example, if a property’s value drops significantly before it is sold, or if one party is left with unexpected debts, the court may be willing to reconsider the order. If you’re facing new financial pressures, our guide to managing debt offers practical advice on your options.
Changes in Benefits or Universal Credit
A change in your benefits, including starting or stopping Universal Credit, can have a direct impact on your financial situation and ability to comply with a financial order. For example, if you begin receiving Universal Credit because of a change in circumstances, you may need to inform the court and your former partner. It’s also important to report any changes to your Universal Credit claim, as required by Universal Credit: Report a change of circumstances – GOV.UK. Failing to do so can affect your entitlement and may have legal consequences.
Understanding when and how a financial order can be changed is crucial for protecting your financial wellbeing. If your circumstances have changed since your order was made, it’s important to act promptly and seek advice, as there may be time limits and specific procedures to follow. For more detailed legal guidance on varying financial orders, see Variation of Financial Orders.
Property Considerations When Changing Financial Orders
When considering whether to change a financial order after divorce or separation, property is often at the heart of the matter. Property – such as the family home, investment properties, or other real estate – can significantly affect the fairness and practicality of an existing financial order. Understanding how property ownership and value play into these decisions is essential for anyone seeking to vary a financial order.
How Property Changes Can Affect Financial Orders
A financial order sets out how assets, including property, are divided between former spouses or civil partners. If there is a significant change in the value of a property – perhaps due to a sharp rise or fall in the housing market – or if ownership changes (for example, if one party sells, transfers, or re-mortgages a property), this may impact the original intentions of the order.
For instance, if the family home was to be sold and the proceeds split equally, but the property has since increased dramatically in value or cannot be sold as planned, the financial order might no longer reflect a fair division. In such cases, it may be possible to apply to the court to vary the order. However, courts will only consider changes in circumstances that are significant and unforeseen at the time the original order was made.
The Importance of Understanding Property Division
Property division is a central issue in most divorces. The law aims to achieve fairness, taking into account factors such as the needs of any children, each party’s financial resources, and contributions to the marriage. To better understand how property is typically dealt with during divorce, you may wish to read more about property considerations during divorce.
The legal framework for dividing property and other assets is set out in the Matrimonial Causes Act 1973. This legislation guides the courts in making and varying financial orders, including those relating to property.
Selling, Transferring, or Re-mortgaging Property
If you or your former partner are planning to sell, transfer, or re-mortgage a property that was included in a financial order, it’s important to consider whether the order needs to be updated. For example:
Selling the property: If the order required the property to be retained until a certain event (such as children reaching adulthood), selling it earlier may require the court’s approval or a formal variation of the order.
Transferring ownership: If the property is being transferred to one party but circumstances have changed (such as a change in mortgage availability), the financial order may need to be reviewed.
Re-mortgaging: Taking on new debt against a property can affect both parties’ financial security and may not be permitted under the existing order.
Failing to update the financial order in line with changes to property can lead to disputes or difficulties with enforcement.
Practical Steps and Legal Guidance
If your circumstances have changed and you believe your financial order no longer reflects a fair division of property, it’s advisable to seek legal advice before taking any action. The process for varying an order can be complex, and the court will only agree to changes in specific situations.
For a clearer understanding of the difference between a financial order and a financial remedy, see Financial Remedy.
Remember, any changes to property arrangements should be formally recorded and approved by the court to ensure they are legally binding and enforceable. Always refer to the Matrimonial Causes Act 1973 for the authoritative legal framework governing financial orders and property division.
Enforcing and Complying with Changed Financial Orders
When a financial order is changed – also known as being “varied” – both parties are legally required to comply with the new terms set out by the court. This means that whether the order relates to maintenance payments, lump sums, or the division of assets, you and your ex-partner must follow the updated instructions from the date specified by the court.
What Happens After a Financial Order is Varied?
Once the court approves a variation, the new order becomes legally binding. You should carefully review the details of the revised order to ensure you understand your obligations or entitlements. If you have any questions, it’s wise to seek legal advice to avoid accidental non-compliance.
If you are required to pay money or transfer assets, you must do so according to the new timetable. If you are entitled to receive payments or property, you can expect these to be provided as outlined in the varied order.
What If Your Ex-Partner Does Not Comply?
Unfortunately, sometimes one party may refuse or fail to comply with the terms of the changed order. If this happens, you do not have to accept the situation. The law provides several options to help you enforce the order and secure what you are owed.
You can learn more about your options in our dedicated guide to enforcement of financial settlements, which explains the practical steps you can take if your ex-partner does not follow the new court order.
Legal Remedies and Enforcement Procedures
If your ex-partner does not comply with the varied financial order, you can apply to the court to enforce it. The court has a range of powers to ensure compliance, including:
Attachment of earnings orders (where money is taken directly from your ex-partner’s wages)
Charging orders (placing a charge on property or assets)
Third party debt orders (freezing or redirecting money from bank accounts)
Orders for sale (forcing the sale of property if needed to satisfy the order)
The process for enforcement can be complex, and the court will consider the specific circumstances of your case. For a practical overview of how to proceed, see this guide on Enforcement of Financial Orders.
In some situations, if your ex-partner continues to ignore the order, the court may impose penalties such as fines or, in rare cases, imprisonment.
The Legal Framework
The power to vary and enforce financial orders comes from the Family Law Act 1996, Section 31, which explains the court’s authority to change orders and the consequences of non-compliance.
If you are unsure about the legal process or your rights, it may be helpful to understand how the Crown Court can intervene in cases where a financial order needs to be set aside or enforced.
Practical Steps
Keep records: Always keep copies of the varied order, payment receipts, and any communication with your ex-partner.
Act promptly: If payments or obligations are missed, do not delay in seeking advice or applying to enforce the order.
Seek advice: Professional legal support can help you understand the best enforcement route for your situation.
If you need more information on how to proceed or want to explore related topics, visit our section on enforcement of financial settlements.
Updating Related Legal Matters After Changing Financial Orders
When you change a financial order after divorce or separation, it’s important to consider how this may affect other legal matters in your life. Financial orders set out how assets, property, and income are divided, so any updates can have a direct impact on your broader legal and financial arrangements.
Why You Should Update Your Will
One of the most crucial steps after changing a financial order is updating your will. If your circumstances have changed – such as receiving or transferring property, altering maintenance payments, or redistributing savings – your current will may no longer reflect your true wishes. For example, if your ex-partner was previously a beneficiary, you may want to change this, or you might need to update who inherits specific assets that have now been divided differently.
Failing to update your will could mean that your estate is distributed in a way you no longer intend. This is particularly important if you have children, new relationships, or new financial responsibilities. For more on the implications of divorce or separation on your will, GOV.UK provides helpful guidance.
Other Legal Documents and Plans to Review
Changes to financial orders can also affect other legal documents and arrangements, such as:
Lasting Powers of Attorney: If your ex-partner was previously named as your attorney, you may wish to reconsider this.
Pension nominations: You might need to update who receives your pension benefits on death.
Life insurance policies: Check if beneficiaries or policy terms need to be changed.
Trusts or property deeds: Ownership changes may require legal paperwork to be updated.
Reviewing these documents ensures your wishes are clear and legally recognised, avoiding confusion or disputes in the future.
Get Professional Legal Advice
Because every situation is unique, it’s wise to seek legal advice after changing a financial order. A solicitor can help you identify which documents need updating and guide you through the process, ensuring that all your legal affairs are in order and reflect your new circumstances.
Taking these steps not only protects your interests but also provides peace of mind for you and your loved ones. For more information on related topics, see our section on updating your will.
Understanding Your Separation and Its Impact on Financial Orders
When going through a separation, understanding the specific nature of your separation is crucial, especially when it comes to financial arrangements and any existing financial orders. In the UK, the way you separate – whether it’s through divorce, dissolution of a civil partnership, or simply living apart – can have a significant impact on your financial responsibilities and the court’s approach to your case.
Types of Separation and Their Impact
There are different types of separation, including informal separation, judicial separation, and legal divorce or dissolution. Each type comes with its own legal implications:
Informal separation means you and your partner have chosen to live apart without any formal legal process. While you can make informal agreements about finances, these are not legally binding unless made into a court order.
Judicial separation is a formal process where the court recognises your separation but you remain legally married or in a civil partnership. This allows the court to make financial orders similar to those made on divorce or dissolution.
Divorce or dissolution legally ends the marriage or civil partnership and gives the court the broadest powers to make binding financial orders.
Knowing your separation type is important because it determines what kind of financial orders you can apply for, and whether you can ask the court to change (vary) an existing order. For example, some orders – like those relating to spousal maintenance – may be varied after a divorce, but not all financial orders can be changed once they are final.
Why Your Separation Status Matters
Before seeking to change a financial order, you need to be clear about your separation status. The court will consider this when deciding whether it has the authority to vary an order and what factors it should weigh. For example, the rules around changing financial orders are different if you are still married but separated, compared to being divorced or having dissolved your civil partnership.
Your separation status also affects your legal rights and responsibilities. Under the Family Law Act 1996, certain protections and remedies are only available if you meet specific criteria, such as being married or in a civil partnership. This legislation forms the backbone of family law in England and Wales, outlining how the courts can intervene in financial matters following separation.
How Separation Influences Court Decisions
When you apply to change a financial order, the court will look at your current circumstances, including the type of separation, how long you have been separated, and whether there have been any significant changes in your financial situation. For example, if you have an ongoing spousal maintenance order and your income or needs have changed, the court may consider varying the order. However, if your order was made as a “clean break” after a divorce, the court may not allow changes except in very limited circumstances.
If you and your ex-partner cannot agree on how to divide your finances, or if you want to apply to vary an existing order, you can ask the court to decide. For more details on how the courts handle these decisions and what to expect, visit the official guidance on Financial Orders.
Understanding the type of separation you are experiencing is the first step in navigating changes to financial orders. If you are unsure about your status or what it means for your financial arrangements, it may help to read more about the types of separation and seek legal advice tailored to your circumstances.
