Divorce Financial Settlement: How It Works in England and Wales

A divorce financial settlement is how you and your spouse divide money, property and pensions when the marriage ends. In England and Wales, the divorce itself settles none of this. You agree terms, or a judge decides them, and the court records them in a financial order. That order is what makes the split binding.

This guide covers England and Wales only. Scotland and Northern Ireland have their own law, courts and legal aid rules.

The divorce does not settle the money

The final order ends the marriage. It does not end your financial claims against each other. Those stay open until a court order deals with them.

That matters more than most people expect:

• An agreement on paper is not enough. If it is not made into a court order, a court cannot enforce it if things go wrong later.
• There is no time limit. The Supreme Court allowed one wife's claim to go ahead 19 years after the divorce. If either of you later inherits or does well, an open claim can come back.
• Remarrying closes the door for you. If you remarry or form a civil partnership before you apply, you lose the right to apply for most financial orders in your own favour.

Two routes to a financial order

Either you agree and a judge approves it, or you cannot agree and a judge decides. Agreeing is usually quicker and cheaper.

If you agree: a consent order

A consent order is a legal document that sets out what you have agreed about pensions, property, savings, investments and, if you choose, maintenance.

To ask the court to approve it:

1. Draft the consent order. Both of you sign it.
2. Both of you fill in a statement of information (Form D81), which tells the judge about your finances so they can check the deal is fair.
3. One of you fills in a notice of application for a financial order (Form A).
4. Send everything to the court with the £62 fee.

There is usually no hearing. A judge reads the papers and approves the order if they think it is fair. If not, they can ask you to change it. You do not need to attend a mediation meeting before applying for a consent order.

How couples reach agreement

• Talking directly, then asking a solicitor to check the terms and draft the order.
• Negotiation through solicitors, each of you with your own.
• Mediation. A mediator helps you both agree, without taking sides. The first meeting, a MIAM (mediation information and assessment meeting), usually costs about £120. What you agree in mediation is not legally binding until it is turned into a consent order.
• Other out-of-court options. A solicitor can explain alternatives such as family arbitration and collaborative law.

Whatever the route, both of you must give full and frank disclosure of income, assets, debts and pensions. Hiding something is treated very seriously, and a settlement can be reopened if it comes out later.

The mediation voucher. The government's Family Mediation Voucher Scheme pays up to £500 towards mediation, but only where there is also a dispute about a child. Disputes only about money do not qualify, and the vouchers are limited in number.

If you cannot agree: asking the court to decide

First, a mediation meeting. Before you can apply, you must usually attend a MIAM. Only a mediator accredited by the Family Mediation Council can sign the court form to confirm you went. There are exemptions, including:

• evidence of domestic abuse
• genuine urgency — for example a risk to your safety, or significant financial hardship if you had to wait
• having been through mediation or another out-of-court process on the same dispute in the last four months
• no accredited mediator available locally (the rules set a 15-mile, 15-business-day test)
• bankruptcy

Then the court stages:

1. Apply on Form A to your local financial remedy court. The fee is £321.
2. Exchange Form E. Each of you completes a financial statement of your property, debts and future living costs, with documents such as pay slips and pension statements.
3. First appointment. A short hearing with a judge to discuss your application. It is usually 12 to 14 weeks after you apply.
4. Financial dispute resolution (FDR) appointment. A hearing designed to help you agree without needing a final hearing. You may need more than one.
5. Final hearing. If you still cannot agree, a judge decides and makes the order.

There can be several months between each stage. How long it takes overall depends on how many FDR appointments you need and whether you reach a final hearing.

What the court considers

The law is section 25 of the Matrimonial Causes Act 1973. The judge must look at all the circumstances, with first consideration to the welfare of any child of the family under 18. They must also look at:

• income, earning capacity, property and other resources, now and in the foreseeable future
• financial needs, obligations and responsibilities
• the standard of living before the marriage broke down
• each person's age, and how long the marriage lasted
• any physical or mental disability
• contributions, including looking after the home and family
• conduct, only where it would be unfair to ignore it
• benefits lost because of the divorce, such as pension rights

In practice, two ideas run through most decisions.

Needs come first. Most cases are decided on needs, because there is rarely enough to keep two households at the old standard. The priority is housing: a suitable home for the children with their main carer, then, as far as possible, a home for the other parent.

Sharing, where there is enough. Earning money and raising children count equally. Where the assets cover both people's needs — often after a long marriage — an equal split may be the fair outcome. But it is not automatic. Where one person has greater needs, for example because the children live mainly with them, they may receive more than half.

Why you divorced does not matter. The reason for the divorce is not taken into account. Only very serious conduct counts. Financial misconduct, such as gambling away savings or reckless spending, can be — the court may treat the money as if it were still there.

Types of financial order

A settlement usually combines several of these.

Lump sum order

One person pays the other a fixed sum. It can be paid at once or in instalments.

Property adjustment order

The court can transfer property from one person to the other — for example, the family home moving into one name. It can also order a property to be sold and say how the money is divided.

Pension orders

Pensions are often the most valuable asset after the home, and sometimes worth more. There are three ways to deal with them:

• Pension sharing. A percentage of one person's pension — anything up to 100% — moves into a new pension in the other person's name. This is far more common than attachment.
• Pension attachment. A percentage of one person's pension income is paid to the other once it comes into payment. Payments stop if the pension holder dies or the receiving spouse remarries, which is why it is less common.
• Offsetting. One person keeps their pension and the other keeps more of the other assets. It is hard to compare a future pension with cash today, so this needs care.

Pension schemes will only share or attach a pension if a court order tells them to. Putting a pension sharing order into effect can take several months.

Spousal maintenance (periodical payments)

The person with the higher income pays regular amounts towards the other's living costs. It can be for a fixed period or until one of you dies, or the person receiving it remarries or forms a new civil partnership. It can be changed if circumstances change.

Child maintenance is usually arranged through the Child Maintenance Service, though the court can also deal with it.

Clean break order

A clean break ends your financial claims against each other, so neither of you can come back for more. The court must consider one, and it should be the aim where it is possible. But where there are children, or after a long marriage, it may not be fair or possible unless there is enough to go round and both of you can support yourselves.

Timing: conditional order, final order and the money

The divorce runs on a fixed timetable. You wait 20 weeks from the court issuing the divorce application before you can apply for the conditional order. You then wait at least 43 days (six weeks and a day) before applying for the final order.

The financial order fits around that:

• A judge cannot approve a consent order before the conditional order.
• The financial order only takes effect after the final order.
• GOV.UK's advice is to apply for your financial order before you apply for the final order. Applying afterwards may have financial consequences, particularly for pensions.

The reason is that the final order ends your status as a spouse, and that affects your legal rights — for example rights in your spouse's pension, or in the family home if it is in your spouse's name. Where pension rights are at stake, the court may delay the final order until the money is sorted.

The practical rule: use the waiting time to agree the finances, and do not apply for the final order until your financial order is approved, or until you have taken advice.

What it costs in court fees

Court fees in England and Wales, as at October 2026:

• Divorce application: £628
• Consent order: £62
• Financial order decided by the court (Form A): £321

If you are on benefits or a low income, you may be able to get help with court fees. Legal fees depend on the work involved; a contested case with several hearings costs much more than a consent order.

Can you get legal aid for a divorce financial settlement?

Usually not. Legal aid in England and Wales generally does not cover sorting out the money on divorce. The main exception is domestic abuse.

If you have been in an abusive relationship, you may be able to get legal aid for advice on finances, children or divorce. You need evidence that you or your children have experienced domestic abuse — for example from the police, the courts, social services, a health professional or a domestic abuse support service.

It is still means-tested. You will usually need to show your income and savings are below set limits. Where the case is about domestic abuse, you may still qualify with a higher income or more savings. Legal aid may not cover everything: you might pay some costs upfront, or pay some back if you win money or property from the case — worth knowing in a financial settlement.

Mediation. Legal aid can also cover family mediation if you qualify financially.

You cannot apply for legal aid yourself; a legal adviser applies for you. To check, use GOV.UK's "Check if you can get legal aid" service, or call Civil Legal Advice on 0345 345 4345. Our simple guide to legal aid in family matters explains more.

Questions people ask

Is a divorce financial settlement always 50/50?

No. The court looks at needs first, and children's welfare comes before everything. Equal sharing may be fair where there is enough to meet both people's needs, often after a long marriage. Where one person has greater needs — for example because the children live with them — they may receive more than half.

How long does a divorce financial settlement take?

The divorce itself takes at least about six months, and an agreed consent order can be approved within that time, once the conditional order is made. If you go to court, the first appointment is usually 12 to 14 weeks after applying, and there can be several months between later stages. Agreeing is usually quicker.

Can my ex make a financial claim years after the divorce?

Yes, unless a court order has ended their claims or they have remarried before applying. There is no time limit. The Supreme Court allowed one claim to proceed 19 years after the divorce. A clean break consent order is how you close that door, even if there is little to divide now.

Do we need a financial order if we have nothing to split?

It is worth considering. Without a court order, financial claims stay open indefinitely, whatever you agreed between yourselves. A simple clean break consent order closes them, so neither of you can make a claim if circumstances change — an inheritance, a new business or a lottery win.

How we can help

Our family law solicitors handle financial settlements from first advice to a binding order — negotiating where we can, and in court where we have to. You get a named solicitor from start to finish, and costs agreed with you stage by stage.

Sources

Money and property when you divorce or separate (consent orders, mediation, court, maintenance): gov.uk/money-property-when-relationship-ends

Family court fees (EX50, updated 13 July 2026): gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50/family-court-fees-ex50

Divorce timetable: gov.uk/divorce

Legal aid, domestic abuse and financial eligibility: gov.uk/legal-aid

Matrimonial Causes Act 1973, sections 23–25A and 28: legislation.gov.uk/ukpga/1973/18

MIAM requirement and exemptions: Family Procedure Rules, part 3 and practice direction 3A, justice.gov.uk

Family Mediation Council — assessment meetings (MIAMs) and the mediation voucher scheme

Family Justice Council, Sorting out Finances on Divorce (March 2024): judiciary.uk

Wyatt v Vince [2015] UKSC 14: caselaw.nationalarchives.gov.uk/uksc/2015/14

This is general information about the law in England and Wales, not advice on your situation. Your own position depends on facts we would need to see.