When a marriage ends, the financial consequences do not resolve themselves automatically. Many people, facing emotional upheaval and the sheer complexity of what lies ahead, choose to do nothing for a period. Some hope the situation will resolve informally. Others feel overwhelmed and put it off. Understanding what inaction can mean in practical terms is important before making that choice.
A common misconception is that once a divorce is finalised, financial matters are automatically resolved. This is not the case. In England and Wales, the legal divorce and the financial settlement are separate processes. A final divorce order does not settle financial claims between the parties.
Without a financial order made by the court, either party retains the right to make financial claims against the other indefinitely. That means that even years after the divorce, a claim could potentially be brought against assets you have built up since the marriage ended, including savings, inheritance, or new property.
While there is no strict time limit on financial claims following divorce in England and Wales, delay can affect your position in real terms. Assets change in value over time. One party may remarry, which extinguishes their right to make certain claims. Financial positions shift. Memories fade and records become harder to locate.
In some circumstances, delay can also be taken into account by the court when assessing what a fair outcome looks like. If you have allowed years to pass without addressing financial matters, the court will consider the position at the time of the hearing rather than at the point of separation.
Our family law barristers can advise on the implications of delay in your specific situation.
If you do nothing, you leave control of the timetable to your former spouse. They may decide to make a financial claim when it suits them, at a point in time that is not advantageous to you. They may do so when asset values are favourable to their position, or when you are in a more vulnerable financial position than you are now.
Taking early advice puts you in a position to understand your options and make decisions on your own terms, rather than responding to someone else's.
Some former couples manage their finances informally for years. They divide property, divide savings, and agree on arrangements for children without any formal order. This can work well in practice, but it carries significant legal risk.
Informal arrangements have no legal weight. If circumstances change, or if the relationship between the parties deteriorates, there is no enforceable agreement in place. A consent order, approved by the court, is the only way to make a financial settlement legally binding and to bring both parties' financial claims against each other to an end.
Addressing financial matters sooner rather than later gives you more control. You understand the full picture, you can make decisions from a position of knowledge, and you reduce the risk of future claims or disputes. Many cases are resolved without the need for a contested hearing, particularly where both parties receive early legal advice and understand the likely parameters of a settlement.
If taking formal proceedings feels overwhelming, a starting point can be a single advice session with a barrister, which gives you an honest picture of your position and the options available to you without committing to anything further.
You can read more about how the early advice process works in our guide to using a direct access barrister for divorce.
Taking early advice can make a real difference to how your situation develops. Reach out to us today to arrange a quote for advice with one of our barristers.