Should Finances Be Resolved Before the Final Dissolution Order?

The final order legally ends a civil partnership. However, it does not automatically divide property, resolve pension claims or bring other financial claims to an end.

For this reason, financial arrangements should usually be considered before an application is made for the final order.

Dissolution and financial settlement are separate

The dissolution process determines the legal status of the relationship.

The financial process determines how property, pensions, savings, income, maintenance and other financial matters should be dealt with.

Although the two processes are connected, completing the dissolution does not mean that a financial settlement has also been reached.

Why can the timing matter?

Applying for the final order before financial arrangements have been resolved may have practical financial consequences.

For example, ending the civil partnership may affect rights connected with pensions, inheritance or benefits arising from the civil partnership. The precise implications will depend on the individual circumstances.

Obtaining advice before applying for the final order can help identify whether financial protection or an approved court order should be put in place first.

Recording the settlement properly

Where an agreement has been reached, it will usually need to be recorded in a court-approved financial order to become legally binding.

The order may deal with:

• The transfer or sale of property

• Lump-sum payments

• Pension sharing

• Maintenance

• The division of savings and investments

• The dismissal of future financial claims

A properly drafted order can provide certainty about what each person will receive and what continuing obligations, if any, will remain.

The final order should not be viewed as the conclusion of every issue arising from the relationship unless the financial position has also been addressed.

Resolving finances in the correct order can reduce uncertainty and help both civil partners move forward with a clear understanding of their position.

Are you approaching the final stage of a civil partnership dissolution without a financial order in place? Elizabeth Stocker can review your circumstances, advise on the available options and help you work towards a fair and lasting financial settlement. Get in touch for a confidential discussion.