1. Pensions Are Often the Most Valuable Asset
Many people focus on the matrimonial home and overlook pensions entirely. Pensions built up during the marriage are matrimonial assets. A pension sharing order can transfer a proportion of one party's pension to the other. In long marriages where one party has a substantial defined benefit pension, this can be worth more than the equity in the family home.
2. You Need a Court Order Even If You Agree
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An informal agreement between divorcing parties is not legally binding. Without a consent order approved by the court, either party can make financial claims against the other indefinitely -- even years after the divorce. The cost of a consent order application is small compared to the risk of leaving financial claims open.
3. The Clean Break
A clean break is an order that permanently ends all financial claims between the parties. This is usually the best outcome where both parties have sufficient resources to be financially independent. Without a clean break clause in your consent order, financial claims remain technically open even if you have agreed a settlement.
4. Mesher Orders
A Mesher order delays the sale of the family home until a specified trigger event -- typically the youngest child reaching 18 or finishing full-time education. It allows the primary carer to remain in the home with the children while preserving the other party's share. Mesher orders are complex and have long-term implications that need careful consideration.
5. Spousal Maintenance Is Not Guaranteed to Last
If you receive spousal maintenance as part of your settlement, be aware that the paying party can apply to vary or terminate it if their circumstances change. Courts are increasingly minded to make time-limited maintenance orders that give the recipient a period to achieve financial independence rather than open-ended maintenance.