Is a financial settlement agreement legally binding?

In the UK, a private agreement is not legally binding. It must be submitted to the court and approved as a consent order to become enforceable. The UK family court will check that the agreement is fair before approving it.

Do I need to go to court for a financial settlement?

If both parties agree, you do not need a court hearing. The consent order can be approved by a judge on paper. If you cannot agree, you may need to apply for a financial remedy order and attend a court hearing.

What is a clean break order?

A clean break order is a court order that ends all future financial claims between the spouses. Neither party can make further claims for capital or maintenance against the other. It provides certainty and finality.

How are pensions divided in a divorce?

Pensions can be divided through pension sharing (transferring a percentage), pension attachment (redirecting payments), or pension offsetting (balancing pension value against other assets). A pension sharing order requires a court order.

Can I change the settlement after it is approved?

It is very difficult to vary a UK consent order once approved by the court in England and Wales. The court may vary maintenance provisions if there is a significant change in circumstances, but capital orders are generally final under British family law.

What happens if my spouse hides assets?

If assets are discovered after the consent order, the affected party can apply to have the order set aside on the grounds of material non-disclosure under the court’s inherent jurisdiction, as established in Livesey v Jenkins [1985].

Do I need a solicitor for a financial settlement?

While our UK template provides a useful framework for recording your agreement, it is strongly recommended that both parties obtain independent British legal advice before finalising a financial settlement, particularly where significant assets or pensions are involved. Resolution, the UK family law association, provides a directory of family law solicitors in England and Wales who can advise on United Kingdom financial remedy proceedings.

How long does the financial settlement process take?

If both parties agree, a consent order can be approved within four to eight weeks of submission. Contested financial proceedings in England and Wales can take six to twelve months or longer depending on the complexity of the UK assets involved.

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Free Divorce Financial Settlement Template

A divorce financial settlement records the agreed division of assets, debts, maintenance and pensions between separating spouses. Use our free UK template to draft a clear financial agreement that can form the basis of a consent order.

Create Your Divorce Financial Settlement

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FINANCIAL SETTLEMENT AGREEMENT

Divorce — No-fault · England And Wales

APPLICANT

Catherine Louise Davies

18 Victoria Road, London SW1A 1AA
DOB: 8 May 1976

By: Solicitor: Smith and Partners LLP, 10 Fleet Street, London EC4A 2AB

RESPONDENT

Andrew Michael Davies

5 King's Parade, Cambridge CB2 1SJ
DOB: 17 October 1974

By: Solicitor: Jones and Co., 22 High Street, Cambridge CB2 3QF

Agreement Date: 20 March 2026 · Married: 14 June 2010

Case No: FD26P00123 · Central Family Court

This Financial Settlement Agreement is entered into on 20 March 2026 between Catherine Louise Davies of 18 Victoria Road, London SW1A 1AA ("the Applicant") and Andrew Michael Davies of 5 King's Parade, Cambridge CB2 1SJ ("the Respondent") in connection with the financial consequences of their marriage, which was entered into on 14 June 2010 and from which they separated on 1 September 2024. This Agreement is made pursuant to and in contemplation of the Matrimonial Causes Act 1973 and the Divorce, Dissolution and Separation Act 2020 (no-fault regime), and is intended to be submitted to the Family Court for sealing as a consent order under section 33A of the Matrimonial Causes Act 1973 and rule 9.26 of the Family Procedure Rules 2010. The children of the family are: Sophie Davies (age 14), Oliver Davies (age 11).

MATRIMONIAL HOME AND MAIN ASSETS

Property: 42 Maple Drive, Surbiton KT6 4QR
Agreed value: £450,000
Outstanding mortgage: £180,000

The matrimonial home at 42 Maple Drive, Surbiton KT6 4QR shall be placed on the open market and sold as soon as reasonably practicable. The net proceeds of sale (after redemption of the mortgage and deduction of estate-agency fees, conveyancing costs and other reasonable disposal costs) shall be divided as follows: 60% to the Applicant and the remainder to the Respondent. Until sale, outgoings (mortgage, insurance, council tax) shall be paid by the party in occupation.

Joint savings, current accounts and investments of approximately £35,000 shall be divided equally (50/50) between the parties.

Chattels: The parties confirm that the division of chattels (furniture, vehicles and personal effects) has been agreed and implemented and neither has any further claim against the other in respect of household contents.

CHILDREN AND CHILD MAINTENANCE

The parties are the parents of the children of the family named in the introduction. Arrangements for the children will be made in accordance with the welfare principle in section 1 of the Children Act 1989. Nothing in this Agreement shall fetter the jurisdiction of the Family Court to make an order under section 8 or Schedule 1 of the Children Act 1989.

Child maintenance shall be calculated and administered by the Child Maintenance Service (CMS) in accordance with the formula under the Child Maintenance and Other Payments Act 2008 and the Child Support (Maintenance Calculations and Special Cases) Regulations 2012. The jurisdiction of the CMS is not ousted by this Agreement.

PENSION

A pension sharing order shall be made under sections 24B-24D of the Matrimonial Causes Act 1973 and the Welfare Reform and Pensions Act 1999 in respect of the pension held with Teachers' Pension Scheme (CETV approximately £150,000), with 40% of the pension rights to be transferred to the Applicant. The parties shall co-operate in obtaining the CETV within the periods prescribed by the Pensions on Divorce etc. (Provision of Information) Regulations 2000 and the order shall take effect from decree absolute / final dissolution order.

CLEAN BREAK

Upon the terms of this Agreement being implemented in full, there shall be a full capital and income clean break between the parties pursuant to sections 23, 24, 24A, 24B and 25A of the Matrimonial Causes Act 1973. Each party dismisses and forever relinquishes all claims against the other in respect of periodical payments, secured provision, lump sum, property adjustment and pension sharing or attachment, save as expressly preserved by this Agreement.

INHERITANCE (PROVISION FOR FAMILY AND DEPENDANTS) ACT 1975

Pursuant to section 15 of the Inheritance (Provision for Family and Dependants) Act 1975, each party releases and forever discharges any claim they may have against the estate of the other under that Act. This release shall take effect on the making of the financial order on divorce.

LEGAL COSTS

Each party shall bear their own legal costs of this Agreement and of any proceedings to seal and implement it, in accordance with the general rule in rule 28.3 of the Family Procedure Rules 2010.

FULL AND FRANK FINANCIAL DISCLOSURE

Each party confirms that they have provided full and frank financial disclosure to the other, including Forms E (or equivalent schedules of assets, liabilities, income and pensions), in accordance with Livesey (formerly Jenkins) v Jenkins [1985] AC 424. Each acknowledges that an order obtained by material non-disclosure is liable to be set aside.

INDEPENDENT LEGAL ADVICE

Both parties confirm that they have received independent legal advice from separate solicitors on the nature, effect and consequences of this Agreement, and enter into it freely and with a full appreciation of its implications, satisfying the safeguards in Radmacher v Granatino [2010] UKSC 42 and Edgar v Edgar [1980] 1 WLR 1410.

DISPUTE RESOLUTION

Before issuing any application for financial remedy arising out of or in connection with this Agreement, each party shall attend a Mediation Information and Assessment Meeting (MIAM) with an accredited family mediator pursuant to section 10 of the Children and Families Act 2014 and Part 3 of the Family Procedure Rules 2010.

10.

CONSENT ORDER AND COURT APPROVAL

The parties intend to submit this Agreement to the Family Court as the basis of a financial consent order under section 33A of the Matrimonial Causes Act 1973 and rule 9.26 of the Family Procedure Rules 2010, supported by a Statement of Information in Form D81. The parties acknowledge that: (a) the court has an independent duty to consider the overall fairness of the order; (b) final orders for lump sum, property adjustment and pension sharing cannot take effect until decree absolute / final order is pronounced; and (c) the order may be varied or set aside for material non-disclosure, mistake, fraud or supervening events (Barder v Calderbank [1988] AC 20).

11.

GOVERNING LAW AND GENERAL PROVISIONS

Governing law: This Agreement shall be governed by and construed in accordance with the law of England and Wales and the parties submit to the exclusive jurisdiction of the courts of England and Wales.

Variation: No variation of this Agreement shall be effective unless in writing and signed by both parties, save for variation of a court order under section 31 of the Matrimonial Causes Act 1973.

Severability: If any provision is held unenforceable, the remaining provisions shall continue in full force.

Third-party rights: A person who is not a party has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term.

Entire agreement: This Agreement supersedes any prior discussion, heads of terms or draft order and constitutes the entire agreement between the parties on its subject matter.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.

APPLICANT

Catherine Louise Davies

Date: ____________________

RESPONDENT

Andrew Michael Davies

Date: ____________________

What Is a Divorce Financial Settlement?

A divorce financial settlement is an agreement between divorcing spouses setting out how their finances will be divided. It covers the family home, savings, investments, pensions, debts and ongoing maintenance obligations.

Under the Matrimonial Causes Act 1973, the court has wide discretion to make financial orders on divorce. The court considers factors including the needs of each party, the length of the marriage, the standard of living, each party’s financial resources and contributions, and the welfare of any children.

A financial settlement in the United Kingdom can be reached through negotiation, mediation or solicitor correspondence. To make it legally binding under English law, the agreement should be submitted to the UK family court as a consent order under Section 33A of the Matrimonial Causes Act 1973.

What's Covered in This Template

Our financial settlement template addresses all key financial matters arising from divorce.

Family Home

Arrangements for the matrimonial home including sale, transfer, or continued occupation by one spouse.

Other Property

Division of any additional properties including buy-to-let investments and holiday homes.

Savings and Investments

Distribution of bank accounts, ISAs, shares, bonds and other financial assets.

Pension Sharing

Pension sharing orders, pension attachment orders or pension offsetting arrangements.

Spousal Maintenance

Periodical payments from one spouse to the other, including amount, duration and review provisions.

Child Maintenance

Financial support for children, noting the role of the Child Maintenance Service for ongoing calculations.

Debts and Liabilities

Allocation of mortgages, loans, credit cards and other joint or individual debts.

Business Interests

Treatment of business assets, company shares and partnership interests owned by either spouse.

Personal Belongings

Division of vehicles, jewellery, art, furniture and other personal chattels.

Clean Break Clause

Provisions for a clean break dismissing all future financial claims between the parties.

How to Create a Divorce Financial Settlement

Follow these steps to produce a comprehensive financial settlement agreement.

1
Disclose All Financial Information
Both parties must provide full and frank financial disclosure using Form E or equivalent, covering income, assets, debts and pensions.
2
Agree on Asset Division
Negotiate and record how the family home, savings, investments and other assets will be divided between the parties.
3
Address Maintenance and Pensions
Set out any spousal maintenance arrangements and how pensions will be shared, attached or offset.
4
Allocate Debts
Specify which party will be responsible for each debt or liability, including mortgages, loans and credit cards.
5
Review and Submit to Court
Review the agreement, have it checked by a solicitor and submit it to the court as a consent order for approval and enforcement.

Legal Considerations

A financial settlement involves important legal principles that affect its validity and enforceability.

This template is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your situation.

Reviewed for England & Wales law

Full Financial Disclosure

Under UK law, both parties have a duty of full and frank disclosure of their financial circumstances. Failure to disclose material assets can result in the British court setting aside the consent order. Non-disclosure is treated very seriously by English family courts.

Consent Order Requirement

A private financial agreement between spouses is not enforceable as a UK court order. To obtain a legally binding settlement under English law, the agreement must be submitted to the court as a consent order under Section 33A of the Matrimonial Causes Act 1973. The court will approve it if satisfied it is fair.

Clean Break Principle

UK courts encourage a clean break where possible, meaning each party becomes financially independent. A clean break order dismisses all future claims for capital and income in the United Kingdom, but does not affect child maintenance obligations.

Pension Considerations

Pensions are often the second most valuable asset after the family home in British divorces. The UK court can make pension sharing orders under the Welfare Reform and Pensions Act 1999, which transfer a percentage of one party’s pension to the other. Pension attachment and offsetting are alternative options under English law.

Frequently Asked Questions

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