Free Divorce Financial Settlement Template

FINANCIAL SETTLEMENT AGREEMENT

Divorce — No-fault  ·  England And Wales

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).

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. The parties acknowledge the matrimonial / non-matrimonial property classification confirmed by White v White [2000] UKHL 54 and refined by Standish v Standish [2025] UKSC on matrimonialisation of pre-marital and unilateral assets. Until sale, outgoings (mortgage, insurance, council tax) shall be paid by the party in occupation.

Property classification: The division above reflects the matrimonial / non-matrimonial property classification principles in White v White [2000] UKHL 54, refined by Standish v Standish [2025] UKSC on the matrimonialisation of pre-marital and unilateral assets.

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.

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.

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.

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. The parties acknowledge that this Agreement is founded on the principles of sharing, needs and (where applicable) compensation in Miller v Miller; McFarlane v McFarlane [2006] UKHL 24, applied to the matrimonial / non-matrimonial property classification confirmed in Standish v Standish [2025] UKSC.

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.

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.

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: (a) an order obtained by material non-disclosure is liable to be set aside in proceedings under section 31F(6) of the Matrimonial and Family Proceedings Act 1984; and (b) where non-disclosure is fraudulent, the order is liable to be set aside without the applicant having to prove that disclosure would have produced a different result — see Sharland v Sharland [2015] UKSC 60 and Gohil v Gohil [2015] UKSC 61.

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.

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 (as amended by the Family Procedure (Amendment No 2) Rules 2024, SI 2024/421, in force 29 April 2024). The parties acknowledge that under amended Practice Direction 3A, narrower MIAM exemptions apply and the court may impose costs sanctions under FPR rule 28.3 for unreasonable refusal to engage with Non-Court Dispute Resolution (NCDR) options, including mediation, arbitration, collaborative law and private FDR.

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).

Each party acknowledges that the disclosure and exchange of financial information (including bank statements, pension CETVs, income and asset schedules), and the involvement of solicitors, mediators, arbitrators and the Family Court, involves the processing of personal data (and special-category data where health, religious, ethnic-origin or trade-union data is incidentally disclosed) within the meaning of the UK GDPR, the Data Protection Act 2018 and the Data (Use and Access) Act 2025 (as commenced by SI 2026/82 with effect from 5 February 2026). Processing is carried out on the lawful bases of contract, legal obligation, legitimate interests and (for special-category data) Article 9(2)(f) UK GDPR — establishment, exercise or defence of legal claims.

Confidentiality. All without-prejudice negotiations, Form E disclosure, settlement correspondence, mediation discussions (FPR 2010 r.10.10) and the contents of this Agreement shall be treated as strictly confidential between the parties, their professional advisers and the Family Court. Neither party shall publish, disclose or use such information except as required by law, with the other's prior written consent, or for the proper enforcement of this Agreement.

International transfers. Any onward transfer of personal data to a third country (for example, where a party, solicitor, pension trustee or accountant is based outside the United Kingdom) shall comply with the data protection test in Schedule 7 of the DUA Act 2025 (which replaces the prior "essentially equivalent" standard), using an approved transfer mechanism (UK adequacy regulations, the UK International Data Transfer Agreement or UK Addendum to the EU SCCs).

Automated asset valuation. Where any AI, algorithmic or automated tool has been used to value matrimonial assets (for example, AVMs for the matrimonial home, AI-based business valuation, algorithmic pension projections or AI scoring of incomes for spousal-maintenance recommendations), the parties acknowledge the application of Articles 22 to 22D UK GDPR as reformed by section 80 of the Data (Use and Access) Act 2025: no asset, capital or maintenance figure that has legal or similarly significant effects on either party shall be relied upon as the sole basis for the consent order if it has been generated solely by automated means without meaningful human review, the right to contest and an explanation of the underlying logic. The parties confirm that any AI-generated valuation in this Agreement has been independently sense-checked by a qualified valuer or accountant.

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 date indicated.