Divorce is never a simple decision to make, and the process itself may be difficult and emotionally tumultuous. In some situations, there is a need to divide some of the assets prior to divorce. This is known as a pre-distribution. Dividing assets and money between spouses during a divorce is one of the many difficulties that arise. A financial order would be needed in this situation. In this article we will cover an overview of a financial order, how it functions, and whether you can get financial order before the divorce is finalized.
What is a Financial Order?
A financial order, also known as a financial settlement or a consent order, is a legal document that outlines how a couple’s assets and finances will be divided following a divorce. A financial order can be agreed upon by both parties through negotiation, mediation, or collaborative law, or it can be settled in court.
It can cover a range of financial issues, such as property, investments, pensions, and debts. The order can be tailored to meet the specific needs of each party and can include provisions for child support and spousal maintenance.
What is the Process of Obtaining a Financial Order?
The process of obtaining a financial order can vary depending on the circumstances of the divorce. If both parties can agree on the terms of the financial order, they can draft the order themselves or with the help of a mediator or attorney. The drafted order must then be approved by the court to become legally binding.
If the parties cannot agree on the terms of the financial order, they may need to go to court. In this case, each party will present their case to a judge, who will make a decision based on the evidence presented. The judge will then issue a financial order that outlines how the couple’s assets and finances will be divided.
Why Should You Apply for a Financial Order?
There are several reasons to apply for a financial order, including:
To provide clarity and certainty: A financial order can provide clarity and certainty for both parties about how their assets and finances will be divided. This can help reduce conflict and stress during and after the divorce process.
To safeguard your financial future: This can include provisions for child support, spousal maintenance, and the division of assets.
To avoid future disputes: A financial order can help prevent future disputes between the parties by setting out clear guidelines for how their assets and finances will be divided.
Can You Obtain a Financial Order Before Finalizing Your Divorce?
Yes, it is possible to obtain a financial order before finalizing your divorce. It is often recommended to obtain a financial order as early as possible in the divorce process. This can help provide clarity and certainty for both parties and can help prevent future disputes.
If both parties can agree on the terms of the financial order, they can apply for a consent order. A consent order is a legally binding agreement that is approved by the court. It is important to note that a consent order can only be obtained once divorce proceedings have started.
If the parties cannot agree on the terms of the financial order, they may need to go to court. In this case, it may take longer to obtain a financial order, and the process may be more expensive.
Work with Real Estate Agents
If you are going through a divorce and need to divide your property, working with real estate agents can help simplify the process. Real estate agents can buy out one party’s share of the property, allowing the other party to keep the property without the need for a complicated sale. This can help both parties move on with their lives more quickly and with less stress.
At Purposeful Wealth Advisors, we work closely with divorce attorneys, accountants, and other dedicated professionals to develop comprehensive solutions for our clients.
If you are going through a divorce and need help dividing your property, contact us today to learn more about our services.