There is no set time limit for reaching a financial settlement after a divorce in the UK. However, we strongly recommend finalising the agreement during the divorce process to prevent potential complications in the future.
Beyond the legal and financial risks associated with not having a financial settlement in place, finalising everything at the time of a divorce can bring emotional closure. Both parties can move forward with a clear understanding of their financial situations, so that they can focus on rebuilding their lives individually, or with new partners.
Finalising an agreement during the divorce process also avoids a situation where one party is able to make an application to the court even years after the divorce, and the court has to consider the assets of the parties at the time the application is made, not at the time of the divorce.
What is a financial settlement agreement?

A financial settlement determines how spouses will divide their assets (property, savings, pensions and income) as well as responsibilities around debts and child support or spousal maintenance. The needs and financial circumstances of both parties must be thoroughly considered when creating a fair and reasonable financial settlement agreement. This is incorporated in a court order – an exercise to obtain this can be done without the necessity to attend court if you are both in agreement as to terms.
Where you cannot reach a financial agreement through direct negotiation with your partner (and that is not always possible), a trained mediator can step in to help reach a fair settlement. Some couples are able to utilise services such as Resolution Together – One Couple One Lawyer, and reach an outcome both parties are happy with in a calm and amicable manner.
As soon as the agreement has been reached, your solicitor will draft a consent order (a legally binding document) and submit it to the court for approval.
Can you reach a financial settlement after divorce?
It is possible to reach a financial settlement even if your divorce has already been finalised. However, depending on how much time has passed since the divorce and any financial or circumstances changes that have occurred, it’s likely that the court outcome would be affected.
What happens if a financial settlement agreement is not in place?
In the UK, getting divorced doesn’t automatically put an end to your financial ties to your ex-partner. Without a financial settlement agreement or a clean break order in place, your ex can claim a share of any wealth or assets you acquire at any point in the future. If your partner ends up struggling financially, they could claim spousal maintenance or any of the other orders a family court can make (pensions, lumps sums, property transfers). For these reasons, it’s imperative to reach a financial settlement before your divorce is finalised.
What is a “clean break order”?
A clean break order is a legally binding court order that puts an end to all financial responsibilities to your ex-partner. Once the clean break order is in place, neither party can make any further claims for money, property or assets from the other, and both parties can move on with their lives.
A clean break order is only possible if the divorcing couple has no ongoing financial commitments such as spousal or child maintenance.
What happens if your ex won’t sign a clean break order?
There are several steps you can take if your ex-partner refuses to sign a clean break order. Firstly, your solicitor can apply through the court for a financial order under Section 23 of the Matrimonial Causes Act 1973. The court will assess both parties’ situations, and can impose such an order if they believe it is fair.
What happens if your ex-partner doesn’t comply with your financial settlement agreement?
Failing to follow the terms of a financial settlement that was made legally binding in a court of law can have serious consequences. In order to enforce an ex-partner’s financial obligations, a court can, upon a further application to enforce, deduct money from their wages, freeze their bank accounts, secure debts against their property or even send court bailiffs to seize assets. In severe cases, the court may consider it necessary to send them to prison.
If you find yourself in a difficult situation with financial settlements or are about to proceed with a divorce, it is very important to seek legal advice from an expert divorce solicitor who can ensure you reach a fair outcome, and are protected in the future.