Consent Orders: Why Formalising Your Financial Agreement Matters

Reaching a financial agreement during divorce is a significant step, but it is not the end of the process. To make that agreement legally binding, it must be formalised through a Consent Order approved by the Court.

What is a Consent Order?

Once an agreement has been reached, two key documents must be prepared:

• Consent Order: Setting out the terms of the financial agreement; and
• D81 Statement of Information: Summarising each party’s financial position both before and after the agreement.

The purpose of these documents is to allow the Court to assess whether the proposed settlement is fair. Importantly, they cannot be submitted until the Conditional Order of Divorce has been pronounced.

What happens after submission?

Once filed, a Judge will usually consider the documents “on paper”, without the need for a hearing. This process typically takes two to three months, depending on Court timescales.

If the Judge is satisfied, the Consent Order will be approved and sealed, making it legally binding. However, it will not formally take effect until the Final Order of Divorce is granted, although in practice, many of the terms can still be implemented beforehand.

Should you implement the agreement early?

It can be tempting to move forward quickly, particularly where a property sale or transfer is involved. However, proceeding before the Consent Order is approved and sealed carries important risks.

1. The risk the Court does not approve the agreement

The Court does not simply “rubber stamp” agreements. It has a duty to ensure that any settlement is fair, taking into account the factors set out in Section 25 of the Matrimonial Causes Act 1973.

If the Judge has concerns:

• They may request further written information from both parties;
• If concerns remain, the matter could be listed for a hearing;
• In more complex cases, the Court could ultimately refuse approval and move towards a final hearing where a Judge decides the outcome.

If you have already implemented parts of the agreement, such as selling or transferring a property, this can create significant complications if the Court later declines to approve the terms.

2. The risk of one party changing their position (reneging on the agreement)

Until the Consent Order is approved and sealed, the agreement is not legally binding. This means that either party could change their mind.

If you proceed with implementation too early for example, by selling a property or dividing sale proceeds, there is a risk that the other party may attempt to withdraw from the broader agreement.

In such circumstances, you may be forced to make a Court application to enforce the agreement, leading to additional cost, delay and uncertainty.

A cautious but practical approach

While it is understandable to want to move matters forward without delay, the safest course is usually to wait until the Consent Order has been approved and sealed before implementing key aspects of the agreement, particularly where significant assets are involved.

A Consent Order provides certainty, finality and legal protection. Without it, even a carefully negotiated agreement can remain vulnerable.

Final thoughts

A financial agreement is only as secure as its legal foundation. Taking the extra step to formalise your settlement through a Consent Order ensures that both parties are protected, and that the agreement you have worked hard to reach is one you can rely on for the future.

If you need any assistance with a Family Law matter, please do not hesitate to contact our experienced Family Team at Mayo Wynne Baxter on 0800 84 94 101. Our specialist team can advise you as to the best possible ways to resolve matters.