Reaching an agreement about finances during a separation is a huge step forward. But many couples don't realise that a verbal agreement — or even a written one between yourselves — is not legally binding. Without a financial consent order, either party can make financial claims against the other years down the line, even after the divorce is finalised.

This is one of the most important things I help couples understand during mediation. Getting a financial consent order in place protects both of you and gives you the clean break you need to move forward with confidence.

What Is a Financial Consent Order?

A financial consent order is a legal document that records the financial agreement you and your ex-partner have reached and makes it binding under UK law. Once approved by a court, neither party can come back and make further financial claims — whether that's over property, savings, pensions, or income.

It covers a wide range of financial matters, including:

• Property — who keeps the family home, or how the proceeds of a sale are divided
• Savings and investments — how bank accounts, ISAs, and other assets are split
• Pensions — one of the most valuable assets in a marriage, often overlooked
• Maintenance — ongoing financial support payments, if agreed
• Debts — how joint debts such as mortgages or loans are handled

Without this document, your financial ties to your ex-spouse remain open — even after your divorce certificate arrives.

Why a Verbal Agreement Isn't Enough

It's tempting to think that if you've both agreed on something, that's the end of it. Unfortunately, that's not how the law works.

In England and Wales, the court retains jurisdiction over financial matters even after a divorce is granted. This means that without a consent order, your ex-spouse could apply to the court for a financial settlement at any point in the future — even if years have passed, even if you've both moved on and remarried.

There have been well-publicised cases where ex-spouses have successfully claimed a share of assets accumulated long after the marriage ended, simply because no consent order was ever put in place. A consent order closes that door permanently.

How Mediation Helps You Reach a Financial Agreement

Before a consent order can be drafted, you and your ex-partner need to reach an agreement on the financial arrangements. This is exactly where mediation comes in.

In mediation sessions, I help you both:

• Identify all financial assets and liabilities — full financial disclosure is a requirement for any consent order, and I'll guide you through what needs to be shared
• Explore options fairly — there's rarely one "right" answer when it comes to dividing assets; mediation gives you the space to consider different approaches
• Reach an agreement that works for both of you — rather than having a judge decide, you stay in control of the outcome
• Understand the implications — including pension sharing, which is often the most complex area

Once you've reached an agreement in mediation, I produce a document called a Memorandum of Understanding, which sets out everything you've agreed. Your solicitors then use this to draft the formal consent order, which is submitted to the court for approval.

Do You Need a Solicitor as Well?

Yes — while mediation helps you reach the agreement, you will each need a solicitor to draft and review the consent order before it's submitted to the court. This is an important safeguard to make sure the document is legally sound and that both parties have received independent legal advice.

Many couples find that mediation significantly reduces their legal costs, because they arrive at their solicitor's office having already agreed the key terms. The solicitor's role becomes one of drafting and checking, rather than negotiating — which is far less time-consuming and expensive.

What About the Government Voucher Scheme?

If you're eligible for the Government Mediation Voucher Scheme, you could receive up to £500 towards the cost of mediation sessions. This can make a real difference to the overall cost of reaching a financial agreement, particularly when combined with the savings on solicitor fees that mediation typically brings.

The voucher scheme is available to eligible separating couples and can be used towards joint mediation sessions, including those focused on financial matters.

Pensions: The Asset Most Couples Forget

Pensions are often the second most valuable asset in a marriage after the family home — and they're the one most commonly overlooked in informal agreements.

There are three main ways pensions can be dealt with in a consent order:

• Pension sharing — a percentage of one person's pension is transferred to the other
• Pension offsetting — one person keeps their pension in full, and the other receives a larger share of another asset (such as the property) to compensate
• Pension earmarking — payments from one person's pension are directed to the other when they retire (less common and less clean)

Getting proper pension valuations and understanding the options is something I can help you work through in mediation, before your solicitors formalise the arrangement.

When Should You Get a Financial Consent Order?

The short answer is: as soon as possible after reaching your financial agreement, and ideally before your divorce is finalised.

Once your Decree Absolute (now called a Final Order) is granted, you are legally divorced — but your financial claims against each other remain open until a consent order is in place. Many people don't realise this and assume the divorce itself closes everything off. It doesn't.

It's also worth knowing that you can apply for a consent order even if you've been divorced for some time. It's never too late to put one in place — but the sooner you do, the sooner you both have the legal protection and peace of mind you deserve.

Taking the Next Step

If you and your ex-partner are ready to work through your financial arrangements, mediation is a constructive and cost-effective way to do it. I work with couples across Southend-on-Sea and Essex to help them reach fair, workable agreements — and to understand exactly what they're agreeing to before anything is signed. You can see the full range of mediation services we offer, including financial mediation and parenting plans.

A financial consent order isn't just a legal formality. It's the document that lets you both truly move forward.