It is a common misconception that once you are divorced, that’s it. However, a divorce does not end the financial relationship with your ex-partner. If you've reached a settlement agreement independently and transferred all assets, you may have exposed yourself to future financial risks.

What are the risks?

Failing to properly end your financial relationship could lead your ex-partner to make a claim against you in the future. This can extend to assets that you have not acquired during the relationship, for example inheritance or even a lottery win.

There is also a risk that what you have agreed to is unfair or could negatively impact you in the future as you have not considered the full extent of the assets or the implications of the agreement.

How can I protect myself?

The first thing to do is to consult with an experienced solicitor, who can explain the implications of any agreement that you have reached.

If you decide that the agreement is not suitable, you can decline to proceed. Until you have an approved consent order, you are able to revisit the agreement, with a solicitor if desired.

Once an agreement is reached, it should be properly documented in a consent order. This legally-binding document sets out the financial arrangements that have been agreed and documents how you will divide your assets. A judge may refuse to approve the order and recommend that the parties readdress the settlement if it is unsuitable for one or both parties.

Ask your solicitor to draft a consent order for you to avoid future claims. It is absolutely worth the investment, as the implications of getting it wrong can be significant financially.

  • Lucy Barr is a partner at award-winning law firm VWV, which has offices in Clarendon Road, Watford. Get in touch on 07468 698 956 or lbarr@vwv.co.uk