Adapting Financial Settlements to Changing Circumstances
Life is dynamic, and circumstances can change significantly after a divorce or civil partnership dissolution. When such changes occur, it may be necessary to revisit and modify existing financial arrangements. At Waely Law, our experienced family law solicitors are adept at guiding clients through the variation of financial orders, ensuring that financial settlements remain fair and reflective of current situations.
A variation of financial orders involves legally altering the terms of a financial settlement established during divorce or dissolution proceedings.
This process ensures that the financial arrangements continue to serve the best interests of both parties, especially when unforeseen changes arise.
Not all financial orders are subject to modification. Under Section 31 of the Matrimonial Causes Act 1973, the following orders can be varied:
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Maintenance Pending Suit
Interim maintenance payments made before the finalisation of divorce proceedings.
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Periodical Payments (Spousal Maintenance)
Regular payments made by one ex-spouse to the other for maintenance purposes.
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Secured Periodical Payments
Maintenance payments secured against an asset or property.
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Lump Sum Orders by Instalments
Lump sum payments structured to be paid in instalments.
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Provision for Children
Financial arrangements made for the benefit of children, including maintenance and educational expenses.
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Deferred Lump Sums Related to Pensions
Lump sum payments linked to pension rights, scheduled for future payment.
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Settlement Orders
Orders related to the settlement of property for the benefit of a spouse or children.
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Orders for Sale of Property
Orders for the sale of property, with proceeds to be distributed as specified.
It’s important to note that lump sum orders not payable by instalments, property adjustment orders, and pension sharing orders (after they take effect) generally cannot be varied.
Courts consider variations to financial orders when there are significant changes in circumstances, such as:
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Change in Income or Employment
Loss of a job, substantial salary increase, or decrease.
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Health Issues
Onset of serious illness or disability affecting earning capacity.
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Remarriage or New Civil Partnership
Entering into a new marriage or civil partnership can impact financial responsibilities.
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Significant Changes in Financial Needs or Resources
Inheritance, bankruptcy, or other major financial events.
The court’s primary objective is to ensure that the financial order remains fair and equitable in light of new circumstances.
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Seek Legal Advice
Consult with a family law solicitor to assess the validity of your grounds for variation.
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Attempt Negotiation
Before approaching the court, try to reach an agreement with the other party through negotiation or mediation.
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File an Application
This involves completing Form E2 which is a financial statement detailing your current financial situation during the proceedings’ – this form is not at the ‘application stage – but can accompany it’. Application stage form varies and depends on stage of proceedings.
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Court Proceedings
The court will review the application, consider evidence from both parties, and decide whether to vary the order.
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No, not all financial orders can be varied. Under Section 31 of the Matrimonial Causes Act 1973, certain financial orders can be modified, while others remain final and binding.
Orders That Can Be Varied
The court can vary or discharge the following types of financial orders:
- Spousal maintenance (periodical payments) – Can be increased, reduced, or terminated based on financial changes.
- Secured periodical payments – Maintenance payments secured against an asset can be reviewed.
- Lump sum orders payable in instalments – The amount or timing of remaining instalments can be adjusted.
- Child maintenance (if part of a court order) – The court can modify maintenance orders for school fees or additional support beyond Child Maintenance Service (CMS) calculations.
- Deferred lump sums linked to pensions – If the pension lump sum payment is due in the future, the court may review the timing or amount.
- Settlement of property for a spouse or children – The court may alter how property is distributed, particularly if a deferred sale was originally ordered.
- Order for sale of property – The court may adjust the sale timeline or financial distribution if circumstances change.
Orders That Cannot Be Varied
Some financial orders are final and cannot be changed, including:
- Lump sum orders paid in full – Once a lump sum has been paid, it cannot be reversed.
- Property adjustment orders (after implementation) – Once a property has been transferred, the court cannot undo the decision.
- Pension sharing orders (after implementation) – Once a pension has been divided and transferred, it cannot be altered.
The timeframe depends on whether the variation is agreed upon or requires court intervention. If both parties agree, a consent order can be approved within a few weeks. If the case goes to court, it can take several months, typically between 3 to 12 months, depending on the complexity and court availability.
Yes. If your ex-spouse disagrees with the variation, they can submit evidence to oppose the change. The court will consider both parties’ financial circumstances before making a decision. If an agreement is reached before the hearing, a consent order can be submitted to avoid further legal proceedings.
Yes. If the recipient of spousal maintenance remarries, their entitlement to ongoing maintenance usually ends automatically unless otherwise stated in the original financial order. However, if the paying party remarries, their obligation to pay maintenance remains unchanged.
No. Child maintenance is generally handled by the Child Maintenance Service (CMS), and the courts do not typically intervene unless the original financial order includes school fees, housing, or additional support beyond CMS calculations. To change child maintenance payments, you must apply through CMS.
At Waely Law, we make the legal process clear, efficient, and stress-free. Here’s what you can expect when you reach out to us:
- GOV.UK: Financial statement for a variation of an order for a financial remedy – Official government form (Form E2) required when applying to vary a financial remedy order.
