How to Use This Checklist
Click each checkbox to mark items as complete. Your progress is automatically saved. Use this checklist to:
✅ Three Ways to Use This Tool
1. Negotiate settlement: Ensure all assets, debts, pensions divided before finalizing
2. Before Consent Order: Verify agreement covers all 70 points required by court
3. Review draft settlement: Check solicitor's draft against comprehensive requirements
⚠️ Why Consent Orders Are Essential
📋 Must Be Court Order: Financial settlement agreement MUST become Consent Order to be legally binding and enforceable.
⚖️ Private Agreements Weak: Without court approval, agreement is just private contract - much harder to enforce through courts.
🎯 Full Disclosure Required: Courts can set aside orders if assets hidden - Form E financial disclosure essential.
💼 Clean Break Recommended: Dismissing all future claims provides finality - prevents applications years later.
🚫 Critical Financial Settlement Requirements
Consent Order Mandatory: Agreement must be approved by court as Consent Order to be enforceable. Form E Disclosure: Both parties must complete Form E showing ALL assets, income, debts. Pension Sharing: Requires specific court order - can't just agree informally to split pensions. CGT Timing: Property transfers BEFORE decree absolute are tax-free - after decree absolute triggers capital gains tax. Clean Break Clauses: Dismiss all s23/25 Matrimonial Causes Act claims for finality. Joint Debts: Creditors can still pursue either party regardless of your agreement.
⚠️ Understanding Importance Levels
🔴 Critical: Must have - required for valid, court-approved Consent Order
🟡 Important: Should have - protects both parties and prevents future disputes
🔵 Recommended: Nice to have - best practice for comprehensive settlement
Husband's Full Legal Name and Address
Complete legal name and current address as appears on marriage certificate and court documents. Required for Consent Order application.
🔴 CriticalWife's Full Legal Name and Address
Complete legal name and current address. If name changed during marriage, use current legal name on Consent Order.
🔴 CriticalDates of Birth
Both parties' dates of birth for identification and pension sharing calculations. Required on Consent Order D81 statement.
🟡 ImportantNational Insurance Numbers
Both NI numbers essential for pension sharing orders and identifying correct pension schemes with providers.
🔴 Critical
Date and Place of Marriage
Marriage date and location. Court needs this to verify length of marriage - factor in s25 considerations for settlement fairness.
🔴 CriticalDate of Separation
Date parties separated. Determines which assets are matrimonial (acquired during marriage) versus post-separation. Affects settlement principles.
🟡 ImportantDivorce Proceedings Status
Court name, case number, whether decree nisi/conditional order granted. Financial settlement must be approved before decree absolute/final order.
🔴 Critical
Form E Completed by Both Parties
Both parties must complete Form E financial statement showing ALL income, assets, debts, pensions, property. Court requires before approving Consent Order.
🔴 CriticalFull Disclosure Confirmation
Both parties confirm full and frank disclosure of all financial circumstances. Non-disclosure can result in order being set aside years later.
🔴 CriticalIndependent Legal Advice
Confirmation both parties obtained independent legal advice about settlement terms. Strengthens enforceability and prevents claims of unfairness later.
🟡 ImportantSchedule of Assets and Debts
Complete schedule listing every asset (property, pensions, savings, investments, business) and every debt (mortgages, loans, credit cards) with current values.
🔴 Critical
⚡
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Family Home Address and Value
Full address of matrimonial home, current market value (professional valuation recommended), outstanding mortgage balance. Usually largest asset requiring division.
🔴 CriticalProperty Division Method
How property divided: immediate sale and division of proceeds, transfer to one party with compensating payment, deferred sale (Mesher/Martin order), or one party buys out other.
🔴 CriticalSale Timeline and Process
If selling: target completion date, responsibility for estate agent fees, solicitor costs, who lives in property pending sale, responsibility for mortgage and bills.
🟡 ImportantTransfer Provisions
If transferring: to whom, transfer deadline, responsibility for mortgage redemption or assumption, SDLT liability, who pays transfer costs. Transfer BEFORE decree absolute avoids CGT.
🔴 CriticalMesher/Martin Order Provisions
If deferred sale: trigger events (youngest child 18, recipient remarriage/cohabitation/death), interim occupation rights, mortgage/bill responsibilities, maintenance obligations during deferral.
🟡 ImportantAdditional Properties
Any other properties: buy-to-let, holiday homes, overseas property. For each: address, value, mortgage, rental income, division method (sale/transfer/retain).
🔴 Critical
All Pensions Identified
List every pension for both parties: workplace pensions (current/former employers), personal pensions, SIPPs, state pension. Pensions often worth more than house.
🔴 CriticalCash Equivalent Values (CEV)
Current CEV for each pension (request from provider). For final salary/defined benefit pensions, may require PODE (Pension on Divorce Expert) actuarial valuation.
🔴 CriticalPension Sharing Percentage
Percentage each party receives from other's pensions. Court order specifies percentage share - pension provider implements. Typical range 25-50% depending on circumstances.
🔴 CriticalPension Sharing Order Implementation
How sharing implemented: internal transfer (stays with same provider) or external transfer (moves to new provider). Provider charges apply. Implementation within 4 months of decree absolute.
🟡 ImportantPension Offsetting Alternative
Alternative to sharing: offset pension value against other assets (e.g., one party keeps pension, other keeps more house equity). Simpler but may not suit all cases.
🔵 Recommended
Lump Sum Amount
Exact lump sum payable from one party to other. Typically used to equalize overall settlement or compensate for pension/property imbalance.
🔴 CriticalPayment Deadline
Specific date lump sum must be paid. Common triggers: within X days of decree absolute, upon property sale completion, by fixed calendar date.
🔴 CriticalSource of Lump Sum
Where lump sum comes from: savings withdrawal, property sale proceeds, pension lump sum, business sale, borrowing. Ensures payment achievable.
🟡 ImportantConsequences of Non-Payment
What happens if lump sum not paid by deadline: interest charges, enforcement powers, sale of property. Lump sum orders are judgment debts - enforceable.
🟡 Important
Bank Accounts Division
All current and savings accounts: who retains which accounts, closing joint accounts, splitting balances. Include account numbers and current balances.
🔴 CriticalISA Holdings
Cash ISAs and Stocks & Shares ISAs cannot be transferred - must close and split proceeds or offset value. Losing tax-wrapper if closed.
🟡 ImportantInvestment Portfolios
Stocks, shares, bonds, unit trusts: division method (transfer in specie, sell and split proceeds, or one party keeps all with offsetting). Consider CGT implications.
🟡 ImportantPremium Bonds
Premium bonds cannot be transferred between spouses - must cash in and split proceeds or allocate entire holding to one party with offsetting.
🔵 RecommendedCryptocurrency
Bitcoin, Ethereum, other crypto holdings. State division method, current value (volatile), who retains wallets. CGT may apply on disposal.
🟡 Important
⚡
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Business Ownership and Valuation
Company shareholdings, partnerships, sole trader businesses with professional valuation. Business often requires specialist accountant valuation.
🔴 CriticalDivision Method
How business divided: retain ownership with compensating payment to spouse, sell business and split proceeds, transfer shares, or ongoing profit share.
🔴 CriticalOngoing Income from Business
If one party retains business, acknowledge ongoing income for earning capacity and maintenance calculations. Business value often discounted for illiquidity.
🟡 ImportantDirector Loan Accounts
Any director's loans to/from company. Affects settlement as these are assets/liabilities requiring division or repayment.
🟡 Important
Joint Debts Identified
All joint mortgages, loans, credit cards, overdrafts with current balances. Creditors can pursue either party regardless of your agreement - important for indemnities.
🔴 CriticalIndividual Debts Allocation
Sole name debts: who retains responsibility. If one party unfairly burdened, may affect overall settlement split to compensate.
🔴 CriticalIndemnity Clauses
Each party indemnifies other against allocated debts. If spouse defaults on debt they agreed to pay, you can pursue them for breach even though creditor can still chase you.
🔴 CriticalDebt Closure Process
Timeline for closing joint accounts, removing names from joint debts, refinancing. Prevents future liability accrual on joint facilities.
🟡 ImportantCreditor Position
Acknowledge creditors not bound by settlement - can still pursue either party for joint debts. This limits effectiveness of indemnities if one party can't pay.
🟡 Important
Furniture and Household Contents
Division of furniture, appliances, household items. Courts usually allow each party to keep items in their possession unless particularly valuable.
🟡 ImportantVehicles
Cars, motorcycles allocation. State who retains each vehicle, responsibility for outstanding finance, transfer of V5C ownership documents.
🟡 ImportantValuables
Jewellery, watches, art, antiques, collections. Items over £5,000 value should be specifically allocated. Valuable items may require professional valuation.
🔵 RecommendedPersonal Belongings
Clothing, personal effects, family heirlooms. Generally each party keeps own personal items. Family heirlooms may have emotional significance beyond value.
🔵 Recommended
Maintenance Amount and Duration
If maintenance payable: exact amount, frequency, duration (term certain or joint lives). Or state "nil order" if no maintenance to be paid.
🔴 CriticalClean Break vs Ongoing Maintenance
Clean break strongly recommended if possible - dismisses all future maintenance claims for finality. Ongoing maintenance only if recipient cannot achieve independence.
🔴 CriticalMaintenance Dismissal Clauses
If clean break: explicitly dismiss all s23(1)(a) and (b) periodical payments claims. Prevents any future maintenance application by either party.
🔴 CriticalVariation Rights
If ongoing maintenance: whether can be varied by court application, or include s28(1A) bar preventing variation upwards. Affects future flexibility.
🟡 ImportantIndexation Provisions
If maintenance payable: whether index-linked to RPI/CPI to protect against inflation. Without indexation, fixed amounts lose value over years.
🔵 Recommended
Child Maintenance Amount
Amount payable for children: CMS calculation or private arrangement if both agree. State amount per child, frequency, payment method. CMS can overrule private arrangements.
🔴 CriticalSchool Fees and Education Costs
If applicable: responsibility for school fees, who pays uniforms, books, school trips, tutoring. Private school fees significant financial commitment requiring clear agreement.
🟡 ImportantAdditional Child Expenses
Clubs, activities, childcare costs, medical/dental expenses. Who pays and in what proportion. Prevents disputes over unexpected child costs.
🟡 ImportantDuration and Review
How long child provisions last: until child 18, or through university (typical to 23 if in full-time education). Review triggers for changed circumstances.
🟡 Important
Life Insurance to Secure Lump Sums
If lump sum payable, require life insurance to secure obligation if payer dies before paying. Court can order this. State sum assured and duration.
🟡 ImportantLife Insurance for Maintenance
If ongoing maintenance, life insurance secures obligation if payer dies. Calculate sum assured to capitalize maintenance obligation (e.g., £1,000/month x remaining years).
🟡 ImportantBeneficiary Provisions
Life insurance policies written in trust for recipient or children. Prevents proceeds going to payer's estate/new spouse. Proof of insurance premiums maintained.
🟡 Important
Capital Gains Tax (CGT) Timing
CRITICAL: Property/asset transfers between spouses are CGT-free ONLY if done BEFORE decree absolute. After decree absolute, CGT applies to gains. Timing essential.
🔴 CriticalStamp Duty Land Tax (SDLT)
Property transfers pursuant to divorce are SDLT-exempt. Must be done as part of Consent Order or within prescribed timeframe after decree absolute.
🟡 ImportantTax Liability Allocation
Any outstanding tax liabilities: who responsible for pre-separation tax debts, PAYE underpayments, self-assessment arrears. HMRC can pursue either party for joint liabilities.
🟡 Important
Completion Deadlines
Specific dates for each action: lump sum payment, property transfer completion, pension sharing implementation, account closures. Clear timeline prevents disputes.
🔴 CriticalSequential Steps
If actions depend on each other, specify order: e.g., lump sum paid upon property sale completion. Ensures logical implementation sequence.
🟡 ImportantDispute Resolution
If implementation delayed or disputed: process for resolving (mediation, arbitration, court application). Prevents minor issues derailing entire settlement.
🔵 Recommended
Dismiss All Capital Claims
Dismiss all s23(1)(c) lump sum and s24 property adjustment claims. Prevents either party applying for further capital payments or property transfers in future.
🔴 CriticalDismiss Maintenance Claims
Dismiss all s23(1)(a) and (b) periodical payments claims. If clean break, neither party can apply for spousal maintenance ever - complete finality.
🔴 CriticalSection 25 Factors Acknowledgment
Acknowledge court's s25 Matrimonial Causes Act duty to consider fairness factors: needs, resources, contributions, standard of living. Shows settlement reached considering these.
🟡 ImportantFinality Statement
Both parties confirm this is full and final settlement of all financial claims arising from marriage. Prevents any further applications except those specifically reserved (e.g., child maintenance).
🔴 Critical
Both Parties' Signatures
Husband and wife must both sign agreement. Signatures confirm acceptance of all terms and understanding this will become court order.
🔴 CriticalWitness Signatures
Independent witnesses for each signature (not family, not other party). Witness provides name, address, occupation. Strengthens validity.
🟡 ImportantD81 Statement of Information
Both parties complete D81 form for Consent Order application. Provides court with financial snapshot to assess fairness. Required before court approves.
🔴 CriticalCourt Submission and Approval
Submit Consent Order and D81 to divorce court for approval. Judge reviews fairness and if satisfied, makes order. ONLY becomes legally binding when court approves.
🔴 Critical
⚡
Instant Download
You’ve Done the Research. Now Finish It.
Complete financial settlement agreement template — all clauses included, professionally drafted.
Fill in your details in minutes and you’re done.
£10 — Own It Forever
Create Your Financial Settlement Now
→
✅ 30-day money-back guarantee*
Preview before you buy • Lifetime updates • No subscription
Next Steps
Now that you've reviewed the financial settlement agreement checklist, you have three options:
✅ Use Our Ready-Made Template
Get a court-approved financial settlement with our Consent Order template. Covers all 70 compliance points including pension sharing and clean break provisions. Available in both Smart Interview (guided) and Classic Editor (direct editing) modes for just £10.
✓ UK Law Only | ✓ Instant Download | ✓ Lifetime Updates | ✓ No Subscriptions
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📝 Draft Your Own Financial Settlement Agreement
Use this checklist as your guide, but remember: without Consent Order agreement is NOT legally binding, property transfers after decree absolute trigger CGT, missing pension CEVs cause rejection.
Frequently Asked Questions
What is a financial settlement agreement?
A financial settlement agreement sets out how assets, property, pensions, debts, and maintenance are divided between separating spouses. To be legally binding, it should be submitted to the court as a consent order under the Matrimonial Causes Act 1973.
Do I need a consent order?
A consent order is strongly recommended. Without one, either party can make future financial claims against the other, even years after the divorce. A consent order, approved by the court, provides a clean break and prevents future claims.
What is a clean break order?
A clean break order ends all financial ties between former spouses. Neither party can make future financial claims against the other. It is usually included in the consent order alongside the financial settlement terms.
Do I need a solicitor?
Not normally, for straightforward financial settlements where both parties agree. Our template covers all standard provisions including property, pensions, and clean break clauses. For complex estates, business interests, or disputed settlements, consider professional review.
Disclaimer: This checklist is for general informational purposes only and does not constitute legal advice. While we strive to keep information accurate and up to date, the law is complex and subject to change. Every situation is unique. Last updated: May 2026.
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