Types of Financial Order During Divorce
When you divorce, the court may decide to put one or more financial orders in place. The aim is to ensure that each spouse is properly provided for. There are different types of financial order available. The most suitable order for you depends on your individual circumstances.
Types of divorce financial order
The types of financial order that can be issued during divorce proceedings include –
Property Adjustment Orders
A Property Adjustment Order demands that a property is transferred into the name of one spouse. It can also limit or revoke any interest that person had in the property. Typically, these orders are used when the financially weaker party needs to remain in the property to raise the children. Often, this person has compromised their career for the benefit of the family, and would be unable to afford a property by any other means.
Periodical Payments Orders
A Periodical Payments Order is also known as a Maintenance Order. It requests that one spouse provides the other with weekly or monthly payments. This money should be enough to meet the ‘reasonable needs’ of the spouse and any dependent children. The exact amount of money that must be paid depends on the income of each spouse and the needs of each person. The payments must continue for as long as the court sees fit.
Lump Sum Orders
A Lump Sum Order is when one spouse must give the other a lump sum of money. This can be done instead of periodical payments, or in addition to periodical payments. The money can be paid in instalments or all at once. The amount of money given depends on the financial situation of each person. As is always the case with financial orders, the purpose is to ensure the needs of the financially weaker spouse – and dependent children – are taken care of.
Pension Adjustment Orders
A Pension Adjustment Order compels one spouse to transfer all, or part of, their pension to the other. Often this is a highly contentious matter, as the pension holder will want to protect their pension pot for the years to come. However, all assets must be taken into consideration when negotiating the divorce settlement. This ensures it is fair to each person, especially if one spouse did not work in order to raise the children.
Financial Compensation Orders
A Financial Compensation Order is when one spouse must put a life insurance policy in place, naming the other spouse or dependent child as the beneficiary. This is because if one spouse dies, the maintenance payments will stop and any dependents may struggle financially. With a Financial Compensation Order, the proceeds of the life policy ensure that the dependents are still provided for, should the policy holder die.
Variation Orders
It is possible to request that a financial order is changed. This is done by applying for a Variation Order. This might happen if the financial circumstances of one person alter significantly, warranting a change of the original agreement. For example, it could be that the person paying maintenance loses their job and cannot afford to keep up with the payments. Or the person receiving maintenance may require additional money to meet the needs of their children.
Other orders
These are just some of the orders that may be granted during the divorce process. We can discuss the types of order that would be most beneficial in your circumstances, ensuring you get the ancillary relief you are entitled to. We are client focused and results driven.
Call us on 051 391 488 or email reception@mullinstreacy.ie for a no obligation enquiry.
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