Financial Claims on Divorce: What is the Remarriage Trap?

Financial claims, including applications for lump sum payments, property adjustment orders and spousal maintenance, are not automatically dismissed even once a divorce has been finalised. If a financial settlement is agreed, this should be converted into a legally binding financial consent order confirming that any further financial claims are dismissed. The order should be approved and sealed by the court. This can only be done once the Conditional Order of divorce has been received. A financial remedy application (Form A) can be submitted to court as a last resort if the parties cannot reach an agreement regarding the finances and they need the court’s assistance to progress matters. Other forms of non-court dispute resolution should be considered as well.

How the Remarriage Trap works

Where one party to a divorce remarries and they have not received a sealed financial order, they lose the right to most financial claims against their ex-spouse. The ex-spouse’s claims against them, however, remain open-ended if they have not also remarried. This is commonly referred to as the ‘remarriage trap.’

Pensions are an exception

Remarrying before a financial order has been approved by the court does not affect claims the parties may have against each other’s pensions.

How to protect yourself

If you are the Applicant in a divorce and intend on remarrying, to avoid being prevented from making certain financial claims against your ex-spouse on remarriage, it is wise to indicate within the divorce application that you intend to make financial claims, even if there is no intention at the time of pursuing this. The Applicant’s claims will then remain open and not be prevented on remarriage.

Get advice before remarrying

It is important to seek advice before applying for a divorce, especially if you are considering remarriage.

At Sadler Cross Family Law, our lawyers have extensive experience in navigating the complexities of reaching a financial settlement on divorce. We offer an initial 30-minute consultation to discuss your circumstances and potential options available to you.