How to Agree Finances in Divorce: A Step-by-Step Guide
When going through a divorce, few aspects are more stressful than dividing finances. Whether it’s deciding who keeps the house or how to handle shared debts, understanding how to agree finances in divorce is critical for a smoother transition and long-term financial stability.
In this guide, we’ll break down the procedure for agreeing finances when divorcing, highlight the potential costs involved and offer expert tips to help you avoid common mistakes.
Why Is It Important to Agree on Finances During Divorce?
Sorting out your finances isn’t just about splitting bills but it’s about laying the foundation for your future. A well-structured agreement helps both parties avoid prolonged legal battles, reduce stress, and ensure a fair distribution of assets.
Step-by-Step: Procedure for Agreeing Finances When Divorcing
1. Start with Full Financial Disclosure
- income and expenses;
- property and savings;
- pensions;
- debts and liabilities.
You can use Form E disclosure templates to simplify this step. In mediation, we use a document quivalent to a form E called an open financial statmenet.
2. Value All Assets and Debts
Before you can settle finances during a divorce, you need a clear picture of what’s at stake. Property valuations, pension assessments, and bank statements are key to getting an accurate picture.
3. Explore Mediation
If you’re on relatively amicable terms, agreeing financial settlement in divorce can often be achieved through mediation. This is cheaper, quicker, and less adversarial than court. At Family Mediation Services, our accredited mediators will help you to be heard regarding your financial needs.
4. Negotiate a Fair Settlement
Take into account:
- Future earning potential
- Child support
- Who will stay in the family home
- Division of pensions and long-term savings
5. Apply for a Consent Order
Once you’ve reached an agreement, apply to the court for a Consent Orderwhic is a a legally binding document that confirms your financial settlement and is enforceable by the courts.
How Expensive Is It to Get a Divorce?
The cost of divorce varies significantly based on whether you can agree finances amicably or need court intervention.
| Type of Settlement | Estimated Cost (UK) |
| DIY Divorce with Consent Order | £300 – £500 (excluding fees) |
| Mediation and Legal Support | £750 – £2,500+ |
| Full Court Proceedings | £5,000 – £15,000+ |
The more conflict involved, the higher the cost—emotionally and financially. That’s why it pays to agree finances in divorce early on.
Common Mistakes When Agreeing Finances
- Hiding assets or not disclosing full financial details
- Undervaluing pensions or property
- Failing to consider future needs (e.g., children, retirement)
- Not making the settlement legally binding
Avoid these errors by working with a family law solicitor or accredited mediator.
Helpful Tools and Templates
- Financial Disclosure Checklist (Form E UK)
- Divorce Budget Planner
- Mediation Preparation Guide
These resources make it easier to settle finances during a divorce without unnecessary stress.
FAQs About Agreeing Finances in Divorce
❓ How do I start the process of agreeing finances in divorce?
Begin by collecting all financial documents. Mediation can then help you agree the information needed to be collected then help you to reach an agreement without court.
❓ What if my spouse won’t cooperate with the financial agreement?
You may need to apply to the court for a financial order and it is possible to do this without lawyers. Always seek legal advice if you’re facing resistance.
❓ Do we have to go to court to agree finances?
Not always. If both parties can agree, you can draft a Consent Order and you can avoid court altogether.
❓ How long does it take to settle finances in mediation during a divorce?
If both sides are cooperative, it can take 2–3 months in family mediation. Complex or contested cases may take six moths or more.
❓ Can we use one solicitor for both sides if we agree?
Final Thoughts
Dividing finances in a divorce can be overwhelming although it doesn’t have to be destructive. With the right approach, you can agree finances in divorce efficiently and protect your future. To do so, start with an accredited family mediator. Contact us today on
By taking time to understand the procedure for agreeing finances when divorcing, you’ll save time, money and emotional energy in the long run.