Why Finalising Finances In A divorce Is Essential – Lessons from a Recent High Court Case
When married couples separate, the emotional strain often overshadows the practical steps needed to secure a clean break.
Yet failing to finalise financial arrangements can leave both parties exposed to costly litigation years down the line.
In the recent High Court case of LIN v PAR [2025], which made it to the High Court, this risk was illustrated.
More than 20 years after divorcing, an ex-wife attempted to bring a £10 million financial remedies claim against her former husband.
The court dismissed her application, but not before both sides incurred over £1.7 million in legal fees by responding to the claim.
Case Background
The case involved a couple who were married for nine years and divorced in 2002.
Following their separation, they reached a financial agreement through a Consent Order that was not formally sealed by the court, leading to confusion about its enforceability.
The ex-wife, encouraged by an external adviser, sought to reopen the financial settlement, claiming that the original agreement should be disregarded due to alleged non-disclosure and undue pressure.
Court’s Findings
Dismissal of the Claim
Mr Justice Peel ruled that the ex-wife’s claim for financial remedies was dismissed, finding no substantial basis to reopen the original agreement.
The judge noted that the ex-husband had built a successful business post-divorce, but this did not create an entitlement for the ex-wife.
Delay Consideration
The court highlighted that the significant delay of over 20 years was a critical factor in assessing the fairness of the claim.
The judge emphasised that the ex-husband should not be held responsible for the ex-wife’s financial decisions made long after their separation.
Influence of External Parties: The court found that the ex-wife had been influenced by an individual referred to as Mr TP, who encouraged her to pursue legal action.
This manipulation weighed against her claims.
Failing To Resolve The Finances In A Divorce
Whilst the assumption under the 2020 ‘no fault’ divorce is that this is a quick option and all matters are resolved, including finances, this case highlights the potential risks.
It is worth noting that, in this case, even though a Consent Order was drafted, it was never sealed as a Court Order.
This case highlights advice to clients to seek advice before agreeing a financial settlement and to wait until a sealed Consent Order is received from the Court, as there is not always a guarantee that the Court will approve them if they can see there has been unfairness, with one party manipulating the other so that their needs are not met – both housing and income needs.
The Risks
- Some claims could resurface years, if not decades, later. Without a sealed financial order, either party may attempt to reopen matters long after the divorce.
- Changes to either party’s finances could create temptation. If one spouse becomes significantly wealthier, unresolved claims can be pursued in the hope of obtaining a share in that success.
- Legal costs can escalate regardless of the strength of a Defence to a claim, as even unsuccessful claims can accumulate thousands of pounds in fees.
- Emotional toll. Revisiting disputes years or decades later can be stressful, time-consuming and sometimes as painful as the original separation.
How to Protect Yourself
- Always obtain a court-approved financial order — even if you believe there are no assets to divide. The aim will be to seek a clean break so that any future assets are also protected.
- Seek expert legal advice from family law specialists to ensure agreements are legally binding.
- Think long-term: consider pensions, inheritances, and future earnings, not just immediate assets.
- Close the door completely: Finalising finances isn’t just about money — it’s about peace of mind.
Final Thoughts
This case is a cautionary tale for anyone going through a divorce.
Failing to finalise financial arrangements may leave you vulnerable to claims decades later.
The safest path forward is to ensure that every financial settlement is properly drafted, sometimes with the benefit of expert advice, such as Tax, Pensions and Capital Gains Tax.
Then make sure that it is sealed by the court, and keep your copy in a safe place in case it should ever be challenged in the future!
Contact Bennett Griffin
If you have already started your divorce, or would like us to assist you in doing so on your behalf (for a Fixed fee plus the court fee), and would like help navigating the financial minefield, please do not hesitate to contact Bennett Griffin.
Our commitment to excellence, empathy, and legal proficiency ensures that you have a steadfast partner in navigating the legal landscape and making sure that you are not only protected, but that you achieve robust advice about division of your combined assets, in the hope of achieving a clean break, to also protect your future assets.
Email info@bennett-griffin.co.uk or call us on Chichester (01243) 781000, or Worthing (01903) 229999.