Can You Get a Divorce Without a Financial Settlement?

Picture this: You’ve gone through the emotional turmoil of a marriage ending, and now, instead of focusing on healing, you're worried about one thing—money. Can you move on from the relationship without finalizing a financial settlement? This question is more common than you think, and it opens the door to a complex world of legal loopholes, hidden risks, and unexpected consequences.

The short answer is yes—you can technically get a divorce without a financial settlement. But should you? That’s a whole different story.

Why Skip a Financial Settlement Could Backfire

Getting a divorce without a financial settlement may sound like a fast track to freedom, but it’s a gamble. Divorce doesn’t end financial ties—the marriage may be over, but your financial connection to your ex-spouse might live on.

In some jurisdictions, even after the divorce is granted, either party can still make financial claims against the other, years or even decades later. Imagine building a new life, saving for your retirement, only for your ex to come back for a share of your newfound wealth years down the line.

Here’s where it gets even riskier: if you get a windfall—let's say, an inheritance, or you start a business that takes off—your ex-spouse could legally claim a portion of that unless a clean break financial order is in place. In essence, failing to settle financially is like leaving the back door open.

The Long-Term Financial Impact

Think of a financial settlement as locking the financial door after a relationship ends. It’s a legal agreement that ensures neither party can make further financial claims. Without this, your ex can come back into the picture whenever circumstances change, potentially claiming a share of future earnings, property, or other assets.

Statistics show that divorce is financially catastrophic for many. According to a 2022 study, divorced women’s wealth can drop by as much as 50%, while men typically see a reduction of about 25%. Why make things worse by leaving financial issues unresolved?

The Emotional Toll of Lingering Finances

Let’s talk about the emotional cost. The legal, financial, and emotional threads of a marriage are all intertwined. Leaving one thread loose—like unresolved financial ties—can prevent you from fully moving on.

Every time you achieve a financial milestone, you might live in fear that your ex will come for a cut. This lingering connection can prevent you from feeling truly free.

Now, it’s not just the money. Without a financial settlement, you could find yourself going back to court multiple times, drawn into legal battles that could have been avoided. Think about the emotional toll of being dragged back into that conflict.

When Is It Okay to Skip a Financial Settlement?

Of course, there are exceptions. If both parties have nothing significant to divide—no assets, no joint debts, no property—a financial settlement might feel unnecessary. But even in these cases, it’s wise to get a consent order in place, confirming that neither party will seek further financial claims. Think of it as an insurance policy: you hope you’ll never need it, but it’s there just in case.

Financial Settlements When Children Are Involved

When children are in the picture, the need for a financial settlement becomes even more critical. Child support is usually handled separately from financial settlements, but the costs of raising a child—education, healthcare, housing—can be affected by unresolved financial matters.

Take this example: You and your ex-partner didn’t settle financially, and you receive primary custody of your children. Years later, your ex experiences a financial windfall, but since there’s no settlement, you struggle to secure additional support for your child’s education or medical needs. Financial settlements lay the groundwork for handling future responsibilities to your children.

The Legal Side of Things: Jurisdiction Matters

The rules around financial settlements vary from country to country and even from state to state. In the UK, for instance, a financial order must be part of the divorce for both parties to be completely free of financial claims. In the U.S., this varies widely—some states require a financial agreement before a divorce is finalized, while others don’t.

But no matter where you are, it’s highly advisable to seek legal counsel before making a decision. Financial settlements are legally binding agreements, and without one, you could be walking into a future filled with legal uncertainties.

What a Financial Settlement Typically Covers

Financial settlements can be as simple or as detailed as you need them to be. Typically, they address the following:

• Division of property: Who gets the house? If sold, how will the proceeds be split?
• Savings and investments: How will joint savings accounts or investments be divided?
• Pensions: Often overlooked, pensions can represent a significant portion of marital assets.
• Debts: Who is responsible for outstanding debts, such as credit card balances, loans, or mortgages?
• Ongoing financial support: Will either party need to provide spousal support?

It’s important to note that while child support is usually handled separately, the broader financial settlement can include agreements on how certain child-related costs will be handled.

What Happens If You Don’t Have a Financial Settlement?

Let’s paint a picture: You skip the financial settlement. You think everything is fine. A few years later, your ex-spouse suddenly files a claim against you. Maybe you’ve inherited a sum of money, bought a second property, or come into some unexpected wealth. Because there was no financial settlement, your ex is entitled to a share.

Not only could this be a major financial blow, but it could also bring up old emotional wounds, dragging you back into the stressful world of legal battles long after the ink has dried on your divorce papers.

Conclusion: Is It Worth the Risk?

In summary, while you can get a divorce without a financial settlement, the potential future risks far outweigh any short-term benefits. Financial settlements provide closure—not just emotionally but legally and financially. They ensure that your past relationship won’t come back to haunt your future prosperity.

Even if your financial situation seems simple now, it’s worth taking the time to formalize a financial agreement. Otherwise, you might find yourself in court years down the line, facing financial claims you thought were long gone.

So, can you get a divorce without a financial settlement? Yes. But should you? Absolutely not.