Until the court makes an order, any financial agreement between divorcing couples is not legally binding. It is not uncommon for one spouse to agree to a financial settlement, only then to have a change of heart a few days, weeks or even months later. If you find yourself in this situation, all is not lost – depending on the circumstances it might ultimately be very difficult for your ex to go back on an agreement but you may need to go to court to get it sorted.
The extent to which your ex will be held to the terms of an agreement will depend upon a number of factors. These include the nature of the agreement, whether you both have had the opportunity to take legal advice and whether the terms of the agreement will meet both of your reasonable financial needs.
It is helpful if there is clear evidence that an agreement was reached. Written evidence (including text messages and emails) is preferable, otherwise you could find yourself in a game of “your word against theirs.”
Assuming an agreement has been reached, the court then has to look at whether it should be upheld or enforced. The court looks at various factors, including whether there has been any undue influence or duress which put pressure on one of you to enter into the agreement (if the court finds this, then the agreement will be unfair and won’t be enforced), whether either of you has already acted on or implemented the terms, as well as the legal advice you took during the negotiations.
Finally, the court will look at the fairness of the terms reached. In ordinary financial proceedings, the main focus for the court is ensuring that each person’s reasonable financial needs are met. A court does not require an agreement to result in a 50/50 share of the assets, but it will conduct a “sense check” to ensure that it’s not obviously unfair, because, for example, it leaves one of you struggling to meet your needs while the other walks away from the relationship with the lion’s share of the assets.
If your ex has changed their mind about your financial agreement, legal advice is essential and the experienced team at Mills & Reeve will be able to advise you on your options.