What happens if my spouse does not pay my financial settlement?
By Vanessa Lloyd Platt, Lloyd Platt & Co
In the complex landscape of family law, adherence to court orders is paramount. Whether it’s disputes over child arrangements, contact issues, or other matters stipulated in a court order, failing to comply can have significant consequences. This is where legal expertise becomes indispensable.
At Lloyd Platt & Co., we understand the intricacies and sensitivities surrounding breaches of court orders in family law matters. Our seasoned legal team is dedicated to assisting clients who find themselves embroiled in such situations, offering guidance, support, and strategic representation to navigate through enforcement proceedings and mitigate potential repercussions.
As divorce practitioners, we are often concerned when parties try to go it alone, dealing with their own divorce matters including drawing up financial settlement agreements to embody the terms that they have agreed. If this is undertaken without the benefit of legal advice, quite often clients can fall into traps of how to enforce the terms that they have agreed.
Compliance with court orders
If one party fails to comply with the terms of a Court Order, and it is a Consent Order in financial proceedings, the other party can take steps to compel the compliance of the party in breach. This is known as enforcement order, enforcement proceedings or enforcing the terms of an order.
For enforcement applications to succeed, the method to be pursued will depend upon the nature of the order being enforced. The general enforcement methods include the following:
- If one party fails to comply with an order to pay maintenance to their spouse, then an application can be made for an attachment of earnings order whereby the maintenance can be paid directly from their salary. In this case, the Court will have to determine whether an attachment of earnings order should be made and will direct the company they work for to deduct the salary from their earnings accordingly.
- Orders for costs can also be given on such applications against the other party if there is no reason why they have not complied with the orders. One must be aware in making such an application that the other party, if they raise the argument that they can no longer afford to pay the level of maintenance, could apply for a variation of the order on production of evidence that they can no longer afford to pay it. This will have the effect of delaying the enforcement of any order.
- If you agree that a lump sum payment should be paid to you and this is not being paid by your partner, you can apply to the Court for a third party debt order whereby the non-paying spouse should have sums deducted out of their bank account to pay an unpaid lump sum paid directly to you. If there is a genuine reason why they could not meet the lump sum payment on time, they may be given a longer time for these payments to be made.
- There are occasions where there has been no reason for the nonpayment of lump sums etc, in which case an application can be made for a Charging Order against the non paying partner’s property. If the sum in question continues to be unpaid, the Charging Order can lead to the property being sold and the proceeds of sale being used to pay the lump sum that remains unpaid. This is quite a draconian order, but one which will be made in circumstances where there has been deliberate delay in complying with an order.
Where one party in a divorce has agreed to transfer a property to the other, or been ordered to do so but fails to sign the necessary documents, application can be made to the Court to enable the Court to sign them in the parties place to allow the transfer to proceed.
The Court will often step in to assist in these kinds of cases, particularly where one party is being intransigent. They will also be particularly encouraged to do so if there is a risk of Capital Gains Tax mounting as a result of the non-action of the non-paying party.
Consequences of failing to comply with a court order
One common consequence of non-compliance with court orders is the risk of being found in contempt of court. This can result in punitive measures imposed by the judge, including fines and legal costs.
If all else fails in aspects of enforcing orders, the ultimate remedy for breaching a Court order is for the Court to impose a term of imprisonment. The prospect of this can sometimes serve as a powerful inducement for the non-paying party to comply with the order.
Whether you are the party seeking enforcement or defending against it, our experienced litigators can guide you through the legal complexities, advocating for fair and equitable outcomes while minimising unnecessary legal costs and stress.
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The moral in dealing with enforcement is that when devising a financial settlement that it is absolutely vital to consider how the order may be enforced in the event that the paying party does not comply.
When a parent or party fails to comply with a court order, it not only undermines the integrity of the legal process but also jeopardises the well-being of the children involved.
If you have a final court order or family court order that is not being complied with, whether it is in relation to the setting up of an insurance policy, i.e., a breach of an undertaking to do so, or failure to pay maintenance, or lump sums, Lloyd Platt & Company will assist in devising the correct method of enforcement and following this through.
Whether it’s disregarding a child arrangements order or flouting contact provisions, such breaches can lead to heightened conflict and distress for all parties involved. Our priority is to address these issues swiftly and effectively, prioritising the best interests of the children while advocating for our clients’ rights.
If you want to discuss any aspect of failing to comply with a court order, please fill in our form below, call us on 0208 343 2998 or click to contact our divorce lawyers in London.
