Do we need a financial court settlement if we do not own any assets?

The reason is that you would both remain liable to each other for life and should you later come into some money then you would be liable to your ex.

Sounds unfair but that is the law.

There is a well-known case involving a very wealthy businessman who owns an eco-friendly electricity company. When he divorced many years ago, he was a traveller and had virtually no assets or income at all. He lived off-grid.

He and his soon to be ex-wife did not consider it worthwhile paying a lawyer to draft a financial agreement when there was nothing to divide.

Fast forward many years later, and the ex-wife came calling and asked for a financial settlement. The former husband refused, and the case went all the way to the Supreme Court.

The ex-husband lost the case and ended up having to pay the ex-wife who he had not seen for years over £300,000 plus legal costs.

So, the moral of the story is that it is vitally important you obtain a financial settlement order even if you have not got two pennies to rub together.