Nominal Orders in Financial Proceedings During Divorce and Why They Are Rare

Divorce is undeniably a significant life event, often accompanied by complex financial negotiations. In England and Wales, the term ‘nominal order’ tends to surface during discussions about financial remedy proceedings, yet it remains less understood. This blog aims to clarify what a nominal order is in the context of divorce and why such an order is relatively rare.

What is a Nominal Order?

A nominal order is a court directive concerning financial settlements issued during divorce proceedings. Unlike traditional financial orders that require one party to make payments or transfer property, a nominal order typically outlines that one party will receive a financial settlement of a specific nominal amount—often a token sum like £1.

This type of order is meant to reflect that one party is technically entitled to a financial remedy despite not receiving any meaningful financial benefit at the current time. The primary aim of a nominal order is to formally recognise the financial entitlements of one party, which can be beneficial for several reasons.

Reasons for Issuing a Nominal Order

1. Clarity of Rights: One of the key reasons for issuing a nominal order is to clarify the financial rights of both parties. For example, a party may have a claim to a share of certain assets but not wish to pursue them at the moment, either due to personal reasons or financial implications.

2. Future Claim Consideration: A nominal order preserves a party’s rights in the event of future developments, such as a significant change in circumstances, which may justify revisiting financial arrangements.

3. Debt Considerations: In some instances, one party may have significant debts that complicate financial proceedings. A nominal order can be a way to recognise that situation without imposing an unreasonable financial burden on the indebted party.

4. Avoiding Complications: A nominal order might also avoid complexities with pension sharing or inheritance claims. In cases where one party has substantial pension rights, giving a nominal order may provide protection for the other party’s claim without triggering tax implications or other complications.

Why Are Nominal Orders Rare?

While nominal orders serve specific purposes, they remain relatively rare in divorce proceedings. A few key reasons contribute to this scarcity:

1. Unpreferred Outcome: Most divorcing couples prefer a settlement that involves actual transfers of assets or payments. Parties often seek definitive financial resolutions rather than agreements that involve token sums. Consequently, judges may be less inclined to encourage nominal orders in favour of more concrete resolutions.

2. Judicial Discretion: The courts have considerable discretion in determining the appropriate financial order in divorce. Judges usually favour orders that are impactful and beneficial. They might see nominal orders as lacking in substance or practicality, showing a preference for more robust financial settlements.

3. Client Expectations: Divorcees generally enter financial proceedings with hopes of achieving a fair distribution of assets. As a result, the demand for nominal orders may not align with the expectations of the parties involved. Individuals typically seek full access to the financial resources they are entitled to rather than a symbolic recognition.

4. Complexities of Assessment: Determining appropriate financial resolutions during a divorce requires accurate assessments of the couple’s financial situation, which may not be conducive to the simplicity of a nominal order. Instruments for evaluating the full scope of assets and liabilities are often employed, leading to more substantial financial orders.

Conclusion

Nominal orders in financial proceedings during divorce can play a key role in recognising one party’s potential entitlements without imposing a current financial burden. Despite their utility in certain situations, nominal orders remain rare, largely due to a preference for more substantive financial settlements and clear judicial guidelines. As divorce law continues to evolve, understanding the mechanisms and implications of various types of financial orders, including nominal orders, becomes increasingly important for anyone navigating the complexities of divorce in England and Wales.

Alexander JLO Solicitors are well aware that going through divorce can be very difficult. Whilst the implementation of no-fault divorce back in 2022 has made the legal process much simpler, there are times, especially in relation to financial matters, when input from an experienced solicitor is vital.

With that in mind we have developed a revolutionary new service which will ascertain whether or not it’s wise to have legal advice on finances when going through divorce. Simply called Form Easy it will assess your level and type of assets and determine if you qualify for a free, no-obligation consultation to discuss your case with us and decide on the best ways forward for you. Simply click the Form Easy button, or visit the page here, answer a few short questions and we will let you have our input on whether we can help. 

At Alexander JLO we have many years of experience of dealing with all aspects of family law and will be happy to discuss your case in a free no obligation consultation. Why not call us on +44 (0)20 7537 7000, email us at info@london-law.co.uk or get in touch via the contact us button and see what we can do for you?

This blog was prepared by Alexander JLO’s senior partner, Peter Johnson on 2nd December 2025 and is correct at the time of publication. With decades of experience in almost all areas of law Peter is happy to assist with any legal issue that you have. He is widely regarded as one of London’s leading divorce lawyers. His profile on the independent Review Solicitor website can be found Here