Rose Agreements in Divorce: What You Need to Know

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Rose agreements: as final as a financial remedy order

If you’re going through a divorce, negotiating a fair financial settlement is a top priority. Once the judge has formally approved the agreement and granted a financial remedy order, the parties are bound by its terms and only the court can vary it.

However, it’s crucial to understand that the parties can be held to the terms agreed, even before a formal consent order has been made. Sometimes, the parties reach an agreement in principle on key financial matters, but one party subsequently attempts to resile from it.

In these circumstances, the court might be asked to uphold the agreement reached on the basis that it is a so-called Rose agreement or Xydhias agreement.

What is a Rose agreement?

A Rose agreement refers to the heads of terms of a financial agreement between the parties that can actually be approved by a judge in court, or even at a financial dispute resolution (FDR) hearing.

Rose agreements (or orders) are named after the eponymous case of Rose v Rose [2002] EWCA Civ 208. At the FDR hearing, the judge expressed his approval of the terms agreed, effectively making them legally binding – even though the order itself had not been perfected. Perfecting the agreement in a full financial remedy order was simply a formality.

The appeal judge noted that by this advanced stage, the parties were past the point of being free to “analyse and re-evaluate a crucial decision… and to decide on further reflection that they made the wrong choice”.

Rose orders therefore reflect the terms agreed between the parties at a much more advanced stage than the informal Xydhias agreement. A Xydhias agreement may arise earlier in proceedings – when the parties have informally agreed the terms of a financial settlement in principle.

Even if specific terms have not yet been agreed – the court can uphold the terms if it is fair to do so. A Xydhias agreement can also amount to a maintenance agreement and be varied in certain circumstances (read more about a Xydhias agreement here). The court is more likely to find Rose heads of terms exist if the terms have been recorded promptly in a draft consent order and signed by the parties.

In practical terms, a Rose order is effective and convenient where there are genuine time constraints preventing a full financial remedy order being drafted. In the Rose case, for example, the FDR in which the judge made the unperfected order took place on a Friday afternoon in August.

With the increasing delays in the family justice system, we may see more judges approve Rose agreements in a similar way.

What does this mean?

A Rose order is final and binding, essentially the same as other forms of order made by the court. Given that such an order can be made before a full financial remedy order has been drafted, the parties must consider the implications of agreeing key financial terms in divorce.

By a certain stage, it may be too late to regret an agreement and attempt to renege on the terms. It is a reminder to seek expert legal advice before entering into negotiations to settle financial matters.

How we can help

The financial remedies experts at Osbornes Law advise clients in complex financial disputes on divorce. Our experienced family law team will guide you through every stage of financial negotiations, ensuring your interests are protected before any agreement becomes final. If you’re facing divorce or need clarity on financial settlements, contact us by:

  • Filling in our online enquiry form; or
  • Calling us on 020 7485 8811

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