Financial Remedy Proceedings UK
What Are Financial Remedy Proceedings Upon Divorce?
In many divorces and civil partnership dissolutions, couples can find it tricky to decide how their finances should be split between them. Even in the most amicable of breakups.
Dividing up money and assets can be difficult if you don’t agree on a fair way to do this, or if you have many assets and your situation is complex. It may be that both sides are responsible for other children outside of the marriage or, you have multiple shared properties and cannot agree on how to proceed.
When partners separate, in many cases, much of their finances are intertwined which can cause disagreements and difficulties when trying to cut financial ties with one another. This is where the court can come in to help make a clean break through financial remedy proceedings.
What Is A Financial Remedy Order?
A financial order, otherwise known as a ‘contested’ route or an ‘ancillary relief order’ gives the court power to decide how your assets should be divided in a divorce. This can include property, pensions, savings, and investments along with child maintenance payments.
The process of applying for a financial order is called financial remedy proceedings and is recommended in cases where parties are unable to agree on their finances themselves. The downside is that it takes longer than other remedial routes (such as mediation) and it is more expensive since you have to go through hearings with a judge and a financial disputes resolution meeting.
You can apply for a financial order once you have attended a mediation meeting to show that you have tried to resolve the situation out of court first and after the conditional
Order (or decree nisi) has been sent to you. The conditional order is a document confirming that the court does not contest your divorce. You get this once you have petitioned for a divorce.
A financial remedy order helps to split your assets in the fairest way possible. Getting a financial remedy order means that the other party cannot bring a legal claim against the other person’s assets in the future and settles everything formally in case one person changes their mind later down the line.
Maintenance
Sometimes the Child Maintenance Service is unable to provide guidance on financial support for children upon divorce. In this case, the responsibility is passed to the Financial Remedies Court to help resolve financial matters when it comes to children. This can include deciding on child maintenance payments.
Division of Assets
The main objective when splitting assets is to find the best division that meets both person’s needs. But first and foremost, if there are any children involved, their needs will be considered above all others.
The judge will make decisions about how your assets should be divided based on many factors. These may include how long you have been married or in a civil partnership, your age, your ability to earn a salary of your own, and other relevant factors in your situation like your responsibilities and financial commitments.
If you are younger, it may be that you have many years before retirement to get a job and begin a career. Alternatively, you may have a disability or health condition that could prevent or restrict you from being able to work and therefore earn money and support yourself.
The judge will also consider your living expenses and your expected standard of living and whether this can be met in the final settlement.
What Is The Procedure For Financial Remedy Proceedings?
The Financial Remedies Court is a part of the Family Court that specialises in financial issues when a marriage or civil partnership breaks down.
Before a case goes to the Financial Remedies Court, the couple must show that they are not able to settle the division of finances outside of court first through mediation or between themselves.
It may be that after attending a mediation session, the mediator decides that the issues are beyond their realms of expertise or unsuitable for mediation. They will then confirm this by signing a certificate that allows you to apply for a financial order.
Step 1: Complete The Financial Order Application Form
To go through financial remedy proceedings, you must apply for a financial order by completing “Form A” which is a notice of intention to proceed. You will need to send two copies of the form to the court.
Step 2: Attend The First Appointment
You will need to complete “Form E” and take it to your first appointment. Within the form, you will need to detail all your finances including all assets and liabilities and provide proof of these.
At the appointment, there will be a short hearing in which the judge will discuss and go through the details of the case, advise of any further evidence that may be required, and explain the next steps.
Step 3: Attend a Financial Dispute Resolution (FDR) Appointment
This step of the process is a chance for both sides to try and negotiate and resolve any disputes without having to go to a final hearing.
Step 4: Go To The Final Hearing
If you were not able to decide in the FDR appointment how to split your finances, then the court will make this decision in the final hearing. Once the final order has been approved by the court in the final hearing, it will be legally binding on both parties. How the finances are divided varies on a case-by-case basis and is dependent on many factors that we mentioned earlier.
How Long Do Financial Remedy Proceedings Take?
It can take a long time to go through financial remedy proceedings since you must attend multiple appointments and hearings through the court. The amount of time will depend on your individual situation and whether you are able to agree on how the finances should be split. For instance, if you do not agree and you need to go to a final hearing, the process will take longer than if you both agree on a settlement at the FDR appointment.
Overall, it can take around 6-12 months to get a financial order as you may have to wait several months between appointments.
