Personal

Financial Remedy Orders and Proceedings

The skilled team of divorce solicitors at Forbes are able to provide advice and help you with your Financial Remedy Procedure to make sure your assets are settled fairly.

SOLVING PERSONAL LEGAL MATTERS

Financial disputes can add to the complexity of the situation, and our specialist family law solicitors are here to help with financial remedy orders and proceedings. Forbes Solicitors understands that the breakdown of a marriage can be an emotional and difficult time. We have extensive experience in dealing with the financial aspects of divorce, including financial remedy orders, negotiating and settling disputes relating to property, assets, and pensions.

What is a Financial Remedy Order?

A financial remedy order is a court order that sets out the financial arrangements between divorcing spouses. This can include the division of property, payment of spousal support, and the payment of child support. A financial remedy order is often obtained as part of a divorce settlement, and can help to ensure that the financial aspects of the divorce are settled fairly and in a way that meets the needs of both parties. The financial affairs of divorcing spouses are not finalised without an order being in place.

Going through a Divorce can be difficult with a vast range of decisions to be made at a time when you and your family are undergoing a lot of stress. This can be exacerbated by the need to arrange property and finances, which can be a contentious issue.

When financial matters need to be settled as part of a Divorce and they cannot be resolved through mediation alone, a Financial Remedy Application (now also known as a Financial Order) can be made. This is a procedure to establish the division of money and property between the parties.

If you are going through this process, it is important to have expert legal advice to ensure that you are properly represented. The skilled team of solicitors at Forbes is able to provide advice and help you with your Financial Remedy Procedure to make sure your assets are settled fairly as part of your Divorce, while offering you the compassion and support you need at such a traumatic time.

What is a Financial Remedy Order?

Financial remedy proceedings, which are now known as a financial remedy order, helps to settle the financial dispute between divorcing couples in court if they have been unable to resolve things during mediation.

A financial remedy order can include lump sum payments, shares of pensions, ownerships of a property and regular payments for childcare and other needs.

Pre-Court Procedure

The first step is to lodge a document known as Form A with the Court in order to start Financial Remedy Procedure. Your solicitor can prepare this document on your behalf and they will be able to advise you of the Court fee payable. Once the Application is filed with the Court, we will also serve any relevant Mortgage Providers or Pension Companies where appropriate.

Both parties are obliged to offer full financial disclosure. This obligation is ongoing throughout the process and extends to a duty to disclose any material changes to either party's finances after initial disclosure has been given.

Once this is done, the Court will timetable your case, taking into account the following factors:

A date for when you and your former husband/wife will exchange financial documents (Form E).
A date for when Questionnaires (questions you wish to ask the Other Side for further information, a Chronology (detailing the relevant dates in your Marriage) and the Statement of Issues are to be filed with the Court. This usually needs to be 14 days before the First Appointment and is served upon your former husband/wife.
The date of the First Appointment (known as the FDA).

The First Appointment

The objective of the First Appointment is for the District Judge to discern if further information is required from either party so that they can establish if full disclosure has been made before negotiations begin to attempt to settle the financial issues.

The District Judge will also decide whether any other Directions need to be made, including the valuation of assets and the obtainment of expert information.

If a settlement is not reached at the First Appointment, the District Judge will set a date for the Financial Dispute Resolution Hearing (FDR).

Financial Dispute Resolution Hearing

After any further information has been served upon each of the parties, they are each obliged to make proposals for the satisfactory settlement of their case. These should be filed with the Court before the FDR Hearing.

It is possible for a settlement to be reached before your FDR Hearing, but if it is not then you will try to reach one at the FDR appointment.

At the FDR hearing, the District Judge may indicate what they believe to be a reasonable conclusion to your case, but they will not impose an Order at this time. Instead, negotiations are encouraged and, if an agreement is reached, the District Judge can approve it. If an agreement is not reached, further Directions will be made in order to prepare the case for a Final Hearing.

Final Hearing

If an agreement is reached prior to the Final Hearing date, a Consent Order can be drawn up to formally outline the terms and be filed with the Court for approval.

If an agreement cannot be reached, further documents will need to be prepared and you may be represented by a Barrister in Court. You and your former husband/wife will give evidence to the District Judge and they will then decide how the finances should be separated and decide if any one party has an ongoing responsibility to financially support the other.

The Judge will make several Orders which can include:

The sale of any property
The transfer of property ownership
A Lump Sum order
A Maintenance Order
A Pension Sharing Order.

The Judge will also be considering if a Clean Break can be made, which would mean you and your former husband/wife would have no financial claim against the other. Your solicitor will discuss possible Orders with you throughout your case.

Any children will be considered first and foremost in order to make their housing arrangements and decide on their maintenance. Other things taken into account will be:

Age
Ability to earn
Property and wealth
Living expenses
Standard of living
Role within the Marriage/Civil Partnership.

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FAQs

What is a financial order?

A financial order in divorce is a document that sets out how you have agreed to split your finances and assets and is legally binding. Now known as a financial remedy order, this document essentially details the financial agreement in resolution to any related disputes.

How is the financial settlement determined in a divorce?

The financial settlement in a divorce is determined by considering various factors such as the length of the marriage, the income and earning capacity of each spouse, their financial needs and obligations, and the standard of living during the marriage. The court will also consider any contributions made by each spouse to the marriage, including non-financial contributions such as caring for children. The aim is to achieve a fair and reasonable settlement for both parties.

What factors are considered when determining a financial settlement in a divorce?

Factors considered when determining a financial settlement in a divorce include the income, earning capacity, and financial needs of each spouse, the standard of living during the marriage, the length of the marriage, the age and health of each spouse, any contributions made to the marriage (financial or non-financial), and any other relevant factors. The goal is to achieve a fair and reasonable settlement for both parties.

Can I get a financial remedy if I was not married but lived with my partner?

If you were not married but lived with your partner, you may be able to make a claim for a financial remedy under the law of trusts or property law. However, the process can be complex and will depend on the specific circumstances of your case. It is recommended to seek legal advice from a specialist family lawyer.

Can I change a financial settlement after it has been agreed upon?

It is possible to change a financial settlement after it has been agreed upon, but it is difficult. The settlement would need to be challenged in court and there would need to be evidence of a significant change in circumstances since the settlement was agreed upon. It is important to seek legal advice before attempting to change a financial settlement.

What happens if my ex-spouse does not comply with the financial settlement?

If your ex-spouse does not comply with the financial settlement, you can take legal action to enforce the terms of the settlement. This may involve going back to court and obtaining a court order for the payment of the settlement. Your ex-spouse may also face penalties for failing to comply with the settlement, such as fines or even imprisonment. It is important to seek legal advice if your ex-spouse is not complying with the financial settlement.

Can I get a financial remedy if my spouse has hidden assets?

Yes, you can get a financial remedy if your spouse has hidden assets. Under UK law, both parties are required to provide full and frank disclosure of their financial assets during divorce proceedings. If it is discovered that your spouse has hidden assets, you can apply to the court for a financial remedy to ensure that you receive a fair settlement. The court has the power to order your spouse to disclose all assets and can penalise them for failing to do so.

Do I need a solicitor to help me with a financial remedy in divorce?

It is not a legal requirement to have a solicitor for a financial remedy in divorce, but it is highly recommended. A solicitor can provide legal advice, negotiate on your behalf, and ensure that the settlement is fair and legally binding. It is important to choose a solicitor who specialises in family law and has experience in financial remedy cases.