When a marriage or civil partnership breaks down, dividing finances fairly can be one of the most challenging aspects. If you cannot agree on how to divide the assets, it might be necessary to apply for a financial remedy order through the family court. This blog breaks down the process, step-by-step, so you know what to expect.
What is a financial remedy order?
A financial remedy order will set out how the matrimonial assets are divided. It can include lump sum payments, property adjustment orders as well as pension sharing orders and spousal maintenance orders. You can read more about those orders in our blog here.
The aim is to achieve a fair outcome, considering the needs of both parties and any children involved.
Step 1: Attempt Mediation (MIAM)
Before applying to court, most people must attend a Mediation Information and Assessment Meeting (MIAM). This is a short session with a mediator to explore whether issues can be resolved without going to court.
There are exemptions (such as in cases of domestic abuse), but in most situations, this step is mandatory.
Step 2: Apply to Court – Form A
If mediation fails or isn’t appropriate, the next step is to submit a Form A to the family court to start the financial remedy proceedings. Once it’s issued by the court, a timetable is set for the next steps.
Step 3: The Court Timetable Begins
Once the Form A is issued, the court sets a schedule of next steps, including the completion of a Form E which is a detailed financial statement disclosing income, assets, debts, pensions, and income needs. You and your ex-partner are then able to raise a questionnaire with any further requests for information once you have seen each other’s Forms E.
It is also standard to provide a valuation of the family home as well as evidence of mortgage capacity.
A first hearing is then listed, known as a First Appointment, usually a few months after the application has been issued.
Step 4: At the First Appointment
This is a procedural hearing at which the judge will review the information already filed and may order further disclosure if needed. The judge may also decide if any expert reports are needed if there are pension queries or businesses that need to be valued.
The judge may then direct that the case proceeds to another hearing known as a Financial Dispute Resolution hearing (FDR). Usually, before that hearing more information known as updating disclosure will need to be filed.
Step 5: At the Financial Dispute Resolution (FDR) Hearing
At the FDR, the judge will give an indication of what a final settlement may look like. You are then encouraged to try and negotiate an agreed settlement with that indication in mind.
An FDR is usually listed for a few hours so there is time to negotiate and in and out of the courtroom if needed.
This is a without prejudice hearing, meaning nothing discussed can be used if the case goes to a final hearing. The goal is to settle and many cases do at this stage to avoid the cost and stress of a trial.
If there’s still no agreement, the case goes to a Final Hearing.
Step 6: Final Hearing
At this hearing both parties are required to give evidence based on statements that will be filed. The judge will hear arguments from both parties and review the evidence they have filed. The judge then makes a decision as to how the finances will be divided and that is binding upon the parties.
How can we help?
Going through a financial remedy application can feel overwhelming, but understanding the process helps you stay prepared. Legal advice is strongly recommended, especially in cases involving complex assets like businesses or pensions.
Whilst court proceedings should be the last resort, the process exists to ensure a fair division of finances when negotiation fails.
Book an appointment with us today to learn more about the court process and whether it is a step you need to take.
