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Financial Remedy Proceedings

Updated on May 26, 2024

| Family & Divorce, Relationships, Property and Finance

What are financial remedy proceedings?

Following a divorce (or dissolution, judicial separation or nullity), you can apply for a Financial Order to ensure you are adequately financially supported. In this guide, we will explain financial remedy proceedings and the different types of financial orders you could apply for.

Do Financial Remedy Proceedings Involve Going to Court?

Family mediation is usually cheaper, faster, and is a far more amicable way to organise your finances without having to ‘go to court’. However, mediation relies on you and your ex-partner being willing to negotiate civilly and effectively in order for it to work. Before you can apply for a financial order, you will need to attend a MIAM (Mediation Information Assessment Meeting) with your ex-partner to determine whether or not your matter can be settled through mediation, unless one of the permitted exemptions apply. If mediation is unsuccessful, then you will need to go to Court. If you and your ex-partner can come to an agreement yourselves (either through mediation or through informal discussion), we can assist you in preparing a Consent Order which details the agreement between you. This is then submitted to the Court and considered by a Judge. Need family law advice? Our experienced solicitors are happy to provide you with a free initial phone consultation. For more information visit Family Law and Divorce.

Is a MIAM mandatory for everyone?

The majority of couples will have to attend a MIAM before instagting financial rememdy proceedings, but there are some exemptions. For example, you will not have to attend a MIAM if domestic abuse was present in the relationship, or if you have a disability which makes attendance difficult. We can go through the exemptions with you.

What kind of financial orders could be made?

Financial remedy proceedings may result in one of the following financial orders which will be made by the Court: A lump sum order. – This is where one party is ordered a cash payment, usually within a specific time frame. A transfer of property order. – This transfers property, whether held in sole or joint names, to the other party. A periodical payments order. – These could be regular maintenance payments for one of the separating parties or child support payments. Maintenance pending suit order. -Maintenance for one of the separating parties or the children could be payable depending on the outcome of the case. A pension sharing or compensation order. – Transfer of a pension or part of a pension to the other party. A variation order. – Alters a previous order already made by a family law court. Avoidance of disposition order. – Prevents a party from dealing with some property. A legal services order. – This is where one spouse pays towards the other spouse’s legal costs, whether in full or by way of contribution.

How do I apply?

You will need to apply for a divorce online and can then submit your Form A. Once the application has been issued, the Court will issue a Notice of First Appointment (Form C) which will set out how the proceedings will begin. This will also include a schedule of when relevant documents should be completed and submitted, so you can begin to prepare your argument. Usually, the Court will serve the Form C directly onto the respondent, though the applicant can choose to serve the respondent themselves if preferred. Additionally, companies who may be affected by the outcome will also need to be informed depending on the Orders applied for – this may include pension companies or mortgage providers, for example. Your family law solicitor can give you more information on who may need to be told about the application. Before each hearing we will file a Statement of Costs, detailing the costs incurred so far and future costs. This form is sent to yourself, the other party and to the Judge.

Form E – Financial Statements

Both parties must exchange with each other and file with the Court a financial statement (Form E) no less than 35 days before the First Appointment. The Form E will contain details on each party’s income, assets (including property, savings and investments, and pension value) and liabilities. This form must be accompanied by:

A Statement of Truth;
Documents relevant to the income, assets and pension value included in Form E (such as property valuations, bank statements or wage slips);
Any other documents necessary to explain or clarify any of the information in the Form E; and
Any documents from the pension administrators after having been served the application.

Preparation for the First Appointment

Each party must both serve on each other and file with the Court no less than 2 weeks before the first appointment:

A brief statement explaining the issues;
Chronology;
A Questionnaire requesting further information or documents necessary for the case or a statement that no further information or documents are required;
Confirmation that the party will be prepared to proceed to a Financial Dispute Resolution appointment (Form G) at the First Appointment, if applicable.

If possible, parties should further exchange and file a summary of the case produced with both parties’ agreement, a schedule of assets and details of any directions they seek, including any expert they want to appoint. You will need the Court’s permission before you can instruct an expert. Commonly instructed experts are chartered surveyors, pension actuaries, auctioneers and accountants. To instruct an expert, an application form will need to be prepared setting out the reasons why the expert is needed and submitted to the Court with a draft order.

Can I offer to settle outside of Court once proceedings have started?

You can make an offer to settle at any stage of the case, which can cover all or part of the financial rememdy proceedings. These can either be made without prejudice (without the Court being informed) or open (in which the Court are informed). The majority of settlement offers are made without prejudice, as it allows for you to have a less formal conversation about a potential settlement and the Judge will not know what you would have been willing to settle for if an agreement could not be reached. All without prejudice discussions will be disclosed to the Judge at the Financial Dispute Resolution, though the Judge at the final hearing will not be informed of any discussions had without prejudice.

Court Bundle

You will not need to discuss or negotiate at the First Appointment: the objective of the First Appointment is for the Court to define the issues at hand and save costs, by determining the following:

The extent to which any questions or requests for further information must be answered;
What directions are required in respect to the valuation of assets (to include the joint instruction of experts);
What expert evidence needs to be provided, if relevant
Evidence that each party is required to present
The filing of further chronologies or schedules
If an application for an interim order has been listed for consideration at the first appointment, make an interim order;
Whether the appointment (or part of it) is to be treated as a Financial Dispute Resolution appointment (FDR) if the parties have requested this in their Form G;
In a case where pension orders are requested direct the party with the pension rights to file and service a Pension Inquiry Form (Form P);
If an application for a cost order has been made decide the order; and list the case for an FDR hearing or if appropriate list straight to final hearing.

Unless the Court dictates otherwise, both parties must attend this Financial Remedy Proceedings appointment themselves. Although there aren’t any negotiations at the First Appointment, it is still important to take it seriously – failure to supply any necessary information (on your or your ex-partner’s behalf) could work against your argument at the FDR.

Negotiation – The Financial Dispute Resolution Appointment (FDR)

Negotiation will take place at the FDR, after all the necessary information has been supplied after the First Appointment. At least a week before the FDR appointment, details of all settlement offers made must be disclosed and filed with the Court. The parties must attend Court an hour before the hearing to discuss the issues between them with one another and the Judge. The Judge will listen and suggest the likely outcome at the final hearing, but this suggestion is purely advisory and made without having seen all of the evidence. After the initial discussion, further negotiations will commence. The negotiations conducted at the FDR are made without prejudice and a different Judge will attend the Financial Remedy Proceedings final hearing, should proceedings continue. If both parties can reach an agreement, the Judge then creates a consent order which makes the agreement legally binding. If a conclusion is not reached, the Judge will confirm a date for the final hearing and dictate further evidence that needs to be supplied.

The Final Hearing

At a final financial rememdy proceedings hearing, the Judge will hear evidence and decide on an outcome. At least 14 days before the date fixed for the final hearing, the applicant must have filed with the Court and served on the respondent an open statement which sets out in detail, the orders which the Applicant wishes to be made, including total amounts. Within seven days of this statement, the Respondent must file and serve their statement. The Court will direct parties to file a statement which makes reference to Section 25 of the Matrimonial Causes Act 1973, which outlines the criteria for determining how financial claims should be decided. The Form E will also form the basis of evidence for the making of financial orders, as well as oral evidence and cross examination of your evidence by the other party. Experts or witnesses may also be called to give evidence. The Judge will make notes throughout the hearing and may ask the parties questions. Once the evidence has been given each party will have the opportunity to make submissions, a closing speech to summarise the important elements of the case and the orders being asked for. The Judge will normally make their decision shortly after the submissions and will give reasons for their judgement, unless they wish to reserve judgement for another day. After the hearing, any Orders made will be implemented depending on the correct procedure for that Order.

Estimate of Costs and Cost Orders

In Financial Remedy Proceedings it is uncommon for the Court to order one party to pay the legal costs of another in a divorce matter; however, it may do so if there has been inappropriate conduct on behalf of one of the parties. In deciding whether to make a costs order, the Court will have regard to the following factors:

any failure to abide by Family Court rules, orders served or any direction which the Court considers relevant;
any open offer to pay the other’s legal costs made by a party;
whether any issues raised, pursued or contested by a party were unnecessary and inappropriate
the manner in which a party has pursued or responded to the application or a particular allegation or issue;
any other aspect of a party’s conduct in relation to the proceedings which the Court considered relevant; and
the financial effect on the parties of any cost order.

A Form H will be required 2 weeks before the final hearing to inform the Court of a party’s legal costs; they cannot serve a costs order if they do not know how much should be rewarded.

How can we help ?

Starck Uberoi Starck Uberoi’s expert Family Law Solicitors can provide assistance at every staege of the Financial Remedy Proceedings. For more information, please visit our Family law page, or to book an appointment please call 020 8840 6640 or email solicitor@starckuberoi.co.uk. Our offices are located in Brentford, Ealing, Richmond, London Belgravia and Canterbury, all within easy reach by public transport. Our partner, Raminder Uberoi, can also provide a Notary Public Service at any of our London offices. This guide is for general guidance only and should not be treated as a definitive guide or be regarded as legal advice. If you need more information about the issues referred to in this guide, please seek formal advice.