Financial Remedy Court Proceedings: What happens?
Financial Remedy Court Proceedings: What happens?
If you can’t settle your finances after your divorce any other way, the last resort is going to Court to get a Financial Remedy Order. In this article, we’ll look in detail at what you can expect.
Dividing financial assets and setting obligations can be one of the hardest parts of the divorce process. Along with access to children, it is an issue that can be contentious. When settling your finances, you have to make decisions that could affect the rest of your life, at an already emotional and stressful time.
If you and your ex-partner cannot reach a decision on your finances together (or with the help of your solicitors), you may need to apply to court to begin the process of getting a Financial Remedy Order.
In this article, we’ll look at what a Financial Remedy Order is, and the steps you must take in order to obtain one.
What is a Financial Remedy Order?
A Financial Remedy Order is a legally binding document, drawn up by the Court, laying down a final financial settlement between a divorcing couple.
It could order a settlement of:
Property
Pensions
Ongoing payments for children and living expenses
Final lump sum payments and more
In an ideal world, you will come to an agreement outside of the courtroom, with your solicitor drawing up a financial settlement that is agreeable to all. However, if you cannot do this, a Judge will make decisions for you.
Here are the steps to achieving a Financial Remedy Order.
Before you go to Court
The first step on the road to a Financial Remedy Order is getting your solicitor to apply to the Court to start the process. The relevant document is called Form A.
The next step is gathering all the financial information relating to the settlement. Your solicitor will help you to complete the financial disclosure form, which is known as a Form E and must include full details of your assets, liabilities, income and outgoings. During this process, both parties are compelled to offer full financial disclosure and not hold any information back. If anything to do with your finances changes during the process, you must disclose this too.
You should soon receive a list of dates from the Court laying out when the next steps will happen. Most of these will be deadlines that you and your ex-partner must disclose your financial details. However, there will also be a date for your First Appointment with the Court, sometimes called the FDA.
First Appointment
The primary goal of the First Appointment is for the Judge to determine whether the parties have all the financial information they need to begin negotiations and make an informed judgement.
Directions may be made for each party to provide further information and evidence or the Judge might direct that a particular assets should valued by an expert, such as a property or business. If there are pensions involved an order might be made for an expert to provide a pension report.
The next step is the Financial Dispute Resolution Hearing, or FDR.
Financial Dispute Resolution Hearing
The Financial Dispute Resolution is your last chance to settle before the Judge has to make a decision that could affect the rest of your life.
Both sides will file a proposal for a settlement with the Court before the hearing. Then, at the hearing, the judge will give a clear indication about what is likely to happen on major issues such as:
Housing needs of the children and the parties.
Whether the family home should be sold.
Whether there should be a pension sharing order.
Whether a clean break is appropriate or if there should be spousal maintenance
This is to help the parties reach agreement and avoid the costs of a final hearing. The Judge will then give the parties time to enter into negotiations at Court in order to try and reach a settlement.
If you can agree, the Judge will be there to approve the settlement. If you cannot, the next step is the Final Hearing.
Final Hearing
The Final Hearing is the final stage of the process. You may have a barrister to represent you, while you and your ex-spouse will be called to give evidence.
At the end of the hearing, the Judge will make a decision and create a Financial Remedy Order.
The Financial Remedy Order has the power to make you or your ex-partner:
Sell or transfer property
Pay a lump sum
Provide ongoing maintenance
Share pensions or pension payments
Find out more from Couchman Hanson
If you’re ready to start the divorce process or think that you may need to make an application to court to deal with your financial matters, it’s time to talk to Couchman Hanson.
We offer a free, half-hour long consultation, where we provide advice and will explain all the steps you need to take. We’ll also talk about the likely costs going forward. There’s no obligation to go with us afterwards, but it will help you understand and prepare for your divorce.
At Couchman Hanson, our solicitors genuinely care about getting the best outcome for you. We’re highly professional, with ‘city’ level talent and experience, but also friendly and welcoming. Everything we do fits with our values of integrity, honesty and authenticity.
Call 01428 722189 or email enquiries@couchmanhanson.co.uk
Please note: the above information is not an exhaustive explanation of the Financial Remedy Order process. We recommend you speak to a divorce solicitor about the specific circumstances of your situation.