Financial Proceedings

It is always advisable to agree financial matters arising from a divorce. If a matter has to proceed to Court proceedings then costs incurred are high and often negate any benefit achieved in the average assets case. It is also likely that a Judge will make a decision that neither party wants.

If financial matters are agreed they can be incorporated into a consent order anytime after the pronouncement of Decree Nisi. Once approved by the Court, a consent order will make legally binding the agreement reached and, if necessary, can be enforced.

In cases where there are no assets it is still advisable to agree a clean break consent order, meaning that neither party can make a claim against the future assets of the other.

If financial arrangements following the breakdown of a marriage cannot be agreed, the only way forward would be for the Court to determine matters. The Court will first determine what the matrimonial assets are and their value before determining how they should be divided. This is regulated by s25 of the Matrimonial Causes Act 1975, which states that the starting point for division of assets is 50:50. The Court must consider various factors, such as income, earning capacity and financial needs with first consideration being given to the welfare of any minor child of the marriage.

Procedure

1. An application is made to Court for a financial order on Form A.

2. The Court gives initial directions for the filing of financial disclosure, questionnaires and lists a first directions appointment.

3. Financial disclosure is shared by each parties and any queries as to the opponent’s financial information is raised in a questionnaire.

4. At the first directions appointment, the Judge will give directions for responses to requests for further financial information (response to questionnaires) and valuations of any assets without an agreed value.

5. The matter will then become back before a Judge once all the information has been provided for a Financial Dispute Resolution Appointment. The purpose of a FDR is to make submissions to the Judge on the written information, in order to enable the Judge to give an indication as to how the matter should be resolved. It is anticipated that this indication will be utilised in the furtherance of discussions to settle. Financial proceedings can be settled by agreement up until the last.

6. If matters cannot be settled the case would be listed for a contested hearing before a different Judge (the Judge that heard the FDR cannot hear the final hearing). At this hearing, the Judge will consider all the evidence, including oral evidence, before determining how the matrimonial assets should be divided.

7. There may be additional hearings at all stages as may be required by the Court.