The Importance of a Financial Remedy Order in Divorce

What is a Financial Remedy Order?

A Financial Remedy Order also known as ‘Ancillary Relief Order’ is a Court Order that sets out a couple’s financial arrangements. Once a divorce petition has been filed, one of the parties to the marriage can apply to the Court in relation to the financial aspects of the divorce.

The Order can include a lump sum payment, ownership of a property, the share of pensions, or regular payments to help out with childcare and living arrangements.

What is the process of getting a Financial Remedy Order?

A solicitor should be able to help a party reach an agreement with their spouse outside of Court. However in some circumstances, it will be necessary to go to Court and if that is the case, the process is as follows:

• Application process: the first step is to fill out a “Form A” and send it to the court after mediation. Both parties will need to provide full financial disclosure of their finances and it must be simultaneously exchanged with the other party and sent to the Court. Once the Court has received the application, they will fix a date for the first appointment.
• First Appointment: the Judge will establish if full disclosure has been made, and whether further evidence such as expert report is required. It is possible for negotiations to take place at the First Appointment however more often than not, the First Appointment will deal with directions only to move the case forward. If a settlement is not reached at the First Appointment, the Judge will set a date for the Financial Dispute Resolution Hearing.
• Financial Dispute Resolution Hearing: at this hearing, the Judge may indicate what they believe to be a reasonable agreement and negotiations will take place. If an agreement is reached, the Judge can approve it and a Consent Order can be drawn up to formally record the terms. If an agreement is not reached, a further directions order will be made in order to prepare the case for a Final Hearing.
• Final Hearing: The parties will give further evidence to the Judge and the Judge will then decide how the finances should be separated and make a final order.

Can you simply agree the finances between yourselves?

Couples can simply agree finances informally between themselves but the agreement will not be binding unless it is filed at Court and approved by a Judge. If not, either party to the marriage can change their mind. We have seen many couples bring an application for a financial remedy order years after the marriage has ended so it is recommended that finances are dealt with at the time of the divorce.

Why is it important to have a Financial Remedy Order in place?

The division of financial arrangements during divorce is a significant element of the divorce process, and the outcome will have long term impacts on separating couples and their children. It is a common misconception that the granting of the Decree Absolute dismisses the financial claims of a spouse. Unless a couple have legally dealt with their finances after a divorce, both parties will be able to bring a future claim against the other’s assets.

Here at Franklins Solicitors, we always advise clients to consider their financial positions carefully. It is very important to consider a Financial Remedy Order to prevent either party making any future claim against the other’s assets. If you need advice and assistance, please contact our Family Team on 01908 660966 / 01604 828282 or email Family@franklins-sols.co.uk.