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Financial remedy proceedings are court proceedings used to resolve financial matters following divorce or the dissolution of a civil partnership.
They may be necessary when a couple cannot agree on how their property, savings, pensions, businesses, debts, or income should be dealt with.
Although the term UK is commonly searched online, the process explained in this article applies specifically to financial remedy proceedings in England and Wales.
At southgate solicitors, our family law solicitors help clients negotiate financial settlements and represent them throughout financial remedy proceedings where an agreement cannot be reached.
What Is a Financial Remedy?
A financial remedy is a court order dealing with financial arrangements between separating or divorcing spouses.
The court may make orders concerning:
Financial remedy proceedings are separate from the divorce itself. The Final Order ends the marriage, but it does not automatically divide money or property between former spouses. A separate financial order is required to make the arrangements legally binding.
When Are Financial Remedy Proceedings Needed?
Court proceedings may be required where former spouses cannot agree about issues such as:
Going to court is not always necessary.
Couples may reach an agreement through solicitor negotiations, mediation, collaborative law, or other forms of dispute resolution. If an agreement is reached, it can usually be submitted to the court as a Consent Order.
You may also want to read our guide on What Is a Clean Break Order and Why Is It Important?
How Do Financial Remedy Proceedings Begin?
An application is normally started by submitting Form A to the appropriate Financial Remedy Court.
Form A formally asks the court to deal with financial claims arising from the divorce or dissolution.
The person making the application is known as the applicant. The other spouse is known as the respondent.
Before applying, the applicant will usually need to consider mediation or attend a Mediation Information and Assessment Meeting, unless an exemption applies.
What Is Form E?
Form E is the detailed financial statement normally completed by both parties during contested financial remedy proceedings.
Each person must provide information about their:
Supporting documents such as bank statements, property valuations, pension statements, payslips, tax returns, and business accounts may also be required.
Both parties must provide full, frank, clear, and accurate financial disclosure. The financial statement is verified by a statement of truth.
What Happens After Financial Disclosure?
After Form E has been exchanged, each party can review the other person’s financial information.
They may raise questions where:
The court may also allow expert evidence where necessary, such as a valuation from a property surveyor, pension expert, forensic accountant, or business valuation specialist.
What Is the First Appointment?
The First Appointment is generally the first court hearing in standard financial remedy proceedings.
The purpose is usually to identify the issues and decide what further information is required before meaningful settlement negotiations can take place.
The court may give directions concerning:
The First Appointment is mainly concerned with preparing the case rather than making a final decision about how the assets should be divided.
What Is an FDR Hearing?
FDR stands for Financial Dispute Resolution.
The FDR hearing is designed to help the parties reach an agreement without proceeding to a Final Hearing.
Before the hearing, both sides normally make settlement proposals. A judge reviews the available information and may provide an indication of the likely outcome if the case were decided at a Final Hearing.
The judge does not impose a final settlement at the FDR.
Instead, the parties and their solicitors use the judge’s indication to negotiate. Discussions at the FDR are generally treated as private settlement negotiations, and the judge who conducts the FDR will not usually decide the case at the Final Hearing.
Many financial remedy cases settle at or shortly after the FDR.
What Happens at a Final Hearing?
If an agreement cannot be reached, the case may proceed to a Final Hearing.
At the Final Hearing:
The judge may decide how property, savings, pensions, maintenance, and other financial matters should be dealt with.
A Final Hearing can be expensive, stressful, and time-consuming. Parties are therefore encouraged to make reasonable attempts to settle before reaching this stage.
What Does the Court Consider?
The court does not automatically divide everything equally.
When deciding what is fair, it considers factors under section 25 of the Matrimonial Causes Act 1973, including:
The welfare and housing needs of dependent children will usually be an important consideration.
You may also want to read our guide on Is Everything Really Split 50/50 in Divorce in the UK?
Can the Court Order One Spouse to Pay the Other’s Legal Costs?
The general rule in financial remedy proceedings is that each party pays their own legal costs.
However, the court may make a costs order where one person’s conduct during the proceedings justifies it.
This could include:
A costs order is not automatic and will depend on the circumstances of the case.
How Long Do Financial Remedy Proceedings Take?
There is no fixed timeframe.
The length of the proceedings may depend on:
A straightforward case may settle during negotiations or at the FDR stage. More complicated cases involving businesses, trusts, hidden assets, or international property may take considerably longer.
Can an Agreement Be Reached During Proceedings?
Yes.
The parties can reach an agreement at any stage, including before the First Appointment, at the FDR, or shortly before the Final Hearing.
The agreement should normally be recorded in a Consent Order and submitted to the court for approval.
The judge will review the financial information and decide whether the proposed arrangements appear fair. Once approved, the Consent Order becomes legally binding.
Why Legal Advice Is Important
Financial remedy proceedings can affect your home, savings, pension, income, business, and long-term financial security.
Legal advice can help you:
At southgate solicitors, we advise clients across England and Wales on financial remedy proceedings, Consent Orders, clean breaks, property, pensions, businesses, maintenance, and hidden assets.
For more information or advice on family law matters, readers are encouraged to contact the legal team at southgate solicitors at 02080040065 or hello@southgate.co.uk. It’s important to note that the content of this article is general information and not legal advice, and readers should seek independent expert advice for their specific situations. Our experienced team at southgate solicitors is here to provide expert guidance and support.
Send your details to us and we will call you back to take further information about your matter, or you can click the number below.
Send your details to us and we will call you back to take further information about your matter, or you can click the number below.
