The breakdown of a marriage can be a difficult and confusing time, particularly when there are financial matters that need to be resolved.
Where spouses are unable to reach an agreement about how their finances should be divided, it may be necessary to make an application to the court. The following provides a simple guide to the financial remedy process in England and Wales where finances are contested.
The courts encourage parties to reach an agreement wherever possible and, where an agreement can be reached during proceedings, it may be possible to bring the court proceedings to an end without the need for a Final Hearing.
The Process
1. Divorce Proceedings
Divorce proceedings must have been issued before an application relating to matrimonial finances can be made to the court.
2. Mediation Information and Assessment Meeting (MIAM)
In most cases, the applicant must attend a Mediation Information and Assessment Meeting (MIAM) before making a financial application.
There are some exemptions to the MIAM requirement, including certain circumstances where domestic abuse has been involved.
3. Form A
A Form A must be completed and filed with the court to begin financial remedy proceedings.
The Form A provides the court with information about the parties and sets out the financial orders being sought.
4. Notice of First Appointment
Once the application has been issued, the court will provide a Notice of First Appointment.
This will set out important information about the proceedings, including the date of the first hearing and key deadlines that both parties must comply with.
5. Form E – Financial Disclosure
Before the first hearing, both parties will normally be required to complete a Form E.
Form E is a detailed financial statement in which each party provides information and supporting documentation relating to their financial circumstances. This can include:
- Income and employment;
- Savings and investments;
- Property;
- Pensions;
- Debts and liabilities; and
- Other financial assets and resources.
Both parties are expected to provide full and frank financial disclosure so that the court has the information it needs to make a fair decision.
6. Questionnaire
Once a party has received the other party’s Form E, they may prepare a Questionnaire.
The Questionnaire allows a party to raise questions or request further information and documentation where they consider that the financial disclosure provided is unclear, incomplete or requires further explanation.
7. First Directions Appointment (FDA)
The First Directions Appointment (FDA) is the first substantive hearing in the financial proceedings.
At this hearing, the court will consider the financial information provided by both parties, deal with any outstanding issues relating to disclosure and give directions for the next stage of the proceedings.
The parties will also be encouraged to consider whether the matter can be resolved without the need for further hearings.
If the finances cannot be agreed at this stage, the court will usually set a further hearing.
8. Financial Dispute Resolution (FDR)
The Financial Dispute Resolution (FDR) hearing provides another opportunity for the parties to reach an agreement.
The judge will consider the available financial information and the positions of both parties. The purpose of the FDR is to assist the parties in reaching a financial settlement without the need for a Final Hearing.
If an agreement cannot be reached, the matter will proceed towards a Final Hearing.
9. Final Hearing
If the parties are still unable to reach an agreement, the case will proceed to a Final Hearing.
At the Final Hearing, the judge will consider the evidence and arguments presented by both parties before making a final decision as to how the matrimonial finances should be divided.
The court will consider the individual circumstances of the case, including the financial needs and resources of both parties and any other relevant factors, with the aim of achieving a fair outcome.
How Long Will Financial Proceedings Take?
It is not possible to provide an exact timescale for financial proceedings, as every case is different. The length of the proceedings will depend on the complexity of the finances, the extent of the assets involved, whether full financial disclosure is provided and whether the parties are able to reach an agreement.
As a general guide, a contested financial case may take approximately 12–18 months, although some cases may take considerably longer or conclude sooner depending on the circumstances.
