Following a divorce or separation, sorting out the division of funds and assets can seem daunting. But it’s an unavoidable task and allows you to make a clean break following the split.
If you have tried and failed to reach an agreement with your ex-partner over dividing your funds, a financial remedy order can help. In this post, we’ll look at what the financial remedy order offers to help you decide if it’s right for you.
What is a Financial Remedy Order?
Also known as an ‘ancillary relief order,’ a financial remedy order allows you to settle your dispute in court.
You can apply for a financial remedy order if you want:
- A lump sum payment
- To gain ownership of a property
- To set up regular payments to help out with childcare and living arrangements
- To gain a share of your ex-partner’s pension
How Do I Apply for a UK Financial Remedy?
The application costs £255 and it’s worth noting that this process is separate from any divorce proceedings you may be about to begin, or be in the midst of.
It can take between 6 and 12 months to finalise. This is because you will be expected to attend a series of court appointments and hearings so that the court can get a full understanding of the situation from both sides, and assess the assets involved.
To apply for a UK financial remedy order you need to fill in this application form. Then send two copies of the form to the court dealing with your case and make sure that you both keep your own copies for future reference.
How Does the Process Work?
Once the application has been filed, the first court appointment must be arranged. This must take place within 12 to 16 weeks after the application is submitted.
A financial statement then needs to be prepared by both you and your ex-partner. Ideally this needs to be exchanged 5 weeks before your first appointment.
If all the necessary paperwork is filed, the first court appearance will be treated as a Financial Dispute Resolution (FDR) appointment. Each time you and your ex-spouse appear in court you must produce up-to-date cost schedules. Any issues, details, offers, proposals or responses must be served before the FDR.
The purpose of the appointments is to negotiate the terms of your divorce and ultimately come to an agreement.
How Does the Court Reach its Decision?
The court will first consider the welfare of any children aged 18 or below. They will then establish if it is possible to completely sever any financial ties with what’s known as a ‘clean break order.’ This does not affect any child support maintenance payments.
The court will consider the following factors:
- The income, potential future earnings, property and any other financial resources each party have
- The financial needs, obligations and responsibilities of each party currently and in the future
- The standard of living both enjoyed before the divorce
- The age of each party and the length of the marriage
- Any mental or physical disabilities either party have
- Any contributions either party has made or will make to the welfare of the family, including looking after the home or caring for the family
The court will always strive to achieve a fair solution for both parties by taking an impartial approach and considering whether an equal division is appropriate. The District Judge will base their ruling on the details included in the Open Statement of Financial Information and the proceedings that follow.
It’s worth noting that financial claims can only be quashed with a court order obtained by consent, following a contested hearing or if your ex-partner remarries or enters into a new civil partnership. If you decide to remarry before your financial remedy order from your previous marriage has been determined, you may lose your right to make financial claims against your former partner.
If you’re currently going through a divorce settlement and want to protect your assets with a UK financial remedy order then help is at hand. Contact Cordell & Cordell today for trusted consultation and representation.