A Financial Remedy Order is an enforceable legal document issued by the courts that sets out how financial assets (e.g. property, money, and pensions) should be divided fairly between divorcing couples. You can apply for a Financial Remedy Order if you and your ex-spouse are unable to reach an agreement on your post-divorce financial arrangements and would like the family court to resolve them. The term ‘financial remedy proceedings’ refers to the legal process by which the family court hears, makes decisions, and finalises financial remedy orders following divorce.
It is also important to understand that a Financial Remedy Order is not the same as a Financial Order / Financial Consent Order. A Financial Order is for couples who can agree on their financial settlement out of court or after a court hearing. In this case, the court will approve the order but will not make decisions on the divorce asset split.
Once a Financial Remedy Order has been issued by the court, it is legally enforceable, meaning that both parties are legally required to abide by the agreement set out in the document. There are several types of Financial Remedy Orders, including:
- Lump sum orders – an order for one former spouse to pay a sum of money to the other
- Property adjustment orders – sets out how property should be handled and divided in the event of divorce
- Periodical payments (spousal maintenance) – whereby one party is ordered to make ongoing regular payments to the other party
- Pension sharing or attachment orders – gives one party a share of the pension of the other party following divorce
- Clean break orders – severs all financial ties between divorcing spouses, meaning that no future claim can be made by either party against the other
- Child maintenance orders – the courts may issue a child maintenance order if they have the jurisdiction to do so. This may be the case if the child maintenance service (CMS) does not have jurisdiction, if both parents agree, or where there has been a maximum CMS assessment, and the court feels it is necessary to top up the amount of child maintenance payment.
How to apply for financial remedy orders
You can apply for a Financial Remedy Order at any time after your divorce application has been issued. However, the court will only continue with your Financial Remedy Order proceedings after your Conditional Order (Decree Nisi) has been granted. Financial remedy proceedings involve the following key steps:
- Try mediation or another form of Non-Court Dispute Resolution (NCDR)
- Complete and submit a financial order application form (Form A)
- Provide full disclosure of your financial assets (Form E)
- First appointment
- Financial dispute resolution appointment, and
- A final hearing.
Mediation or another form of Non-Court Dispute Resolution (NCDR)
A court will not consider an application for a Financial Remedy Order unless it is satisfied that you have tried to find a resolution to your matter outside of the court system. Non-Court Dispute Resolution (NCDR) methods such as mediation can be extremely effective in finding resolutions to even the most difficult of divorce financial disputes.
Complete and submit a financial order application form (Form A)
If mediation or another form of NCDR has not proven effective or if it is not deemed to be appropriate in a mediation information and assessment meeting (MIAM), you can apply to your local financial court for a Financial Remedy Order for a judge to decide on your matter. The first step in the application process is to complete and submit a ‘Notice of [intention to proceed with] a financial application to which the standard procedure applies’, also referred to as Form A. Once received, the court will review your application, and if the necessary criteria have been met, they will make arrangements for a first appointment
Provide full disclosure of your financial assets (Form E)
You will need to provide full and frank disclosure of all of your financial assets. You and your spouse or civil partner will be required to each fill out separate Form Es as part of the financial remedy proceedings process.
First appointment
At the first appointment, the judge overseeing your matter will discuss your application with you and your ex-spouse. This is normally held 12 to 14 weeks after the application for a Financial Remedy Order is received.
Financial dispute resolution appointment
It may be necessary to attend one or a series of financial dispute resolution (FDR) appointments where the judge will try to help you reach an agreement on your financial arrangements with your ex-partner.
A final hearing
If you cannot reach an agreement on your financial arrangements within your FDR appointments, the judge will hold a final hearing at which they will decide on any outstanding matter on your behalf.
It can take several months to reach the point where the court issues a Financial Remedy Order. The time taken will depend on the complexity of your case and whether the courts have a backlog.
What does the court look at when deciding on a financial remedy order?
The court will take into account a range of factors when deciding on your Financial Remedy Order. In particular, they will consider the income, earning capacity, financial needs, obligations and contributions of both parties. They will also consider the lifestyle enjoyed during the marriage, the length of the marriage and the age of both parties.
How can a financial remedy order be enforced?
Once the court issues a Financial Remedy Order of any type, such as a Consent Order, Clean Break Order, or Pension Sharing, both parties are legally required to abide by it. Any failure to comply with a Financial Remedy Order can result in legal action being taken, including an attachment of earnings order (whereby any amount owed is automatically taken from the earnings of the party in breach), a charging order (which may involve the court ordering the property of the party in breach to be sold to release the unpaid funds) or a warrant of execution (whereby the judge order assets to be seized). Other methods of enforcement include imprisonment, fines, and the transfer of assets such as stocks, shares, and pensions.
