Ancillary relief is a court-issued financial settlement for divorcing parties who cannot reach an agreement on the division of their matrimonial assets, including property, money, investments, and personal possessions. As such, the term ‘ancillary relief’ is just another way of saying ‘divorce financial settlement’. But why is it called ‘ancillary relief’? Many divorcing couples view divorce as a single overall process, but in reality, there are two stages: 1) the legal ending of the marriage and 2) the division of any marital assets. Since divorce proceedings do not address financial matters, ancillary relief (also known as financial proceedings) is often required as a secondary stage to resolve any financial issues. The word ‘ancillary’ literally means ‘secondary’ or ‘supplementary’, i.e. divorce financial proceedings are always secondary to the divorce itself.
How does the court split finances during ancillary relief proceedings
When deciding on ancillary relief to split the finances of divorcing parties, the family courts tend to look at a range of different factors. The first part of the process is for the court to understand what is in the ‘marital pot’. This normally involves asking both parties to complete a Form E financial statement. Form E requires both parties to provide full disclosure of their assets, including property, money, personal possessions, cars, art, businesses, and investments. Any attempt to mislead the court at this stage to hide assets in a divorce can result in serious legal consequences and almost certainly a smaller share of the marital pot.
The court will then decide how best to divide the marital pot by looking at:
- The financial resources available, including matrimonial and non-matrimonial assets and the income and earning capacity of both parties.
- Whether either party is living with a new partner after the divorce.
- The needs, obligations, and responsibilities of both parties. ‘Needs’ refers to any reasonable expenses. Obligations include any legal or moral obligation to meet expenses, including to third parties.
- The standard of living of both parties and any children.
- Whether either party has a disability.
- The contributions made by both parties during the marriage or civil partnership – including money and family welfare.
While the courts typically start from a position of equality when dividing marital assets, the consideration of the above factors may mean that a 50:50 split is not ordered. For example, if one party gives up their career to look after the family for many years, the court may award them a larger portion of the marital pot, acknowledging that they may not have the immediate earning power to support themselves and their children. The courts will also take into account the conduct of both parties. If there is evidence of an attempt to hide assets or domestic abuse, this is likely to sway the judge in their decision-making.
Court orders related to ancillary relief
There is no single ‘ancillary relief order’; rather, the judge may issue any of the following orders:
- Maintenance Pending Suit (MPS) – An MPS is a temporary financial support payment made by one spouse to the other during divorce proceedings before a final settlement is reached.
- Legal Services Pending Order (LSPO) – An LSPO normally requires one spouse to provide funds to the other to cover legal fees during divorce or financial remedy proceedings.
- Spousal periodical payments – Ongoing, regular payments made by one spouse to the other after divorce as a means of financial support
- Lump sum orders – A one-off payment made from one spouse to the other as part of a financial settlement in divorce or dissolution of a civil partnership.
- Property Adjustment Orders (PAOs) – A PAO is a court order that changes the ownership of property between divorcing spouses, often transferring ownership to one spouse.
- Sale of property orders – This is a court order that requires the sale of a property, often to divide proceeds between divorcing spouses as part of a financial settlement.
How to apply for ancillary relief
In England and Wales, ancillary relief is now referred to as a financial order. A financial order application through the courts can be made in time after you apply for divorce, but it is better to do so after you have your conditional order and before the divorce final order (decree absolute) is granted. You will also need to wait until you have tried mediation as a way of resolving the impasse outside of the court system.
If you and your ex-partner cannot agree on a financial settlement, you can apply for a financial order / ancillary relief by completing the following steps:
- You must both attend a Mediation Information and Assessment Meeting (MIAM) to determine if your matter is suitable for mediation as a means of resolution (this is not always necessary, for example, if there is a background of domestic violence)
- If your matter is not suitable for mediation or if mediation is not effective, then you can apply to the court for an ancillary relief order. Due to the complexities, pitfalls, and stress involved, it is important to get the help of a specialist divorce law solicitor who can guide you through this process.
- Complete the financial order application form (Form A)1 – your family law solicitor can handle this for you.
- Send Form A to your local financial remedy court.
Once your ancillary relief order application has been submitted, the financial remedy court will review the case. If it is deemed to be a valid application, the court will write to both parties explaining the next steps. There are then three stages (but you don’t need to complete them all if you can reach a resolution faster).
Ancillary relief stages:
- First appointment – Normally, a brief session with a judge is needed to review your application and address any initial matters.
- Financial Dispute Resolution (FDR) appointment – the aim of this appointment is to encourage both parties to reach a financial settlement without the need for a final hearing, though multiple sessions may be required.
- Final hearing – If no agreement is reached during previous hearings, the judge will make a legally binding decision on how your finances are to be divided and issue the appropriate type of ancillary relief order.
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