Financial Issues

Financial issues arising out of marriage or civil partnership breakdown (financial remedies)

When a marriage has broken down and one of the parties has started divorce proceedings it is normally the wish of the parties involved that they will be able to come to a mutually acceptable arrangement over finances. It is important to obtain advice about your entitlement before reaching an agreement but once you have done so if possible negotiations should start directly between you and your spouse provided you feel confident enough to do so. If your spouse is domineering, aggressive, refuses to talk or has unreasonable expectations you may need to involve a solicitor to negotiate on your behalf. If you can reach agreement then what is called a consent order can be filed at Court.

This is subject to approval by a Judge so it has to be fair agreement. You will be required to give details of your financial position both to the Court and each other. It is sometimes necessary to involve the courts to settle any disputes. This is known as the “Financial Remedy Procedure”

The main principle in these proceedings is to enable the parties involved to come to an agreement between them at any stage of the proceedings right up to the date of the final hearing. The Courts are now operating within a scheme which attempts to encourage communication and agreement between the parties and to keep costs to a minimum.

Who can start financial remedy proceedings?

It is usual practice that when a divorce petition has been drafted and issued it contains a right for the Petitioner (person who has started the divorce proceedings) to apply to the Court to consider their financial position. The Petitioner activates this right by filing a notice of intention to proceed with this application with the Court.

The other spouse, known as the Respondent, may also apply to the Court to consider the financial position of the parties and this is also done by the completion of the Form A.

Whichever party commences proceedings, known as the Applicant, must state in the Form A what they want in terms of financial support or settlement.

What Orders are available?

The main orders which the Court can make are:

  • A Clean Break Order – The Court must attempt where possible to make a Clean Break Order. This means that once these proceedings are finalised neither party can bring any further claims against the other. This is not always possible particularly where there are dependant children.
  • A Maintenance Pending Suit Order – this is only necessary where the respondent has ceased all financial support and the Applicant is having financial difficulties. This Order is made during the proceedings and usually continues until decree absolute. It is an order for the payment of maintenance to meet immediate needs.
  • A Periodical Payments Order – this is an order for monthly payments of maintenance to be paid after the decree absolute.
  • A Lump Sum Order – this is where the parties have available money and the Applicant will be claiming a proportion. This is also the type of Order to be made if the matrimonial home has been sold and the Applicant wants to claim some or all of the net sale proceeds.
  • Pension Adjustment Order – this will depend upon the age of the parties, the size of the pension and the other assets available. It simply means that the Applicant will be entitled to a share in the pension when it becomes payable. It can also make a pension sharing order and further information regarding pensions will be given to you.
  • Property Adjustment Order – this is an order transferring the ownership of the matrimonial home from one party to another or from joint names into the sole name of either party.