Severing Financial Ties in Divorce

Divorce is a challenging process, not only emotionally but also financially. One of the critical aspects of divorce is severing financial ties between the parties involved. 

Understanding Financial Orders

When a marriage ends, financial decisions must be made regarding the division of assets, liabilities, and ongoing financial support. A financial order, also known as a financial remedy order, is a court order that sets out these decisions. It can include arrangements for the sale of the family home, division of savings and pensions, and maintenance payments, etc.

Agreements by consent

When divorcing parties have reached an agreement on their financial arrangements without solicitor involvement, they can proceed with a consent order to formalise this agreement. In cases where both parties agree on the terms, it is advisable for a solicitor to draft the documents to submit to the courts. This ensures that the documents are drafted correctly to avoid any delays with the Court raising questions and potentially requiring the parties to attend a hearing. 

The Process of Applying for a Financial Order

Where the parties are unable to reach an agreement, it may be necessary to make an application to the court for financial remedy. Applying for a financial order involves several steps, including attending a Mediation Information and Assessment Meeting (MIAM), save for in limited circumstances. One party files of a Notice of an Application for a Financial Order, commonly referred to as Form A with the courts. This document formally requests the court to make decisions regarding the division of assets, liabilities, and any maintenance payments. The applicant must ensure that all relevant sections of the form are completed and that it is submitted to the appropriate family court. As solicitors we are able to assist individuals with this application.

The First Appointment

Once the application is filed, the court schedules a first appointment, typically 12 to 16 weeks after the court process the application. This initial hearing is a short session where the judge ensures that both parties have disclosed all necessary financial information, usually by way of Form E. The judge may give directions for further information to be provided and decide on any preliminary issues that need resolution before the case can proceed. 

Financial Dispute Resolution Appointment

If the parties cannot reach an agreement at the first appointment, the court will schedule a Financial Dispute Resolution (FDR) appointment. This hearing is designed to facilitate settlement discussions, with the judge providing guidance on what the court might order if the case proceeds to a final hearing. The FDR is a confidential meeting, and the judge who conducts the FDR will be unable to conduct the final hearing. 

The Final Hearing

Should a resolution still not be achieved, the case will proceed to a final hearing. During this hearing, the judge will consider all evidence, usually hear oral evidence from the parties, and make a binding decision on how the financial assets and liabilities should be divided. The judge will take into account various factors, including the welfare of any children, the financial needs and resources of each party, and the standard of living during the marriage. 

The Role of Legal Professionals

1. Legal Advice and Representation: Lawyers offer guidance on the legal framework governing financial remedies and represent clients in negotiations and court proceedings. They help clients understand the potential outcomes and advise on the best course of action.  
2. Drafting Legal Documents: Lawyers are skilled in drafting legal documents, such as consent orders and financial statements, ensuring that they meet the court's requirements and protect the client's interests. 
3. Mediation and Negotiation Support: Lawyers can facilitate mediation sessions, helping clients reach amicable agreements without the need for court intervention. They provide strategic advice during negotiations to achieve favorable outcomes.

Conclusion

Dealing with financial remedy ties during a divorce requires careful consideration and expert guidance. By understanding the legal processes involved and seeking the assistance of a qualified lawyer, individuals can navigate this challenging time with greater confidence and clarity. Whether through mediation, negotiation, or court proceedings, the goal is to achieve a fair and equitable resolution that meets the needs of all parties involved.

If you are looking for support with your family law matter, please get in contact today. 

Jamie Beland & Stephanie Glover