A financial remedy order helps divorcing couples obtain certainty in court with financial matters when separating if they have been unable to resolve things during mediation.
A financial remedy order can include any financial asset and how this is shared between the separating couple. Often, a financial remedy order deals with lump sum payments, pension share allocation, property division, and regular payments for childcare and other needs.
In January 2022, new guidelines were published about dealing with Financial Remedies Hearings. Practitioners are fully abreast of these developments but as an applicant or respondent in such an application, you should be aware of these changes. There is an emphasis on collaboration and negotiation throughout the proceedings and jointly submitting information in a timely fashion.
A statement on the Efficient Conduct of Financial Remedy Hearings is required, which means having:
- A schedule of assets and income; and
- A case summary template.
A Primary Principles document is needed, which includes:
- The allocation questionnaire
- The First Appointment procedure and a precedent Order
Applicants must file the allocation questionnaire with Form A and should work with the Respondent wherever practical to complete this together.
Your case will be allocated to an individual judge up to the Financial Directions Review (FDR). A separate judge will be allocated to your FDR.
The First Appointment
There are some practical steps which must be considered and should be taken at least 14 days before the First Appointment. These preparatory steps include:
- A jointly instructed market appraisal of the family home. If that is not possible, separate valuations and an explanation as to why a joint expert was not appointed.
- Produce a jointly prepared borrowing capacity statement and three sets of property particulars. If a joint statement cannot be achieved, then separate statements will suffice.
- File and serve a questionnaire which is limited to four sides of A4.
- The Applicant must serve on or before the day before the First Appointment a schedule of assets and income. These do not need to be agreed when filed.
The FDR
The Applicant in collaboration with the Respondent must file no later than 7 days before the hearing:
- Updated case summary and schedule of assets and income; and
- Chronology of the key dates of the relationship and of the litigation and which sets out any aspect which are not agreed.
Private FDRs
If necessary, a referral can be made to a private FDR judge and an Order shall be made to identify the judge, dispense with the current FDR, adjournment of the private FDR is only by order of the court, and that a short hearing may be held after the private FDR. This order is usually made at the First Appointment. The Parties can submit preferences for their own private judge for the court to appoint.
Pre-trial Reviews
If the case is likely to last three or more days, there will be a pre-trial review which is usually held four weeks before the Final Hearing.
Preparation for the Final Hearing
A timetable must be submitted, and the above preparation must be conducted thoroughly. The key documents must be prepared in collaboration between the parties.
Section 25 Statements and any other witness statements are limited to 15 pages in length, and 25 pages under PD27A. Position Statements are limited to 6 pages for the First Appointment and 15 pages for the Final Hearing.
In addition, a court bundle of up to 350 pages can be submitted which includes a maximum of 10 authorities (case law and legal explanations).
In summary, what does this mean for you?
Parties are now provided with more guidance, and there is an emphasis on negotiation and collaboration. Private judges can be appointed if desired. Judges are seeking time-saving and efficiency measures to help you achieve resolution quicker. You are not expected to agree on all the documentation or details, but the bundle should be jointly submitted and all paperwork and summaries provided in one place rather than ad-hoc and late, or not at all. If you need assistance with any of the above issues or require support with your Financial Remedy Proceedings, please contact Sima directly by calling 02073531746 or via email: clerks@simanajma.com.
