Financial Remedies on Divorce: Step by Step

You do not have to go to court to sort out the finances. Many couples reach agreement through:

• Solicitor negotiation — each instructs a solicitor who exchanges proposals.
• Family mediation — a neutral mediator helps the couple reach an agreement themselves; cheaper than court and confidential.
• Collaborative law — solicitors and clients commit to settling without court, working round a table.
• Arbitration — a private financial dispute resolution arbitrator gives a binding decision.

Before issuing a financial remedies application, you must attend (or have a valid exemption from) a Mediation Information and Assessment Meeting (MIAM). The mediator certifies on Form A whether mediation is suitable. Exemptions include urgency, domestic abuse, child protection issues, or recent attendance at mediation that did not resolve matters.

Any agreement reached out of court can be turned into a binding "consent order" by submitting it to the court for approval. The court will check the order is fair and that the parties have given full disclosure before sealing it.

Once you decide to apply formally, the process is:

1. Form A — the application form. £303 court fee (waivable on Help with Fees grounds). Specifies which orders you want (lump sum, periodical payments, property adjustment, pension sharing, etc.).
2. Notice of First Appointment — the court sets a date about 12–16 weeks ahead.
3. Form E — both parties complete this financial disclosure document at least 35 days before the First Appointment. It runs to 28 pages and requires: 12 months of bank statements, mortgage statements, pension valuations (CETV), business accounts, property valuations, and details of all income and outgoings.
4. Questionnaires and chronologies — each side prepares a questionnaire asking for further information about the other's Form E. These are exchanged 14 days before the First Appointment.
5. First Appointment — a court hearing focused on case management: agreeing what further evidence is needed, setting a date for the next hearing, and considering whether mediation or settlement is still possible. The judge does not decide the substantive case at this stage.

Form E is the heart of the process. Errors and omissions are damaging — the court (and the other side) will rely on it. Take time to complete it carefully and attach all required documents. Solicitors typically prepare Form E in 8–15 hours of work.

The FDR is the key settlement hearing. Both parties exchange position statements (offers) before the hearing and the judge reads the case papers carefully. At the hearing:

• The judge hears legal submissions from both sides and asks searching questions.
• The judge gives an indication of what they think a fair settlement would look like — typically a range, sometimes a specific figure.
• The hearing is without prejudice — nothing said at FDR can be referred to at a final hearing if the case does not settle. This frees both sides to negotiate openly.
• The parties and their lawyers then negotiate, often for several hours, to try to settle on the basis of the judge's indication.

The FDR settlement rate in England and Wales is around 60–70%. When agreement is reached, it is recorded as a consent order, signed by both parties and the judge, and becomes binding. If no agreement, the case proceeds to a final hearing before a different judge (the FDR judge is recused from the final hearing).

Private FDR is increasingly common — the parties hire a senior barrister or retired judge to act as the FDR judge, often achieving an earlier and longer hearing than the court can offer. Private FDRs typically cost £3,000–£15,000 split between the parties; this is often justified by avoiding a much more expensive final hearing.

If the case does not settle at FDR, a final hearing is listed — usually 1–3 days depending on complexity. At the final hearing the judge hears live evidence, cross-examination, and submissions, and gives a judgment with a binding order.

The judge applies the section 25 factors from the Matrimonial Causes Act 1973: welfare of children (always first consideration), income and earning capacity of both parties, financial needs and obligations, standard of living during the marriage, age of the parties and length of the marriage, any physical or mental disability, contributions to the welfare of the family, conduct (only in exceptional cases), and value of any lost benefits (such as widow's pension).

The starting point in most longer marriages is equal sharing of capital, varied by needs (especially housing the parent caring for children). In short, childless marriages, contributions and pre-marital assets carry more weight. Maintenance is moving towards "clean break" outcomes wherever feasible — a single payment rather than ongoing periodical payments.

The order, once sealed, is enforceable like any other court order. Non-payment of a lump sum can lead to charging orders, attachment of earnings, or even committal in extreme cases. Failure to disclose properly is grounds for setting aside the order at any time (see Sharland v Sharland [2015] UKSC 60). Always seek tax advice before any transfer — the timing of pension share orders and lump sums has CGT, income tax, and IHT implications.