Financial Remedy Order
Do I need a financial remedy order when I divorce?
Separating can be a very difficult time, and there is often a lot to consider.
Whilst the application for divorce was made simpler with the introduction of the “No fault divorce” in April 2022, and the introduction of the HMCTS portal to apply for divorce online, there are often still questions around whether or not to apply for a financial remedy order.
What is a financial remedy order?
A financial remedy order is an order that addresses how assets need to be divided between a divorcing couple. It can include what needs to happen to the family home, any other properties, child and spousal maintenance, pensions, and lump sum payments to name a few.
The Court is able to grant a financial remedy order once the Conditional Order has been granted in respect of the divorce itself. However, couples are encouraged to have discussions around financial matters before the Conditional Order is granted with a view to arriving at an agreement so that the relevant paperwork can be drafted and signed ready to be submitted to the Court.
It is hoped that couples can arrive at an agreement through discussions between themselves, by attending Mediation, or through negations with solicitors. This process may involve exchanging financial information on a voluntary basis so that both parties can see the full financial landscape before coming to an informed decision.
In the event that an agreement is reached through any of these means, the financial consent order and accompanying Statement of Information (D81) can be drafted and signed by both parties. Whilst the couple can come to an agreement about their assets between themselves without the assistance of a solicitor, at least one of them will need to instruct a solicitor to draft this paperwork and file it at court.
If an agreement cannot be reached between the parties, an application to Court may become necessary. Within the Court process, both parties will be ordered to file and exchange their financial information.
My divorce has finalised. Can I still apply for a financial remedy order?
The answer to this depends on the situation at the time that you wish to apply for a financial remedy order and depends on the information that was within your divorce application.
If you have not remarried, you are able to apply for all types of financial remedy order.
If you have remarried, you may be able to obtain a financial remedy order provided one of the following applies to you:
- You submitted an application for a financial remedy order prior to your remarriage. You will be able to apply for all financial orders except an order for spousal maintenance.
- You have not applied for a financial remedy order before your divorce has finalised, but you have indicated in either the divorce application if you are the applicant or in your response if you are the respondent that you will be seeking a financial remedy order. You will be able to apply for all financial orders except an order for spousal maintenance.
If neither of the above apply, you cannot apply for a financial order other than a pension sharing order and an order for child maintenance.
I don’t own any property and my assets are minimal. Why do in need a financial remedy order?
Whilst you may not have any significant assets in your sole name or in joint names, it is always advisable to obtain a financial remedy order as this is the only way to finalise matters between you and your spouse and prevent your spouse from making an application for a financial order against you in the future. It is advisable to obtain a ‘clean break’ consent order which states that you each retain the assets that you currently have in your possession and that there be a clean break on life and in death.
If you would like advice in relation to your divorce or about obtaining a financial order, please contact the office to arrange an appointment on 01656 656861.