Financial Remedy

Most couples will be required to attend mediation which will involve an independent third party helping you to try to reach an agreement outside of court proceedings. However, mediation may not always be considered suitable, for example, if the matter is complicated or if there are allegations of domestic abuse.

The matrimonial pot can consist of:
1. The family matrimonial home – this is the case even if the home was brought before the marriage and/or if it’s only in one of the parties names
2. Properties owned by either party
3. Cash savings
4. Pensions
5. Income
6. Investments
7. Inheritance (if this has already been inherited)

A ‘Lump sum’ order is where a party is ordered to pay a lump sum to the other party. This could be a single lump sum or be payable in instalments.

A ‘Pension Sharing’ order is where a party may be ordered to share a portion of their pension with the other party.

The sale of a property may also be ordered by the court. The division of the proceeds of sale will be determined by a judge based on the circumstances of the case.

A judge may also order the transfer of property ownership. For example, if the family home is in the joint names of the parties, in some circumstances, the court may order for the home to be transferred into the name of one of the parties.

A maintenance order can be made which requires one party to make maintenance payments to the other party. This may be for a specific amount of time or have no time limit.

These orders can be made in conjunction with each other and will be balanced to ensure that an overall fair division is made of the whole matrimonial pot.

Properties outside of the UK can usually be taken into account in financial remedy. However the way in which they are considered requires the court to look at whether it has jurisdiction and if those properties are already being considered in legal proceedings outside of the UK.

The court will take the following into account to ensure that a fair division is made:

1. Any children, their housing arrangements and maintenance
2. Ages of the parties
3. Ability to earn
4. Property and wealth
5. Each party’s living expenses and needs
6. The standard of living during the marriage
7. Contributions made throughout the marriage/civil partnership and the length of the marriage

During proceedings, before a final order is made, the court can order the party with higher income to make maintenance payments to the other party for their living costs until the proceedings come to an end.

You should apply for a financial remedy order after an application for divorce or dissolution is made but before a final order of divorce is made. If a final order of divorce is made, this can have financial consequences.

If your former partner is refusing to comply with an order, you can apply to the court for an enforcement order to ensure that the final order is enforced. There are a number of ways that an order can be enforced. One of the easiest, and most common, is an attachment of earnings order which requires a party’s employer to deduct a specific amount from their income and for this to be transferred to you directly. Other enforcement powers include seizing assets, issuing fines or even imprisonment.

Whilst the courts can order this, it is usually dealt with by the Child Maintenance Service. An application can be made directly to them.