The legal process for divorce in England and Wales has become relatively straightforward in recent years. However, if you are considering a divorce, it is important to bear in mind that ending your marriage is only one part of separating from a spouse: typically, arranging your finances will be the more complicated exercise. Our Family solicitors can assist you in navigating through the financial remedy process – below, we answer some common questions about what to expect of financial remedy proceedings.

Divorce vs financial remedy: what is the difference?

Although the two go hand in hand, divorce proceedings and financial remedy proceedings are entirely separate processes. Following the implementation of ‘no fault’ divorce in 2022, applying for divorce is a relatively straightforward process which can be done online, either jointly with your spouse or as a sole applicant. 20 weeks after your divorce application has been issued, you can apply for a conditional order (previously known as ‘decree nisi’). Once your conditional order has been granted, you will need to wait at least 6 weeks and 1 day before you can apply for the final order (previously ‘decree absolute’) which finalises the divorce.

It is advisable for the financial remedy process to be undertaken and completed before the divorce is finalised, but they run separately – for instance, if you apply for financial remedy proceedings in court, the court case will be a separate matter from your divorce case. While the divorce formally terminates your marriage, financial remedy proceedings deal with the practical implications of the divorce – ‘who gets what’, and any claims for maintenance that may arise from the separation.

Can I reach a financial agreement outside of the court process?

Financial remedy proceedings within the court can help separating spouses obtain a binding agreement or order regarding their financial assets. However, you are not obliged to decide what happens with your finances within the court process. Working outside of the court is likely to be more cost-effective, so if you believe you will be able to reach an agreement with your spouse this may be an option worth considering. The agreement can then be formalised (and rendered binding/enforceable) by obtaining a ‘consent order’ on the agreed terms and filing it with the court for approval.

On the other hand, following the court procedure often adds valuable pressure to the negotiations, especially because the court sets out clear timings that have to be followed. Working within the court procedure also means that if your spouse is being dishonest, elusive or obstructive (or you suspect they are going to be), there are ways to ensure their cooperation.

A hybrid approach is also possible – for instance, informally agreeing to follow a similar timetable to the one within court proceedings. Whatever your preferred approach, it is important that, even if you decide to negotiate outside of the court process, you first obtain legal advice to ensure you are securing your position and getting all the necessary information from your spouse before you reach an agreement.

What is the court procedure? What are its stages and costs?

The standard court procedure for financial remedy proceedings takes place in stages, each leading to a different court hearing. In broad outline, the hearing stages after the application for financial remedy are as follows:

• First Appointment (‘FDA’) hearing: the first court hearing. Before this hearing, you will need to prepare and exchange complete financial disclosure with your spouse. This hearing is mostly administrative and the judge will make directions in relation to a number of issues- for example, raising questionnaires or instructing an expert to value your pensions, properties or businesses.
• Financial Dispute Resolution (‘FDR’) hearing: the ‘negotiation hearing’. Having considered all the necessary information prepared following the FDA, the FDR judge will give an indication of the order they believe the court would make at the conclusion of your matter. This indication is ‘Without Prejudice’ and not binding but is intended to encourage settlement. If there are still outstanding issues and/or you are unable to reach an agreement at this stage, the case will go to Final Hearing.
• Final Hearing: This will be the most in-depth and ‘trial-like’ of the hearings, at the end of which the judge will make a final order that you and your former spouse will have to comply with.

 An agreement can be reached at any stage during the court proceedings and the proceedings can then be concluded. Costs for working within the court procedure vary depending on the specifics and complexities of each case.