Financial Matters
When you are separating, you will have to decide who gets what. It can be the source of arguments and can often leave people feeling aggrieved. We have a team that specialises in getting the best settlements for our clients.
We will tell you what we think you should reasonably obtain from the settlement and we will fight your corner to make sure that you get it.
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What happens if we cannot agree on finances?
At some point it may become clear that the parties cannot agree on finances. It is not advisable to continue to go round in circles seeking agreement: in this instance you can make an application to the Court.
Applying to the Court can focus the mind of the entrenched person and lead them to reconsider their negotiating position.
Below are answers to some of the common questions that clients have about what we call the Ancillary Relief procedures and how the Court operates.
SPLITTING THE ASSETS
The Myths?
- There is no absolute rule or formula.
- Settlement will not be based upon righting the wrongs of the relationship
- There are no rules that require a property to be shared 50/50.
The Court will seek to share the assets as fairly as possible and we will advise you on how we think the Court will decide your case, as we progress matters for you, to enable you to decide if any proposals are in your interests.
How will the Court split the assets?
The aim of the Court is to ensure that the children are catered for and that both parties are provided for. The court takes into account a set of considerations when making a financial order:
- The welfare of the children
- The income and potential earning capacity of each person
- The property and resources of each person
- The financial responsibilities of each person
- The standard of living enjoyed by the family prior to the divorce
- The age of each person and the duration of the marriage
- Any physical or mental disability of either person
- The contribution made by each person to the welfare of the family, such as looking after the home and bringing up children
- Any serious disadvantage to either person caused by the divorce
- The conduct of each person will only be considered if it is so bad it would be unfair to ignore it
POSSIBLE COURT ORDERS
1. An order for interim maintenance
Even before the divorce is finalised (Decree Absolute), it is possible to obtain an order for maintenance, if proceedings are likely to be lengthy and/or there is an immediate need. This is called Maintenance Pending Suit.
2. A maintenance order
Maintenance is normally paid at regular intervals, normally monthly in arrears. These are called Periodical Payments. In larger settlements there are variations on how maintenance may be paid which we will discuss with you.
3. A lump sum order
You may want a lump sum payment, perhaps in exchange for your share in other property or in exchange for not pursuing other assets or issues.
4. A property adjustment order
The court can give a property over to one spouse, usually to the
mother when there are children, or to alter a party's share in
the property.
5. Pensions splitting
The court can order pension trustees to pay pension rights when they become available.
ANCILLARY RELIEF: THE PROCESS
Step 1: The Application (Form A)
We will make an application to the court on Form A
The court will give you a First Appointment with a judge between 12 and 16 weeks from the date we file Form A, to enable both sides to provide evidence of their finances on Form E.
Before the First Appointment:
- Both parties disclose details of their finances on Form E with evidence to the court and to each other.
- At this point each side will go through the documentation provided by the other side and note where they agree and disagree with what has been disclosed.
- At least 35 days before the First Appointment we will exchange Form Es and file our Form E at the Court
- At least 14 days before the First Appointment, We have to provide to the Court further documentation as detailed on The notice of the First Appointment (Form C) also tells you which other documents are needed at least 14 days before the First Appointment.
Offers to settle
Throughout the process you may receive or make offers to the other side to settle matters. We will advise you on the strengths and weaknesses of any offers.
Step 2: First Appointment
You must both personally attend this appointment. The appointment takes place before a judge who can do any of the following:
- Give further directions on how your case will proceed.
- make a final order in respect of finances if agreement has been reached.
- Refer your case to an FDR (Financial Dispute Resolution) hearing if the matter cannot be sorted out at this Appointment.
- Adjourn the case for you and the other party to go to "mediation" if appropriate.
Step 3: Financial Dispute Resolution (FDR)
At the FDR The Judge will try to help you to reach agreement on the matters on which you both disagree. At least 7 days before the FDR hearing, the person applying for the order must file at court details of all offers and proposals made and received by either party.
If you are still unable to resolve your disagreements a final hearing will be set.
Step 4: Final hearing
At the final hearing, a Judge will carefully consider all the available evidence and make a final order.
Applications for Interim Orders
During the proceedings you are able to apply for an interim financial order, if you are in difficult financial circumstances.