Financial Provision Solicitors

(The Financial Aspects of Divorce/Dissolution)

Financial provision (formally known as ancillary relief) is the term used for the orders that a court can make - often called the divorce settlement. These orders include regular maintenance payments, a lump sum, transfer of property and even pension sharing. Either party in the proceedings may apply to the Court for financial provision.

Settlements in a divorce / dissolution case can be agreed by spouses / partners with the help of a specialist solicitor and without the courts involvement. This can be done either by entering into a separation agreement or by agreeing the terms of a court order known as a consent order. If the parties enter into a separation agreement, the agreed terms can later be stipulated within a consent order. Separation agreements and consent orders can be prepared at any time during the divorce proceedings. However, the application for a financial order can only be made after the conditional order has been granted. 

When negotiating the terms of the divorce settlement, the parties usually exchange full and frank financial disclosure in relation to their assets and income. If financial proceedings are issued, both parties are under a duty to give full and frank disclosure to enable the court to make an informed and binding decision. Financial disclosure includes the following:

• Last two years accounts
• Latest tax returns
• P60 last three wage slips
• Current loan/mortgage redemption statements
• 12 months bank/building society account statements
• Details of any other assets held if the party has a beneficial interest within it
• Pension valuation

The fact money or assets may be held in the name of a third party is irrelevant to the requirement of it being properly disclosed.

If either (or both) parties fail to provide full disclosure any settlement / order may be put in jeopardy.

The Court Process

When proceedings are issued, the parties will receive orders which outline a timetable for when various information needs to be provided e.g. filing of the Financial Statement (Form E). The order will also confirm the dare of the first hearing known as First Directions Appointment (FDA).

At the FDA, the judge will deal with any directions needed to progress the matter. If the parties can agree directions, they can ask the court to deal with the matter on paper without the need for the parties to attend.

The matter will then be listed for a Financial Dispute Resolution Appointment (FDR). The purpose of this hearing is for the parties to reach a settlement. At a FDR, the judge will assist the parties by providing their views on what would amount to a reasonable outcome. If the parties cannot reach an agreement, the court will outline directions for the matter to proceed to a Final Hearing.

Separation Pension Spouse Rights, UK

Pension rights cannot be distributed without a court order and also cannot be distributed through a separation agreement. You should keep in mind that you and your dependents may have existing entitlements from both your own arrangement and the arrangement of your husband, civil partner, or qualifying cohabitant.

The court will decide how much of a pension should be shared so that it reflects the length of the relationship and takes into account the overall term of the membership of the scheme.

When the court makes a Pension Sharing Order, it rules that your pension must be split with your ex-spouse, civil partner, and (or) any dependents, such as children under the age of 18.

For instance, if one party has a sizeable pension and the other party has no pension or a more modest pension, the court may order that the other party receive a portion of the larger pension. Additionally, the court may order that a portion of the pension fund be transferred to a personal pension in the name of the receiving party. If there are many private pension plans, the court can share all of them or a larger share one pension.  We always recommend a pension actuaries report be obtained as pensions are often a very significant asset of the relationship.