What is a Financial Remedy Order ?

[Peter B]

A Financial Remedy Order (also known as a financial order or a consent order) is a legally binding agreement made by a court in England and Wales during divorce or dissolution of a civil partnership. It sets out how a couple's assets will be divided and any ongoing financial arrangements.  

It covers the following ...

• Division of assets
  • Property (family home, other properties, sometimes inherited property)  
  • Savings and investments (bank accounts, ISAs, shares)  
  • Pensions (often a significant asset, may involve pension sharing)  
  • Other assets (cars, artwork, valuable items)
• Financial support
  • Spousal maintenance (regular payments from one party to the other)  
  • Child maintenance (payments for the financial support of children)

When is it necessary?

• When a couple can't agree on how to divide their finances during a divorce or separation.  
• To formalize an agreement reached between the couple, making it legally binding.  

How is it obtained?

• If an agreement is reached, it can be submitted to the court for approval as a consent order.  
• If no agreement is reached, the court will make a decision after a series of steps, including:
  • Form E: Financial disclosure by both parties.  
  • First Appointment: Preliminary court hearing.
  • Financial Dispute Resolution (FDR): Attempt to reach an agreement with a judge's help.  
  • Final Hearing: If no agreement at FDR, a judge makes a final decision.  

Key Features

• Legally binding: Both parties must comply with its terms.  
• Finality: Aims to provide a clean break and prevent future financial claims.  
• Flexibility: Can be varied in certain circumstances (e.g., significant change in financial situation).  

Benefits

• Ensures a fair division of assets and provides financial security.  
• Avoids future disputes by clearly outlining financial arrangements.  
• Provides a clean break, allowing both parties to move forward.  

Important: It's crucial to seek legal advice from a family law specialist to understand your rights and options regarding financial remedy orders.

Sources & Related Content

• https://www.gov.uk/money-property-when-relationship-ends/get-court-to-decide
• https://osborneslaw.com/blog/financial-remedy-order/#:~:text=A Financial Remedy Order is,other assets after a separation.
• https://anthonygold.co.uk/latest/blog/financial-settlement-in-divorce-guide
• https://www.fjg.co.uk/financial-remedy-order-affect-welfare-benefits/#:~:text=It can include provisions for,spousal maintenance%2C and pension sharing.
• https://www.brabners.com/insights/brabners-personal/a-guide-to-financial-remedy-proceedings#:~:text=Financial remedy proceedings are a,dissolution of a civil partnership.
• https://resolution.org.uk/looking-for-help/splitting-up/your-process-options-for-divorce-and-dissolution/representing-yourself-in-court-as-a-litigant-in-person/financial-applications/
• https://www.weightmans.com/insights/a-guide-to-financial-remedy-proceedings/
• https://www.kingstreetsolicitors.co.uk/understanding-financial-remedy-orders/#:~:text=The order states how the,fair settlement to both parties.
• https://mensadviceline.org.uk/legal-information/the-court-process-for-obtaining-a-financial-order/#:~:text=The only people present will,a solicitor or a barrister.

Edited October 26, 2024 by Peter B