When a marriage breaks down, dividing finances can be one of the most difficult and contested aspects of divorce. While some couples reach an agreement through negotiation or mediation, others find that disputes over property, savings, pensions or maintenance cannot be resolved privately. In these cases, financial remedy proceedings provide a structured court process to ensure a fair outcome.
This guide explains what financial remedy proceedings are, how they work and what divorcing couples can expect at each stage.
What are financial remedy proceedings?
Financial remedy proceedings – sometimes referred to as matrimonial finance – are court proceedings that deal with the division of finances when a couple cannot agree on their own. They can only be started once divorce or dissolution proceedings have been issued, but do not require the divorce itself to be finalised.
The court’s role is to resolve financial disputes fairly, applying the principles set out in law. This may involve ordering the sale or transfer of property, dividing pensions, awarding lump sums or agreeing ongoing maintenance. Ultimately, the purpose is to reach a legally binding decision that ensures both parties, and any children, are financially provided for.
Key stages of the process
Financial remedy proceedings follow a clear structure, designed to give both parties the opportunity to disclose their financial position, attempt settlement and, if necessary, receive a court ruling. The main stages are:
- Pre-application – Before applying, most people must attend a Mediation Information and Assessment Meeting (MIAM). If mediation is not suitable, proceedings begin by filing Form A with the court.
- First Directions Appointment (FDA) – This is the first court hearing, where the timetable is set. Both parties must complete full financial disclosure using Form E, which details income, assets, debts and expenses.
- Financial Dispute Resolution (FDR) hearing – At this stage, the court encourages the couple to reach agreement, with a judge giving guidance on how a final decision might look. Many cases settle here.
- Final hearing – If no agreement is reached, the case proceeds to a final hearing. Evidence may be presented, experts consulted and the judge will make a binding decision on how finances should be divided.
What can be ordered in financial remedy proceedings
The court has wide powers to make different types of financial remedy orders, depending on the circumstances of the case. These include:
- Lump sum orders – Requiring one spouse to pay a fixed amount to the other.
- Property adjustment orders – Transferring, selling or redistributing property, including the family home.
- Pension sharing orders – Dividing pension assets to provide long-term security.
- Periodical payments – Ongoing maintenance for a spouse or children.
- Clean break orders – Ending all financial ties between the parties to allow each to move forward independently.
Once made, these orders are legally binding and enforceable through the court.
Factors the court will consider
When deciding what financial orders to make, the court applies the principles set out in Section 25 of the Matrimonial Causes Act 1973. The key factors include:
- The income, earning capacity, assets and financial resources of each party.
- The financial needs, obligations and responsibilities of both spouses.
- The standard of living enjoyed during the marriage.
- The age and health of each party.
- The duration of the marriage and any contributions made, financial or otherwise.
- The welfare of children, which is the court’s first consideration.
- Conduct, but only where it would be unjust to ignore it.
This flexible approach allows the court to tailor decisions to the needs of each family, rather than applying a strict formula.
Help with your financial remedy proceedings
Financial remedy proceedings provide a clear pathway when financial disputes cannot be resolved amicably. They ensure that both parties disclose their finances fully, attempt settlement with judicial input, and if necessary, receive a binding court order.
For divorcing couples, the process can feel daunting, but with early legal advice and expert guidance, it is possible to secure a fair and lasting resolution. Osbourne Pinner’s divorce and family law solicitors support clients throughout the process with practical advice and representation, always focused on protecting your interests and achieving the best outcome.
That starts with a free 30-minute consultation at our offices or remotely. We have offices in Harrow, Canary Wharf, Piccadilly Circus and Manchester – or you can speak to us on a video call. Arrange your consultation by calling 0203 983 5080, emailing [email protected] or filling out the form below.
