Once divorce/dissolution proceedings are underway, spouses must turn their minds to sorting out the family finances. This can be the most time consuming and stressful part of getting divorced.
The first question to ask is:
Do you and your ex-partner both agree on how the finances should be divided?
If the answer is yes, then an order can be drawn up by consent. Whilst this is relatively straightforward there are still several documents that need to be completed:
a. Statement of information
The statement of information is a standard court document, also known as Form D81. The purpose of the statement is to set out the facts of your case. It gives the Judge a “snapshot” of your finances, and allows them to decide whether it is appropriate to approve the financial consent order sought. Whilst the terms of the order have been agreed with the consent of both parties, a Judge still makes the final decision whether or not to agree the order.
In summary, the statement contains the following information:
- Details about your marriage.
- Details of you (and your children).
- An explanation of how the agreement was reached.
- A summary of means, including capital and income.
- A summary of where you (and your children) will live.
- Details of new relationships (if you/your ex has started one).
- Details of the proposed financial consent order.
b. Financial Consent Order
The financial consent order records the terms of agreement that you and your ex-partner have reached together. Once approved by the court, your financial agreement is binding and enforceable.
Whilst we always encourage clients to do as much as they can themselves to keep costs down, due to the complexity and importance of these documents, a qualified solicitor must prepare this court order.
c. Form A – Application for a Financial Order
To apply or an order by consent a Form A must be completed and submitted to the Court with your statement of information and draft consent order. There is a court fee of £50 for this application.
You may find, however, that your ex does not agree on how the finances should be divided, or (if there is nothing to divide) they do not agree to a Clean Break Order being made. If that is the case then you will need to apply to the Court for help, by making a financial application.
Here is our step-by-step guide to making a financial application:
1. Arrange an appointment with a Mediator
Before you can issue a financial application, the Court requires you to exhaust all options of reaching an agreement with your ex-partner. This includes contacting a mediator who will attempt to resolve the situation through mediation. If this is unsuccessful, the mediator will need to sign an FM1 form (MIAM certificate) that states mediation was unsuitable or agreement could not be reached. This form needs to be attached to your application Form A, to demonstrate to the Court that mediation has been attempted.
2. Prepare your Form A Application
Once you have your MIAM certificate you will then need to download Form A, which is the main Financial Application form.
Form A will ask you what you are applying to the Court for (i.e. what type of financial remedy are you looking for). This is usually a share of the house or an order for its sale, maintenance from your spouse, a share of their pension, or a lump sum payment, for example.
3 . Submit your Application and Court Fee to Court
You will need to send the original application form, together with 2 copies, to the Court, along with a Court fee of £255. If you are in receipt of benefits, or you are on a low income, you may qualify for fee exemption. The relevant form for this is Form EX160. You can also download EX160a which provides guidance on the process and the qualifying criteria, to see if you are eligible. This usually involves disclosing evidence of your finances, savings etc.
4. Issuing the Financial Application
Once the Court receives your application, they will issue it. This means they will open the case and allocate a Court number. They will keep one of the copies of the forms for their case file, and return two issued forms to you.
You must keep one of the forms and post the other form to your ex-partner. You must ensure that you serve them with an issued copy of the form so that they are aware of the application. This is called ‘service.’
5. Court Directions – Notice of First Appointment
Along with the issued forms, the Court will also send you notification of the first hearing date, together with a list of things they want you to do – these are called “directions”.
6. Disclosing Finances
The first thing the Court will ask you to do is complete a Form E. This is the financial statement, which helps you to set out comprehensive details of your finances. It is rather a daunting 32-page document. However not all sections will necessarily be relevant to your case. When this is filled in you will need to send one copy to the Court and one copy to your ex-partner. You will also keep a copy for yourself and bring this to Court with you.
Your ex-partner will also have to complete a Form E and they too will have to send a copy to the Court and a copy to you. You will both attach your financial evidence (bank statements, pension information, wage slips, business account, for example) to your Form E’s that you exchange with each other but there is no need to send the financial disclosure to the Court.
The date by which you need to do this will be in the Notice that you receive from the Court.
7. Preliminary Documents
Next, the Court will ask you to file some preliminary documents. These are
a. Chronology, which is a list of all the important dates leading up to the hearing date:
- Date you were born
- Date your spouse was born
- Date any children were born
- Date of your marriage
- Date of separation
- Date of decree nisi
- Date of decree absolute (if obtained)
- Date of first hearing
b. Schedule of issues: this details the main points that are not agreed between you:
- Should the house be sold/transferred to one party?
- Should there be spousal maintenance/a lump sum payment?
- Should there be a pension sharing order?
- Are there any matrimonial debts? If so, should they be divided equally between the parties?
- Are there other assets that should not be included in the “matrimonial pot” for example an inheritance or gift?
- Is the case suitable to depart from equality – should the assets be divided equally or should one party receive more than the other should?
c. Form G: which is included in your pack from the Court, asks if you are in a position to proceed with the hearing date.
d. Questionnaire: once you receive your ex-partner’s Form E, you will go through the contents and disclosure that they have attached and make a list of questions that you may have. These questions should be relevant to their finances and (if answered) will help you reach an agreement with them.
8. Attending the First Hearing
Once all the Court directions have been complied with, you will then attend the first Court hearing. At this stage, it is possible to reach agreement, but each case will be different. If you have instructed our family lawyers, they will attend the hearing with you and provide advice, guidance and representation throughout the proceedings.
If you require any further advice upon this matter please feel free to contact our Family Law Department on 01394 388 411.