What to Do If You Can't Reach a Financial Agreement in Your Divorce
Navigating through the complexities of divorce can prove to be emotionally and financially draining.
One pivotal aspect of this journey is reaching a financial settlement, which frequently brings about significant stress and ambiguity.
But what do you do if you cannot achieve a financial agreement, no matter how hard you try? Although this scenario may seem intimidating, it's not uncommon.
In this blog post, we'll discuss strategies for navigating the challenges of reaching a financial agreement during a divorce, as well as tips for easing the process.
When should I start financial remedy proceedings?
If you and your spouse cannot reach a financial settlement through mediation or negotiation between solicitors, one party may need to issue financial remedy proceedings.
This should not be viewed as hostility, but rather an effort to focus on reaching a resolution.
How does it work?
When submitting an application to initiate financial remedy proceedings using Form A, the court will establish several deadlines that must be met prior to the First Directions Appointment (FDA) hearing. The FDA, the initial financial remedy hearing of a potential three, is conducted in court before a judge.
The deadlines, which must be strictly complied with by all, usually include but are not limited to:
The exchange of Form E (financial statement) together with supporting documentation (bank statements, mortgage statements, etc.)
An exchange of questionnaires raised on the other party’s Form E
An exchange of a statement of issues and chronology
Sometimes, the FDA is unfairly labelled as ‘just’ a procedural hearing, but it is extremely important - it deals with the management of the case, evidence, and timetable.
What happens at the FDA?
The FDA hearing will not be long, it takes around 30 minutes to an hour.
You will also not be required to speak to the judge at this hearing; your lawyers will advocate on your behalf and explain what directions are being sought. Your lawyers will also touch on why (or why not) certain directions are required.
The primary goal for the judge at the FDA hearing is to determine whether you and your spouse have all the necessary financial information to make informed judgments, negotiate further and potentially reach a settlement.
However, if some of that information is missing, the judge can order either party to obtain such information, and subsequently disclose it to the other party by a specific date and time.
Before the FDA hearing, it's common to agree on arrangements, such as a timetable for responding to the opposing party's questionnaire. If not agreed, the judge will decide on necessary directions for the case to progress after the lawyers have made their submissions.
For example, the judge may direct:
For a particular asset to be valued by an expert, such as a property or business.
An order for a pension expert to provide a Pension On Divorce Expert (PODE) report, if pensions account for a significant portion of assets.
Which questionnaire questions prepared by both parties will or will not be answered, and by when.
A timeline by which further evidence, disclosure, expert reports and valuations need to be exchanged with the other party and filed at court.
The date for the next court appointment - the Financial Dispute Resolution Hearing (FDR) - which may be fixed by the court at the time of the FDA, or the court office thereafter.
It is essential that both parties comply with the deadlines set out in the FDA order. Any breach of the order could result in either party being held in contempt of court, punishable by a possible fine and or imprisonment. Non-compliance and bad conduct may also have cost consequences later in the matter.
It is important you take specialist legal advice when considering issuing financial remedy proceedings within divorce. The FDA is far more than administrative, and sets up your case so that all can proceed smoothly. A mistake or disruption now could lead to serious problems later!
If you find yourself in the challenging situation of being unable to reach a financial settlement during divorce proceedings, don't hesitate to seek expert legal guidance. Our team of experienced lawyers in Hove, Hassocks, and Horsham are here to support you through this process.
Contact us today for personalised assistance and ensure your rights and interests are protected every step of the way.