|
Money Issues
We are frequently asked the basis on which the Court will decide the division of the family’s property, assets and liabilities following the breakdown of a marriage.
The law in this regard is largely set out in the Matrimonial Causes Act 1973. At Crisp & Co we understand that the financial consequences of marriage breakdown are of great concern to our clients. It is crucial that you receive good guidance at an early stage.
The financial consequences of marriage breakdown, whether consequent upon a divorce or judicial separation are known as Ancillary Relief Proceedings.
At Crisp & Co our entire team have specialist knowledge and experience in the financial consequences of marriage breakdown. We always aim to provide our clients with expert practical advice, whether your family assets are modest or complex.
Your Questions Answered
What are the financial orders that the court can make in Ancillary Relief Proceedings?
Once either you or your husband/wife have applied to the court for a divorce or judicial separation, then the court can make orders in relation to any or all of the following:-
- Maintenance payments to a husband or wife
- Transfer of property from one party to the other
- Ordering the sale of property and the division of the proceeds of that sale
- Transfer of lump sums of money and other assets
- Pension sharing
Either the husband or the wife can make an application for ancillary relief. If you are the petitioner in the proceedings (ie if you have initiated the divorce or judicial separation proceedings) you will usually make an application on your initial petition. However, if you wish to proceed with the financial claims then you must file another form called a Form A with the court. If you are the respondent in the divorce or judicial separation proceedings, then you may also make an application on Form A for financial orders.
Does it take a long time for the Court to deal with financial applications?
Once an application has been made to the court for ancillary relief, a strict timetable will be put in place. The Court will give directions as to what financial information is required and will also set a date for a First Appointment to ensure adequate disclosure of each party’s financial situation has been or will be made. A date will then be usually be scheduled for a Financial Dispute Resolution Appointment when consideration will be given as to whether the matter can be settled without the need for a full blown trial.
If there is an urgent need for maintenance payments, the Court can deal with this early on in the proceedings.
The Courts have prescribed forms which must be completed by each party. If a party fails to provide the Court with required documentation within the timeframe set by the Court, it can make an order to penalise that person for failing to provide the information usually by way of a costs order.
On what basis will the Court make financial Orders?
The basis on which the Court will decide what financial orders should be made is set out in Section 25 of the Matrimonial Causes Act. The first consideration will always be given to the needs and welfare of any children aged under 18 years, thereafter the Court will consider the following:-
- The income, earning capacity, property and other financial resources of that each party to the marriage has at present or may be likely to have in the foreseeable future.
- The financial needs, obligations and responsibilities that each party to the marriage has at present or is likely to have in the foreseeable future
- The standard of living enjoyed by the family prior to the marriage breakdown
- The age of both the husband and the wife and the length of the marriage
- The mental or physical disability of either the husband or the wife
- The contributions made by the husband or wife to date or contributions likely to made in the foreseeable future, towards the welfare of the family, including contributions made for caring for a family member
- The conduct of either the husband or the wife in relation to their conduct in the proceedings.
The Court will also consider if it is appropriate to terminate each of the party’s financial duties to the other, known as making a Clean Break order, the Court will therefore consider the length of time any order for maintenance should last.
For issues relating to matenance please see Child Maintencance and Support
What information does the Court require?
A lot of financial information is required from both the husband and the wife. Each party is obliged to complete comprehensive details of their respective financial position in a Form E. The detailed information is needed by the Court to determine what financial orders should be made in respect of the particular family. It is also imperative that the husband and wife’s respective legal advisors have a clear understanding of the family’s financial position in order to advise in relation to any settlement.
I really would prefer that the Court did not become involved in the financial consequences of my marriage breakdown-is there any other way of dealing with the issues relating to ancillary relief?
As members of Resolution, we at Crisp & Co are committed to adopting an amicable and constructive approach to resolving both financial and other issues following marriage breakdown. It is often possible and preferable to engage in a voluntary process governing both disclosure and negotiation. Whilst you will be advised throughout, often this approach suits families better as well as saving costs.
At any stage in the ancillary relief proceedings, a party may make an offer to settle the matter. If a settlement can be reached, it will be set out in a Consent Order which the Court will consider and usually approve. The vast majority of cases will be settled regardless of whether ancillary relief proceedings have commenced.
Alternatively, some of our clients prefer to explore Mediation or a Collaborative Law approach, we have staff who are expert in both these fields. Please refer to our section on Collaborative Law in this regard.
How much is it going to cost?
Unfortunately there is no straightforward answer to this question. The costs will be determined by the length of time it takes to reach agreement both in respect of the divorce and the division of the family finances. If there is no agreement reached then the matter will be settled by the court and this may become expensive.
Our costs are determined on an hourly rate, which you will be advised of at your first appointment at Crisp & Co.
We provide all our clients with a cost estimate in writing at the outset of their case and are committed to keeping clients fully updated in this regard.
I am really worried about the costs, because I have no income or a very limited income.
At Crisp & Co we are committed to the belief that everyone should have access to good legal advice, regardless of their financial circumstances. For this reason we are one of the very few practices who still offer legal aid to our clients. Whether you will qualify for legal aid can be determined by us at your first appointment. Legal Aid is not free and must be repaid to the government from any financial settlement you receive as a result of the work we do on your behalf.
If you do not qualify for legal aid, but are still unable to afford your fees, we can negotiate on your behalf to obtain sufficient income to help you meet your needs until final settlement is reached.
We can also put you in touch with financial agencies who may be able to help you.
What Should I do Next?
Get in contact with us at Crisp & Co. We have two offices one in Guildford, Surrey and the other in Esher, Surrey to book an appointment.
Is there anything I need to bring with me to my first appointment with Crisp & CO?
We will need you to bring with you the following papers and documents:-
- Your passport or photo identity driving licence plus another proof of identity with your name and address, such as a recent utility bill.
- Your marriage certificate if it is available.
- Any letters or documents that have been sent to you by your husband or wife’s solicitors
What information will I need to give you at my first appointment?
- We will need to know the following information from you:-
- Your marital status, the date of your marriage and the date of any separation
- The full names and dates of birth of your children
- Your nationality and country of residence
- The nationality of your husband/wife and their country of residence
- Details of your income and that of any other member of your household
- Details of property, assets, investments and pensions held either in your own name or in the joint names of yourself and your husband/wife
- Details of any mortgages or other liabilities in either your own name or in the joint names of you and your husband/wife
- Do not worry if you cannot provide all the information listed above at the first appointment, any missing information can always be obtained at a later date. However, the more information you can provide us with the quicker we will be able to advise you in respect of your particular situation.
