Where finances cannot be agreed in a divorce, it may be necessary to commence financial proceedings. But what are financial proceedings and what is involved?
Before an application for financial proceedings can be made, you will need to attend a mediation intake appointment with a mediator to obtain a MIAM (Mediation Information and Assessment Meeting). This is an opportunity to consider the benefits of mediation. If, however, you and the mediator decide that mediation is not for you, the mediator will use a MIAM, which is a form signed by the mediator to say that mediation is not an appropriate option for you. Your spouse will not be required to attend the appointment with you.
Once you have obtained the MIAM from the mediator, a Form A, which is used to start a financial claim in divorce or civil partnership proceedings, will be filed at Court. This is a fairly straight forward form and presently carries a Court fee of £255.
Once the Court has issued the form, a date will be listed for a First Directions Appointment. The Court will send both your solicitor and your spouse’s solicitor a timetable for the exchange of documents. These documents will include a Form E, which is a substantial document in which both you and your spouse will be required to fully disclose your financial position. You are then given the opportunity to formally ask questions of your spouse’s Form E.
At the First Directions Appointment next steps, such as the instruction of a single joint expert to value properties or companies, will be discussed and an order made by the Court. A barrister may be instructed to act for you in the proceedings.
If, however, directions can be agreed between you and your spouse, a First Directions Appointment may not be necessary and matters will proceed straight to a Financial Dispute Resolution hearing (FDR).
The purpose of an FDR is to encourage negotiation, and most hearings settle at this stage. The Judge will give their opinion without it being binding on you. If agreement is still not reached at FDR, matters will proceed to a Final Hearing; at Final Hearing, a Judge will make a final and binding decision over the division of assets. It is unusual for a final hearing to be needed – most settle along the way.
Importantly, an agreement can be reached between you and your spouse at any time once proceedings have been issued; reaching a settlement agreement will be less expensive and time consuming than proceeding to Final Hearing, which can take up to 12 months.
You should always seek legal advice when considering finances in a divorce.