A guide to financial remedy proceedings

Originally published on 26 August 2022 and updated on 12 November 2025.

Sorting out finances after a divorce or dissolution of a civil partnership can be one of the most challenging aspects of separation. Whether the issues are straightforward or complex, understanding the financial remedy process is key to reaching a fair and workable outcome.

Here, Amy Harris explores how the process works, what the court takes into account and the steps involved — from early negotiation right through to the final hearing.

What are financial remedy proceedings?

Financial remedy proceedings refer to the legal process used to resolve financial issues between separating couples after divorce or the dissolution of a civil partnership. These proceedings are designed to ensure that there’s a fair division of assets, income, pensions and other financial resources.

While many couples reach a financial agreement privately — often with the help of mediation or other non-court dispute resolution (NCDR) methods — financial remedy proceedings may be necessary when an agreement can’t be reached. In cases like this, one party can apply to the court to decide how finances should be divided.

The process typically involves several stages including disclosure of financial information, negotiation and court hearings. The court encourages settlement throughout but if no agreement is reached, a judge will make a final decision at the third and final hearing.

Importantly, the court can only make financial remedy orders once the divorce or dissolution has reached the conditional order stage. Even if a couple agrees on terms, it’s advisable to formalise the arrangement through a consent order which must be approved by a judge to become legally binding.

What is a financial remedy order?

A financial remedy order is the outcome of financial remedy proceedings. It sets out the financial arrangements either agreed by the couple or decided by the court. The contents of the order will depend on the couple’s financial circumstances — some orders may be straightforward, while others are more complex.

Common types of financial remedy orders include:

1. Property adjustment orders — these deal with property arrangements such as the sale or transfer of a home or other assets.
2. Pension orders — these may involve pension sharing or pension attachment orders.
3. Periodical payments orders — these provide for regular payments like spousal maintenance or child support.
4. Lump sum orders — these involve a one-off payment of money.
5. Clean break orders — these confirm that no further financial claims will be made in relation to specific assets, allowing both parties to move on independently. 

The court has extremely wide powers on divorce or dissolution of a civil partnership to make orders in relation to a couple’s finances.

Pre-court procedure

Before applying for a financial remedy order, it’s important to consider whether there’s any prospect of resolving the matter out of court through NCDR. 

Couples who want to begin court proceedings are required to first attend a Mediation Information and Assessment Meeting (MIAM). At this meeting, one party meets with a mediator to determine whether the case is suitable for mediation. Mediation involves an independent third party assisting both sides to try to reach an agreement outside of the court process. 

Some cases aren’t suitable for mediation — for example, where there’s been domestic abuse or the financial arrangements are complex and legal advice is essential. If the mediator decides that the case is unsuitable for mediation, they’ll sign a certificate that can then be given to the party’s solicitor to allow them to issue the application for a financial order. If the mediator believes that the case is suitable for mediation, they’ll discuss next steps and may encourage the other party to attend. Some couples also attend mediation with the support of their lawyers, a process referred to as ‘hybrid mediation’.

While mediation and other forms of NCDR aren’t appropriate in every case, delays in the family court means that there’s a stronger push for couples to explore these options. Furthermore, the court will consider what steps have been taken to avoid court proceedings and couples must complete an FM5 form to confirm these. 

There are several forms of NCDR to consider and your family law solicitor can help you to decide which option will work best for you and your partner. Some people find engaging in NCDR with the support of their lawyer can be the most efficient and amicable way to resolve their divorce. 

Once a MIAM has been attended — and if NCDR hasn’t been successful — the solicitor will prepare the Form A which is the application for a financial remedy order.

What will the court take into consideration?

When deciding what financial remedy order to make, the court must consider all the circumstances of the case. Both parties are required to provide full and frank disclosure of their financial situation at the time of the divorce or dissolution and the court’s primary consideration will be the welfare of any children under the age of 18.

In addition, the court will consider the factors set out in section 25 of the Matrimonial Causes Act 1973 (for divorce) or Schedule 5, Part 5, paragraph 21 of the Civil Partnership Act 2004 (for dissolution). These factors must be applied to the specific facts of each case and there’s rarely one ‘right’ answer. The court’s aim is to achieve a fair outcome in all the circumstances.

The factors include:

• The income, earning capacity, property and other financial resources that each party has or is likely to have in the foreseeable future — including any increase in earning capacity that it’d be reasonable to expect a party to take steps to acquire.
• The financial needs, obligations and responsibilities each party has or is likely to have in the foreseeable future.
• The standard of living enjoyed by the family before the breakdown of the marriage/civil partnership.
• The age of each party and the duration of the marriage/civil partnership.
• Any physical or mental disability of either party.
• The contributions each party has made or is likely to make in the foreseeable future to the welfare of the family including looking after the home or caring for the family.
• The behaviour of each person — but only if the court believes that it would be unfair to ignore this.
• The value to each party of any benefit that they’ll lose as a result of the divorce/dissolution.

The court will consider all ‘financial resources’ of the couple — both now and in the future. 

This includes distinguishing between: 

• ‘Matrimonial’ assets — typically those built up by the parties during the marriage as well as those held in joint names. They’ll usually be shared between the couples upon divorce.
• ‘Non-matrimonial’ assets — typically including property owned by one party before the marriage, as well as inherited assets or gifts. These don’t tend to be shared unless they’re required to meet one party’s financial needs.

It’s important to note that there may be disagreement as to whether a non-matrimonial asset has become ‘matrimonialised’. 

The court will also consider whether there’s a pre- or post-nuptial agreement in place and what weight should be given to it. Prenups and postnups aren’t fully legally binding in England and Wales so it isn’t possible to oust the jurisdiction of the court in the event of a divorce. 

The court retains the power to make an order that it considers fair based on the circumstances of the case. That said, courts are increasingly giving weight to nuptial agreements — and anyone entering into one should expect to be held to its terms.

The three-stage court process

1. The first appointment

Once the Form A has been issued, you’ll receive the Notice of First Appointment a few weeks later. This document outlines the steps that need to be taken before the first court hearing. 

Before the hearing, the first step is to complete the Form E. This sets out each person’s assets, liabilities, income, outgoings and other relevant financial and personal considerations. Once completed, both forms are exchanged.

After that, each party prepares additional documents for the hearing.  

These include a: 

• Questionnaire requesting further information or documentation arising from the other party’s Form E.
• Chronology of key dates.
• Summary of the issues in the case.  

There are also certain preliminary documents that the court asks both parties to complete including an ES1 (a summary of key information) and an ES2 (a schedule of assets). Standard templates are available for both. 

The first appointment is a case management hearing. The judge reviews the issues in the case and determines what further evidence is required to move things forward.  

Common directions made at this stage include:

• The court reviewing each party’s questions arising from the other’s Form E and deciding whether it’s appropriate and proportionate for them to be answered.
• Appointment of a surveyor to act as a single joint expert if property values are disputed.
• Appointment of a pension on divorce expert (PODE) to prepare a report on pension share or offsetting.
• Appointment of an accountant to prepare a report on the valuation of a business or any tax issues.
• Any other expert or other evidence required.

If these directions can be agreed on paper, it may mean that attendance at a first appointment isn’t necessary.

2. Financial dispute resolution hearing (FDR)

The FDR is a negotiation hearing held on a without-prejudice basis. Its purpose is to help parties to resolve matters by way of agreement. By the time they reach an FDR, there should be a very clear picture as to what assets are involved — so the focus is on trying to reach a settlement.  

FDRs can be extremely effective and many cases are agreed either at the hearing or shortly thereafter. One of the key benefits is that a judge gives an indication of what they believe is an appropriate outcome in the case. Around fourteen days before the hearing, each party exchanges proposals outlining what they consider to be a reasonable resolution. The judge then reviews both proposals and offers their view, which can guide the couple towards an agreement.  

It's increasingly common for couples to have a private dispute resolution hearing rather than a court-led FDR. The advantage is flexibility — couples can choose which ‘judge’ they wish to instruct as well as the location, timing and date of the hearing. Because the private judge isn’t juggling multiple cases, they’ll have more time to engage with the details and help the couple to reach an agreement.  

Private FDRs are especially popular in cases where the assets are high-value or complex in nature as a private judge can provide a tailored and in-depth indication. Another benefit is privacy — holding the hearing away from a court building can offer greater confidentiality.

3. Final hearing

Most cases settle before reaching a final hearing, allowing couples to reach an agreement by consent and avoid lengthy litigation and the costs of a three-stage financial remedy process.

If the FDR is unsuccessful, the court may hold a short pre-trial review to decide whether updated evidence or reports are needed before a final hearing — especially if a long time has passed since the Form Es were exchanged. Each party can submit any additional evidence with the court’s permission, usually in the form of a ‘section 25 statement’ which addresses the criteria set out in section 25 Matrimonial Causes Act 1973. 

Depending on the facts of the case at a final hearing, the court may hear oral evidence from either party as well as experts if there are any disputes. These can include a pension actuary, surveyor or  forensic accountant who has been instructed to value a company. The court will consider all relevant factors before making a financial remedy order.

Whether an order is made by consent through negotiation or by a judge at a final hearing, once it’s approved by the court, it becomes legally binding — and both parties must stick to the terms.

The court also considers legal costs and whether one party should be ordered to pay some of the other’s. Cost orders are rare, so it’s safe to assume that individuals will be responsible for their own costs. 

Interim applications

Some financial remedy proceedings may involve more than the standard three hearings depending on the issues. Ongoing matters may arise throughout the process that need be dealt with through interim applications to the court. 

Two common types are: 

• Interim maintenance (also known as maintenance pending suit) — financial support from a former partner while proceedings are ongoing, paid until the final divorce order is made. A longer-term maintenance order may follow if appropriate.
• Legal services payment order (LSPO) — support with legal costs during proceedings where one party lacks the means to fund their case and the other has the resources to assist.

Interim applications can be complicated and may carry cost risks for unsuccessful applications so they should be approached with caution.

Implementation & enforcement

Getting a legally binding financial and final divorce order doesn’t always mean that the process is over. If one party doesn’t comply, enforcement may be needed.

The court has broad powers to enforce financial orders and parties entering into one are expected to comply with its terms.

Talk to us

Financial remedy proceedings can be complex, so it’s important to seek advice from a specialist lawyer who’s experienced in this area. As award-winning family solicitors, we support clients throughout the process and also advise on alternative options like mediation and arbitration.

Talk to us by giving us a call on 0333 004 4488, sending us an email at hello@brabners.com or completing our contact form below.