Northern Family Law Support
Financial Consent Order
For a fraction of the price charged by solicitors, we can support you in obtaining a Financial Consent Order.
We can help you make your application or respond to an application, we can help you prepare your position statements, we can help you prepare witness statements and we can attend court with you as your McKenzie Friend at all stages of the court process.
We cover the North East of England, including Tyne and Wear, County Durham, Teesside, Chester le Street, Washington, Consett, Stanley, Newcastle, Gateshead, Sunderland, Durham and Middlesbrough.
We offer a free initial 30 minute consultation.
What is the process for obtaining a Financial Consent Order?
Starting the Process
Either party can apply to the court to begin the process to obtain a Financial Consent Order. The process begins with one party filing a Form A Application. There is a court fee of £313 for filing a Form A Application other by consent, or £60 where both parties have reached agreement and want the court to approve a mutually agreed Financial Consent Order.
If the application is for a Financial Consent Order other than by consent, the court automatically generates standard directions to help the case progress. In this scenario each party will be required to:
- File at court and exchange completed financial disclosure (Forms E) by a set date, providing full financial details and evidence in support of their individual financial circumstances.
- Exchange a short statement summarising the disputed financial issues, a timeline of events, a request for any further information needed from the other party, and a form saying whether the first hearing will proceed as a First Appointment or a Financial Dispute Resolution Hearing.
- Attend the First Appointment (FA) hearing at the given date and time.
Before every court hearing, each party must file and exchange a Form H. This is a form summarising their legal costs.
It is compulsory to attend a Mediation Information Assessment Meeting (MIAM) before making a Form A Application for a Financial Consent Order other by consent unless a specific exemption applies.
The general rule is that each person pays their own legal fees in Financial Remedy Proceedings. Very few cases are determined by a Judge at a Final Hearing. Most parties will reach an agreement before that stage.
First Appointment (FA)
The First Appointment is usually listed for 60 minutes before a District Judge. If the Judge and both parties believe that there is little dispute about the financial disclosures made, this hearing can be used as a Financial Dispute Resolution (FDR) hearing. However, it is often the case that there are disputes between parties about the disclosures made. If this is the case the Judge will consider whether more information is necessary to help both parties negotiate and achieve a settlement. The Judge may order parties to file replies to the other parties questions by a specific date or order parties to obtain expert evidence to value property, a business, or pensions. The court will then fix a date for the next court appointment.
Financial Dispute Resolution (FDR) hearing
The Financial Dispute Resolution (FDR) hearing is usually the second court appointment. The FDR is a ‘without prejudice’ hearing, which means each of you can make proposals for settlement that cannot be referred to in court if matters proceed to a Final Hearing. In the FDR, the Judge will try to help you reach a settlement. If you are able to reach agreement, a Financial Consent Order can be drafted up that very day for approval by the Judge. Where possible the Judge will seek to help parties achieve a Clean Break Order.
If you are unable to reach agreement, the Judge will list the matter for a Final Hearing.
The Final Hearing (FH)
At the Final Hearing, both parties have an opportunity to present their case to the Judge. Both parties, and any experts whose evidence is not agreed, will give oral evidence to the court. Cross examination of witness statements by the other party happens in the Final Hearing. After hearing all the evidence and submissions from each party, the Judge will decide and make a final Financial Consent Order. Where possible the courts will try to make a Clean Break Order.
The Financial Consent Order
This is a legally binding document detailing the financial arrangements between parties following divorce.
Why Do I Need a Financial Consent Order?
If you are divorced or have dissolved your civil partnership and have not dealt with your financial matters and obtained a Financial Consent Order, then either party can make an application to obtain one. This means you or your former spouse or civil partner could claim against the other long after the divorce or dissolution of your civil partnership has been finalised. There have been cases of one party making an application against the other more than 20 years after the couple were legally divorced.
Obtaining a Financial Consent Order ensures you have a legally binding document specifying how the matrimonial assets are to be divided. If you plan to remarry, it is essential to obtain a Financial Consent Order first, as you will be unable to do so after re-marriage.
What is a Financial Consent Order?
A Financial Consent Order is a legal document that details your financial agreement with your spouse or civil partner. It is an order sealed and approved by the court. The consent order will contain:
- Recitals (agreements) which deal with any matters on which the court lacks the jurisdiction to make an order.
- Undertakings (promises to the court) which deal with important matters that the court lacks the jurisdiction to make an to order but for which a breach of a given undertaking can be punished as a contempt of court with a fine or imprisonment.
- Orders made by the court.
What orders can the court make?
The court has broad discretion to redistribute family assets. The court can order:
- Lump-Sum Orders – a one-off or a series of lump sums payments from one party to the other.
- Property Adjustment Orders – ordering a sale or transfer of property from one spouse to another (or to a child), or putting a property into a trust.
- Spousal Maintenance Orders – this is where one party is ordered to pay spousal maintenance (periodical payments) to the other for a specified period, for example until the recipient remarries or cohabits, or the youngest child reaches 18 years of age or finishes their education.
- Pension Sharing/Attachment Orders – Pension Sharing is where funds are transferred or split between the parties.
- Child Maintenance Orders – If parties agree child maintenance without using the Child Maintenance Service, this can be recorded in the order. Any order made for Child Maintenance is only binding for one year, after which either parent can apply to the Child Maintenance Service for a re-calculation. In limited circumstances, the courts can make orders for child maintenance. For example, where one party or the child lives abroad, to meet a child’s special needs, or to pay for specific education or training costs. The courts also have the power to order “top-up” maintenance payable by high earners whose income is over the threshold above which the Child Maintenance Service are able to consider.
Some orders may be capable of variation by the court at a later date, for example, Spousal Maintenance Orders.
Financial Consent Order by Consent once you have entered the court process.
You can seek to obtain a Financial Consent Order at any time in the process. Sometimes parties are able to reach agreement ahead of a First Appointment once Form E’s have been exchanged. Sometimes parties are able to reach agreement between the First Appointment and the Financial Dispute Resolution Hearing. Sometimes parties are able to reach agreement between the Financial Dispute Resolution Hearing and the Final Hearing.
Which documents are lodged at court to obtain a Financial Consent Order?
The following documents are filed with the court:
- Draft consent order signed by both parties.
- Statement of Information for a consent order (Form D81).
- Form A (the court application).
- A court fee.
The court does not simply “rubber stamp” applications for Financial Consent Orders. A Judge will review the agreement and only approve the order and make it legally binding if satisfied that the proposed order is reasonable in the circumstances.
The statement of information (Form D81) is a prescribed form that provides the Judge with a summary of both parties’ financial situation to assist the Judge.
If one party fails to disclose information, or misleads court, there is a risk of the Financial Consent Order being set aside in the future.
Financial Disclosure and Form E
A critical part of the process to help parties obtain a Financial Consent Order is financial disclosure. This includes sharing with the other party information about their own income, property, capital assets, pensions, and debts. This disclosure is made using a prescribed court form called a Form E.
We can support you in preparing your Form E and examining the other parties form E for issues and anomalies.
Why is financial disclosure necessary?
Financial disclosure is the process of giving your spouse or partner full details of your personal financial circumstances and your future needs and resources. It is essential to assess not only the immediate financial impact of divorce or dissolution but also the long-term financial needs of both parties and any children.
Without financial disclosure it is difficult to negotiate an agreement or determine the fairness of any agreement. Disclosure is essential whatever process you intend to use to achieve a solution.
If financial proceedings are issued for an application other than by consent, the court will order you both to complete and exchange financial statements (Form E) before the first court hearing. However, many parties agree, to avoid court action, to exchange Form E’s voluntarily.
How can I prepare for financial disclosure?
It you are thinking about divorce it is a good idea to start collating information as early as possible:
- Write a list of everything you own.
- Write a list of everything you owe.
- Obtain your pension information.
- Find your mortgage and any associated life insurance documents.
- Gather your pay slips and any bonus information.
- Write a list of all your bank/building society accounts.
- Gather supporting documents to evidence all the above.
How do I complete a Form E?
A Form E is a lengthy document and can be challenging to prepare. We can assist you with the preparation of your Form E. There are also guidance notes available and a helpful checklist at the very end of the form.
After Form E’s are Exchanged
Once Form E’s are exchanged it is very common that one party may wish to challenge the other party’s disclosure. Areas of concern may include assets that the other party has not disclosed, exaggerated housing needs, exaggerated future living expenses, unrealistic future income prospects or unrealistic business valuations. We can help you review the other party’s Form E to spot any irregularities that may need further explanation and help you work through the questions you need to ask about the other party’s financial disclosure.
Expert evidence may also be required to supplement financial disclosure. For example, a surveyors report to value the family home or a pension actuary report. Pensions are often one of the most valuable assets, and complex calculations may be needed to determine their actual value before agreeing on the extent to which they should be shared.
There is an ongoing obligation to update financial information until matters are concluded.
Free initial 30 minute consultation
Where to find us:
Northern FLS Ltd,
11 Orchard Terrace,
Chester le Street,
DH3 3JU
Call Us:
+44 (0)7342 979477
Email Us:
help@northernfamilylawsupport.co.uk
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