The financial court process

What has to happen before applying to court?

Before making an application, the applicant must usually attend a mediation information and assessment meeting (MIAM), unless an exemption applies, such as where there is evidence of domestic abuse. Since 29 April 2024, the court has had wider powers to promote non-court dispute resolution, including mediation, arbitration and private FDRs. It can pause proceedings to allow these options to be explored, even if the parties do not agree, and each party must file a form (FM5) setting out their views on them. An unreasonable failure to engage can be reflected in a costs order.

How do financial proceedings start?

Proceedings begin when one spouse files Form A, an application for a financial order, with the court. A financial order can only be made once the divorce has reached the conditional order stage, but the application can be made earlier. The court will then issue the application and set a date for the first appointment, usually around 12 to 16 weeks later, together with a timetable for the steps to be taken before it.

What happens at the first appointment?

Before the first appointment, both parties exchange their financial statements on Form E, at least five weeks beforehand. Each then prepares a list of the issues in dispute and a questionnaire asking for further information from the other. At the hearing, the judge reviews the disclosure, decides which questions must be answered and whether expert evidence is needed, for example a property or business valuation, and sets the timetable. If the parties are ready, the first appointment can sometimes be used as an FDR.

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What happens at the FDR hearing?

The financial dispute resolution (FDR) appointment is a negotiation hearing led by a judge. Both parties set out their proposals for settlement, and the judge gives an indication of the likely outcome if the case went to a final hearing. The hearing is "without prejudice", meaning offers and discussions cannot be referred to later, which encourages open negotiation. The judge's view is not binding, but it often helps the parties reach agreement on the day, and the agreed terms can then be made into a consent order. Some couples choose a private FDR, held before a privately paid judge, which can be quicker and more flexible.

What happens at a final hearing?

If the case does not settle, it proceeds to a final hearing before a different judge from the one who conducted the FDR. Each party usually files a written statement and makes an open offer setting out the outcome they are seeking. At the hearing, both parties may give evidence and be questioned, and any experts may be asked to explain their findings. The judge then decides how the finances should be divided, applying the factors in section 25 of the Matrimonial Causes Act 1973. The decision is binding.

How long does it take and who pays the costs?

The timescale depends on the complexity of the case and the court's availability, but proceedings that reach a final hearing commonly take a year or more. The general rule is that each party pays their own legal costs. However, the court can order one party to pay some or all of the other's costs where they have behaved unreasonably, for example by failing to disclose their finances, making unreasonable offers, or failing without good reason to engage in non-court dispute resolution. Both parties must file estimates of their costs at each hearing.