What happens if we can’t reach a financial settlement in divorce?

In some divorce cases, some circumstances may result in the divorcing couple being unable to reach a settlement in relation to financial and property matters.

If this occurs, then it is necessary to take a number of steps to reach an agreement.

Application to the court

This is the first step and can be issued by either party.  It is worth noting that the person who does so must pay a fee of £240.

Once issued both parties must complete a statement to outline full and accurate details of their financial circumstances. This includes documentation such as, bank and building society statements, mortgage statement, P60, payslips and pension statements.

These statements will then be exchanged and the solicitors acting for both parties will prepare a questionnaire setting out any further information and documentation they require.

First Directions Appointment

Meanwhile, a hearing will be scheduled by the court; this is called the First Directions Appointment and will happen within 12 to 16 weeks of the application being issued.

Before this takes place, the solicitors acting for both parties will prepare another statement to give background to the case and set out the issues that are in dispute. They will also provide a chronology which gives dates of birth, date of marriage and the dates of birth of any children.

The district judge will give directions as to how the case will proceed.  This will include requiring the parties to respond to the questionnaires and also for properties to be valued, if appropriate, and for experts’ reports to be obtained.

Financial Dispute Resolution Appointment

This takes place when all of the necessary documentation and evidence has been proved. It is there that the parties will have the opportunity to negotiate.

If it is not possible to reach a settlement prior to the hearing then either parties’ solicitors or barristers will explain their cases to the district judge.

The district judge will then give an indication as to how the matter is likely to be decided if the case proceeds to a final hearing. This indication is not binding on the parties, they can choose whether to accept or disregard it, but it does often have the benefit of aiding negotiations.

Final Hearing

If, following the indication, the parties are unable to agree a settlement then the case will be scheduled for a final hearing.

At a final hearing a different district judge will hear evidence from both parties and they will be cross examined. The parties’ barristers will also have the opportunity of making statements in the support of their case. The district judge will then make a decision which will become a final order and will be binding on the parties.

For more information, or to discuss any aspect of family law, contact Janine Hutson, on 01772 258321, or at janine.hutson@harrison-drury.com