Contested Financial Remedy: What You Need To Know
During a divorce or separation, resolving financial matters can often become one of the most contentious aspects of the process. In cases where you and your ex-partner cannot agree on how to divide assets, calculate support payments or agree upon other financial issues, the situation may escalate to a contested financial remedy. This type of financial dispute can be stressful and emotionally charged, but understanding the process and knowing your options can help you navigate the situation with clarity and confidence.
In this guide, we’ll explain what a contested financial remedy is, why it occurs and what steps you can take if you're facing such a dispute.
What Is A Contested Financial Remedy?
A contested financial remedy occurs when two parties in a divorce or separation cannot agree on how to divide their finances. This can involve the division of assets, properties, pensions, maintenance payments and debts. If the parties are unable to reach an agreement through negotiation, mediation, or other methods of dispute resolution, the matter may proceed to court where a judge will make the final decision.
Contested financial remedies can arise when one party believes that they are entitled to a greater proportion of the financial assets than those being offered in the settlement, or when there are disagreements about the financial needs of each party, including child maintenance or spousal support. If these disputes cannot be resolved outside of court, it can result in lengthy and complex legal proceedings.
Why Do Contested Financial Remedies Occur?
Contested financial remedies typically arise due to several factors, including:
1. Complex Financial Situations
In some cases, the financial matters involved may be particularly complex. For example, if one party owns a business, there are large pension pots, or multiple residential or commercial properties involved, dividing these assets can be challenging. When complex financial situations are at stake, it’s common for disagreements to occur regarding the valuation and division of assets.
2. Unequal Contributions To The Relationship
Disputes can also arise when one party feels they contributed more to the relationship, either financially or in terms of domestic duties or childcare. This may lead to arguments about what constitutes a fair share of the marital assets, especially when one person feels their contributions have been undervalued.
3. Different Financial Needs
Another reason for contested financial remedies is the differing financial needs of each party. One party may feel they require more financial support due to factors such as caring for children or being financially dependent during the relationship. If these needs are not addressed adequately by the other party, a dispute may arise.
4. Concerns Over Fairness And Equity
Sometimes, contested financial remedies happen when one party feels that the financial settlement being proposed is unfair or unbalanced. This could include concerns about the adequacy of spousal maintenance, child support, or the division of property. If one party believes that the other is attempting to hide assets or understate their financial position, it can lead to a contested financial remedy.
5. Different Expectations And Priorities
Each party may have different expectations about what they should receive from the divorce settlement. These differing priorities can stem from emotional factors or practical concerns, such as securing a future home or ensuring adequate child support.
How Does A Contested Financial Remedy Work?
A contested financial remedy typically follows a formal legal process and it’s important to understand how this process works so you can prepare. Here’s what you can expect:
1. Initial Steps: Consultation and Financial Disclosure
The process begins with an initial consultation with your solicitor to discuss the financial issues in your case. You’ll need to provide full financial disclosure, which includes revealing details about all assets, property, income, debts, crypto currency and pensions. Full transparency is critical at this stage to ensure both parties understand the financial situation.
2. Negotiation And Mediation
After financial disclosure, many parties attempt to reach an agreement through negotiation or alternative dispute resolution methods such as mediation. Mediation can help the parties involved come to an agreement with the assistance of a neutral third party (the mediator). If a settlement can be reached through negotiation or mediation, it can be formalised into a Consent Order and submitted to the court for approval.
3. Court Application
If the parties are unable to agree, the matter will proceed to court. You or your ex-partner will make a formal Application For Financial Remedy, which triggers the legal process. Both parties will then attend a First Appointment where they’ll provide a summary of their financial situation. This is often the first step in the court proceedings, where a judge will assess the situation and decide how the case should proceed.
4. Further Hearings And Financial Orders
The case may continue through several hearings, including a Financial Dispute Resolution Hearing (FDR), which is an opportunity for the judge to help facilitate an agreement. If no agreement is reached at the FDR, the case may proceed to a final hearing, where a judge will make a decision based on the evidence provided.
Once a decision is made, a Financial Order will be issued, which will formally outline the division of assets, property, pensions, crypto currency, child maintenance, and any other financial obligations. This order is legally binding and both parties must comply with its terms.
What Happens If You Don’t Reach An Agreement In A Contested Financial Remedy?
If you and your ex-partner cannot reach an agreement in a contested financial remedy case, the matter will ultimately be decided by a judge in a final hearing. During this hearing, the judge will take into account various factors, including:
- The needs and welfare of any children
- Each party’s financial resources and earning capacity
- The standard of living during the marriage or relationship
- The contributions made by each party
- The length of the marriage or relationship
It’s important to note that a judge’s decision may not always be in line with your expectations, which is why it’s always preferable to reach an agreement through negotiation or mediation if possible.
How Can You Prepare For A Contested Financial Remedy?
Preparing for a contested financial remedy can be a complex and emotional process. Here are a few tips to help you navigate the situation:
- Be Transparent: Provide full financial disclosure, as this is essential to the court’s ability to make a fair decision.
- Stay Calm And Focused: Contested cases can be emotionally charged, but it’s important to remain calm and approach the situation with a clear focus on resolving the dispute fairly.
- Consider Mediation: Before resorting to litigation, consider mediation or alternative dispute resolution methods to try to resolve the matter without going to court.
- Seek Legal Advice: Ensure you have expert legal advice from a solicitor with experience in contested financial remedies to guide you through the process.
- Prepare For Court: If the case progresses to court, ensure you are well-prepared and understand the court process, including what evidence you need to present.
Why Choose Us For Your Contested Financial Remedy?
At Gavin Edmondson Solicitors Ltd, we understand the complexities of contested financial remedy cases and the emotional stress they can cause. Our team of expert solicitors provides clear, strategic advice to help you navigate through the process. Here’s why we are the right choice for your case:
- Expert Legal Advice: Our team specialises in financial remedy proceedings and we can help you understand your options, rights and obligations.
- Compassionate Support: We provide sensitive and compassionate support, guiding you through every step of the contested financial remedy process.
- Experienced Negotiators: We work tirelessly to reach the best possible outcome, whether through negotiation, mediation or court proceedings.
- Transparent Fees: We offer clear and transparent pricing, ensuring that you understand the costs involved from the start.