Divorce and Financial Settlement
We understand the divorce process is emotional and we are here to assist you in the process. Our family law team holds a wealth of experience and they are here to make this process as painless as possible for you.
This article sets out the procedures, some facts and some options for you in relation to issues concerning finances and properties. This is intended to be a general guide for readers to have an idea of the procedure, principles and FAQs for Financial Proceedings in UK.
Introduction:
There are three elements in the divorce process :
- Divorce petition – i.e. ending a marriage;
- Financial arrangements – how should the matrimonial assets be divided; and
- Arrangements for any dependent child – contact arrangements.
We discussed the first element in our previous article. If you are interested, please visit click here.
Can I initiate financial proceedings in UK if my divorce petition was finalised in China/countries other than UK?
We understand the position of the Courts in other countries maybe reluctant to address how matrimonial assets should be divided if those assets are located in England and Wales.
The courts in other countries are reluctant because when they give a court order, the judge will have to take account of whether they have “jurisdiction” to order how assets in UK should be divided between parties.
In simple terms, the courts in other countries will need to decide whether they have both the authority/power to determine a dispute between parties (i.e. in this case how UK assets shall be divided).
The usual procedure is that before you can issue financial proceedings against your husband/wife, there will be a permission hearing listed. The purpose of this hearing will be for the court to decide whether they accept they have jurisdiction to divide your matrimonial assets in the UK.
If the court grants permission then the usual steps for a financial proceedings apply.
How many hearings will there be in financial proceedings?
Generally there will be three hearings if parties cannot reach settlement, the hearings are: –
- First Appointment Hearing (FA)
- Financial Dispute Resolution Hearing (FDR)
- Final Hearing (FH)
We will discuss what will happen in each hearing in our next article.
Do I have to make financial disclosure before, during and after any hearing?
Once a party issues financial proceedings with the court and prior to the First Appointment Hearing, the court will give directions for parties to make full and frank financial disclosure by way of filling in a Form E.
Form E is a detailed questionnaire which helps the court to understand parties’ financial circumstances. Parties must disclose their global assets and liabilities and provide various supporting evidence to verify the financial information they provided to the court. For example, each party is required to provide the latest 12 months bank statements for each bank account held in his/her name or which he/she has interest in. This is for the other party and the court to check whether you have provided full and frank financial disclosure.
Before each hearing, the court will order parties to provide updating disclosure as parties have a continuing obligation to notify the court if their financial circumstances change.
Why do I have to make financial disclosure?
The court has to take into account parties’ income, capital, property and financial needs when they decide how to divide the matrimonial assets fairly and therefore court requires parties to provide full and frank financial disclosure of their global assets when they signed their Form E and in any subsequent updating disclosure.
What are the factors the court will take into account when dividing matrimonial assets?
The factors are set out in section 25 of the Matrimonial Causes Act 1973. These are also called “section 25 factors”.
The court will have to take into account all the circumstances of a case, first consideration has to be given to welfare of any children under 18 years old, and the following factors: –
- Parties’ income and earning capacity, capital, property and financial resources
- Parties’ financial needs
- Parties’ standard of living during marriage
- Parties’ ages and length of marriage
- Any physical or mental disabilities
- Financial and domestic contributions each party made during the marriage
- Any conduct which will be unfair for the court to ignore.
My Husband is the breadwinner of the family and I am a housewife, is he entitled to more of the matrimonial assets as he made greater financial contributions?
The court would look into the contributions of the wife in looking after the home and upbringing of the children. The court recognises the housewife’s contribution to the family which enables the husband to work and make financial contributions. The wife’s contributions will then be assessed and how the evidence is presented to the court.
The court may rule a housewife has made equal contribution as that made by the breadwinner husband.
If you want to know more about what will happen in financial proceedings and how will your matrimonial assets be divided if the matter goes to court, please contact us for further information.
In our next article, we will discuss section 25 factors in more detail and what will happen in each hearing.