What It Means for You?
Anyone who has been through a financial dispute following a divorce, where the court have been asked to help resolve matters, will tell you that the process is slow and frustrating. A new Pilot Scheme is being trialled in Birmingham and other family courts to try and alleviate these problems. The initiative is intended to streamline the existing process and to make it more efficient in cases that do not require lengthy court proceedings.
If the scheme is successful, it is likely to be rolled out nationwide and could transform how financial disputes are resolved in England and Wales
How does it differ from the existing system?
The Current Financial Remedy Procedure:
Under the traditional financial remedy process, if you and your spouse cannot agree on how to divide your finances, you may apply to the court for a decision.
The key steps in this process are:
- Filing an Application (Form A) – You start the process by formally asking the court to resolve your financial dispute.
- First Directions Appointment (FDA) – The first hearing which is used to consider case management. During this hearing, the judge will assess what further evidence is needed in order for the court to be able to make a determination.
- Financial Dispute Resolution Hearing (FDR) – The second hearing during which the parties try to reach a settlement with the judge’s guidance
- Final Hearing – If the parties are unable to reach an agreement, a judge will make the final decision on financial arrangements.
- This process can take upwards of a year subject to the court’s listing capacity and case complexity. Delays often cause frustration, stress, and additional legal costs.
What’s Changing with the Financial Remedy Express Pilot Scheme?
- Filing an Application (Form A) – You start the process by formally asking the court to resolve your financial dispute.
- First Hearing – Under the Pilot Scheme, the first hearing will be listed 16 – 20 weeks after the Form A is issued. This will take a similar form to the FDR under the existing scheme with judges providing guidance and encourage an agreement to be reached between the parties.
- Final Hearing – At the same time that applications are issued and listed for a first hearing, they will also be listed for a day-long final hearing which shall take place between 26-30 weeks after the application is issued.
The Pilot Scheme, governed by a new Practice Direction, introduces a fast-track process for certain financial remedy cases.
What are the main benefits of the New Pilot Scheme?
- Faster Timelines – The process is geared towards seeking a swifter resolution with judicial guidance being provided earlier under the new pilot scheme. The scheme aims to resolve cases in 6 months or less, reducing the usual delays.
- Stricter Case Management – Judges take a more active role in keeping cases on track, ensuring that unnecessary evidence and delays are avoided.
- Greater Focus on Settlement – The new process encourages parties to reach an agreement early, with stronger judicial guidance at an earlier stage.
- Lower legal costs – A shorter process means fewer court hearings and potentially lower legal fees.
To which cases with the New Pilot Scheme apply ?
The scheme is designed for cases that don’t involve highly complex financial arrangements (e.g., large business assets or international elements). The new scheme will be applied for cases where the couples have net assets valued at less than £250,000.00 (not including pensions).
When would the New Scheme not be appropriate
In cases where the capital assets of over a quarter of a million, or in other cases where are although the assets are below this threshold there are other complicating factors, such as :
- Cases where there are pensions, or business that need to be valued and looked at in more details
- Cases with an international element
- Cases where one party is not providing full disclosure
In these cases, either party can apply to the Court to move to the standard, existing procedure.
Our view of the new pilot scheme
At Staffordshire Family Law Solicitors, we welcome any improvements to the current process which will improve what is, for many clients, a stressful process. Often their lives are on hold whilst they wait for the financial issues arising upon divorce to be resolved. Solicitor Anna-Mei Streather comments :
“Although the new process will not be suitable in every case, there are obvious advantages. The disclosure process, which is the steps taken to exchange information about the parties’ financial position, will be front loaded under the new process. This will help us in advising clients on a suitable settlement and enable them to focus on an early resolution. The accelerated timetable which will require divorcing couples to focus on readying their case for an effective first hearing where the judge can evaluate the case and give clear guidance on how they think the case should be resolved. With this guidance, the couple are far more likely to be able to agree how to divide the assets, so that they can resolve the financial issues between them. This would avoid matters drifting, with long gaps between hearings, often when the parties are just waiting to receive a date for the next stage. There will be fewer court hearings overall, with a focus on early settlement, and, if the parties cannot agree, a judge will be in a position to decide the case in effectively half the timescale that would currently apply.”
What Should You Do Next?
If you’re considering applying for financial remedies and want to know whether you qualify for the Financial Remedy Express Pilot Scheme, speak to a solicitor. They can advise you whether court proceedings are appropriate, and if so whether your case is suitable for the expedited process. Regardless of which scheme is most appropriate to your particular circumstances, at Staffordshire Family Law Solicitors, we have specialist Matrimonial Finance Solicitors who can guide you through the process, advise you throughout and represent you at court to help you achieve the best outcome in the most cost-effective way.
If you require advise on financial matters on divorce, please feel free to contact our offices on 01785 336617 or by email at family@sflsolicitors.co.uk to arrange a free initial consultation.