When you go through a divorce, you need to have a financial order made. We look at how the legal costs of obtaining an order are met and how you can keep these to a minimum.

A divorce alone does not end financial commitments to your spouse, and unless a financial order is made, you could face a claim from them long into the future.

What is dealt with in a divorce financial order?

A financial order sets out how your assets and liabilities will be split. Issues commonly contained in a financial order include:

• What will happen to a shared property
• How savings and investments will be divided, to include the division of pensions
• What will happen to business interests
• Who will be responsible for debts
• Whether one party will receive a lump sum payment
• Whether maintenance will be paid

What tasks will your solicitor need to carry out in dealing with financial issues?

It is generally recommended to use an experienced family law solicitor to represent you when seeking a financial order, to ensure that you obtain the financial provision you need for the future.

The solicitor will usually handle the following issues:

• Helping you to make full financial disclosure, usually by filling in Form E
• Negotiating on your behalf to try to reach an out-of-court agreement over finances
• Assisting you in going through the mediation process to try and resolve matters without the need for litigation
• If an agreement is reached, putting the terms into a draft consent order
• Asking the court to approve and seal the order, making it legally binding
• If an agreement cannot be reached, applying to the court for a financial order
• Attending an initial court hearing to deal with issues such as timeframe and disclosure
• Attending a financial dispute resolution appointment at court, where the judge will review the case and try to help the parties find a solution
• A final hearing, where the judge will make an order if the parties have not managed to reach a settlement

How are the costs of financial proceedings handled?

If you and your spouse are involved in a lengthy dispute over financial issues, costs may be substantial. In some cases, costs may even become disproportionate to the assets in dispute. This is one of the reasons that couples are encouraged to resolve matters between themselves wherever possible. Your solicitor can then deal with the relatively straightforward issue of drafting a consent order and seeking the court’s approval of this.

As a general rule, each party will meet their own costs. However, if one of the parties is unreasonable, then the court has discretion to award the other party some or all of their costs.

When dealing with costs, the court will consider:

• Any failure to comply with the Family Procedure Rules 2010, an order of the court or a practice direction, including failure to disclose assets
• Any failure, without a reasonable excuse to:
  • Attend a mediation, information and assessment meeting (MIAM) or other type of alternative dispute resolution
  • Attempt to engage in negotiations to settle out of court
  • Respond to offers of settlement
• Whether a party has engaged in vexatious litigation or pursued a claim with little merit
• Whether the costs are disproportionate and, if so, who bears responsibility for this
• The parties’ conduct during the case
• Any other issues the court considers to be relevant
• The financial effect that a costs order would have on the parties

How to reduce the costs risk in divorce financial proceedings

The best way to minimise costs is to try and resolve matters out of court wherever possible. This could be with the assistance of mediation or another type of alternative dispute resolution.

It is essential to follow court orders and practice directions and to ensure that any offers made by the other side are considered. Refusal to engage in negotiations or make realistic attempts to settle matters will be viewed negatively by the court, and you could end up paying some or all of the costs.

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.