What You Are Entitled To
on Divorce.

What Financial Remedy Means

Financial remedy is the legal term for the financial settlement on divorce. It covers everything from the family home and savings to pensions, businesses, and ongoing income. The court has wide powers to redistribute assets and income between divorcing spouses.

The starting point is not a 50/50 split. The court applies a welfare checklist set out in section 25 of the Matrimonial Causes Act 1973, which takes into account the length of the marriage, contributions of each party, the needs of any children, and the earning capacity of each spouse.

The Section 25 Factors

When deciding how to divide assets on divorce, the court considers the income and earning capacity of each party, their financial needs and responsibilities, the standard of living enjoyed during the marriage, the age of each party, the duration of the marriage, any disability, the contributions of each party including caring for children and the home, and any conduct that would be inequitable to disregard.

The welfare of any children is the court's first consideration throughout.

The Family Home

The family home is usually the most significant asset in a divorce. The court can order an immediate sale and division of proceeds, a transfer of ownership to one party, or a Mesher order deferring sale until a future event such as the children leaving full-time education.

A Mesher order sounds reasonable but keeps two parties financially connected for potentially fifteen years or more. Understanding exactly what you are agreeing to before signing is essential.

Pensions: The Most Overlooked Asset

Pensions are frequently the largest asset in a marriage and the most commonly overlooked in settlements. There are three options: pension sharing, pension offsetting, and pension attachment. Each has different implications depending on your age, the type of pension, and your financial circumstances.

Agreeing to offset a pension without properly understanding its value is one of the most common and costly mistakes in divorce settlements.

The Financial Dispute Resolution Hearing

The FDR is a without-prejudice negotiation hearing before a judge. The judge gives an indication of what they consider a fair outcome, but that indication is not binding. The vast majority of financial remedy cases settle at or around the FDR.

Before You Sign a Consent Order

A consent order agreed between the parties must be approved by a court to be legally binding. An agreement alone is not enforceable. Signing under pressure, or without fully understanding what the order contains, is a mistake that is very difficult to undo.