Financial remedy is the process which deals with the division of matrimonial finances. From the time the application is issued, there are three court hearings up to and including the Final Hearing. At any point, parties can reach a voluntary agreement and are encouraged to do so. The middle hearing, the Financial Dispute Resolution Hearing (FDR) is where the Judge provides their view on the likely outcome of the case.
Findings from the 2021 Report
A 2021 report, chaired by His Honour Judge Stuart Farquhar, found the length of time parties were taking to reach an agreement in the form of a Consent Order was disproportionate, particularly considering the low-value assets involved. It was recognised that this not only puts emotional stress on the parties involved in the lengthy process but also on the Court’s ability to hear and list the sheer number of cases.
The report found that the main reason for lengthened proceedings is that only a small number of parties are using the first hearing as an opportunity to either reach an agreement or try non-court dispute resolution such as mediation or arbitration.
Introduction of the Express Financial Remedy Procedure
Given the above, a new Pilot has been introduced in the North of England for lower-value cases. This is known as the Express Financial Remedy Procedure. It will apply to all cases where combined net assets are less than £250,000 (excluding pensions). Those in the pilot will be required to submit information to the Judge in advance of the first hearing to allow the Judge to provide a likely outcome. Whilst the existing procedure allows for the first hearing to be treated as an FDR, this is often not happening in practice.
New Hearing Schedule as of April 2025
As of April 2025, cases will now be listed for an hour-long hearing between 16 and 20 weeks after the application is issued. The Judge will conduct the hearing as if it is an FDR. Therefore, the necessary disclosure will need to be provided prior to the hearing. If parties reach an agreement, a Financial Consent Order can be filed. Otherwise, a Final Hearing will be listed around 10 weeks later, and the Judge will ensure suitable directions are given to ensure this hearing is effective.
How can Tozers help?
Although the pilot is not currently taking place in the South West of England, you can see more about what to expect within the published Government guidance here. If the results are positive, it is likely this will replace the standard procedure nationally. For now, we shall watch this space!
