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What Is a Financial Remedy in Divorce? Your Complete Guide
If you’re going through a divorce, you’ll quickly discover that the legal system has its own language. One phrase you may have come across recently is “financial remedy”. It sounds technical, but in reality it simply refers to the process the court uses to sort out a couple’s finances after they separate.
It has quietly replaced older terms like “ancillary relief” and is now the standard way family law professionals describe anything to do with dividing money, property, pensions, income and liabilities on divorce.
At OLS Solicitors, we see a lot of confusion about this new terminology, so here’s a straightforward breakdown of what a financial remedy actually is, how it works, and what you need to do if you need to make an application.
What Does ‘Financial Remedy’ Actually Mean?
A financial remedy is an arrangement under which a couple’s assets and financial affairs are separated upon divorce. In practice, it is the process that leads to a legally binding agreement between two parties about their finances.
It covers, for example:
- How you split the family home
- How to divide savings, investments, and debts
- What happens to pensions
- Whether there should be spousal maintenance
- What income or assets each of you keeps after the divorce
In simple terms, it answers the question: “How do we work out splitting up money, property and possessions now that we’re divorcing?”
Putting it another way, a divorce financial settlement is the point in the process where you turn that agreement into a court order that both parties must follow.
Why the Term Is “New”
For many years, the family court used the phrase ancillary relief to describe what we now call a financial remedy. That language has largely fallen out of use.
As the Family Procedure Rules were modernised, the courts moved towards plainer, more accessible terms. “Financial remedy” is now the umbrella term used to describe the divorce financial settlement process, whether it is agreed between you or decided by a judge.
If you feel like you’ve only heard it recently, you’re not imagining it – most people now getting divorced will only ever see the term financial remedy on official paperwork and court forms.
Uncontested Financial Remedy Applications
When both spouses agree on how to divide the finances, you can make an uncontested financial remedy application.
This usually involves asking the court to approve a consent order. In that situation:
- You have reached a financial agreement together
- No court hearings are normally needed
- A judge reviews the agreement on paper
- If it is fair, the judge approves it
The result is a financial order – a legally binding agreement between two parties that sets out who gets what. In many cases, that will include a clean break, meaning that neither of you can make further financial claims against the other in future.
An uncontested financial remedy is typically faster, cheaper, and far less stressful than going to court to argue over money.
Contested Financial Remedy Applications
If you can’t reach an agreement, you may need to make a contested financial remedy application using Form A. This triggers a formal court process which usually follows a set timeline of hearings:
- First Directions Appointment (FDA) – a case management hearing where the judge checks that all financial information (disclosure) is being prepared properly.
- Financial Dispute Resolution (FDR) hearing – a without-prejudice settlement hearing where a judge gives guidance on likely outcomes to help you reach an agreement.
- Final Hearing – if you still cannot agree, a different judge hears evidence and decides how assets, income and pensions should be divided.
This route is usually slower and significantly more expensive. There may be multiple court hearings, and legal costs can escalate quickly, especially if there are complex assets such as businesses or multiple properties.
That is why early legal advice, negotiation, and where appropriate mediation are strongly recommended before issuing contested proceedings.
How Do You Make a Financial Remedy Application?
Calculating a divorce settlement involves several key steps:
- Identifying and valuing all assets, income, pensions and debts
- Considering the needs of each spouse and any children
- Looking at factors such as ages, earning capacity, health and housing needs
- Working out whether there should be an equal (50/50) division or whether a different split is appropriate
- Deciding whether there should be a clean break or ongoing maintenance
The way you apply depends on whether you have already reached an agreement.
1. If You Agree – Apply for a Consent Order
If you have reached a financial agreement, you can ask the court to make it into a binding order without either of you attending a hearing. The usual steps are:
- Agree your divorce financial settlement
- Complete a statement of information (Form D81), which gives a snapshot of your finances
- Submit your draft consent order and supporting documents to the court
- A judge reviews the agreement, considering whether it is fair and meets needs
- If approved, the order becomes legally binding on both of you
This is what many people think of when they use a divorce settlement calculator or similar online tools – they are trying to understand what a reasonable settlement might look like before they ask a judge to approve it.
2. If You Don’t Agree – Issue Form A
If negotiations have broken down, one spouse may issue Form A to start financial remedy proceedings. The court will then:
- List a First Directions Appointment
- Set a timetable for exchanging financial disclosure
- Arrange a Financial Dispute Resolution hearing
- List a Final Hearing if no agreement is reached
This is a more formal, structured divorce financial settlement process. There may be a transfer of some income-generating assets, a sale or transfer of property, and an arrangement regarding pensions and maintenance decided by the judge.
Do You Need a Solicitor for a Financial Remedy?
You are not legally required to use a solicitor to deal with your financial remedy application. However, in practice, divorce finances can be complex. There may be pensions, business interests, overseas assets, or issues about earning capacity and needs that are not straightforward.
Working with a specialist family law solicitor can help to ensure that:
- Your agreement is fair and realistic
- Your housing and income needs (and those of any children) are properly addressed
- Any pension sharing order is drafted correctly
- You obtain a proper clean break where appropriate
- You avoid mistakes that could lead to future claims or further litigation
At OLS Solicitors, we regularly advise clients on both uncontested financial remedy cases (where everything is agreed) and more complex contested matters. We can guide you through what a typical UK settlement looks like in cases similar to yours and help you understand what a court is likely to view as fair.
Why You Should Get a Financial Remedy Order — Even if You Agree
A common misconception is that once you have your final divorce order, your finances are automatically settled. Unfortunately, that is not the case.
Without a financial remedy order (often a clean break order):
- Either spouse can, in principle, make a financial claim years after the divorce
- Future income, bonuses or inheritances could be taken into account
- A new property, business sale or pension could be exposed to a claim
This is why obtaining a proper order that records your agreement – or sets out the court’s decision – is so important. It turns “what we agreed between ourselves” into an agreement between spouses on how to split their assets and liabilities that the court can enforce.
In many cases, especially where there are no ongoing maintenance obligations, the aim is to achieve a clean break so that there is finality and no further financial claims can be made after the divorce.
How OLS Solicitors Can Help
Every family’s finances are different. There is no one-size-fits-all formula, and while online tools such as a divorce settlement calculator can be a useful starting point, they cannot replace tailored legal advice.
Our family law team can:
- Help you understand what a fair settlement looks like in your circumstances
- Advise you on likely outcomes if your case went to court
- Draft a robust consent order that reflects your agreement
- Represent you in contested financial remedy proceedings if necessary
- Work towards a settlement that gives you security and, where appropriate, a clean break
If you need clear, practical advice about your financial remedy options, we are here to help.
📞 01554 756952
🌐 www.ols-solicitors.co.uk
Contact us today to discuss your situation and take the next step towards a secure financial future after divorce.
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Financial Remedy FAQs
What is a financial remedy in a divorce?
A financial remedy is the legal process for sorting out divorce finances. It covers how money, property, pensions, savings and debts are divided and ends with a financial order that is a legally binding agreement between two parties.
Is a financial remedy the same as a divorce financial settlement?
Yes, in everyday terms a financial remedy is the divorce financial settlement process. It is how the court approves an agreement between spouses on how to split their assets and liabilities, or decides the outcome if you cannot agree.
Do I need a financial remedy order if we have already agreed everything?
Yes. Even if you have a written agreement, you should still ask the court to make a financial remedy order, usually by way of a consent order. Without an order, either spouse can try to make financial claims after the divorce, sometimes many years later.
What is the difference between an uncontested and contested financial remedy?
An uncontested financial remedy means you have agreed the settlement and are asking the court to approve it on paper. A contested financial remedy starts with Form A and follows a court timeline of hearings where a judge ultimately decides how assets, income and pensions are split.
How long does a financial remedy application take?
An uncontested financial remedy, where you submit a consent order, is usually dealt with on paper within a few weeks, depending on court backlogs. A fully contested financial remedy case can take many months, or even over a year, from issuing Form A to a Final Hearing.
Do I need a solicitor for a financial remedy application?
You do not have to use a solicitor, but legal advice is strongly recommended, especially where there are pensions, businesses or multiple properties. A specialist family law solicitor can help you understand what a typical UK settlement looks like, draft a robust order, and work towards a clean break where appropriate.
Can a financial remedy order give me a clean break?
Yes. Many people apply for a financial remedy order specifically to achieve a clean break. This is an order that ends future financial claims between you, so neither of you can come back to court for more money after the divorce, except in very limited circumstances.
Is a 50/50 split always expected in a financial remedy case?
No. While a 50/50 share of assets can be a starting point, the court focuses on fairness and needs, not a strict formula. Calculating a divorce settlement involves several key steps, including looking at housing needs, income, children and any special circumstances before deciding the final split.
