Lauren Power, Associate Solicitor and Head of Family Department looks at a new pilot scheme which may give rise to a change in how court applications are dealt with.
Currently if one party issues an application to court for a financial order, there are typically 3 court hearings (providing an agreement cannot be reached). Those are a first directions appointment (FDA), financial dispute resolution hearing (FDR) and a final hearing. The purpose of the FDA hearing is to seek to narrow the issues in the case and to look at what directions may be required, such as whether any expert reports or valuations may be necessary.
The FDR hearing stage is when most cases settle as typically by that stage we have an agreed valuation of the family home, clarity on pension valuations and often the necessary information in order to put forward proposals for settlement. The risk and cost of proceeding to a final hearing is often a trigger point to seek to reach agreement. If this cannot happen then the matter proceeds to a final hearing whereby the judge will provide a final order.
The express financial remedy pilot comes into effect from 7th April 2025 and will be introduced in a number of courts; of interest is Liverpool, Manchester, Chester and St Helens to name a few of the courts locally that the majority of our cases are heard in. Nationally, over 30 Courts are subject to this pilot scheme. Only cases whereby both parties’ total combined net assets equate to £250,000 or less will be subject to the scheme. This does not include the value of any pension assets. Cases that involve higher assets will not be included and will proceed using the existing 3 stage process.
The pilot scheme will list the first hearing between 16-20 weeks from application being issued, with the final hearing being heard 26-30 weeks from the application issue date.
Lauren commented that “any changes to ensure a more streamlined process for clients is welcome, particularly at a time when emotions are heightened. With the aim to conclude financial applications within 6 months, this is a lot quicker than the current timescales and delays which clients are often challenged with. Whilst it will not be suitable in every case, the hope is that the pilot scheme will prove successful and could (if done correctly) revolutionise how financial settlement matters are dealt with. Will this mean that more spouses are minded to issue applications to court, well that remains to be seen. Consent orders will still be dealt with in the usual way but if a party does need to issue an application to court and providing that the total assets are under £250,000 then those parties should see a resolution and a final order granted quicker. By having the majority of the information at the outset, such as Form E’s, valuations and mortgage capacity, it will enable both parties to navigate the financial process, with an early indication from the judge as to what a settlement ought to look like”.
If you have a query regarding financial settlement matters or a divorce enquiry, then please do not hesitate to contact us on 01928 735 333 and we would be more than happy to assist.