
2 minute read
What is ancillary relief in divorce?
and may consequently be left with a very low income, or no income at all, following divorce proceedings after separating.
However, divorce proceedings do not deal with the married couple’s finances. This is when finance proceedings, sometimes referred to as ancillary relief proceedings, may be required. The word ‘ancillary’ means secondary or supplementary - these finance proceedings follow on from the primary divorce proceedings. So ancillary relief proceedings in divorce - the process of ‘detangling’ and splitting the parties’ assets and income –are initiated following the start of divorce proceedings.
Many married couples have assets acquired over time. Assets may be held jointly or in one spouse’s name. Often the largest asset is the family home. However, this is not always the case. One spouse may have a high value pension, business assets or interests, shares or other investments.
There may also be income disparity – not all couples earn similar incomes. One spouse may focus on caring for children and/or the home,
The starting point of the court is to add all assets held by the parties into one theoretical ‘matrimonial pot’ and split these between the parties on a 50:50 basis. However, the court can depart from the 50:50 starting point depending on a number of factors, for example children, housing needs, income needs, financial resources and contributions.
The court can make a range of different orders in respect of any of the assets or income of either party going through a divorce. Examples of the most common types of orders are:
• For the family home to be sold and net sale proceeds shared in accordance with a pre agreed percentage
• Other property being sold or transferred into one spouse’s name
• Pension sharing order (more common in longer marriages)
• Periodical payments or spousal maintenance - a sum that one spouse has to pay to the other spouse for a particular period of time.
Before applying for a financial order, you will usually need to show the court you have attended a MIAM: Mediation Information Assessment Meeting. This is a meeting with a mediator who assesses whether mediation is suitable for you both and, if so, to let you know how mediation works and ask you whether you wish to try mediation. After you have attended a MIAM, you can start ancillary relief/ finance proceedings by completing and filing a Form A at court.
Proceedings can take a year or longer, usually involving three hearings: a First Appointment hearing, a Financial Dispute Resolution hearing and a Final Hearing. Ideally it is best to try and resolve matters without contested court proceedings, or as early in court proceedings as possible through negotiations or other dispute resolution methods, in order to save you time and money. Once an agreement is reached this can be incorporated into a consent order and sealed by the court, making it legally binding.