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Reforms in Financial Remedy Cases: Introduction of Family Remedies Courts (FRC), Study notes of Remedies

The proposed reforms to financial remedy cases in the UK, focusing on the establishment of Family Remedies Courts (FRC) to deal with all types of financial remedy applications. The FRC aims to improve procedural and substantive justice through standard directions, interim orders, and the use of standardised orders. The document also discusses the role of lead judges, the issuance of applications, and the proposed amendments to the Family Procedure Rules.

What you will learn

  • What types of financial remedy applications will the FRC deal with?
  • What is the purpose of establishing Family Remedies Courts (FRC) in the UK?
  • What role will lead judges play in the FRC?

Typology: Study notes

2021/2022

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VIEW FROM THE PRESIDENT’S CHAMBERS (18)
The on-going process of reform Financial Remedies Courts
Sir James Munby, President of the Family Division
Although there has been much reform of the processes and procedures in the family justice system in
recent years, there is one area in which little has been done and much needs to be done: financial
remedies. This is the Cinderella of family justice. Some of its failings were exposed by the Law
Commission in its 2014 report, ‘Matrimonial Property, Needs and Agreements,’ Law Com No 343. They
need to be remedied.
I set out here my vision of what needs to be done and my current thinking as to how this vision can
be achieved. The former builds on what I said in my 17th View from the President's Chambers: divorce
and money where are we and where are we going?' [2017] Fam Law 607, the latter builds on
President's Circular: Financial Remedies Courts’ [2018] Fam Law 91.
The need for and the many benefits to be derived from the introduction of a national system of
Financial Remedies Courts were persuasively argued by HHJ Martin O'Dwyer, HHJ Edward Hess and
Joanna Miles: Hess and Miles, ‘The recognition of money work as a speciality in the family courts by
the creation of a national network of Financial Remedies Units' [2016] Fam Law 1335, and O'Dwyer,
Hess and Miles, ‘Financial Remedies Courts' [2017] Fam Law 625. I have made clear my support for
this from the outset: see ‘Note by the President' [2016] Fam Law 1340. Overwhelmingly, as to the
substance, the reaction has been very positive. In relation to the specifics there have been a few,
though in fact surprisingly few, more questioning voices.
My core ambition for financial remedy work is to improve significantly both the application of
procedural justice and the delivery of substantive justice.
Procedural justice will be bettered by the appointment of a cadre of specialist judges to the Financial
Remedies Court (FRC) and by a process of early allocation of a case to the right judge at the right level
at the right place, so as to ensure maximum efficiency. It will be bettered by the application and
enforcement of standard directions and interim orders and by ensuring that FDRs (where the majority
of cases settle already) are conducted with consistency, with sufficient time being allowed not only
for the hearing but also for judicial preparation.
The delivery of substantive justice will be improved by an improved programme of judicial training; by
the reporting of judgments in small and medium cases by the judges of the FRC to promote
transparency and consistency; and by ensuring that sufficient time is allowed for the preparation and
conduct of final hearings. An increase in transparency will result in increased predictability of
outcome, which in turn should lead to a higher rate of settlement or, for those cases that do not settle,
a reduced rate of appeals.
The basic concept of the FRC, which builds on both the Family Court and regionalised Court of
Protection models, is as follows:
The FRC, which will be part of the Family Court, will deal with all types of financial remedy
cases dealt with in the Family Court or Family Division: claims for ancillary and other relief
under the Matrimonial Causes Act 1973; claims under Schedule 1 to the Children Act 1989;
claims under Part III of the Matrimonial and Family Proceedings Act 1984; and, in due course,
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VIEW FROM THE PRESIDENT’S CHAMBERS (18)

The on-going process of reform – Financial Remedies Courts Sir James Munby, President of the Family Division Although there has been much reform of the processes and procedures in the family justice system in recent years, there is one area in which little has been done and much needs to be done: financial remedies. This is the Cinderella of family justice. Some of its failings were exposed by the Law Commission in its 2014 report, ‘Matrimonial Property, Needs and Agreements,’ Law Com No 343. They need to be remedied. I set out here my vision of what needs to be done and my current thinking as to how this vision can be achieved. The former builds on what I said in my ‘17th View from the President's Chambers: divorce and money – where are we and where are we going?' [2017] Fam Law 607, the latter builds on ‘President's Circular: Financial Remedies Courts’ [2018] Fam Law 91. The need for and the many benefits to be derived from the introduction of a national system of Financial Remedies Courts were persuasively argued by HHJ Martin O'Dwyer, HHJ Edward Hess and Joanna Miles: Hess and Miles, ‘The recognition of money work as a speciality in the family courts by the creation of a national network of Financial Remedies Units' [2016] Fam Law 1335, and O'Dwyer, Hess and Miles, ‘Financial Remedies Courts' [2017] Fam Law 625. I have made clear my support for this from the outset: see ‘Note by the President' [2016] Fam Law 1340. Overwhelmingly, as to the substance, the reaction has been very positive. In relation to the specifics there have been a few, though in fact surprisingly few, more questioning voices. My core ambition for financial remedy work is to improve significantly both the application of procedural justice and the delivery of substantive justice. Procedural justice will be bettered by the appointment of a cadre of specialist judges to the Financial Remedies Court (FRC) and by a process of early allocation of a case to the right judge at the right level at the right place, so as to ensure maximum efficiency. It will be bettered by the application and enforcement of standard directions and interim orders and by ensuring that FDRs (where the majority of cases settle already) are conducted with consistency, with sufficient time being allowed not only for the hearing but also for judicial preparation. The delivery of substantive justice will be improved by an improved programme of judicial training; by the reporting of judgments in small and medium cases by the judges of the FRC to promote transparency and consistency; and by ensuring that sufficient time is allowed for the preparation and conduct of final hearings. An increase in transparency will result in increased predictability of outcome, which in turn should lead to a higher rate of settlement or, for those cases that do not settle, a reduced rate of appeals. The basic concept of the FRC, which builds on both the Family Court and regionalised Court of Protection models, is as follows:

  • The FRC, which will be part of the Family Court, will deal with all types of financial remedy cases dealt with in the Family Court or Family Division: claims for ancillary and other relief under the Matrimonial Causes Act 1973; claims under Schedule 1 to the Children Act 1989; claims under Part III of the Matrimonial and Family Proceedings Act 1984; and, in due course,

claims under the Inheritance (Provision for Family and Dependants) Act 1975 and claims under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).

  • There will be a number of regional hubs, typically two per circuit (population or geography may require more), at which both the administration (HMCTS) and the judicial leadership for the relevant hub area are based.
  • There will be a lead judge for each hub area: this must be a judge (either a Circuit Judge or a District Judge) with real experience/expertise in financial remedy work.
  • There will be a national lead judge with a deputy. Mostyn J and, as his deputy, HHJ Hess have agreed to fill these important positions.
  • Hearings will be conducted (a) at the regional hub and also (b) at a number of Financial Remedies Hearing Centres (FRHCs) within the hub area. I emphasise (b), because it is very important. I emphasise also that parties will still be able to request, for good reason, that a particular hearing takes place at a court other than a FRHC.
  • Only ‘ticketed' judges will sit in the FRC. All District Judges and Circuit Judge currently in post who do this work, and wish to continue to do so, will be ‘grandfathered' in.
  • The FRC will function quite separately from the Regional Divorce Centres. Applications for a financial remedy, including for ancillary relief, will be issued at the FRC hub, not at the Regional Divorce Centre. The FRC will initially function with paper files, as at present, but HMCTS, with my support, is already working on transition by the FRC as quickly as possible to a fully digitised model. As previously announced, and following discussions with HMCTS, the FRC will be piloted in three areas, starting in February or March 2018: London, the West Midlands (Black Country) and South-East Wales. Further pilots will follow after Easter 2018 on a rolling programme, starting with the remainder of the Midland Circuit, the North-Eastern Circuit and at least parts of the South-Eastern Circuit. The pilots will be designed to enable us to move as quickly and smoothly as possible to implementation, first in the pilot areas and then nationally, of the full FRC model as described above. The pilots will be conducted in accordance with Practice Directions issued from time to time in accordance with FPR 36.2. As with the piloting in 2013 of the new Public Law Outline, the pilots will be continuously monitored, so that the FRC model can be ‘tweaked’ from time to time in the light of emerging experience. I will be placing before the Family Procedure Rule Committee at its meeting on 6 February 2018 a paper prepared by Mostyn J and HHJ Hess indicating proposed amendments to the FPR and a draft revised Form A (attached), designed to be used for all types of financial remedy application. This revised Form A will contain sufficient information to enable a very early allocation decision to be made by a judicial gatekeeper at the regional hub. Early allocation to the right judge at the right level at the right place is a key element of the process. I hope that the necessary work in relation to the preparation of the first pilot FPR 36.2 Practice Direction (to include use in the pilot courts of the revised Form A and, I would propose, the revised Form E recommended by the Financial Remedies Working Group in its Interim Report dated 31 July 2014 ) will proceed with the utmost speed; and that the more general work in relation to the necessary FPR amendments as proposed by Mostyn J and HHJ Hess to facilitate the FRC and to bring about the complete de-linking – separation – of divorce and ‘money’, so that they are started and pursued by completely separate processes, will proceed with all possible speed.

“The Standard Family Orders Handbook has the tremendous benefit for the practitioner not only of presenting full versions of all the orders in published book form for the first time, but also the very great assistance of the author’s editorial comments, in which he uses his considerable experience as a barrister and judge in the family justice system to identify when particular orders, or particular parts of orders, might sensibly be used. The utility of the work is greatly enhanced by its colour coding, including, shown in blue, the editorial comments by Edward Hess.” The Standard Family Orders Handbook , I should add, contains the corrected versions of those orders originally issued in erroneous form. The attached Table shows my current, tentative, thinking in relation to the possible ‘geography’ of the pilot areas. None of this, I emphasise, is yet set in stone. And, as the pilots proceed, the initial ‘geography’ will be adjusted as appropriate. Local discussions, involving HMCTS, the leadership judges and, especially, the District Judges, with their particular knowledge and experience of financial remedies litigation ‘on the ground’, are needed to ensure appropriate consensus before the pilots commence; consensus both in relation to the ‘geography’ and generally. James Munby 23 January 2018 Hub FRHCs Courts not to be used regularly London CFC Bromley Croydon Edmonton Kingston Romford Barnet Brentford Clerkenwell & Shoreditch East London Uxbridge Wandsworth West London Willesden West Midlands [* indicates position after second phase of pilot] Birmingham Coventry Telford Wolverhampton Stoke on Trent* Worcester* Dudley Walsall Hereford* Stafford* East Midlands Nottingham Derby Leicester Lincoln Northampton Boston Chesterfield Mansfield South East Wales Newport Cardiff Blackwood Merthyr Pontypridd North-Eastern Circuit Newcastle Durham Berwick

Middlesbrough Sunderland Darlington Gateshead North Shields South Shields Leeds Bradford Harrogate Huddersfield Wakefield York Scarborough Skipton Sheffield Doncaster Great Grimsby Hull Barnsley South-Eastern Circuit [Two hubs not yet identified] Chelmsford Colchester Norwich Peterborough Southend Cambridge Ipswich [Thames Valley] Bedford Luton Milton Keynes Oxford Reading Slough Watford Hertford [Kent Sussex and Surrey] Brighton Canterbury Dartford Guildford Hastings Horsham Maidstone Medway Staines Worthing Chichester Eastbourne Reigate Thanet Tunbridge Wells

SECTION 1 Please complete this section if your application arises out a divorce/annulment/dissolution/judicial separation of a marriage or a civil partnership. A. Date of marriage or civil partnership B. Please set out the details of the Divorce/Annulment/Dissolution/Judicial Separation Proceedings, including the court involved (specifying whether the court is in the British Islands or overseas), the case number, the date of issue, the nature of the proceedings, the stage the proceedings have reached and the dates of any Decrees or Matrimonial Orders made C. If the proceedings referred to in Part B above were in an overseas court (i.e. a court not within the British Islands) you will need to apply for leave to make an application for a financial remedy. If this applies to your application, please tick/complete the box which applies to your application The relevant proceedings were in an overseas court. The conditions of Matrimonial and Family Proceedings Act 1984, section12 or Civil partnership Act 2004, Schedule 1, paragraph 1 are met and I am now applying for leave to make a financial remedy application in this jurisdiction. I am attaching a statement in support of my application for leave. The relevant proceedings were in an overseas court. The conditions of Matrimonial and Family Proceedings Act 1984, section12 or Civil partnership Act 2004, Schedule 1, paragraph 1 are met and I have been granted leave to make a financial remedy application by an order made in the Family Court sitting at [ ] on the following date:[ ] D. Please set out the nature of the financial remedy you are seeking by ticking the boxes which apply to your application. An order for maintenance pending suit or the outcome of proceedings A legal services costs allowance order A periodical payments order A lump sum order

A property adjustment order A pension sharing order A pension attachment order A pension sharing order A pension attachment order The variation of an order previously made An order to prevent or set aside a transaction intended to defeat a prospective application An order to set aside an order previously made An order to freeze assets pending the hearing of a financial remedy application An order not included in the list above E. If your application is for a property adjustment order, please set out the address of the property(ies) involved and the details of any mortgagee or any legal or beneficial owner other than the Respondent, if known F. If your application is for an order relating to a pension, please set out the details of the pension scheme(s), if known

K. If your application is for an order not included in the list above please set out what order you are seeking and please summarise the basis of the application, including (if applicable) the statutory basis conferring jurisdiction on the court to make the order sought SECTION 2 Please complete this section if your application is for the benefit of a child or children or otherwise arises out of circumstances not covered by Section 1 above A. If your application is for a financial remedy relating to a child please complete the boxes below in relation to each relevant child. Please add additional pages if there are more than three relevant children. Child 1 Full name Date of birth Gender Relationship to Applicant Relationship to Respondent Country of residence Child 2 Full name Date of birth Gender Relationship to Applicant Relationship to Respondent Country of residence Child 3 Full name Date of birth Gender Relationship to Applicant Relationship to Respondent Country of residence

B. If your application is for a financial remedy relating to a child, please set out the nature of the financial remedy you are seeking by ticking the boxes which apply to your application. An interim periodical payments order A periodical payments order A lump sum order A settlement of property for the benefit of the child(ren) A transfer of property for the benefit of the child(ren) The variation of an order previously made An order to prevent or set aside a transaction intended to defeat a prospective application An order to set aside an order previously made An order to freeze assets pending the hearing of a financial remedy application An order not included in the list above C. If your application is for a periodical payments order for the benefit of the child(ren), please set out the basis of the court’s jurisdiction to make such an order, in particular setting out which part (if any) of Child Support Act 1991, section 8, applies to your application D. If your application is for the settlement or transfer of property for the benefit of the child(ren), please set out the address of the property involved and the details of any mortgagee or any legal or beneficial owner other than the Respondent, if known

Please complete the relevant parts of this section (in addition to either Section 1 or Section 2 above) A. If there is an agreed Consent Order for which you seek the court’s approval, p lease confirm that the procedure for the approval of a Consent Order under Family Procedure Rules 2010, rule 9.26, has been followed by ticking the boxes below I am attaching a written Consent Order which has been agreed and signed by or on behalf of both parties I am attaching signed Statement(s) of Information signed by both parties in Form D81, including confirmation that each party has read the contents of the other’s Statement of Information B. If there is currently no agreement between the parties as to what Order the court should make then the court will need you to provide some basic financial information about the application:- (i) The fast-track procedure defined in Family Procedure Rules 2010, rule 9.9B, applies to a limited number of categories of application. In order for the court to decide whether this applies in this case, please tick any of the boxes which apply to your application The financial remedy I seek is only for an order for periodical payments and/or a lump sum order not exceeding £25, My application is made to the Magistrates under Domestic Proceedings and Magistrates’ Courts Act 1978 My application is made to the Magistrates under Civil Partnership Act 2004, Schedule 6 The financial remedy I seek is only for the variation of a previously made periodical payments order and I do not seek the dismissal (immediate or otherwise) of the periodical payments order and its substitution with one or more of a lump sum order, a property adjustment order or a pension sharing order My application falls within one of the above categories, but I do not wish the fast-track procedure to apply to it My application does not fall into any of the above categories (ii) If you have any suggestions for what directions the court might make, please set them out here. For example:- (a) Do you wish for any hearing to take place without notice to the Respondent and, if so, why? (b) Are you content for any hearing to take place by telephone or by another electronic means? If so, why and what do you suggest? (c) Is there a need for an urgent hearing? If so, why?

(iii) To allow the court to make an assessment of the size and complexity of the case for allocation and directions purposes, please provide a concise broad assessment of the nature and quantum of assets and income likely to be involved in the case, as well as any features which you think are likely to make the case more complex than the norm. If you are unaware of the full extent of or value of assets then it is acceptable for you to say so, but please give as detailed an estimate as you are able to at this stage. Statement of Truth: This section must be completed by the Applicant or by a solicitor acting for the Applicant. Proceedings for contempt of court may be brought against a person who makes or causes to be made, a false statement in a document verified by a statement of truth. [I believe that the facts stated in this application are true.] [The Applicant believes that the facts stated in this application are true. I am duly authorised by the Applicant to sign this statement.] *Delete as appropriate Signature of Applicant or Applicant’s Legal Representative Date of Application Applicant’s Address for Service (Postal or DX Address) (which may be the offices of the Applicant’s Solicitor) Name of Solicitor and Firm (if instructed)