Domestic Abuse in Financial Remedy Proceedings
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In 2023, Resolution formed a group, including family solicitors, barristers, academics, domestic abuse charities, to examine the impact of domestic abuse in financial remedy proceedings. The group’s report, Domestic Abuse in Financial Remedy Proceedings (Oct 2024) (the full report can be found at https://resolution.org.uk/wp-content/uploads/2024/10/Resolution_DAFRP_Report_ONLINE.pdf) revealed that 80% of family justice professionals believe domestic abuse and in particular economic abuse, is not sufficiently considered in financial settlements. Additionally, 85% expressed concern about schedule 1 cases and 87% raised similar issues for cohabiting couples (TOLATA).
Resolution's Findings
Resolution have argued that the courts’ approach to s.25(2) (g) of the Matrimonial Causes Act 1973 often results in unfair outcomes for abuse survivors.Resolution’s latest report calls for critical reforms to better support victims of domestic abuse in financial remedy proceedings. Family law professionals expressed concerns over the lack of legal aid access and the misuse of family funds, making it difficult for survivors to cover legal fees.
Persistent issues include failure to disclose assets and breaching court orders, leaving many vulnerable persons to ongoing abuse during financial disputes.
Resolution recommends a series of changes to better protect domestic abuse survivors during financial remedy proceedings:
The law should explicitly state that the duty of full and frank disclosure begins when parties first engage in Non-Court Dispute Resolution (NCDR) or negotiations, this would arise before any court proceedings.
- Amend the Family Procedure Rules 2010 to ensure that parties are safeguarded from ongoing domestic abuse and to include consideration of the following:
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a. Deal with cases ‘justly’ including ensuring the parties are safeguarded from domestic abuse (r1.1 (2));
b. An amendment to part 9 so that every case management decision in applications for a financial remedy is conducted in a way that will safeguard the parties from domestic abuse;
c. Whether the court’s case management powers can be better used where a party fails to provide full and frank disclosure in pre-proceedings correspondence or non-court dispute resolution (NCDR);
d. An amendment to the costs rules in Part 28 to try to reduce the proceedings themselves being used as a form of abuse.
The law should explicitly state that the duty of full and frank disclosure begins when parties first engage in Non-Court Dispute Resolution (NCDR) or negotiations, this would arise before any court proceedings.
Where there is ongoing economic abuse due to a party’s failure to disclose finances within a reasonable timeframe and/or a party lacks security regarding interim maintenance, household bills or legal services payments (where resources available; and/or there are allegations of ongoing domestic abuse the balance should shift away from continuing any form of Non-Court Dispute Resolution (NCDR), at least without directions from the court to ensure disclosure is provided.
The institute of Family Law Arbitrators (IFLA) and the Lead Judges of the Financial Remedies Court should also collaborate with Resolution and others to establish an expedited procedure for converting financial arbitration awards and private FDR agreements into court orders, thus minimising delays that could leave victim-survivors vulnerable. Additionally, amendments should be made to the Financial Remedies Court Efficiency Statements to ensure that financial remedy proceeding are not misused by perpetrators to continue their abusive behaviours.
Resolution have also recommended further measures which are needed to financially support victim-survivors between separation and finalising of financial remedies, including a review of interim financial remedy procedures. A review of the current legislation regarding Legal Services Payment Orders (LSPOs) is essential to recognise that post-separation economic abuse may obstruct victims from accessing legal assistance. Until this review is completed, greater awareness among the judiciary and legal professionals is necessary, particularly when both parties have access to resources however one is denied access to it for their legal fees resulting in being forced into borrowing at a high interest.
The financial threshold and requirements for legal aid should be reassessed to ensure that victim-survivors can easily access legal aid that they are entitled to. Legal aid rates in financial and remedies and children act should be increased to ensure viability for service providers for victims of domestic abuse.
Lead judges and legal professionals must cooperate to determine the consequences of non-compliance with financial remedy orders at the time of issue. Resolution have also suggested that the Government act promptly on the Law Commission’s 2016 recommendations to expand enforcement methods and introduce new enforcement orders.
Resolution acknowledges that the current interpretation of s 25 (2) (g) of the Matrimonial Causes Act 1973 results in unfair outcomes for victims of domestic abuse and intends to continue examining this complex issue. The key recommendations include amending the Family Procedure Rules to safeguard domestic abuse survivors, clarifying the duty of full financial disclosure and ensuring legal aid is more accessible. The report also urges the prevention of delays and advocates for stronger enforcement measures to stop abusers from manipulating financial remedy proceedings.
The institute of Family Law Arbitrators (IFLA) and the Lead Judges of the Financial Remedies Court should also collaborate with Resolution and others to establish an expedited procedure for converting financial arbitration awards and private FDR agreements into court orders, thus minimising delays that could leave victim-survivors vulnerable. Additionally, amendments should be made to the Financial Remedies Court Efficiency Statements to ensure that financial remedy proceeding are not misused by perpetrators to continue their abusive behaviours.
Resolution have also recommended further measures which are needed to financially support victim-survivors between separation and finalising of financial remedies, including a review of interim financial remedy procedures. A review of the current legislation regarding Legal Services Payment Orders (LSPOs) is essential to recognise that post-separation economic abuse may obstruct victims from accessing legal assistance. Until this review is completed, greater awareness among the judiciary and legal professionals is necessary, particularly when both parties have access to resources however one is denied access to it for their legal fees resulting in being forced into borrowing at a high interest.
The financial threshold and requirements for legal aid should be reassessed to ensure that victim-survivors can easily access legal aid that they are entitled to. Legal aid rates in financial and remedies and children act should be increased to ensure viability for service providers for victims of domestic abuse.
Lead judges and legal professionals must cooperate to determine the consequences of non-compliance with financial remedy orders at the time of issue. Resolution have also suggested that the Government act promptly on the Law Commission’s 2016 recommendations to expand enforcement methods and introduce new enforcement orders.
Resolution acknowledges that the current interpretation of s 25 (2) (g) of the Matrimonial Causes Act 1973 results in unfair outcomes for victims of domestic abuse and intends to continue examining this complex issue. The key recommendations include amending the Family Procedure Rules to safeguard domestic abuse survivors, clarifying the duty of full financial disclosure and ensuring legal aid is more accessible. The report also urges the prevention of delays and advocates for stronger enforcement measures to stop abusers from manipulating financial remedy proceedings.
Conclusion
In conclusion, the report emphasises the urgent need for reforms in family law to better protect victims of domestic abuse particularly in financial remedy proceedings. Resolution advocates for procedural changes, legislative reviews and professional awareness to ensure victims of domestic abuse are safeguarded throughout financial proceedings. By implementing these recommendations, fairer outcomes can be achieved, reducing the potential for ongoing abuse and relieving pressure on the already burdened court system.At A L Law Associates, we specialise in financial remedy proceedings, offering expert advice and guidance. If you would like support in navigating the complexities of these matters, please contact us to book a free 20-minute consultation with one of our family solicitors who would be happy to help.
