Sorting out money, property and pensions when a marriage or civil partnership ends — a plain-English national guide

Who this is for. If you are divorcing or dissolving a civil partnership and need to sort out the family's money, property and pensions — the "financial remedy" — this guide explains what that means, how the process works, what the court looks at, and the practical reality of doing it yourself as a litigant in person (LiP). It is written in plain English and is for England and Wales. It does not give legal advice and it does not take sides: it helps you understand the process so you can make informed decisions.

An independent guide. This is an independent, informational guide produced by the YouFamilyCase directory. It is not produced by, affiliated with, or endorsed by HM Courts & Tribunals Service, the government, or any law firm, and it contains no advertising. It simply explains, in plain language, how financial remedy proceedings generally work, based on official guidance.

Reviewed by Sean McNamara on 2026-10-21

What a "financial remedy" actually is

When you divorce or dissolve a civil partnership, the law does not automatically divide your money, your house, or your pensions. A financial remedy application is the legal process you use to ask the court to decide how the family's finances should be divided — or to approve an agreement you and your former partner have already reached.

It covers things like:

The family home (and any other property) — who keeps it, who moves out, whether it gets sold.
Money — savings, bank accounts, investments, shares.
Pensions — one of the most valuable assets in many marriages and the easiest to overlook. Pensions can be split, offset against other assets, or have a "pension sharing order" applied.
Income — ongoing maintenance (periodical payments) and lump sums.
Debts — how debts are dealt with alongside assets.

The technical name for this area of law in England and Wales is "financial remedy proceedings" (older law and common usage call it "ancillary relief"). It is governed mainly by the Matrimonial Causes Act 1973 (for marriages) and the Civil Partnership Act 2004 (for civil partnerships).

Official guidance: the government's own overview of what happens to money, property and pensions when a relationship ends is at gov.uk/money-property-when-relationship-ends. Read that alongside this guide — it is the authoritative source.

Financial remedy proceedings run separately from the children's case

A key point worth understanding from the start: financial remedy proceedings are separate from child arrangements. Sorting out the money is a different application from deciding where the children live and who they spend time with. They usually run in parallel (or at separate times), are dealt with under different law, and often at different hearings. Sorting out finances and sorting out children are two distinct tracks — do not assume that because one is happening, the other is, or that the outcome of one dictates the other. (There is a relationship between them — for example children's housing needs feed into what is "fair" financially — but they are separate proceedings.)

Full and frank financial disclosure and Form E

Family finance cases work on a principle of "full and frank financial disclosure": each person must give the court a complete and honest picture of their financial position. You cannot "win" by hiding assets — hiding or deliberately misreporting assets can seriously damage your case and is treated very seriously by the court.

The main tool for this is the Form E financial statement. Form E is the standard court form in which you set out, under oath (with a statement of truth), your entire financial position:

income (from all sources),
property (including the family home and any other properties),
savings, investments and bank accounts,
pensions (all of them),
debts and liabilities,
outgoings / your monthly budget,
any other assets of value anywhere in the world.

Both sides exchange completed Form E forms, so each sees the other's full position. It is a long, detailed form and filling it in thoroughly and accurately is one of the most important things you will do — it forms the factual foundation of everything that follows. Form E is at gov.uk/government/publications/form-e-financial-statement-for-a-financial-remedy-matrimonial-civil-partnership-cause (search "Form E financial statement" on gov.uk to confirm you have the current version before using it).

The process, stage by stage

These are the usual stages in a contested financial remedy case (this is a general outline — the exact steps depend on your court and your circumstances).

1. MIAM (mediation before court) — where it applies

Before applying to the court for most family matters, you are normally expected to attend a Mediation Information and Assessment Meeting (MIAM) with an accredited family mediator, to explore whether you can reach agreement without court. There are defined exemptions (for example where attendance is not required). For financial proceedings, courts also generally expect you to consider negotiation and mediation before issuing an application, and to evidence what you did. Mediation is often far cheaper, faster and less stressful than court — but it only works if both of you engage genuinely.

2. The application (Form A / "Matrimonial Causes Act 1973")

To start financial remedy proceedings you issue an application on Form A, under the Matrimonial Causes Act 1973 (or the Civil Partnership Act 2004 for a civil partnership), once a divorce/dissolution petition is underway. Form A and its guidance are on gov.uk (search "Form A financial remedy"). You pay a court fee to issue it.

3. First appointment

The first appointment is an early hearing where the judge checks that both sides have complied with their duty of disclosure, fixes a timetable, and encourages settlement. It is an administrative and case-management hearing rather than the place where the final decision is made.

4. Financial Dispute Resolution (FDR) appointment

The FDR is a without-prejudice settlement hearing — the "give it one genuine go at agreeing" stage. Both sides put forward offers, and the judge gives an indicative view of what they think a fair outcome would be. This is designed to encourage a negotiated settlement rather than a final trial. If you settle here, the agreed terms are recorded in a consent order.

5. Final hearing

If it cannot be settled, the matter goes to a final hearing, where the judge hears both sides, looks at all the evidence and makes a binding decision — the actual court order dividing the finances. This is the last stage and the most formal.

Throughout the process the court strongly encourages agreement; many cases settle at or before the FDR stage rather than running to a final hearing.

What the court considers: the Section 25 factors

When deciding what is fair, the court must have regard to the factors in Section 25 of the Matrimonial Causes Act 1973 (and the equivalent provision for civil partnerships). In plain English, its duty is to give first consideration to the welfare of any children under 18, and then to consider:

1. The income, earning capacity, property and other financial resources which each party has now and is likely to have in the foreseeable future (including earning capacity). 2. The financial needs, obligations and responsibilities which each party has or is likely to have. 3. The standard of living enjoyed by the family before the breakdown. 4. The age of each party and the length of the marriage/civil partnership. 5. Any physical or mental disability of either party. 6. The contributions which each party has made or is likely to make to the welfare of the family, including looking after the home and caring for the family (domestic and childcare contributions count every bit as much as financial ones — this is often the point that matters most to a stay-at-home parent). 7. The conduct of each party, but only in the very limited cases where it would be inequitable to ignore it (bad behaviour during the relationship is generally not taken into account). 8. The value to each party of any benefit which they would lose the chance of acquiring if the proceedings were dismissed (for example a future pension).

In practice the exercise is usually guided by the idea of needs, fairness and (where there is enough money) equal division of the matrimonial assets. The most common outcomes are driven by needs — particularly the housing and income needs of the party caring for children. There is no fixed formula or automatic "50/50"; every case turns on its own facts.

A note on money figures: this guide deliberately gives no invented or specific financial figures. Needs-based outcomes always depend on the particular family's income, assets and outgoings. Get current, case-specific figures and guidance from a qualified adviser.

The practical reality for a litigant in person (LiP)

If you are representing yourself in financial remedy proceedings, the honest reality is:

It is paperwork-heavy. Form E is long, and there are other forms, budgets, and questionnaires. Give yourself time and fill everything in fully and truthfully.
You can get help. Many family solicitors offer a free or fixed-fee initial consultation — worth it to check your Form E, your approach and your figures. Courts also offer help through duty advisers and signposting where available.
Negotiation is your friend. Most financial remedy cases settle without a final contested hearing. Genuine, reasonable engagement with settlement (supported by mediation or solicitors' correspondence) usually produces a faster, cheaper, more predictable outcome than fighting to the end.
Disclosure cuts both ways. Be fully honest; it protects you and keeps your case credible.
A consent order is the clean way to finish. If you agree, the agreement is recorded in a consent order, which the court approves to make it legally binding. Getting an order (rather than a handshake private agreement) matters because it gives tax certainty and prevents future claims.
Pensions are easy to overlook. If either of you has a pension, get it valued (a current Cash Equivalent Transfer Value, CETV) and actively consider how it should be dealt with — it is often the single biggest asset and treating it fairly is part of a fair outcome.
Legal aid is very limited for financial remedy work, but check gov.uk/legal-aid because you may be eligible where there has been domestic abuse.

Checklist — what to do before you start

[ ] Read gov.uk/money-property-when-relationship-ends for the official overview.
[ ] Get the current version of Form E from gov.uk and the guidance that comes with it, before filling anything in.
[ ] Decide with your ex-partner whether you can agree via negotiation/mediation first, and attend a MIAM if you are expected to.
[ ] Gather the documents you'll need: payslips, bank statements, mortgage and property statements, pension statements/CETVs, debts, savings, and any business or asset valuations.
[ ] Fill in Form E fully, truthfully and under the statement of truth — full and frank disclosure protects your case.
[ ] Get pensions valued so they are not forgotten.
[ ] Consider a paid-for initial consultation with a family solicitor to sanity-check your position.
[ ] Keep every court deadline and attend every hearing (first appointment, FDR, final hearing) you are told about.
[ ] Aim to settle where you genuinely can, and record any agreement in a consent order.

This guide gives general information about financial remedy proceedings in England and Wales and does not provide legal advice. It is not a substitute for advice from a qualified family-law solicitor or regulated adviser. Financial outcomes depend entirely on the specific facts of your case — always get tailored, current advice before relying on anything here. The authoritative source is gov.uk (linked above) and HM Courts & Tribunals Service forms and guidance. If you are in present danger from domestic abuse, call the police on 999; for support contact the National Domestic Abuse Helpline on 0808 2000 247 (Refuge).