Introduction
The proceedings concerned with the financial matters are known as ancillary relief because the financial matters are seen as being ancillary to the divorce proceedings.

A new process to resolve ancillary relief was introduced from the 5 June 2000 giving courts greater control resulting in fewer delays before reaching a settlement and lower costs.

These new ancillary relief proceedings that help the courts achieve a clean break between the parties, were introduced by the Family Proceedings (Amendment No. 2) Rules 1999, and in particular Statutory Instrument 1999 No. 3491. Different orders can be applied to the matrimonial home by the court depending on the circumstances of the parties.

As a result of new pension sharing legislation, these Family Proceedings Rules were amended to reflect the court's new procedures relating to the valuations of pension arrangements of the parties as a result of divorce. This was documented in Family Proceedings (Amendment) Rules 2000 and Statutory Instrument 2000 No. 2267 and implemented at the same time pension sharing was introduced on 1 December 2000.

The following provides extracts from these regulations which are produced by and subject to Crown Copyright, showing the step-by-step process an individual must follow when making an application for ancillary relief. Although it applies to all financial matters such as assets on divorce, emphasis is placed on the requirements where there are pension arrangements.


Overriding objective
Family Proceedings Rule 2.51B states that the overriding objective of the ancillary relief rules is to enable the court to deal with cases justly and this includes:

In addition, the parties are required to help the court to further the overriding objective. The court must further the overriding objective by managing cases and in particular, to encourage the parties to co-operate, to settle dispute through mediation, help the parties to settle the whole or part of the case and to give directions to ensure that the trial of a case proceeds quickly and efficiently.


Offers to settle
No offer to settle which is not an open offer to settle shall be admissible at any stage of the proceedings, except as provided under the Family Proceedings Rule 2.61E. In this Rule both parties must include any offers, proposals or responses made wholly or partly without prejudice, however, it will not make any material admissible as evidence if it is not admissible.


Application for ancillary relief

Step 1
Family Proceedings Rule 2.61A requires that an application for ancillary relief must be made by using Form A. This can be submitted by either spouse (called the applicant) and must be sent to the court where the case is pending, this being either a divorce county court or a High Court. It is on Form A where the applicant must indicate if an order for ancillary relief will include any pension arrangements. Upon filing Form A by either spouse the court must:

The date fixed by the court for the first appointment must not be cancelled except with the court's permission and, if cancelled, the court must immediately fix a new date.


Procedure relating to pension rights

Step 2
Family Proceedings Rule 2.70 applies where an application for ancillary relief has been made, and indicated in Form A that the applicant or respondent has or is likely to have any benefits under a pension arrangement.

When the court fixes the first appointment as required by Family Proceedings Rule 2.61A, the party with the pension rights must, within 7 days after receiving notification of the date of the first appointment, send a copy of Form A and request from the person responsible for each pension arrangement (this being the scheme provider or administrator) where he or she is likely to have benefits certain information as specified in the Statutory Instrument 2000 No. 1048, Regulation 2 of the Pensions on Divorce etc. (Provision of Information) Regulations 2000 as follows:

A request for information does not need to be made where the party with the pension rights is in possession of, or has already requested, a relevant valuation of the pension rights or benefits accrued under the pension arrangement in question. A relevant valuation must not be older than 12 months from the date it was produced to the date fixed by the court for the first appointment.

Step 3
Once the person with the pension rights receives information from each pension arrangement, he or she has within 7 days to send a copy of this to the other party, together with the name and address of the person responsible for that pension arrangement.


Procedure before the first appointment

Step 4
Family Proceedings Rule 2.61B requires that both parties, at the same time, must exchange with each other and send to the court, the financial statement in Form E.

Form E must be sent to the court and exchanged no less than 35 days before the date of the first appointment. Form E requires that information be provided with regard to pension arrangements including SERPS, although not including the basic state pension as follows:

Where the person with the pension arrangement has been provided with a valuation of their pension rights by the trustees or managers of the pension scheme, then this must be attached to Form E.

If this information is not available, the person with the pension arrangement must give the estimated date when it will be available and attach to Form E the letter to the pension company or administrators from whom it has been sought. Where there is more than one pension arrangement, this process has to be done for each plan or scheme.

If the person with the pension rights has made free standing additional voluntary contributions (FSAVC) or additional voluntary contributions (AVC) to any plan or scheme, this information must be provided separately if the benefits resulting from these contributions are recorded or paid separately. Where there are any SERPS benefits, these must also be provided.

Step 5
At least 14 days before the hearing of the first appointment, each party must send to the court and the other spouse the following information:

Where an order for ancillary relief includes pension arrangements, the applicant must send to the court and the other spouse at least 14 days before the first appointment, confirmation that Family Proceedings Rule 2.70 has been complied with.

Step 6
Family Proceedings Rule 2.61F requires each party immediately before the first appointment to produce to the court an estimate in Form H of the costs incurred by him or her up to the date of the first appointment.


The first appointment

Step 7
Family Proceedings Rule 2.61D states that the first appointment must be conducted with the objective of defining the issues and saving costs. Both parties must personally attend the first appointment unless the court orders otherwise. At the first appointment the district judge must determine and give directions about the following:

Step 8
Family Proceedings Rule 2.61C refers to the Civil Procedure Rules 35.1 to 35.14 relating to expert evidence. If the court establishes the need for expert evidence with consideration to the overriding objective of the Family Proceedings Rule 2.51B but where there is no agreement between the parties, particularly with regard to pension rights, the court can instruct that evidence be given by a single pensions expert.

Step 9
At the conclusion of the first appointment and where the parties have not settled the case, the court must fix the financial dispute resolution appointment. The parties must comply with the directions of the court and must supply all the information that is required by the court.


Procedure before the FDR appointment

Step 10
Family Proceedings Rule 2.61E requires that no later than 8 days before the Financial Dispute Resolution appointment the parties must send to the court details of all offers and proposals, and responses to them. No offer to settle which is not an open offer to settle shall be admissible at any stage of the proceedings.

Step 11
Family Proceedings Rule 2.61F requires each party immediately before the Financial Dispute Resolution appointment to produce to the court an estimate in Form H of the costs incurred by him or her up to the date of the FDR appointment.


The FDR appointment

Step 12
Both parties must attend the Financial Dispute Resolution appointment unless the court orders otherwise. The FDR appointment must be treated as a meeting held for the purpose of discussion and negotiation between the parties. The parties attending the FDR appointment must use their best efforts to reach an agreement on the matters between them.

The district judge or judge hearing the FDR appointment must observe the negotiations and can give a direction as to what would be the best outcome. This could be to conduct any further FDR appointment, to make a consent order if there is agreement between the parties or make a directions order including to fix a final hearing date.

At the end of the Financial Dispute Resolution appointment, any documents sent to the court must, at the request of the party that sent them, be returned to him or her and not retained on the court records. Any 'open offers' will be retained as evidence on the court records.


Procedure before the final hearing

Step 13
Family Proceedings Rule 2.69E requires that no less than 14 days before the final hearing of an application for ancillary relief, the applicant must send to the court and the other spouse an open statement which sets out concise details, including the amounts involved, of the orders (such as a pension sharing order) which he or she proposes to ask the court to make.

Step 14
Family Proceedings Rule 2.69E also requires that not more than 8 days after the applicant has served the statement, the other spouse must send to the court and the applicant an open statement which sets out concise details, including the amounts involved, of the orders which he or she proposes to ask the court to make.


Final hearing

Step 15
A different judge to the one appointed at the first appointment and Financial Dispute Resolution appointment determines, based on the evidence of the case, whatever order he or she believes to be appropriate. In terms of a pension arrangement, this could result in a pension sharing order or an earmarking order. The details of a pension sharing order must be documented in the annex that is sent to the person responsible for the pension arrangement.

Step 16
The general rule in ancillary relief proceedings is the court will not make an order requiring one party to pay the costs of another party. The court may make such an order at any stage of the proceedings where it considers it appropriate to do so because of the conduct of a party in relation to the proceedings (whether before or during them).

The Family Proceedings Rule 2.71 considers the factors the court must take into account when making an order for costs and these include the following:

Pension sharing order annex

Step 17
Attached to the pension sharing order is an annex for each pension arrangement to be sent to the pension administrator of that scheme. The annex will state the following:

Pension administrator responsibilities

Step 18
The person responsible for the pension arrangement, this being the trustee, manager or pension administrator, must complete the valuation process and discharge it's liability by way of a pension credit within 4 months of receiving the pension sharing order and associated annex for that scheme.

Within 21 days of receiving the pension sharing order the pension administrator is required to provide the member and the former spouse with information relating to the parties and to the costs of implementing the order.

Also within 21 days of receiving all documents and information necessary to implement the order the administrator is required to provide an implementation notice to both the member and former spouse, stating when the 4 month period for implementing the pension credit has begun.

Within 21 days of implementing the pension sharing order, this being at some point within the 4 month period, the administrator is required to issue both the member and former spouse a notice of discharge of liability. For the member this notice must contain the following information;

For the former spouse this notice must contain the following information;

The information provided will vary if the member's pension is in payment, if the former spouse's pension credit is implemented as an internal transfer rather than an external transfer and whether the former spouse is taking the benefits of the pension arrangement due to reaching retirement age.