24/10/2024
A study has revealed that 80% of family justice professionals believe domestic abuse, and specifically economic abuse, is not sufficiently taken into account in financial proceedings (also known as financial remedy proceedings) associated with a divorce or the dissolution of a civil partnership.
The report published by Resolution, an organisation that promotes a non-confrontational approach to family law, looked at the relationship between domestic abuse and the division of finances when couples separate, divorce or dissolve a civil partnership.
It concluded that the current approach to financial remedy proceedings leads to unfair outcomes for victims of domestic abuse.
What is domestic abuse?
Domestic abuse is defined as an incident or incidents of controlling, coercive, threatening, degrading or violent behaviour. This could take the form of physical, sexual, emotional, psychological or financial abuse.
The Resolution study looked specifically at the impact of financial abuse, which involves one partner exerting control over income, spending, bank accounts, bills and borrowing. For example, an abuser may refuse to give a partner money for food or housing, prevent them from working or going to work, stop them from seeing shared bank accounts or records or have their wages put in the abuser’s bank account, while he or she denies them access to their earnings.
Financial abuse and financial remedy proceedings
It is not surprising that the Resolution report found that those practicing financial abuse throughout their relationship, may continue to do so during financial remedy proceedings, withholding funds, hiding assets and creating expensive delays to cause maximum stress and day-to-day financial problems for their ex.
What did the Resolution report on domestic abuse in financial remedy proceedings recommend?
- Financial abuse in financial remedy proceedings should be recognised and called ‘post separation domestic abuse’.
- A cultural shift from all family justice professionals to better meet the needs of victims of domestic abuse who are seeking the resolution of finances on divorce or separation.
- Changes to the family procedure rules to ensure cases are not only dealt with ‘justly’, but that the parties are also ‘safeguarded from ongoing domestic abuse’.
- Amendments to the Financial Remedies Court Efficiency Statements to include reference to the need to ensure that financial remedy proceedings are not used by perpetrators to facilitate ongoing abuse.
- Consideration should be given to ensuring victims are financially supported between the time of separation and the outcome of a financial remedies application.
- A review of legislation to recognise that post separation economic abuse may prevent a victim from instructing a lawyer to help resolve financial matters on divorce.
- A review of financial thresholds and requirements for Legal Aid to provide easier access to Legal Aid for victims, and a review of Legal Aid rates to make it financially viable for Legal Aid providers to represent victims of financial abuse.
- Judges and legal professionals to cooperate to ensure consequences of non-compliance with a financial remedy order be decided at the time of making the order.
- Extension of existing methods of enforcement and the introduction of new types of enforcement orders.
As a family lawyer, I frequently encounter litigants who try to prevent former partners from receiving a fair financial settlement, perhaps by being less than transparent about assets and earnings. If it was possible for a perpetrator of financial abuse to be ordered to pay more if they behave in this way, it could deter the behaviour. However, the courts may be unwilling to return to the days when a party’s conduct was treated as a relevant factor in financial remedies litigation.
Many legal professionals believe the court’s current approach is not in keeping with the economic effects of domestic abuse and could even be discriminatory, given that women are more likely than men to suffer domestic abuse.
The laws which govern financial remedy orders date back to 1973, which has led to the Law Commission carrying out a review to identify any problems with the current laws and define the options for reform. The Law Commission’s scoping report will be published in December.
Need advice on financial remedy proceedings?
Dealing with financial matters following divorce or separation can be complex. To ensure your settlement is fair and legally binding, you will require an experienced family law solicitor.
For advice or to book an appointment, contact our family team by emailing enquiry@beswicks.com or phoning our Stoke-on-Trent solicitors on 01782 205000 or our Altrincham solicitors on 0161 929 8494.