Financial remedy proceedings are a Court led process to determine how the assets of divorcing couples are to be divided.
When dividing up the financial assets of the parties, the Court has a duty to consider the factors outlined in section 25 of the Matrimonial Causes Act 1973. Arguably, the most contentious, and recently debated, factor is the consideration of the conduct of the parties. Conduct refers to essentially any ‘bad behaviour’ of either party and can include both financial and litigation conduct, as well as other types of behaviour.
Case example
The recent decision of national lead Judge of the Financial Remedy Courts, Mr. Justice Peel, in the recent case of N v J [2024] EWFC 184, affirmed, and reinforced, that if parties want the Court to consider domestic abuse in their financial remedy case, the person relying on conduct must make this clear at the earliest opportunity, specifying their allegations and identifying the financial impact of such. Domestic abuse will only, potentially, be taken into account by the court if it is exceptional and it can be shown that the conduct has had a negative financial impact on the alleged victim.
In this particular case, N and J entered into a civil partnership in 2012, and were in a relationship for 14 years with assets collectively worth £32 million. N alleged they were the victim of domestic abuse at the hands of J which led to a deterioration of their mental health. The allegations included that J lied about cheating and infidelity, which N argued had led to an increased need for treatment for their mental health, including medication, rehabilitation, and hospitalisation. It was then for the Court to determine how far N’s domestic abuse allegations were relevant in the financial remedy litigation and the impact they had on a settlement.
Mr. Justice Peel concluded that the domestic abuse allegations made by N were not relevant and should not be considered at the Final Hearing. Ten reasons for this were given, including that N’s allegations were not exceptional enough and did not ‘leap off the page’ as a factor to be considered. Mr Justice Peel was not satisfied that the behaviour caused the decline in N’s mental health, nor did this warrant an increase in the assets awarded. The only direct financial consequence was N’s increased medical costs which the Court was required to take into account in any event when considering the needs of the parties. Perhaps most legally significant, consideration of J’s conduct at a Final Hearing would increase the length of the hearing and the parties’ legal costs.
Although the Judgment of Mr Justice Peel has perhaps clarified this area of the law, it may be increasingly difficult to use domestic abuse as ‘conduct’. Unless the allegations made are exceptional, and highlight the financial consequences as a result, they are unlikely be taken into consideration.
Calls for change
Following the recent developments around domestic abuse in the Financial Remedy Courts, Resolution, an organisation of family justice professionals, issued a report in October 2024 that 80% of family justice professionals believe domestic abuse, specifically economic abuse, is not sufficiently taken into account in financial remedy proceedings. Resolution provides a vast number of recommendations in relation to this matter and calls for a significant cultural shift to better protect and meet the needs of domestic abuse survivors.
The recommendations made by Resolution span from tackling non-disclosure at the outset and considering the risks and suitability of Non Court Dispute Resolution (NCDR) for domestic abuse victims, to amending the overriding objective to ensure the parties are safeguarded from domestic abuse. Resolution also considered the use of cost orders to deter parties from using court proceedings as a way of perpetrating domestic abuse and to compensate victims. In light of the recent developments in the law and the recommendations of Resolution, perhaps, significant changes may be welcomed in coming years to this controversial, and nuanced, area of family law.
Contact us for advice
If you are looking to resolve a family law matter, or are a victim of domestic abuse, and seek advice about the available options, please contact our experienced Family Team - telephone: 01484 821500 or email: family@ramsdens.co.uk
The above article is for illustrative purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any part of the information given.