8 October 2024

Resolution Report on Domestic Abuse in Financial Remedy Proceedings

Resolution has published a ground-breaking report addressing the intersection of domestic abuse and financial remedy proceedings in divorce and separation cases. The report, the result of an 18-month research project, highlights the pressing need for legal and procedural reforms to protect victim-survivors of domestic and economic abuse, as they navigate the complex process of dividing finances post-separation. It emphasises how abuse often continues after separation, particularly through financial control and coercion during legal proceedings.

Key Findings

  1. Prevalence of Domestic Abuse in Financial Proceedings:
    • A significant proportion of professionals working in family law reported encountering domestic abuse in over 20% of their cases. Economic abuse, a specific form of coercion involving financial control, was also reported in nearly 25% of cases.
    • However, despite the high incidence of abuse, it is often underreported or inadequately addressed in court, with only a fraction of cases raising domestic abuse as a formal issue in financial proceedings.
  2. Ongoing Abuse During Proceedings:
    • Victim-survivors face ongoing economic abuse through tactics like withholding financial disclosure, dragging out legal proceedings, and failing to comply with court orders. Such behaviours are now recognised as forms of economic abuse under the Domestic Abuse Act 2021.
    • Professionals voiced concerns about the court’s ability to effectively manage these cases and protect victim-survivors, with 80% stating that domestic abuse is not sufficiently considered in financial remedy cases.
  3. Challenges with Legal Aid and Access to Justice:
    • Access to legal aid is a critical concern, with 90% of respondents indicating that victim-survivors struggle to secure legal support. Many are forced to self-represent or take on high-interest litigation loans, putting them at a disadvantage compared to their abusers who often have access to family or business funds.
    • The legal aid system, as it stands, fails to support many victim-survivors, further compounding their vulnerability.
  4. Non-Compliance and Enforcement Issues:
    • A persistent theme in the report is the failure of some parties to comply with financial disclosure and court orders. This non-compliance exacerbates the financial strain on victim-survivors and undermines the effectiveness of the legal system in providing fair outcomes.

Recommendations

To address these challenges, Resolution calls for a cultural shift among family justice professionals. Some key recommendations include:

  • Amendments to Family Procedure Rules: The report suggests changes to ensure that domestic abuse is considered at every stage of financial proceedings, including during pre-court negotiations and case management.
  • Improved Enforcement Mechanisms: Resolution recommends reforms to streamline enforcement procedures and ensure timely compliance with financial orders, particularly where ongoing abuse is a factor.
  • Legal Aid Reform: The report advocates for expanding access to legal aid, increasing rates for family legal aid providers, and reviewing the means test to prevent further financial abuse of victim-survivors.
  • Training and Awareness: Resolution urges better training for judges and legal professionals to recognise and respond to economic abuse and coercive control within the context of financial remedies.

Conclusion

The Resolution Report is a significant step toward reforming how domestic abuse is addressed in financial remedy proceedings. By highlighting the pervasive nature of economic abuse and providing a comprehensive set of recommendations, the report calls for urgent action to ensure that victim-survivors are protected and receive fairer outcomes. As the family justice system evolves, this report is a critical guide for professionals seeking to create a safer, more equitable process for those affected by abuse.

5 August 2024

Navigating Financial Remedy Claims: Domestic Abuse Allegations in Focus – A v R [2024] EWFC 218

The case A v R [2024] EWFC 218 of involves financial remedy proceedings following a marital breakdown, with the applicant (A) making allegations of domestic abuse against the respondent (R). These allegations include coercive and controlling behaviour, which A sought to introduce as a conduct claim in the financial settlement process. The primary issue addressed in the judgment is whether A's conduct claim should proceed to trial or be excluded from further consideration.

Legal Framework

The judgment discusses the legal standards for incorporating conduct, particularly domestic abuse, into financial remedy proceedings under the Matrimonial Causes Act 1973. It references the case of N v J [2024] EWFC 184, emphasising that conduct must be of a highly exceptional nature to be considered and that there must be a clear financial impact resulting from the alleged conduct.

Key Points from the Judgment

  1. Conduct Case Management:
    • The conduct case management hearing on 26 July 2024 was crucial in deciding whether A's allegations should proceed.
    • The judge reviewed whether the alleged conduct met the threshold for inclusion in financial remedy considerations.
  2. Allegations by A:
    • A issued her Form A on 27 March 2023 and highlighted conduct issues in her Form E filed on 7 June 2023.
    • A's allegations, if proven, would constitute a pattern of coercive and controlling behaviour, qualifying as domestic abuse.
  3. Response by R:
    • R denies all allegations and seeks to exclude the conduct claim from the proceedings.
  4. Decision Criteria:
    • The judge applied a two-stage process to determine the relevance of the conduct:
      1. Establishing whether the alleged conduct meets the high threshold of exceptionality.
      2. Evaluating the financial impact of the alleged conduct.
  5. Outcome:
    • The judge decided to exclude A's conduct claim from further consideration, stating that the allegations did not meet the necessary threshold of exceptionality to be relevant in the financial remedy proceedings.

Key Points from the Case

  1. High Threshold for Conduct Claims: Domestic abuse must be of a highly exceptional nature to be considered in financial remedy proceedings. General allegations of misconduct or abuse without clear financial implications are unlikely to meet this threshold.
  2. Case Management Efficiency: The judgment emphasises the importance of early and efficient case management to avoid unnecessary litigation costs and to focus on relevant issues.
  3. Financial Impact Requirement: There must be a demonstrable financial impact linked to the conduct for it to be considered in financial settlements. Emotional or psychological impacts, while significant, are insufficient without clear financial consequences.
  4. Legal Precedents and Guidance: The judgment aligns with recent legal precedents, including the principles set out in N v J [2024] and other relevant cases, ensuring consistency in how domestic abuse allegations are treated in financial remedy cases.
  5. Proportionality and Fairness: The court must balance the need for thorough investigation of serious allegations with the principles of proportionality and fairness, ensuring that resources are appropriately allocated and that parties are on equal footing.

This case highlights the complexities involved in integrating allegations of domestic abuse into financial remedy proceedings and underscores the rigorous standards that must be met for such claims to be considered by the court.

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