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Intervener Claims in Financial Remedy Proceedings

Posted on 12 June, 2024 in Family Law

During divorce proceedings sometimes a third party can come forward to claim an interest in a property or asset that is up for dispute in financial remedy proceedings.

This third party is known as an intervener and is often a parent, family member, business partner, or friend of the divorcing parties.

Our team of divorce lawyers has extensive experience navigating third party intervener cases and the challenges that may arise as a result of these claims.

Intervener cases are often unique, complex and emotional cases, our solicitors can provide sensitive and practical advice to establish the facts of the claim and help all parties reach an agreement.

In this article, we cover:

What are divorce financial settlements involving a third party?
How do you intervene in divorce proceedings?
What is an intervener in financial remedy proceedings?
What is an example of a beneficial interest in property?
How does an intervener claim affect the financial settlement in divorce proceedings?
Is it common for third parties to intervene in financial remedy proceedings?

Please note: This article should not be taken as specific legal advice. If you need help with an intervener claim or any other divorce matter, please contact our team and we will be happy to assist.

Contact us today in London (West Drayton) on 01895 449288 or in Hertfordshire (St Albans) on 01727 840900 or email us at info@wellsburcombe.co.uk.

What are divorce financial settlements involving a third party?

If you are going through a divorce and are making arrangements for how you will settle your finances, you may start with Alternative Dispute Resolution methods such as mediation and negotiation to amicably resolve matters outside of court.

If this is not possible and an agreement cannot be reached, former couples can choose to proceed with financial remedy proceedings in the family court.

In financial remedy proceedings, the court will decide how to divide the matrimonial assets on behalf of both parties.

Within financial remedy proceedings it is often necessary to consider a third party’s claims due to an asserted third party interest in a matrimonial asset such as property or business.

If a third party claims an interest in the property, they can be joined as an ‘intervener’ in the proceedings.

This allows the court to assess the nature and extent of the third party's interest, which must be determined before the judge makes a decision about the division of the matrimonial assets.

The court must establish what assets are available to be divided between the former couple before they make the final order, so they will first deal with any intervener claims.

How do you intervene in divorce proceedings?

A third party seeking to join or asked to join existing proceedings should have separate legal representation. Typically, a preliminary hearing is held to address the intervener’s matter.

Joining a third party is not automatic; the court must decide based on the extent and merits of the third party’s claimed interest and the associated costs. The court may also invite interested parties to intervene if necessary.

In most cases, the third party's claim must be resolved before the court can address the financial outcome between the divorcing parties.

This often leads to a contested hearing where the third party must provide evidence on their claim before any hearings on the main financial proceedings.

What is an intervener in financial remedy proceedings?

An intervener can be anyone with an interest in the assets of either of the divorcing parties.

This could be a family member such as a parent or grandparent who may have contributed towards the cost of a property, for example.

Or it may be a business partner who has a vested interest in the business of one or both of the spouses.

Interveners don’t have to be related to either party, friends or acquaintances can also make a third-party claim as long as they have interest in an asset.

What is an example of a beneficial interest in property?

An example of a beneficial interest in property would be if the parent of one of the divorcing parties contributed to the cost of buying their house.

For example, they may have given £30,000 towards their house with the intention of having a share of the house.

One of the spouses may claim that it was a gift that they did not need to pay back while the other may want a proportion of the financial settlement to be ring fenced for the parent.

In this case, the parent could make an intervener claim in the financial remedy proceedings to try to get their money back.

However, it is worth noting that intervener claims can be expensive, as well as potentially giving rise to Costs Order against a losing party, and third parties will typically need their own legal representation, so if you are considering making a claim it is advisable to have strong evidence, such as a written agreement from when the funds were transferred.

How does an intervener claim affect the financial settlement in divorce proceedings?

A successful intervener claim can impact the overall financial settlement in divorce proceedings.

When a third party claims a legitimate interest in marital assets, the court must consider this claim before dividing the property between the divorcing parties.

If the claim is upheld, the assets available for distribution may be reduced, potentially altering the financial settlement each spouse receives.

This can complicate the proceedings, prolong the process, and sometimes result in a less favourable outcome for one or both parties, as the court will adjust the division to account for the intervener's interest.

Is it common for third parties to intervene in financial remedy proceedings?

It is not common for third parties to intervene in financial remedy proceedings in divorce, but this typically happens in cases involving significant assets or complex financial arrangements.

Family members, business partners, or friends may intervene, claiming they have third party interests in the assets subject to division.

Although this is not the norm, these interventions can complicate proceedings, prolong the legal process, and potentially alter the distribution of assets between the divorcing parties.

The likelihood of third-party intervention varies depending on the specific circumstances of each case, but more complex financial situations typically attract greater involvement from third parties seeking to protect their interests.

Contact our intervener claims solicitors in London and St Albans

Get practical advice about intervener claims in divorce proceedings. We can offer you a free initial telephone consultation to talk about how we can help and to provide a quote.