Joinder of third parties and third-party claims in financial remedy proceedings

Third-party claims in divorce and financial remedy proceedings

Where a third party’s interest in the dispute is at issue, or they may be affected by the financial remedy proceedings, they can be joined to the proceedings as an ‘intervener’. Common examples include parents who contributed to the purchase of the matrimonial home or otherwise supported the parties financially, trustees or beneficiaries of a trust which one party is a trustee or beneficiary of, and business partners concerned as to the effect of an order transferring a party’s shares.  

Rule 9.26B of the Family Procedure Rules 2010 (FPR 2010) provides that “the court may direct that a person or body be added as a party to proceedings for a financial remedy if - 

1. It is desirable to add the new party so that the court can resolve all the matters in dispute in the proceedings; or 

2. there is an issue involving the new party and an existing party which is connected to the matters in dispute in the proceedings, and it is desirable to add the new party so that the court can resolve that issue.” 

Alternatively, the court may also direct for a person or body to be removed as a party.

joining parties to proceedings

Parties can be joined at the court’s own discretion, at the request of an existing party, or at their own independent request.

Where an application is made by an existing party or the third party themselves, it must be made via Form D11 under Part 18 FPR 2010. The application must be supported with evidence of the third party’s interest or connection to the proceedings, unless the court directs otherwise. An application should be made as soon as possible, ideally at the FDA.  

When will the family court allow third-party intervention?

Consideration will also be given to whether joinder of third parties is proportionate, given the additional time and costs it will incur.

The issue of proportionality was addressed in Behbehani v Behbehani [2019] EWCA Civ 2301. Here, the judge highlighted that whether a party should be joined to proceedings will depend on the facts of each case, but determined that where a spouse seeks the transfer of a particular asset, which is asserted to be the property of a third party, it will generally be appropriate to join that third party. However, in cases where a property adjustment order is not sought, joinder may be disproportionate. 

The benefits of joining third parties to proceedings include the following: 

1. Third parties may help the court resolve all the relevant issues in a dispute 

2. Joining parties to the proceedings subjects them to the same obligations of disclosure 

3. A court order will be binding on any joined parties, as well as the divorcing parties 

However, the court must balance these advantages with the additional time and cost of joining third parties, as well as the possibility of an application for joinder being made purely to frustrate the proceedings.  

Whether you wish to be joined to another couple’s financial remedy proceedings to protect your interests, or you are concerned about the impact of a third party’s claim on your settlement, contact Vardags today for a free initial consultation with one of our expert divorce solicitors.  

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