What are Intervenor Proceedings in Financial Remedy Proceedings?

• In some situations, a third party, like a friend of family member may come forward to claim a beneficial interest in a matrimonial property during divorce proceedings. One of the separating parties may challenge the third parties’ interest, and will argue that the whole asset should be made available for division upon separation.
• It can be unclear whether a family member had given a married couple a financial contribution towards a property as a gift or as a loan.
• If there is a clear loan agreement with terms and interest detailed and is drafted by a solicitor, the Court is more likely to determine that the third party has a beneficial interest in the property.

An example of a Third Party having a beneficial interest in a property

When a Husband and Wife gets married, the Husband’s uncle pays £70,000 to pay towards a purchase property that will be put into the joint names of the Husband and Wife.

The Wife may argue that this did not give the Husband’s uncle a beneficial interest as it was given as a gift. If the Husband’s Uncle argues that he has a beneficial interest, he then may be joined to the proceedings.

What is the procedure if an intervenor is joined to proceedings?

• If divorcing parties are unable to reach an agreement through a form of non-court dispute resolution, such as mediation or arbitration, former couples can apply to the court for a resolution through financial remedy proceedings.
• If a third party claims an interest in the property, they can be joined as an ‘intervenor’ in proceedings.
• If you are invited to court as an ‘intervener’ in financial remedy proceedings, you should seek legal advice quickly as the Court sets strict deadlines for you to respond. If you did decide to intervene, you would have to provide a detailed statement to the Court.
• If an intervenor is joined to the proceedings, the court will then make an assessment of the extent of the third party’s beneficial interest.

Deed of Trust

• If a third party wishes to contribute to a purchase property for the Husband and Wife, but also wishes to protect their interest, they should have a Deed of Trust drafted by a solicitor prior to purchase of the property.
• A Deed of Trust would protect the Third Party’s beneficial interest, by clarifying if the money was meant as a gift or a loan, and would keep it out of the matrimonial pool of assets.