What is a Part 25 Application in Divorce?
You may have heard the phrase “Part 25 Application” being used as part of a case with regard to resolving finances as part of the divorce process. What does this mean?
Quite simply, this is an Application made to the Court for permission to instruct an Expert to prepare a report for the Court. The Expert could be a Pensions Expert i.e. an Actuary or a Tax Adviser, for example with regard to advice in relation to Capital Gains Tax due on another property that you own. Alternatively, it could be for a formal valuation of a business belonging to one of the parties or relating to the value of a property or land owned by the divorcing couple.
It is common for these reports to be obtained as part of Financial Proceedings. A Judge has to be satisfied that Expert evidence is necessary to conclude the Proceedings justly. In the case of obtaining a report from a Pensions Actuary, these aren’t automatically obtained. It really would depend upon the circumstances of the case and the value of the pension.
With regard to a property or land, if there is a dispute about the value again, it is usual to obtain Expert evidence although, two points arise – firstly if the property or land is to be sold then it is not likely to be formally valued and secondly, where a valuation is to be obtained from an Estate Agent, to save costs the Court would frequently waive the requirement for a formal Part 25 Application and just make an Order that a valuation be obtained.
A formal Part 25 Application (the Part 25 refers to Part 25 of the Family Procedure Rules 2010) means making an Application to Court and sending with it various documents i.e. a list of questions for the Expert contained in a letter of instruction, the Expert’s CV and also details of the experts costs. In the Application, it has to set out clearly why Expert evidence is necessary in the case.
Issues around Expert evidence are complex and we would urge you to seek independent legal advice regarding them. You can contact our Family team on our free phone 0800 8 60 62 65 or via our 24/7 live chat facility on our website.