What is a net effect schedule?
Have you been asked to supply a net effect schedule to the court?
Are you wondering what a net effect schedule is and how you get one?
I’ve received a number of enquiries about net effect schedules recently. One of the divorce centres in particular is sending out a routine request for them. But no one seems to know what they are.
Financial remedy orders – by consent
When you apply for a financial remedy order, you might already agree on who should have what.
If you do, you will apply for an order “by consent”.
We usually just call these consent orders.
- watch a short video about how to apply for a consent order
- consent order factsheet
- how much does a consent order cost?
When you send your application for a consent order to the court, you need to fill in and send a separate form with it.
This form is called a D81 Statement of information for a consent order.
You fill in the D81 form with information that the judge needs to be able to check that your agreement is fair.
This is what a D81 summary of means looks like.
It’s on page 2 of the D81.
As you can see, this form asks for a summary of your property, capital, debts, pensions and income as they are now.
A net effect schedule shows who will have what in the future
The D81 only shows how much each spouse has now. But the District Judge also needs to see how the summary of means would look after the order has been carried out.
If the judge doesn’t see this, they can’t say that it will be fair to make the order at all.
This re-worked summary of means takes into account the effect the order will have .
And that is now commonly referred to as the net effect schedule.
Why isn’t there room on the D81 for the net effect schedule?
Net effect schedule is not mentioned in the family procedure rules. It’s not mandatory to provide one in every case.
Are net effect schedules only used in complicated financial situations?
If you have a very straightforward agreement, for example you are selling your house and dividing the proceeds equally, there shouldn’t be any need to provide a net effect schedule.
As they aren’t mentioned in the rules or in the D81, most people representing themselves will only find out about them when the court asks for one.
Theoretically, this would only be necessary when the assets are detailed and it’s not easy to see from the D81 what impact the order is going to have.
Nevertheless, I have seen an increase in requests for someone to prepare a net effect schedule, even in straightforward cases.
This is very frustrating for some people, who might’ve waited up to 4 months to hear back from the court already.
How to prepare the net effect schedule
To prepare a really straightforward net effect schedule simply copy the summary of means format from the D81 onto a spreadsheet.