Funding

Private funding and eligibility for legal aid

Costs should be dealt with fully at the first meeting with the client. Advice must be given as to the availability of legal aid, even if public funding work is not undertaken. Where publicly funded work is undertaken and eligibility ascertained, an explanation must be given of the statutory charge and the payment of any required contributions.

One of the most common causes of complaints by clients arises from a lack of clarity around costs. Being clear on costs at the outset in a client care letter, and as the matter progresses, can help prevent this. Practitioners should ensure that clients receive the best possible information about how their matter will be priced and, both at the time of engagement and when appropriate as their matter progresses, about the likely overall cost of the matter and any costs incurred.

See Practice Notes: Funding—charging for family law services, Private funding—family proceedings, Client care—family law, Eligibility for family legal aid and The Solicitors Regulation Authority (SRA)

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High Court judgment demonstrates usefulness of section 423 of the Insolvency Act 1986 in Schedule 1 claims (Re P (A Child) (Financial Provision))

Family analysis: In this Schedule 1 case the mother received, for her son’s benefit: a housing fund of nearly £1m (the property to be held on trust); child maintenance (including ‘HECSA’/carer’s allowance) until completion of his first degree; and lump sums in respect of his capital needs and her own substantial liabilities (chiefly relating to her unpaid legal fees). The father (whose resources could be measured in the ‘tens of millions of pounds’) had sought to prejudice the mother’s claims via transferring his valuable shares to family members, who then transferred the same into a trust structure (settled under Czech law). A further onwards transfer was then made of the trust’s assets into a Liechtenstein foundation. Inferences were drawn by the court in respect of the level of the father’s wealth, and specifically as to the value of the transferred shares. Detailed findings were made against him in respect of the identified transactions, which had been the focus of the mother’s section 423 application. Although a section 423(2) order was not actually made, the application was adjourned pending the father’s compliance with the award, with security in the sum of £600,000 also ordered, alongside a continuation of the freezing orders made earlier in the proceedings. David Wilkinson, solicitor at Slater Heelis, considers the issues.

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