Glossary of terms - legal definitions
Acknowledgement of Service when a respondent confirms that a divorce petition has been received. The respondent fills in, signs and sends back the acknowledgement of service to confirm in writing that the petition was received.
Additional voluntary contribution (AVC) extra money people in occupational pension schemes can pay in to increase their pension benefits.
Adjourned sine die when a court case has no date fixed for it to continue.
Adjournment postponing a court hearing.
Administrator someone who has been appointed to manage the affairs of a bankrupt business; or to manage the estate of someone who has died without leaving a will.
Adoption the system which people use to become parents, even though they are not the child's natural parents.
Adoptive child a child who has been legally adopted.
Adoptive parent a person who has legally adopted a child.
Adultery having sexual intercourse with an individual of the opposite sex other than your spouse.
Advocate is the lawyer who speaks in court for a client.
Affidavit a written statement which is sworn to be true by the person signing it. It is sworn before someone authorised by the court.
Affirm
- to solemnly promise to tell the truth in court
- to solemnly promise to tell the truth in an affidavit
Affirmation solemnly promising to tell the truth when giving evidence. It is an alternative to swearing an oath when the person giving evidence does not wish to swear on a holy book.
Ancillary Relief is a monetary payment to a party to a marriage, or is the term used to describe the court process that deals with the financial aspects of divorce.
Annual accounts the summary of an organisation's financial transactions during the year covered by their accounts, and a 'snapshot' of the assets and liabilities at the end of the year.
Annual General Meeting the yearly meeting of the members of an organisation which must be held to meet legal conditions. The annual accounts are presented for approval at this meeting.
Annual return a return which must be sent by companies to the Registrar of Companies. Each year the officers of a company have to fill in an annual return with details
Annul to end an invalid marriage.
Antenuptial agreement a legal agreement between two people who are about to get married. The agreement sets out how the couple's assets will be divided between them if they later divorce. More commonly known as pre-nuptial agreements or "pre-nups"
Anton Piller order an order by the High Court. It gives the applicant permission to search the defendant's premises for evidence, inspect it and take it away. It is intended to prevent evidence being destroyed or hidden which would be relevant to the case. Since April 1999, this has been known as a 'search order'.
Appeal asking a court to overturn a lower court's decision. If the decision of a court is disputed it may be possible to ask a higher court to consider the case again by lodging an appeal.
Articles of association documents which set out a company's rules.
Asset something owned such as a building, a vehicle or money in the bank.
Assign to formally transfer an asset, such as when ownership of property is transferred from one person to another.
Assignment the formal transfer of the rights to an asset.
Assurance insurance cover for an event which will definitely happen, such as death.
Attachment of earnings a court order that deductions be made from a person's earnings. The employer pays the money collected to the court and the court pays the money to the person to whom it is owed. It is a common way to enforce a maintenance order.
Balance sheet a summary of an organisation's financial position. It lists the values in the books of account on a particular date, of all the organisation's assets and liabilities. The assets and liabilities are grouped in categories and paint a picture of the organisation's strengths and weaknesses.
Bankruptcy order an order that a court may issue against someone if they cannot pay their debts when they are due to be paid. This order takes ownership of the debtor's property away from the debtor and allows much of the property to be sold. The money raised is divided between the creditors following strict rules.
Beneficial interest means who has the benefit of a certain asset. Even though an asset may be legally owned by one person, the true beneficial owner may be somebody else. A common scenario is in respect of a trust or a settlement. Although the assets of the trust are legally held by the trustees, it is the beneficiaries of the trust who have the benefit of those assets.
Bigamy the offence committed by someone who is already married but still goes through a marriage ceremony with someone else.
Bonus shares free shares that a company offers to its shareholders, in proportion to their existing shareholdings.
Brief a document prepared by a solicitor which contains the instructions for the barrister to follow when acting for the solicitor in court.
Called-up capital all the shares called by a company when it issues shares. When calls have been made for the whole of the share price and the shareholders have paid, the shares become paid-up share capital.
Capacity someone's ability to enter into a legal agreement.
Capital allowances allowances that you can sometimes claim when you buy long-term assets, such as machines, to use in your business. You claim part of the cost against your profits before your tax is worked out for the year.
Capital gain the profit you make if you sell or dispose of a long term asset for more than it cost you.
Capital gains tax a tax charged on certain capital gains.
Care order an order by a court instructing the local authority to care for a child.
Case law law that is based on the results of previous court cases.
Certificate of Incorporation a certificate stating that a company has been Incorporated. The Registrar of Companies issues the certificate of incorporation once a company has been formed.
Chambers the offices used by barristers and the judge's private office. Courts hearings heard in private and which are not open to the public are known as being heard in chambers.
Chancery Division a section of the High Court. It deals with cases involving trusts and other issues.
Chargeable event an event that may create a tax liability.
Chargeable gain a gain on which capital gains tax is payable. If a capital asset such as a building is sold or disposed of at a profit, tax on the gain has to be worked out unless the capital asset is one exempted by law.
Charging order a court judgement which a creditor may get against the person or organisation which owes the money, giving the creditor security over the debtor's property for repayment of the debt.
Child Support Agency part of the Department of Social Security. It supervises the assessment and payment of maintenance for children.
Child Support Maintenance the amount of maintenance the parent not living with their child must pay.
Circuit judge a judge who presides over cases in the County courts.
Civil Partnership commonly known as "gay marriage". Same-sex couples may enter into civil partnerships which bring about the same rights and obligations as marriage. They are terminated in a similar process to divorce.
Cohabitation a couple living together as husband and wife, whether they are a same-sex or opposite-sex couple. At present there is no specific legal definition of what amounts to cohabitation.
"Common-law Marriage" there is no legal concept of common-law marriage and it was abolished in the 1750s. People still use the term to refer to a cohabiting couple.
Companies House the office which stores company information such as annual accounts, directors' names and addresses and the registered office address. People who are interested in a company can inspect some of the information stored.
Company secretary a person appointed by the directors of a company who is responsible for making sure that the company complies with the Companies Acts.
Compulsory Winding Up the liquidation of a company by order of the court. It usually happens because the company has not been able to pay its bills on time and a creditor has presented to the court a petition for winding up the company.
Confiscation order if someone has been convicted of a crime the court may order the person convicted to pay the court a sum of money. This is called a confiscation order.
Consent Order an order setting out the terms that have been agreed between the parties.
Contact Order an order which determines to amount of contact a child has with his or her parents.
Contempt of court the offence of:
- disobeying a court order
- abusing a judge during a court case
- interfering in the administration of justice
Corporation tax a tax which companies pay on their profits.
Counsel a barrister or group of barristers.
County court a court which deals with civil cases such as family disputes.
County Court judge a judge who presides over cases in the county courts.
Creditor a person you owe money to.
Creditors' voluntary winding up. If a company is insolvent the members can pass a special resolution to have the company wound up. This is called a creditors' voluntary winding up.
"Custody" has not been in used as a legal term since 1991. The word is now "residence". When a parent is seeking an order that their children live with them, they are seeking a "residence order" as opposed to "custody".
Debt money owed.
Debtor someone who owes you money.
Decree an order by a court.
Decree absolute the final court order which ends a marriage.
Decree nisi a provisional court order which orders that a marriage should be dissolved. Usually the only part of the court process in a divorce which takes place in open court and which the public can attend.
Dependant someone who depends on someone else for financial support.
Director a person appointed to help manage a company's affairs.
Disbursement a payment made by a professional person, such as a solicitor or accountant, on behalf of a client. The money is claimed back by including it on the bill for professional services which is sent to the client.
Divorce the legal end to a marriage.
Divorce petition an application for the legal ending of a marriage.
Domicile the country which is your permanent home, even if you are living somewhere else for now.
Domicile of choice the country in which you make your home, intending it to be permanent.
Domicile of origin the domicile which a newborn child has. This is usually its father's domicile or, if the father is dead, its mother's domicile.
Engrossment preparing the final version of a legal document ready for it to be executed.
Ex parte an application to the court made by only one party to a case without the involvement of the other party. Now known as a "without notice" application.
Expert witness an expert in a particular field who is called to give an opinion in a court case.
Family Division the part of the High Court dealing with the breakdown of marriages and civil partnerships.
Financial Dispute Resolution Hearing is a hearing which takes place as part of the ancillary relief process. It is commonly known as an "FDR" and is an opportunity for the parties to negotiate a final financial settlement with the input and assistance of a family judge. The parties do not give evidence and the judge cannot impose a decision upon them.
Fixed charge a charge which provides security for money lent. The charge is over a specific property.
Floating charge a charge used to provide security for money lent to a company. The charge is over the company's liquid assets but it is only triggered by an event such as liquidation.
Form A the application for ancillary relief (see above).
Form E a statement setting out a party's financial information in ancillary relief proceedings.
Form H a statement setting out the legal costs incurred by a party in ancillary relief proceedings.
Freezing Order is an order made by the High Court within family proceedings preventing assets from being disposed of or used by a party to the court proceedings.
Garnishee order a court order to a third party who owes money to a judgement debtor to pay the money to the judgement creditor.
"Gay Marriage" see Civil Partnerships (above).
Guardian a person appointed formally to look after the interests of a child, or of someone who is not capable of looking after their own affairs.
High Court (of Justice) part of the Supreme Court. It is split into three divisions called:
- Queen's Bench Division
- Chancery Division
- Family Division
Injunction is an order of the court preventing a person from taking a specific step. For example, an injunction may prevent a person disposing of an asset or attending at the family home.
Joint and Several Liability two or more people responsible for repaying a debt. They are each responsible individually to repay all the debt as well as being responsible as a group.
Joint lives policy a life assurance policy on more than one person's life. The policy pays out on the first death.
Joint tenancy two or more people having identical shares in land.
Judge a person whose job is to adjudicate in court cases.
Judge in chambers describes a hearing in front of a judge which is not held in open court.
Judgement a decision by a court.
Jurisdiction is:
- the territory in which a court can operate
- the power it has to deal with particular cases
- the power it has to issue orders
Liabilities the debts that a person or organisation owes.
Liability a debt or obligation.
Life assurance policy (or life insurance policy) a contract between the policyholder and the insurance company. The insurance company pays
out if the policyholder dies.
Life assured the person whose life is assured by a life assurance policy.
Limited company a company which limits how much its members will have to pay if the company is wound up. The members of most limited companies will only have to pay any money unpaid on their shares. If a company limited by guarantee is wound up, the money its members have to pay is limited to the amount shown in the memorandum of association.
Litigant a person involved in a lawsuit.
Litigation taking legal action through the courts.
Maintenance money paid to support a spouse and children when a marriage has ended. Otherwise known as "periodical payments".
Matrimonial home the house in which a husband and wife live in as a married couple.
Mediation help from an independent person who assists a separating couple in resolving their legal differences at the end of a relationship. Mediators can help in divorce, the dissolution of civil partnerships or when a cohabiting couple separate. Mediators usually help resolve issues over financial matters or arrangements for children.
Memorandum and articles of association The memorandum gives details of a company's name, objects (purposes) and share capital. It also sets out the limits of the shareholders' liability if the company has to be wound up. The articles set out the members' rights and the directors' powers.
Molest/Molestation behaviour by a person which annoys or greatly troubles their children or spouse. The behaviour can include violence, verbal threats and written threats.
Mortgage using property as security for a debt. It is also the name for the contract which is signed by the borrower and lender when money is lent using property as security for a loan.
Mortgagee the lender of the money which is secured by a mortgage.
Mortgagor the person who borrows the money to buy a property. The lending is secured with a mortgage of the property.
Non-molestation Order an order dealing with a party's behaviour. It commonly prevents a person from threatening, intimidating etc another
Notice a warning of something which is about to happen.
Oath swearing the truth of a statement.
Occupation Order an order determining who should live in a property. One party will be permitted to live in the property, the other will be excluded.
Occupational Pension Scheme a pension scheme organised by an employer for its employees.
Official Solicitor an officer of the Supreme Court whose duties include acting for people who cannot act for themselves, such as children or people with mental health problems.
Order an instruction by or command of a court.
Polygamy being married to more than one person at once.
Preamble an explanation of a proposed law.
Pre-Nuptial Agreement is an agreement entered into by a couple prior to their marriage which is intended to determine financial claims should they divorce. They are not binding upon English law, although the courts will attach a great deal of weight to such agreements if they are properly drawn up and if certain safeguards are met.
Post-Nuptial Agreement is the same as a pre-nuptial agreement but is entered into between a couple after the marriage as opposed to beforehand.
Prohibited Steps Order an order prohibiting a certain act
Protected tenancy a tenancy agreement for a house. It gives the tenant the right to a fair rent and protection from eviction as long as the terms and conditions of the tenancy agreement are kept to.
Queen's Counsel (QC) a barrister who has been chosen to serve as counsel to the Crown. A Queen's Counsel is more senior than other barristers.
Recorder a part-time High Court judge.
Registrar of Companies an official in charge of the office which keeps records of registered companies.
Residence order an order which a court issues when it has decided where a child should live, setting out details of the court's decision.
Respondent the person an action is being taken against.
Restraining order an order which a court may issue to prevent a person from doing a particular thing.
Separation when parties end a relationship
Separation order a court order that a husband and wife can live separately if they wish.
Shadow director a person who has not been appointed a director of a company but nevertheless gives instructions to the directors, which they comply with.
Share capital the money invested directly in a company by its members. When the shares are first made available by the company, people can apply to buy them. The company states the price it wants for the shares.
Share certificate a document which certifies who owns shares in a Company. It gives the type and number of shares owned by the shareholder and lists the serial numbers of the shares.
Sine die indefinitely. If a case has been adjourned sine die no date has been set for it to be continued.
Solicitor a person who can deal with legal matters for the public and give advice on legal matters. All solicitors are listed on the roll of solicitors kept by the Law Society.
Specific Issue Order an order permitting a certain activity in respect of children. A specific issue order may address which school a child shall attend or whether they should undergo certain medical treatment or receive certain religious education.
Statement of Information the statement summarising the parties' respective finances.
Supervision order a court order that a child should be supervised by a probation officer or a local authority.
Tax money raised by the Government to pay for the services it provides. Some taxes are called indirect because they are part of the price we pay for goods and services, such as VAT. Other tax is called direct because the individual taxpayer pays it. Income tax and corporation tax are examples of direct taxes.
Taxation the levying of taxes.
Tax avoidance reducing tax bills by using legal means.
Tax evasion breaking the law to reduce tax bills, such as by concealing income.
Transferee the person something is transferred to.
Transferor the person who transfers something to someone else.
Trust a financial arrangement under which property is held by named people for someone else.
Trust corporation a company which acts as a trustee and holds a trust's assets.
Trust deed a legal document which is used to:
- create a trust
- change a trust
- control a trust
Trustee a person who holds property and looks after it on behalf of someone else.
Trustee in bankruptcy a person who administers a bankrupt person's estate and pays any available money to the creditors.
Undertaking a promise which can be enforced by law such as a promise made by one of the parties or by their lawyer during legal proceedings.
Unit trust a trust which manages investments. People can invest in unit trusts by buying units. The managers of the trust use the money people invest to buy investments. The fund manager values the fund's assets from time to time and puts a new price on the fund's units.
Unreasonable behaviour is the behaviour by a married person or a civil partner which may be used to prove the irretrievably breakdown of a marriage/civil partnership and therefore secure a decree of divorce.
Vendor a person who sells something.
Ward of court a person who is protected by the High Court, such as a minor.
Warrant is:
- a certificate which gives the person holding it the right to buy shares at a given price
- a magistrate's written instruction to arrest someone
- a magistrate's written instruction to search a property
Warranty a term in a contract. If the term is not complied with damages can be claimed by the injured party.
Will a legal document which people use to leave money and property when they die.
Without prejudice when written on a document, the document cannot be used as evidence that a contract or agreement exists.
Witness someone who:
- watches a signature being put on a document, and then signs as well to verify the signature's authenticity
- attends court to testify about events they know about. To witness a document is to watch it being signed and then add your own signature and name, address and occupation.
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