Divorce

When you separate from a husband or wife you need to reach an agreement over what happens to the house and to decide how your assets are split. Until you do so your life can feel in limbo. Our North West divorce solicitors focus on helping you reach a financial agreement that meets your needs. One way to do that is through a private financial dispute resolution. Family lawyer, Robin Charrot, explains what a private financial dispute resolution is and why it may be the best solution for you. For family law advice call our team of specialist divorce lawyers or complete our online enquiry form. What is a financial dispute resolution hearing? A financial dispute resolution hearing is a stage in the financial settlement court process. Financial court proceedings follow a set path timetabled by the court: Financial application sent to court by the husband or wife The court issues the financial application and provides a court timetable Form E financial disclosure by the husband and wife First directions appointment hearing – a preliminary hearing Court-ordered valuations, reports and further financial disclosure is obtained Financial dispute resolution hearing – a settlement hearing Final hearing (if required) Step six, the financial dispute resolution (FDR) is a court or judge-led settlement hearing. The FDR judge hears legal submissions from the representatives of the husband and wife. The FDR judge then says what they think a judge at the final hearing might order if the application had to go to the expense of a final hearing. The financial dispute resolution hearing is designed to encourage a husband and wife to reach a financial settlement. Their financial agreement is made into a binding financial consent order by the FDR judge. You cannot be forced into reaching a financial agreement at a court FDR. However, it may be in your best interests to do so to save money and to avoid the risk of your ending up with less after a final hearing. A negotiated compromise ensures that you walk away from court with a financial settlement that you are satisfied with rather than one that a judge imposes on you after hearing evidence at a final hearing. If divorce lawyers can't negotiate an acceptable financial settlement for you at the FDR, they ask the FDR judge to list the financial application for a final hearing. The final hearing won't be listed before the judge who gave their settlement views at the FDR hearing. Any offers or concessions made at the FDR hearing cannot be brought to the judge’s attention at the final hearing. Do you need a court financial dispute resolution hearing to reach a financial settlement? You only need to start financial proceedings if you can't reach a financial agreement amicably. Ways to reach an agreed financial settlement include: A private financial dispute resolution arranged outside of the court process Solicitor negotiations Roundtable meeting Family mediation Arbitration Using the One Lawyer Service at Evolve Family Law Reaching an agreement using collaborative law Direct discussions between husband and wife A family law solicitor can briefly discuss each option and recommend the one they think would be best for you. For example, if your ex won't give financial disclosure the recommendation will be to start financial court proceedings as the court can order financial disclosure and enforce the order. What is a private financial dispute resolution? A private financial dispute resolution is like a court-based financial dispute resolution hearing but instead of waiting for a court date, the FDR takes place with a private judge (a jointly appointed barrister) in their chambers or at another agreed venue. In a private FDR, you and your husband or wife pay privately for the services of the FDR judge. In addition to these fees, you also pay the cost of your divorce solicitor and any barrister instructed on your behalf. [related_posts] Preparing for a private financial dispute resolution You and your family law solicitor need to be well prepared for the private FDR to ensure that it has the best chance of helping you reach a financial settlement. This is achieved through: Financial disclosure by husband and wife Asking any extra relevant questions about the financial disclosure and getting answers Any necessary valuations obtained. For example, a valuation of the family home, business or pensions Any necessary reports obtained, such as on the tax implications of the sale or transfer of assets Checking things like your housing needs, mortgage capacity, job prospects or other relevant factors Looking at what you want to achieve from the private FDR so you go to it understanding the FDR process and knowing what you are prepared to compromise on and what your ‘bottom line’ is What are the advantages of private financial dispute resolution over a court FDR hearing? The advantages of a private FDR are: A private FDR is quicker than a court FDR hearing. Court delays and backlogs mean there could be a substantial wait for a court hearing date. You may want to reach a decision quickly so you can sell the family home or shares in a family business A private FDR is more civilised. At court, you may be negotiating outside the courtroom in the corridor because of a lack of interview rooms or feel rushed because the FDR judge has several other cases. That doesn’t happen with a private FDR. Improved facilities and time together with separate consultation rooms improve the prospects of your being able to reach a financial agreement With a private FDR the divorce solicitors select the FDR judge. At a court-based FDR, you will be allocated a judge to hear the FDR. The judge at a court FDR may not have specialised in family law before becoming a part-time or full-time judge. In a private FDR, your divorce lawyers jointly select the person who will conduct the private FDR. This can be particularly helpful if there are complex aspects to your financial settlement or if you need your private FDR judge to have experience in a particular area of family law What happens if you reach an agreement at a private financial dispute resolution? If you reach a financial agreement over how to divide your assets at a private FDR your family lawyer will either prepare a document called a ‘heads of agreement’ or a draft financial court order. The financial consent order will be sent to the family court for approval together with a financial statement of information. The statement of information gives the court sufficient information for the judge to decide whether to make the requested order. The court normally makes the agreed order without raising any questions and without the need for a court hearing. Why do you need a financial court order after reaching an agreement at a private FDR? You need a financial court order from the court after reaching an agreement at a private FDR for several reasons: If your agreement includes pension sharing the pension administrator will require the sealed court order and final order of divorce before they can implement the pension sharing order Some mortgage companies need a copy of a court order before they will agree to remove one spouse’s name from the mortgage. Alternatively, the mortgage company may require the order as proof that one spouse is receiving spousal maintenance and therefore has sufficient income for their planned borrowing If the agreement cannot be implemented you need a financial court order to be able to apply to court to enforce what was agreed If you have questions about financial settlements after a separation or divorce our specialist Northwest divorce solicitors can help guide you to reach a financial settlement and secure a financial court order. For information on private financial dispute resolution hearings or advice on divorce or family law call our team of specialist divorce lawyers or complete our online enquiry form.