How can a private Financial Dispute Resolution (FDR) help divorcing couples?

One of the most stressful and contentious aspects of divorce involves finances and who gets what from the matrimonial pot. To ensure a fair settlement that considers both the long- and short-term financial needs of both parties, we would always advise taking early advice from an experienced family lawyer. But what happens if you and your ex do not agree?

What is a Financial Dispute Resolution (FDR)?

When a couple find it impossible to reach a mutually beneficial agreement on splitting their finances, traditionally they would take their issues to court. This is known as a FDR hearing. In this instance, a judge will hear and consider all the evidence and arguments from both sides. The judge will then rule on how the finances are split. The decision is legally binding and puts the judge in control of the eventual outcome.

What is a private Financial Dispute Resolution (FDR)?

Alternatively, a private FDR allows the couple to appoint their own judge who will hear and consider all the evidence. The judge then gives an indication of how a court would rule on the case. This gives both parties a chance to negotiate and reach an agreement between themselves based on what would be the likely outcome were they to take the case to court.

The benefits of a private FDR

There are many benefits of a private FDR including:

• Retaining control over the outcome of the settlement.
• Avoiding the lengthy delays in the court system.
• Potentially saving money by settling in a timely fashion.
• The process can help avoid the stress and added hostility of court and can lead to a more amicable mutually beneficial financial settlement.
• The couple have the flexibility to decide where and when the hearing takes place.
• The ability to choose the judge who is dedicated to their case is another advantage.
• There is also the added benefit of confidentiality.

The downside of a private FDR

The main drawback is that the judge can only give an indication of how a court may rule on the case and this is not legally binding. If the couple are still unable to reach an agreement, the case may need to go to court after all.

If you are struggling with issues arising from separation and divorce, we offer a no obligation initial consultation for a fixed fee of £100 (incl. VAT), for up to one hour. At this meeting, we can advise you on all the issues relating to your personal circumstances, allowing you to make informed decisions moving forward.

To book an appointment please call 01444 472700, email us at [email protected] or complete the form below.