If you are divorcing, using private financial dispute resolution (FDR) can be a faster option than court. Find out how it works and what other advantages there may be.

It is essential to have a financial order made when you divorce or dissolve a civil partnership, or you could face a financial claim against you in the future.

If you are able to agree on the terms with your former spouse, either between yourselves or with the help of your legal team, your solicitor can ask the court to approve and seal these, making a binding financial order that sets out how your assets and liabilities will be shared.

However, should you be unable to reach an agreement, you will need to consider the next steps. The courts require couples to try to resolve matters without the need for litigation wherever possible. There are several options available, including private financial dispute resolution.

What is private financial dispute resolution?

Private FDR has some similarities to attending court, with a family law expert such as a barrister or judge hearing the case. However, unlike the courts, they will not provide a binding ruling.

Instead, they will give their opinion on what decision a court would be likely to reach. If the parties are prepared to accept this opinion, it can be put into a draft order and sealed by the court, making it binding.

What is the private financial dispute resolution process?

Your family law solicitor will put together the financial information needed before the process starts. This involves complete financial disclosure by both you and your former partner, usually by completing Form E, which deals with assets, liabilities, income and responsibilities.

A court hearing will take place to deal with issues such as the timescale for hearings and the provision of any information needed by either party.

The FDR appointment can then take place. Each party’s representative will put their case to the barrister or judge hearing the evidence, who will then give their opinion of the matters in dispute.

If an agreement is reached, it will be put in writing and submitted to the court for approval.

What are the benefits of private financial dispute resolution?

• A key benefit is the speed at which private FDR can be arranged. Family courts often have extensive backlogs of cases, and you could wait a year or more for a final hearing date. There is also a risk that your case could be postponed at the last minute, meaning extra legal fees, as your barrister would need to familiarise themselves with the papers again when the case is rearranged.
• You will have more control over when private FDR hearings take place, so that you can arrange them at a time that suits you and your family.
• Private FDR is often at least partially successful, as both parties can be more engaged with a less combative process, and the levels of conflict may be reduced.
• You and your former partner will be able to select whom you want to hear your case rather than being told which judge you will have.
• The costs of reaching a settlement via private FDR are generally lower, partly because of the shorter timescale and partly because it is usually less adversarial. While you and your former partner will need to pay the fees of the barrister or judge conducting the hearings, as well as your own legal fees, this option is still usually cheaper than litigation.
• Unlike court, private FDR is confidential. This means that the documents you provide will not end up in the public domain.

How do I arrange private financial dispute resolution?

Your solicitor will be able to arrange private FDR on your behalf and prepare you for the hearings, to include dealing with disclosure and entering into negotiations with your former partner’s solicitor. During this stage, it may be possible to agree on some points, which will make the hearing process shorter, as the barrister or judge will only need to consider outstanding areas of dispute.

If a solution is agreed upon during the FDR process, your solicitor will be able to set out the provisions in a draft order and arrange for it to be submitted to the court for sealing.

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.