Financial Dispute Resolution (FDR) for Divorce

What is FDR for Divorce?

Traditionally, a divorce financial settlement is dealt with by mutual agreement between the parties or by application to the family court. 

The court process includes disclosing the parties’ respective financial positions and after a first hearing, dealing with what reports etc. are required, or former disclosures. This is followed by an FDR hearing that focuses on achieving a settlement. If that fails, a final hearing will follow and the judge will determine the final outcome.

A private FDR with an independent and impartial FDR judge is a simple and voluntary alternative to this.  

As a former president of the Family Division succinctly described it: 

“The parties pay for a financial remedy specialist to act as a private FDR judge. That person may be a solicitor, barrister or retired judge… The private FDR takes place at a time convenient to the parties, usually in solicitors’ offices or barristers’ chambers, and a full day is normally set aside to maximise the prospects of settlement. It takes the place of the in-court FDR.”

So, whether or not you’re already going down the court process, you can agree to a private FDR hearing. It is confidential and without prejudice, enabling discussions and negotiations to occur freely with the judge’s assistance.

• If a settlement is reached (usually, it is), it will be drawn up as a court order and submitted to the court for approval. 
• Where an agreement cannot be reached, it will become necessary for a date for a final hearing to be set – though the parties can still work towards resolving the issues ahead of it.

However, we make it clear to our clients that there is the potential for a lengthy delay before a court final hearing, given the lengthy backlog currently affecting the family courts. Therefore, as a team with the clients, we take a constructive approach to try, as far as possible, to avoid a final court hearing.

How much does private FDR cost?

Although there is a cost involved – mainly in respect of the private FDR judge’s fees, which are normally split between the parties – our clients find that the advantages of a private FDR far outweigh this. The costs are not, overall, more expensive because the case is concluded far earlier than in the court process. 

What are the benefits of FDR for divorce?

A private FDR offers clients several benefits, including:

1. The private FDR judge will have your full attention. They will have the time to prepare properly and to set aside a day (or more) to hear the case without the pressures of the normal court timetable with competing cases.
2. There is unlikely to be a delay in dealing with the matter through private FDR. This in turn helps the parties focus on preparing for the FDR, narrowing down the issues to be resolved. Ahead of the FDR, each party’s lawyers will prepare and exchange a statement stating their position on the issues. 
3. The process of private FDRs is more flexible, less adversarial and less formal, making a settlement more likely to be reached.

There is a greater chance of settling a private FDR than a court-based FDR. This can mean the difference between concluding the case in weeks, months, or even years if the case is litigated.

What is an FDR hearing?

A Divorce Financial Dispute Resolution (FDR) hearing occurs in a family court as part of divorce proceedings, specifically related to the financial settlement agreement. It is a form of alternative dispute resolution (ADR) designed to help divorcing couples resolve their financial issues without resorting to trial.

During an FDR hearing, a neutral third-party, usually a family law judge, reviews the disputed financial issues between the divorcing parties. These include the division of the family home, maintenance payments and child support. The judge listens to arguments from both parties, considers the evidence and then provides recommendations or suggestions to facilitate resolution. The judge does not make a legally binding decision but facilitates the negotiation so both parties can agree to a settlement. If an agreement cannot be reached during the FDR hearing, the case may proceed to trial, where a judge will decide.

FDR hearings are often considered a less formal, less adversarial, and more cost-effective approach to resolving financial disputes in divorce cases than going to trial. They offer an opportunity for the parties to voice their concerns and work towards a mutually acceptable resolution with the guidance of a neutral third party.

How should you prepare for an FDR hearing?

Private FDR helps divorcing couples reach a financial settlement

Our specialist divorce lawyers are keen to ensure our divorcing clients achieve cost-effective outcomes as quickly as possible, with minimal conflict, enabling them to get on with their lives.  One of the ways we help our clients is through private financial dispute resolution (FDR).

The divorce team at Osbornes are highly experienced in helping clients resolve matters on divorce in non-court settings, and we have been seeing a rise in private FDR. 

Contact

Lisa Pepper Partner
Family Law

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