If you’ve been unable to resolve financial matters with your former spouse, starting court proceedings may feel like the only option left. We always see this as a last resort. However, if you must commence proceedings, there are ways to reduce conflict, cost, and delay. This can be achieved by agreeing to have a private Financial Dispute Resolution Hearing (pFDR).
Emily Prince, an Associate Solicitor in our Family Law team, explains what a private FDR is, how it works, and whether it may be beneficial for you.
What is a Financial Dispute Resolution hearing (FDR)?
In financial remedy proceedings, the court usually lists a series of hearings.
The first hearing listed within proceedings relating to financial matters is known as the Financial Dispute Appointment hearing (FDA). This hearing focuses on identifying and agreeing the value of the spouses’ assets and liabilities for the purpose of progressing the case by allowing negotiations to begin.
The hearing listed after the FDA is the FDR. This is focused on settling the case and for this reason it is carried out on a “without prejudice basis”. This encourages spouses to negotiate, without worrying about their proposal being used against them in the future. Anything discussed during the FDR cannot be shared at a later stage in the proceedings.
Most cases settle after the FDR, as the Judge will have given an indication of what would be a fair outcome, in consideration of the financial disclosure and proposals exchanged so far. If the matter does not settle, then a Final Hearing will be listed. It would be at this point that, if the spouses fail to agree matters, the Judge will make the decision for them.
What is a private Financial Dispute Resolution?
A private FDR follows the same principles as a court-based FDR but takes place outside of court.
Sir James Munby, former President of the Family Division, described a private FDR as:
“a simple concept. 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. No additional qualification is required. 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”.
Once a judge is chosen by agreement by the spouses, they will be provided with the papers ahead of the private FDR, allowing the Judge to properly understand the detail of the case. The Judge’s fees are normally shared equally.
On the day:
- each party’s position is outlined; and
- the Judge gives an informed indication of the possible overall settlement and deal with any areas of dispute to bring the parties closer to an agreement.
The judge’s indication is not binding. It is intended as a starting point to help both parties reach agreement through further negotiations. In most cases, matters are concluded at this stage.
Where matters are resolved, your legal representatives will draft a consent order, which will be filed with the court for approval. Once this takes place, proceedings are concluded.
Is private FDR for you?
Private FDRs are recommended for separating couples who wish to:
- negotiate in private without any attention from the public eye;
- avoid delays, which unfortunately the courts are experiencing; and
- settle matters by agreement, even if positions can seem far apart at that stage.
The benefits of a private Financial Dispute Resolution
A more informed Judge
Court delays and heavy caseloads can mean that the Judge may not have necessarily had sufficient time to read through your case in enough detail.
Appointing someone to act as a judge for the specific purpose of conducting a private FDR, will guarantee that they will know every detail of the case, which will enable them to provide their input in the most efficient manner, increasing the prospects of settlement.
Speed and certainty
Due to the delays and backlogs of the courts, you may need to wait months before a hearing is listed and run the risk that it may be cancelled the day before (unfortunately it does happen!).
By setting a date with the other party and instructing someone as a Judge, you will have the peace of mind of knowing that there is a timeframe to follow and which will not change.
Flexibility
Because both parties agree the pFDR arrangements, there is a lot more flexibility over:
- who is appointed as the Judge; and
- where and when the hearing takes place.
Privacy
As the name suggests, everything about a private FDR remains private. This can be particularly reassuring if you are concerned about being in the public eye.
A greater chance of settling
Agreeing to a private FDR shows cooperation from both parties. In our experience, the chances of settling are much higher than those you would have if attending a court-based FDR.
Is there a catch?
Other than the fact that to have a private FDR, you will need to share the costs of a professional acting as a Judge, we do encourage parties to have private FDRs wherever suitable.
You would need to instruct a barrister to represent you in a court-based FDR in any event, so really the only additional cost you would incur is that of the Judge. It is fair to say that many clients feel the benefits outweigh this additional cost.
How can we help with Financial Dispute Resolution hearings
Please do not hesitate to get in touch with our Family Law team should you wish to discuss whether a private FDR may be suitable for you.
Our team of experienced family lawyers is based at offices across South London, including Bromley, Crystal Palace, and London Bridge. Whether you’re seeking expert legal advice on divorce, child arrangements, or financial settlements, or need support at one of our other locations, our solicitors are here to help.
Please get in touch to arrange a confidential conversation.
