Written by: The Antony Clapp Team
The need to reach an agreement on financial matters can be one of the most challenging aspects for any divorcing couple. Years spent together investing in a home or business, supporting one another and any children, either directly or indirectly, can all skew the perceptions of individuals, and reduce their chance of independently reaching a fair and reasonable agreement if the marriage breaks down.
For these couples, the court process of resolving financial matters exists, but it is by no means the most expedient, cost-effective or amicable route to resolution. (See the full process of divorce and financial dispute resolution, HERE.)
Private Financial Dispute Resolutions, or Private FDR’s as they are more commonly known, seek to offer couples an alternative means of achieving the financial resolution they need to move on with their lives without being subject to the many disadvantages that the court process entails.
What is a Private FDR?
Since the update to the Family Procedure Rules in April 2024, couples are encouraged to pursue a course of non-court dispute resolution wherever possible and Private FDR’s are one such method now joining the expanded definition. A Private FDR is a structured negotiation conducted by a Family Law qualified individual, such as an experienced barrister or solicitor, who will provide the environment and process to allow the couple to reach agreed terms regarding their finances. If such an agreement is reached, it can then be drafted into a consent order to be sanctioned by the court.
What are the advantages of a Private FDR?
As the name suggests, a Private FDR affords more privacy to individuals who wish to avoid a court setting. One of the many benefits is that a less hostile and more amicable positioning can be achieved from the start, which is especially important if the parties wish to maintain a working relationship beyond divorce, which is inevitably the case when some form of co-parenting is expected between the couple in the years to follow. Further, the couple has more flexibility to determine the location, agenda and formality of their negotiations and importantly, the quality of the ‘judge’ offering an adjudication. The process itself is still structured but given the significantly additional time afforded, parties can be reassured that all key considerations are factored into the discussions. It is led by a neutral facilitator who will encourage the couple to maintain a collaborative approach in their communications to work towards a fair settlement, given all the circumstances. Private FDR’s are arranged without reliance on the court timetable and as such, couples are not ‘stuck’ waiting months for an available court date, but can proceed with their Private FDR relatively quickly. The success rate experienced engaging in this form of resolution is exceedingly high. As a consequence, compromising couples can enjoy a significant reduction in their overall costs that would be expended by a missed opportunity to settle, forcing the parties to go all the way to trial with the heavy costs that involves.
What if we still can’t agree?
Couples entering a Private FDR should have the best intentions to reach agreement, after all, they are paying for the opportunity to thoroughly review and resolve matters with the assistance of dedicated legal professionals. A degree of compromise on both sides should be a reasonable expectation. Unlike mediation, which tends to see parties unrepresented and is guided by a mediator (who may push for a settlement that a legal representative would not necessarily be prepared to agree to), Private FR couples are represented, giving them a chance to discuss important points and issues with their solicitor as they arise during the negotiations.
In the rare situation that no agreement is reached, couples can revert to the standard court proceedings and in all likelihood, go straight to a trial where a judge would impose a resolution after hearing evidence and all the facts.
Take Action
If you are experiencing difficulties reaching a mutually acceptable position on your family finances in your divorce, please contact our experienced team to book a fixed-fee consultation to discuss your Private FDR requirements. If cost, time and preserving a good relationship with your spouse are important considerations, we can help you to achieve the best possible settlement in your circumstances. Call us today on 01622 815940 and book your fixed-fee consultation.
