Private FDRs: A flexible way to reach a divorce financial settlement
Reaching a financial settlement on divorce can feel daunting. For many people, the idea of long delays, potentially public court hearings and rising legal costs adds to an already stressful situation.
With the continuing emphasis on parties engaging in non-court dispute resolution, an option that is becoming increasingly popular is a private Financial Dispute Resolution hearing, often referred to as a private FDR.
What is a private FDR?
A private FDR mirrors the structure of a court-based FDR (which is usually the second financial hearing) where a judge reviews the case and provides an indication on what they consider an appropriate settlement would be. This indication is not binding, but it often provides clarity and encourages constructive negotiations.
At a private FDR, instead of a judge who is appointed by the court, both parties jointly choose and instruct an evaluator on a private basis who is usually also a barrister or a retired judge.
The evaluator will read all the financial documents in advance, hear submissions from barristers instructed on each party’s behalf and then provide an impartial view on what an appropriate outcome could be. The same as the court process, this is not a binding decision, but it enables parties to engage in meaningful negotiations and often reach an agreed outcome on the day.
Why do people choose a private FDR?
Speed: Court hearings can take many months to fit into the court diary and there is no flexibility on the date you are given. A private FDR can be arranged much quicker, without the need for a first hearing, and at a date convenient to both parties helping families move forward sooner.
More time: Private FDRs are usually scheduled for a full day, rather than being squeezed into a busy court timetable. This means that the evaluator will have had opportunity to read all relevant documentation (which is not always the case with a court hearing) and will have more time to consider the case. The evaluator will also be on hand to assist with any finer points for negotiation later in the day.
Choice of evaluator: The parties jointly select the evaluator with the right experience for your case. They will usually be a family law expert which means that they will have the appropriate specialist knowledge and will provide detailed reasoning for their proposed outcome.
Privacy: With the transparency rules it is now possible for the media to request access to family court hearings and to report on the case. This is not possible with a private FDR meaning that your personal circumstances will remain completely private.
Facilities: Court buildings are public buildings with ageing facilities and public waiting rooms. Private FDRs normally take place at a barrister’s chambers which makes for a much pleasanter experience overall.
Does a private FDR mean we will settle?
A private FDR cannot guarantee a settlement, but it often helps both parties understand what is realistic. Hearing a neutral, expert opinion can make it easier to move away from entrenched positions and focus on practical solutions.
Even where a full agreement is not reached on the day, a private FDR often narrows the issues and brings settlement closer. If an agreement is reached, it will then be converted into a legally binding financial consent order.
Do I have to issue a court application to go to a private FDR?
No, you do not have to be in formal court proceedings to attend a private FDR. It is possible for both parties to agree to attend a private FDR before, and often instead of, court proceedings. You can also agree to pause court proceedings to allow parties to arrange and attend a private FDR.
What about the additional cost?
Private FDRs do involve an additional cost, as you are paying for the evaluator’s time which is often shared equally between the parties. However, many clients find that a private FDR can save money overall. If an agreement is reached sooner, this can avoid further court hearings and preparation for a final hearing.
Can you have special measures at a private FDR?
Where there are concerns about wellbeing, safety, or there is a significant imbalance of power it is possible to have special measures. This can include a remote link to join the private FDR, screens to divide the room, separate entrances/exits and facilities and also staggered arrival times (all will differ depending on the venue where it is being hosted).
This is something that we can liaise with you on to ensure that you are comfortable and can participate fully in the private FDR.
Private FDRs with Boyes Turner
Private FDRs are becoming an increasingly popular option for people who want to avoid the court process and subsequent delay and cost. Our Family Law solicitors have lots of experience preparing for and attending private FDRs and will be by your side on the day.
For more information contact Matthew Briggs, Boyes Turner – a Citywealth member
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