A Guide to Financial Dispute Resolution Hearings
If you are separated and trying to reach a divorce financial settlement one option is to apply to the family court for a financial court order. As part of the financial court application process, the family court will hold a financial dispute resolution hearing.
In this guide, our family law solicitors look at what a financial dispute resolution hearing is and what you need to know about the financial dispute resolution hearing process.
Online and London Family Law Solicitors
For family law legal advice call the expert London family lawyers at OTS Solicitors on 0203 959 9123 or complete our online enquiry form.
Applying for a financial court order
If you or your estranged husband or wife applies to the court for a divorce financial settlement because you cannot reach an agreement directly with your spouse or through using family mediation then the court will follow a set hearing process to determine the financial application.
The first stage in the process is for the court to issue the application and give a court timetable. The timetable will include a date for exchanging financial disclosure by swapping a document referred to as Form E and supporting documents.
The court will list the financial application for a first directions appointment hearing or FDA. At this directions hearing the judge will decide on whether questions should be answered about the financial disclosure or if extra paperwork should be provided or if valuations of assets should be obtained. For example, a valuation of the family home or business or an actuarial report on pensions.
Once the financial disclosure process and any valuations are completed the court will normally hold a financial dispute resolution hearing or FDR.
The purpose of a financial dispute resolution hearing
At the financial dispute resolution hearing a judge tries to help a couple reach an agreed divorce financial settlement. If an agreement can be reached the judge will make a binding financial court order. The order cannot be appealed against (other than in very rare circumstances, such as dishonest financial disclosure) because the order was made by agreement.
If an agreement cannot be reached at the financial dispute resolution hearing the judge will list the financial application for a contested final hearing. At a contested final hearing, a husband and wife and any witnesses will give evidence and a judge will then decide how the family assets are divided and make a financial court order.
The judge at the financial dispute resolution cannot be the judge at the final hearing because the judge will have been privy to your financial negotiations to see if you can reach a divorce financial settlement.
A financial dispute resolution hearing is a bit like mediation by a family judge in a courtroom setting with you and your family lawyers present to see if a deal can be thrashed out. A family law judge will encourage you to reach an agreement to save you from spending additional legal fees on a contested final hearing where there are no guarantees that the judge at the final hearing will make the financial order that either you or your spouse is asking for.
What happens at a financial dispute resolution hearing?
At a financial dispute resolution hearing the family law judge will be given a schedule of assets, and position statements saying what you each want, and other relevant court paperwork, such as valuation reports.
The judge will hear oral arguments or submissions from your family law solicitors to highlight the points that are important to your case, such as your contributions to the marriage or why it is important to you to stay in the family home. The judge will not hear evidence from you or your spouse.
The judge then gives what family lawyers refer to as an ‘indication’ of what order they think a judge at a final hearing might make or give their assessment on the range of potential orders they think the judge at the final hearing might make if you don’t reach a compromise at the financial dispute resolution hearing.
You then get time to consider the judge’s indication and to negotiate. If your negotiations are successful and you reach a compromise that the judge thinks is sensible the judge will make a financial court order by agreement. The financial court order concludes the financial application and there is no need for further court hearings.
If you reach an agreement in principle but there are a few things to iron out then the judge may record the memorandum of what has been agreed and give your family solicitors time to draft and finalise a financial court order for the judge to approve at a later date.
If an agreement is impossible at the financial dispute resolution hearing then the judge will list the application for a final hearing and give any necessary directions. For example, for updated valuation reports. The financial dispute resolution hearing judge will then play no further part in your financial court application.
Tips on financial dispute resolution hearings
Family law solicitors say it is best to try and reach a financial agreement where possible rather than increase your legal fees or risk a judge at a final hearing making an order that is worse than the one you could have negotiated at the financial dispute resolution hearing.
As the financial dispute resolution hearing is a very important part of the financial court process it is best to be prepared for the hearing. Here are our tips:
- Talk to your family law solicitor about the financial dispute resolution hearing process so you understand what is likely to happen on the day
- Although you can't take a friend or family member into court with you (unless the judge gives permission) it can be helpful to have someone with you at court to support you and to use as a sounding board. Make sure that the person who accompanies you is a support and will not try to dictate what you should agree to
- Allow yourself plenty of time in case the judge gives extra time to negotiate – don’t book work appointments or make sure you have someone available to do the school run for you
- Think about what you can compromise on. For example, you may want to keep your pension but if your ex-spouse only wants a small percentage of your pension, it may be cheaper to agree to that rather than to pay the legal costs of a final hearing and run the risk that, at the final hearing, the judge awards your spouse 50% as a pension sharing order
- Do not rush into a decision as an agreement reached at a financial dispute resolution hearing and converted into a financial court order is binding on you. You therefore should be ready to carefully consider any indication given by the financial dispute resolution hearing judge and to reality test whether the suggested compromise would work for you
Online and London Family Law Solicitors
For family law legal advice call the expert London family lawyers at OTS Solicitors on 0203 959 9123 or complete our online enquiry form.
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