What is a financial dispute resolution hearing?
Whether you are applying to court for a financial settlement after your divorce or you are responding to a financial application brought by your estranged or former spouse the court terminology can be very confusing. In this blog family and divorce settlement solicitor, Behzad Sharmin, discusses what a financial dispute resolution hearing is and how it fits into the financial court process.
Online and London based family solicitors
For advice about your best financial settlement options after a separation or divorce or representation in financial court proceedings call the specialist family law team at OTS Solicitors on 0203 959 9123 or complete our online enquiry form. Appointments are available by video or phone call.
What is the financial court process?
When you separate or divorce and start financial court proceedings you can get bombarded with abbreviations by lawyers and court professionals who assume that you know what they mean, when you don’t. Often people are too embarrassed to ask what abbreviations stand for or ask questions about the court process but you need to know the basic outline of the financial court stages to understand how the financial dispute resolution hearing fits in.
With most financial court proceedings there are three court hearings:
- The first directions appointment hearing or FDA
- The financial dispute resolution hearing or FDR
- The final hearing.
Sometimes, additional court hearings are needed, for example:
- To ask for an interim order, such as spousal maintenance. This is referred to as maintenance pending suit or MPS
- To seek an injunction order to prevent the disposal of assets. This is referred to as a section 37 application
- To seek additional directions, for example, permission to instruct a single joint expert on the tax consequences of disposing or transferring of assets as tax issues have arisen after the first directions hearing
- To join additional parties to the proceedings, such as a relative who says that they have a financial interest in the family home.
What is a financial dispute resolution hearing?
At the financial dispute resolution hearing a judge tries to help you reach a financial settlement. To make the financial dispute resolution hearing as effective as possible the court, at the first directions appointment hearing, gives directions so you have the necessary information at the financial dispute resolution hearing to help you reach an agreement. For example, at the first directions appointment hearing, the court could order:
- A valuation of the family home by a surveyor
- A valuation of pension assets by an actuary
- A valuation of a family business and non-listed shares by a forensic accountant.
You may question how a judge can help you reach a financial settlement at a financial dispute resolution hearing. The judge will read position statements prepared by your family solicitor as well as the financial paperwork (such as Form E financial disclosure ) and any expert reports. The judge at the financial dispute resolution hearing won't hear evidence from you or your spouse or from any experts. Instead, after hearing legal submissions by your family solicitor, the judge will give what is often referred to as an ‘’indication’’.
An indication is a judge’s best estimate of what sort of financial settlement is likely to be ordered if you and your spouse don’t reach a divorce settlement and the financial application proceeds to a contested final hearing where both you and your husband or wife have to give evidence. A family judge is able to give an impartial indication based on their experience of what is likely to happen and be ordered at a final hearing.
The judge at the financial dispute resolution hearing will be keen to help you reach a financial settlement because they want to save you time and money so you reach a divorce settlement without incurring the costs of a contested final hearing.
What happens if you reach a financial settlement at a financial dispute resolution hearing?
If you are able to reach an agreement at the financial dispute resolution hearing the judge will either:
- Make a financial court order
- Record the terms of the agreement on the basis that a financial court order will then be submitted in accordance with the terms.
If agreement is reached at the financial dispute resolution hearing you won't be able to change your mind later on. That’s why it is best that you have a family solicitor with you at the financial dispute resolution hearing as they can protect your interests because whilst you will want to reach a financial settlement it should be one that you are comfortable with and understand.
Can you be forced to reach a divorce settlement at the financial dispute resolution hearing?
You can't be forced to reach a divorce settlement at a financial dispute resolution hearing and your family solicitor will tell you that you should not feel pressurised into agreeing a financial settlement that you are not happy with or don’t fully understand. However, it is best to try to reach a financial settlement if you can as that will save you money and avoid the stress of ongoing financial court proceedings and enable you to ‘’get on with life’’.
Most family solicitors say that it is best to go to a financial dispute resolution hearing with the hope of reaching a divorce settlement but not at ‘’any price’’. That’s because a judge’s indication isn’t necessarily what a judge at a final hearing would order. You could potentially do better or you could do worse. That’s why it is important to have specialist legal representation by a family solicitor at the financial dispute resolution hearing to give you the best prospects of being able to reach a divorce settlement.
What happens if you don’t reach a divorce settlement at the financial dispute resolution hearing?
If you can't reach an agreement at the financial dispute resolution hearing the judge will make further directions to best ensure that the financial application is ready for a final hearing. For example, the judge could order:
- Updated or additional asset valuations
- Statements.
The financial dispute resolution judge will also list the financial application before a different judge so that the judge at the final hearing doesn’t have any preconceived views. The fact that the financial application is listed for a final hearing doesn’t stop your family solicitor from continuing to try to negotiate a financial settlement for you before the final hearing.
Family solicitors say that financial dispute resolution hearings are stressful even though a husband or wife doesn’t have to give evidence at the hearing. As the financial dispute resolution hearing is such a key aspect of the financial court process it is best to prepare well for the hearing and make sure that you and your family solicitor know what your priorities are and how far you are willing or able to negotiate to achieve a financial court order.
Online and London based family solicitors
If you need robust representation in financial court proceedings call the specialist family law team at OTS Solicitors on 0203 959 9123 or contact us online. Appointments are available by video or phone call.