What is Private Financial Dispute Resolution (FDR)?

However, private financial dispute resolution (pFDRs) are becoming increasingly popular and can offer a quicker and more cost effective way of settling financial matters. This avoids costs and delays encountered by many couples in being involved in continued litigation within the Family Courts.

What is private Financial Dispute Resolution(pFDR)?

The private FDR is an informal and private process entered into by the parties as a way of resolving financial disputes during divorce and dissolution proceedings. Once you reach the FDR stage of your Financial Remedy Proceedings, instead of waiting for a Judge to be assigned to your case by the Family Court to act as your FDR Judge, The couple elect and pay for a financial remedy specialist, such as a Solicitor, Barrister or retired Judge to act as their pFDR Judge.

Traditionally, Court appointed Judges do not necessarily have significant expertise in family law, as Judges can adjudicate in several different areas of law. Therefore, the pFDR process eliminates the possibility that your Court appointed FDR Judge is inexperienced in this complex area of law. Furthermore, you can rest easy in the knowledge that your pFDR Judge has considered your case and the papers filed by your solicitor in-depth before the day of the FDR, which regretfully sometimes does not happen in an in-Court FDR.

The pFDR will be organised in accordance with the parties’ and their legal representatives’ availability, at an agreed venue and ordinarily a full day will be set aside for the case to be dealt with. This is highly advantageous, as it gives the parties proper time to consider matters, negotiate and reach a resolution with the assistance of the FDR Judge.

When compared to an in-Court FDR, a pFDR is a very attractive option, as most cases before the Family Court would be allocated a hearing slot of an hour with a further one hour for pre-hearing discussions beforehand. Whilst often more time is spent at Court in an attempt to reach settlement, time can be tight, and negotiations can sometimes feel rushed. In contrast, a pFDR affords the parties proper time to consider their positions and offers made back & forth. This makes the whole process more relaxed and more capable of settlement being reached. Our divorce solicitors will guide you through the process and represent your interests every step of the way.

The pFDR Judge will provide their view as to what a Judge in the Family Court is likely to order at a final hearing based on the evidence they have before them from both parties, alongside the submissions made on behalf of the parties during the pFDR .

Should you choose a pFDR, your Divorce Solicitor will be with you every step of the way and will assist in preparing the documentation required for the process and represent you during the FDR process and subsequent negotiations. Sometimes this is done with the assistance of a Barrister however this is dependent upon the issues in the case. This is all carried out with the aim of resolving financial matters between you and your spouse, or civil partner, with a fair and reasonable resolution to your financial claims arising out of your marriage or Civil Partnership.

The benefits of a pFDR

There are many reasons as to why more couples are opting for pFDRs , including:

• Quicker Settlements: pFDRs avoids lengthy Court delays, so the settlement is reached quicker.
• Cost Efficiency: Despite the fact that there is a cost to the private FDR Judge, it is frequently less expensive than the legal costs associated with prolonged litigation.
• Confidentiality: In contrast to cases in Court, there is not a risk that the outcome of private FDRs will be published.
• More Control: Both parties are involved in the process and therefore a bespoke service can be achieved that meets the needs and wishes of the parties involved, often making it a much more manageable and effective process in reaching financial settlements.

Do you need a divorce solicitor for a pFDR?

Although pFDRs are less formal than an in-Court FDR , legal representation is still necessary. With the help of our divorce solicitors, you can be assured that you receive appropriate and invaluable advice about the parameters of settlement and that the financial disclosure you will be required to give during the process is complete and accurate, as is that of your spouse or civil partner. This means that you can negotiate in the knowledge that all the marital assets will be considered and that a fair and reasonable settlement will be achieved for you and your family. If you do not take legal advice nor have representation it is possible that you may settle for less than you should.

pFDRs are suitable for many couples, provided both parties are willing to engage in the process and come to the table prepared to negotiate a fair settlement. They can be used effectively in complicated cases involving businesses, pensions, and/or overseas assets, with any expert reports being obtained by the parties beforehand. Additionally, pFDRs can be used in modest money cases, to preserve as much of the marital wealth as possible for the benefit of the parties rather than those funds being used to fund ongoing litigation. In cases involving suspicion of hidden assets or lack of cooperation, then recourse to the Family Courts may be unavoidable.

A Ward Hadaway divorce solicitor can advise on whether a private FDR is the most suitable option for your case and will help you navigate the process effectively. Please contact us to find out more.