Navigating Financial Matters on Separation or Divorce

Separation and divorce is often a difficult and emotional life event. Frequently, the most challenging aspect is resolving financial matters and the division of resources. There are a variety of options to manage the division of a couple’s finances.

Should both parties be cooperative, it does not have to involve the court which is commonly a contentious and lengthy process.

The approach adopted can be tailor made to accommodate differing issues and situations that need to be addressed.  

Direct Negotiation 

It is always open to those separating or divorcing to communicate directly and reach a financial agreement between themselves. This is a cost-effective option where both parties remain amicable. It is prudent to seek advice from a solicitor to discuss the terms of any agreement reached and to ensure such agreement is incorporated into a Consent Order so that it is legally binding.   

Mediation 

Mediation involves meetings with a professionally trained mediator.  The mediator is a neutral party who is legal trained and experienced in the legal issues of divorce being able to facilitate and manage discussions to aid a resolution between the parties. Some of the benefits are that the process is confidential, is often less stressful and cheaper than other methods and it helps parties retain some control over the outcome. Mediators can arrange a meeting with parties together or separately if preferable.   

Within our Family team, we have a qualified mediator, Victoria Syvret, who is experienced in conducting mediation for separating and divorcing couples.  

Solicitor-led negotiation 

The more traditional option is to negotiate financial matters via solicitors who are instructed by each party. There would need to be an exchange of financial disclosure through solicitors to ensure each party knows the extent of the assets and resources before then entering negotiations.

Although this method is usually by correspondence, it is an option to have collaborative, ‘round the table’ style meetings instead. The benefits of using solicitors for negotiation are that there is some distance between parties to help situations where there is some animosity, whilst the parties still retain some control over the outcome with the benefit of ongoing legal advice.   

Arbitration 

Arbitration is a process where there is an agreement to be bound by the decision of an independent third party, known as an arbitrator. The arbitrator can be asked to decide on one aspect of a dispute or the entire case. The arbitrator is chosen and agreed by the parties and that arbitrator then has discretion as to the outcome. The process is not dissimilar from court proceedings but there is greater flexibility, it is less formal, quicker and often more cost-effective.  

Court Proceedings 

As a last resort, either party can apply to the court for a financial remedy to resolve financial matters on divorce. The benefit of initiating court proceedings is that matters will be placed on a court timetable, giving set deadlines that will need to be complied with which ensures the dispute does not drag on unnecessarily. The court allows the opportunity for parties to still reach an agreement, at a Financial Dispute Resolution (FDR) hearing with the benefit of a Judge to help guide a settlement. If an agreement can’t be reached, a Judge will decide the outcome at a final hearing.  

Private FDR 

A private FDR uses a Judge, agreed and appointed by the parties, to help guide a financial settlement, as the Judge would do at a FDR in court proceedings. However, it provides an opportunity to circumvent the backlog currently faced in the court system and allows flexibility and choice over the venue, date, timeframe and Judge thereby offering more control than would otherwise be experienced in court.  

Contact our family law team

If you would like more information about options to navigate financial matters on divorce or separation, or other related advice, please contact us by completing the form below.

Contact Our Family Team