6 Methods of Agreeing Financial Matters upon Divorce

Every divorce is different, and there are many options for resolving financial matters. Which method(s) are best for you will partially depend on your own preferences, how amicable things are between you and your spouse and the complexity of your financial circumstances.

One or a combination of the following options may be considered:

1. Discussions between you and your spouse directly – this may be in person, on the phone or by email/text. It can be dealt with just between the two of you or by involving third parties such as trusted family members or friends to liaise between you or support you.
2. Negotiations via solicitors – if you are uncomfortable liaising with your spouse directly or feel it would be more productive to negotiate via a solicitor, with the benefit of having legal advice, we can write to your spouse with any settlement proposals or points you wish to put forward for their consideration. Alternatively, we could hold a round-table meeting with you, your spouse and each of your legal representatives to negotiate.
3. Mediation – using a mediator can be an efficient and cost-effective way of narrowing down any areas of dispute or reaching an agreement. Mediators can sit down with you both to help you listen to each other, try to see each other’s point of view and remain focused on the key issues.
4. Private Financial Dispute Resolution (FDR) – it is possible to instruct an independent legal professional of your choice as a judge to consider each of your financial documents, listen to any arguments put forward by each of your legal representatives and then give their expert view on what settlement may be fair in your case. This is similar to the type of hearing that would take place within court proceedings and can often help you to then reach an agreement, but is not legally binding on either of you.
5. Arbitration – the process of arbitration is similar to a private FDR, but the legal professional instructed as an arbitrator will make a final and binding decision on the necessary issues or on the overall financial settlement, so there will be no further scope for negotiation. This can help to resolve matters much more quickly.
6. Court Proceedings – issuing financial remedy court proceedings is often a last resort, but is sometimes necessary so a clear timetable can be set to ensure everyone is cooperating and progress is being made in a timely manner. A judge will make directions about who needs to provide what information when and will ultimately decide on what the financial settlement will be if not agreed between you along the way.

Our Family Law team can give you tailored advice on which procedures may be most suitable in your particular circumstances. We can provide further information on the potential costs, timescales and procedures involved for each.

Once an agreement has been reached by any method, we can then assist with ensuring the terms are correctly and clearly drafted into a document called a Consent Order, to be approved by a judge and made legally binding.

Please contact Francesca Cosstick if you would like more information or advice.