Private FDRs: what they are and what are the benefits
Going court to agree on your divorce financial settlement can be emotionally and logistically draining. Another option is a private Financial Dispute Resolution, or FDR. LGFL Director Rita Gupta explains what they are, how they work and how they can help save you time, stress and emotional toil.
When you get divorced, you will need to reach a financial settlement so that you can both move on with your new lives. It is possible to make this agreement outside of court with the help of a family lawyer, but if you can’t agree you may have to go to court.
At LGFL, we know that some cases do have to go to court. However, as parties to a divorce, you should be aware of the court’s encouragement of early settlement and proportionality.
Earlier this year the rules changed concerning No-Court Dispute Resolution, (NCDR). The Ministry of Justice stated that:
“Where the timetabling of proceedings allows sufficient time for these steps to be taken, the court should encourage parties, as it considers appropriate, to—
(a) obtain information and advice about, and consider using, non-court dispute resolution; and
(b) undertake non-court dispute resolution.”
This is where Financial Dispute Resolutions (FDRs) come in.
Differences between a court and private Financial Dispute Resolution
COURT:
A Financial Dispute Resolution (FDR) hearing is held in a court as part of the family court proceedings and deals with your divorce financial separation. During a court FDR, a judge will hear a summary of each person’s viewpoint and will give an indication of how a judge in court would rule if this was a final hearing. Couples can opt to reach agreement based on that indication, rather than carrying on to a final hearing where a judge will impose an order.
PRIVATE:
You can take ‘time out’ from the court process and have a private Financial Dispute Resolution (private FDR). A private FDR is the legal equivalent of paying to see a private medical consultant instead of waiting for an NHS appointment.
- You have the attention and expertise of top professionals focussed on your case alone, usually a barrister experienced in financial remedies.
- You can choose your own judge to preside over your hearing.
- You have a whole day with your judge, not just a short time slot at a court
- The judge will have had time to read the papers in full.
- Your ‘hearing’ can take place at a neutral venue of your choice, such as a barrister’s chambers, or our discreet countryside offices here at LGFL.
- A private FDR is more discreet, less stressful and has a very high success rate.
Like private medical treatment, there are costs involved in a private FDR. These are usually shared between the two of you, as both gain the benefits. Generally, these range from £3-7k plus VAT, and the costs are worth it for a more effective and quicker resolution of a case.
How does a private FDR work?
-
-
- You and your legal team meet at a private venue and are joined by your judge who usually introduces themselves. They will be a specialist in financial agreements.
- The appropriate paperwork would have been sent in advance to the judge to give them time to read everything.
- Your barrister will present your case to the judge, and address two key points:
-
-
-
-
- What your preferred settlement would be and your case
- Any specific areas of disagreement
-
-
-
-
- The Judge then goes away to consider matters in depth and comes back and gives an ‘indication’. In a private FDR he usually gives you this in writing along with any schedules and their calculations.
- Having heard the indication, you each then go into separate rooms to wait while your legal team/barrister negotiates an agreement.
- If you agree on a settlement at the end of the private FDR, your barristers will draft a consent order or agreement and you can both sign it. The consent order is then submitted to the court for the judge to seal. On most occasions it will go through seamlessly.
-
6 major benefits of a private FDR
More time to talk
A private FDR is usually an all-day meeting in a neutral venue. You are not limited to a standard court ‘slot’, with all the accompanying pressures for a quick decision and agreement. So, a private FDR is less stressful and more dignified, with time for your arguments to be listened to in full.
Privacy for high-net-worth individuals
You may not want to appear in court and discuss your finances, or the attention and publicity this might attract. A private FDR is therefore suitable for high net worth couples and for those who value their privacy and that of their families, especially in SEND cases.
A calmer, private environment
Court waiting areas are busy, noisy and sometimes just seats in a corridor, if you are lucky! Court rooms themselves can be cold, impersonal and intimidating spaces. A private venue will be quieter, less stressful and with better coffee!
More likely to settle
A private FDR is much more likely to result in a settlement. In our experience, around 95% of couples with financial disputes settle them after a private FDR session. The judge has read the papers, so the parties feel they have been listened to and had their arguments fully considered.
Faster resolutions than via court
A private FDR speeds up the divorce process by eliminating the wait for a court date.
Reduces time and legal costs
The upfront costs of a private FDR can often result in major costs savings, by enabling you to come to an agreement without resorting to a costly and time-consuming final hearing in court.
Private FDRs at LGFL’s offices
At LGFL, we have two new meeting spaces in addition to our boardroom space at our discreet countryside offices. In addition, we have access to a larger committee room when each team can present their arguments to the judge. Thanks to the layout of this former country house, you need not encounter your former partner at any point until required.
Interested in a private FDR?
Contact us at LGFL to discuss your current circumstances and plans to separate or divorce, and how a private FDR might benefit you.