If you are applying for a financial order, also known as financial relief, as part of your divorce or dissolution of your marriage or civil partnership, then the court will list your case in for a financial dispute resolution hearing, often called an FDR hearing. This is a private court hearing and is aimed at trying to assist parties in settling any dispute over the matrimonial finances.
'The judge does not make a final decision, but instead tries to encourage the couple to reach an agreement. The judge will also provide the parties with an indication of the likely outcome if the matter proceeds to trial. The FDR Hearing provides an opportunity for everyone to gather in court to discuss the dispute, narrow the financial issues and to seek the guidance from an experienced judge on the legal position. Most financial relief applications are resolved at this stage, and without the need for a final hearing,' says Linda Pope Partner and family law expert at Miles & Partners LLP in London.
Due to the lack of judicial availability and if in effort to resolve the dispute without delay many couples are opting to pay for a Private Financial Dispute Resolution (pFDR) . This involves the parties privately hiring a judge for a day to provide an evaluation of the likely outcome of the financial matters.
Private FDRs offer several benefits as they take place at any stage during the proceedings. There is very little delay, and the parties have the power to choose an evaluator in whom they and their legal team have confidence.
How to prepare for a financial dispute resolution hearing
Whether you opt for a court based or private Financial Dispute Hearing, prior to the hearing you will have provided proof of all your financial assets (inside and outside of the UK) to include capital, income from all sources and liabilities, as well as having completed Financial Statement (Form E). Within this document you would also set out the relevant considerations for the court, such as your future financial needs and the needs of any children. You will also see your former spouse's financial information and their Form E.
It is important to provide full disclosure of all your assets, and you should be satisfied that you have received full financial disclosure of your former spouse's finances. Any queries over missing or defective financial disclosure should be dealt with in advance of the FDR hearing and can be raised by your solicitor in a questionnaire to your former spouse.
Having discussed the financial information disclosed with your solicitor, you may have put forward or received a proposal to settle. If offers have been rejected, then the judge will need to be made aware of the details. The judge is then able to tailor their advice and guidance to each party appropriately.
The financial dispute resolution hearing, by its very nature, will only be successful if both parties are willing to compromise and settle the dispute. In advance of the hearing, you should consider where you feel you could be more flexible. If you are intent on buying out your former spouse's interest in an asset, for example the family home, then you may also need to come prepared with evidence of what finances you can raise to do so. Being open minded and prepared to consider creative solutions will be of benefit.
FDR Hearings can involve a long day at the court hearing, so it is advisable that you book the entire day off work and that you have made appropriate childcare arrangements. On a practical front, bringing water and snacks, if it is an in person hearing, to court can also be a good idea.
What happens at the hearing?
On the morning of your hearing, you will usually meet with your solicitor and barrister at Court. They will take your updated instructions, discuss potential outcomes, and advise you of any conversations they have had with the legal team of your spouse in trying to narrow the issues in dispute.
You will not be expected to give any evidence, as your barrister will make oral submissions on your behalf to the judge. Prior to that and usually the day before your barrister would have prepared and sent to the judge a Position Statement setting out your case, the outcome you are seeking referencing any case law to support your position. Your former spouse's case will also be put to the judge.
The judge will raise any questions or queries they have with the barristers. In some situations, it will be clear to a judge from what is said, and from the previous offers made, that one party is behaving unreasonably. The judge can highlight their views on this in the hope of encouraging a more rational approach.
The judge will then outline what they would do with the case if they were deciding it on that day. This is an indication from the judge, not a final determination of the dispute.
The judge normally allows the parties some time to engage in further discussions outside of the courtroom. Quite often, hearing an objective independent judge's opinion is enough for people to be able to reach an agreement to settle the dispute.
The discussions will be undertaken by the two barristers involved. You will not be expected to discuss the matter directly with your former partner, unless both parties are acting in person and neither have a legal representative. The judge will normally be available should any further issues arise out of the negotiations and upon which an opinion is required.
If a resolution is reached, then the lawyers can draft an agreement known as a Consent Order for each party to sign which can be placed before the judge for approval and made into a final order.
What if we cannot reach agreement at the hearing?
If no agreement can be reached at this stage, then your case will be listed for a final hearing in front of a different judge. The discussions that occurred at the financial dispute resolution hearing will not be disclosed to the new judge.
You will be expected to give evidence at the final hearing, and this time the judge will make a final decision on what is to happen.
Even if you don't settle at an FDR, it is sensible to continue to try and reach a resolution before the final hearing. If a settlement can be achieved it will save you considerably in relation to costs, not to mention the emotional distress. It can also save time, as there is normally several months between a financial dispute resolution hearing and a final hearing date.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.