What to Expect at a Financial Dispute Resolution Hearing

Dissolutions of marriage and civil partnerships can be an emotionally draining experience.

Financial issues can add extra stress to an already difficult situation.

If you are going through a separation and are unable to agree on how to divide the assets of the marriage, the financial dispute resolution (FDR) hearing could be the most important part of the whole financial remedy process.

In this blog post, we will discuss what an FDR hearing is, and what to expect at that hearing.

What is an FDR hearing?

The FDR hearing is generally the second hearing, which takes place when a spouse has made an application for financial remedy within the divorce proceedings. It is preceded by the first directions appointment (FDA) which deals with the directions made by the judge and required to be complied with prior to the FDR.

The purpose of an FDR hearing is to help those going through divorce or civil partnership dissolution to reach a mutual agreement about the division of their financial assets.

Think of an FDR hearing as judge-led mediation, it is on a ‘without prejudice’ basis.

The judge will give an indication of what that judge thinks would be the fairest and most reasonable resolution, but no final decisions will be made. Instead, the judge will encourage the spouses to reach a financial settlement by consent. 

If the case is not resolved at the FDR hearing, the judge who presided at the hearing is not permitted to continue with the case following conclusion of the FDR. A new judge will be appointed for the final hearing.

Essentially, an FDR hearing provides an opportunity for all involved to meet at court and to discuss all the financial issues and to seek guidance and assistance from an experienced judge.

The majority of disputes are resolved at this stage without the need for a final hearing.

What happens before the FDR hearing?

There are many steps involved in the FDR process.

By thoroughly preparing for the hearing with the use of an expert family law solicitor, you give yourself the best chance of a smooth, cost effective and faster financial resolution to your divorce or dissolution.

In order for the FDR to be used as an effective forum for settlement, the financial disclosure process must be complete. In other words, both spouses should be comfortable that they have a full and detailed understanding of the other’s personal and financial circumstances, assets, and liabilities.

If full and frank financial disclosure has not taken place, or one spouse can provide evidence that the other has failed to disclose an accurate picture of their financial affairs, it is very difficult for settlement discussions to be effective.

In addition to financial disclosure, the spouses should exchange written ‘without prejudice’ proposals for settlement. These proposals will essentially represent the spouses’ starting point to settlement negotiations, and will be seen by the FDR judge prior to the hearing.

What happens at the FDR hearing?

On the day of the FDR hearing, the spouses, their respective advocates, and lawyers are usually required by order to attend court at least an hour before the hearing is due to start. This allows the lawyers time to begin or continue the negotiation process and make the most of having all concerned together in one place.

When the judge is ready, the advocates, lawyers and their clients will be called into court. The hearing is private and no one else is permitted to be in court.

The lawyers will have previously made written submissions to the judge (‘Position Statements’) prior to the hearing and oral submissions in court at the outset of the hearing, setting out the reasons and legal basis on which they consider their client’s position to be a fair outcome of the case.

No other evidence is heard at the FDR hearing, and the spouses themselves will not have to give evidence or be questioned.

The judge will raise any relevant questions or queries they have with the lawyers.

In some situations, it will be clear to the judge from submissions and previous settlement proposals that one or both spouses are behaving unreasonably. The judge can highlight their views on this and to encourage a more practical approach. 

The judge will also outline the order that would be made if that judge were making a final decision about the case on that day.  Remember - this is an indication from the judge, not a final decision. It is not binding on any other judge or the spouses, but it is useful guidance for settlement.

Following the judge’s indication, it is usual to ask or direct the clients to return to the courtroom later in the day for the judge to be appraised how negotiations are progressing.  

Negotiations should re-commence outside of the courtroom to narrow the issues between the spouses, but with the added benefit of having heard the judge’s opinion.

The discussions will be undertaken by the advocates and the lawyers involved - you will not be expected to discuss any matter directly with your former partner. 

The judge will usually be available should any further issues arise out of the negotiations.

If a resolution is reached, the lawyers can draft an agreement for all to sign, which will  be placed before the judge for approval and made into a final order to end the family law litigation.

If a settlement cannot be reached, the judge will list the case for a final hearing and make a directions order to be timely complied with.

However, an unsuccessful FDR does not mean without prejudice or open negotiations cannot continue. It is sensible for the spouses to continue to work towards a settlement to avoid the costly exercise of preparing for and attending a final hearing.

If you need assistance with initiating or responding to financial remedy proceedings within divorce or in reaching a financial settlement, please contact our expert family lawyers in Hove, Hassocks, Horsham, and London for support and advice during this process.

Our best contact number is 01273 628808.