What is Private Financial Dispute Resolution?

Private Financial Dispute Resolution (pFDR) is an out-of-court process. It is designed to help couples resolve financial issues from their divorce or separation. A neutral legal expert will act as an advisor providing guidance on how a court would look at the case. In this way, the process allows the separating couple to negotiate a settlement with a clear understanding of potential outcomes which reduces the need for prolonged negotiations.

The private FDR process is likely to be quicker than traditional court proceedings and sessions can be scheduled at a convenient time for you. Due to it being a private process, if a settlement is not reached, any discussions that take place in the private FDR cannot be used as evidence in court.

Private and court-based FDRs are both designed to resolve financial disputes. A court-based FDR will be scheduled according to the court’s availability, whereas with a private FDR couples can choose the date, time, and location of the meetings.

There should be full financial disclosure when preparing for private FDR. The information should include details of income, assets, debts, and pensions. The other party will be expected to do the same. Once this information is available, the neutral evaluator will be able to have a clear understanding of the financial situation and therefore will be able to provide accurate guidance. To get the most from the process it is important to be clear about the issues you want resolved and to approach the FDR with a clear strategy.

Even though all involved have tried, there will be some cases where an agreement is not reached. There are options available if this happens. The separating couple can decide to opt for further mediation or move forward with court proceeding. In both options the private FDR will provide a useful foundation.

When an agreement is reached, the terms are drafted into a consent order and these go to court. When the court approves, the agreement becomes legally binding. If no agreement is reached, the case may need to go to court. If this happens, the FDR may offer a helpful starting point for future negotiations.

The costs involved will vary depending on how complex the case it and who is chosen as the evaluator. Often the fees for a private FDR will range from £2,000 to £10,000 and this can be more cost-effective than lengthy court proceedings.

If you are looking for a flexible and confidential way to resolve financial disputes away from traditional court proceedings, then a private FDR is worth considering. You will have more control over the process and will be able to schedule the meetings at a time that suits you. A private FDR is a practical alternative for separating couples to negotiate a financial settlement.

Ready to take the next step? As leading family lawyers in Milton Keynes, our team of family law specialists are here to advise you. In addition to our head office in Milton Keynes, we also have solicitors in Bicester, Watford, and Central London. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.