Financial Dispute Resolution (FDR)

The FDR is the stage at which most cases settle. It is a special type of hearing which is focused on achieving a negotiated settlement between the parties.

An FDR hearing takes place on a “without prejudice” basis, meaning that things that are said there cannot be mentioned again in court proceedings. The judge who oversees it will also play no further part in your case.

At the hearing, each party puts forward their case and their proposals for settlement before the judge. The judge then gives an indication of what they would order if it came to a final hearing. This is not a binding decision, but rather a useful, neutral evaluation of each party’s case. The parties then use the rest of the day to negotiate around what the judge has indicated.

If you’re considering or going through a divorce, click below for a free initial consultation with one of our expert divorce solicitors.

BOOK FREE CONSULTATION

Financial investigation

Prior to the FDR, it is important to have a full picture of what assets are on the table. Where a party has failed to produce the disclosure required of them, the other may have to do a lot of this research themselves. Vardags’ in-house corporate team are very experienced and effective at this – using land registries and corporate information to put together complex international asset trails.

Valuations

In order to negotiate effectively and come to a fair agreement, it is necessary to know the value of each party’s assets. For cash and investments, this is straightforward. However, expert evidence may be required for assets which are harder to value, such as houses, companies, or trusts.

The court will often order that expert valuations be produced ahead of the FDR. This will be generally be done by the parties jointly instructing an expert. This expert will report to the court, rather than either side, and will use their professional expertise to create an accurate valuation of the assets for use in proceedings.

Vardags have established links with a wide range of expert valuers, and can help you find the most appropriate valuer for your case. Should you want to dispute the expert’s valuation, it is possible, but you are likely to benefit from legal advice in such cases.

Negotiations and without prejudice offers, including provision for children

A “without prejudice” offer is one which cannot be shown to the court. This means that you can try to compromise without weakening your position should things be contested all the way to a final hearing.

Such offers can be made at any point in proceedings, but are a special feature of the FDR. All offers at the FDR are without prejudice, and so your case will not be undermined if you try to bring proceedings to an end with a generous offer.

At the FDR, it is possible to agree all aspects of the case, including provision for any children. It is important to remember, however, that after 12 months either party can apply to the Child Maintenance Service (CMS) for a new calculation of the child maintenance to be paid.