Financial Dispute Resolution (FDR)

what is the FDr in divorce proceedings?

The Financial Dispute Resolution Appointment (FDR) is a court hearing within financial remedy proceedings, which is focused on helping the parties come to an agreement without having to go to a final hearing, where the family court will order a financial settlement. It is usually the second hearing of the process, following the First Directions Appointment (FDA).

At the FDR, 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 have an upcoming financial dispute resolution appointment, contact Vardags today for a free initial consultation with one of our expert divorce solicitors. 

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what to expect at your fdr

A Financial Dispute Resolution Appointment (FDR) must be treated as a meeting held for the purpose of negotiation and discussion. Therefore, to make the most of the FDR, it is important to approach it as openly as possible and focus on having constructive discussions with the other side. Most financial remedy disputes are resolved at this stage. 

Of course, it will not always be possible to come to an agreement, but you may be able to agree on certain issues, which then do not need to be left to the judge.  

The FDR will generally be scheduled a few months after the FDA. Like the FDA, an FDR may be held remotely or in-person. If it’s the latter, then it is advisable to arrive at the family court 1 hour before your hearing is scheduled. During this time, parties will be expected to negotiate and even if they cannot come to an agreement, narrow some of the issues before them. If they can come to an agreement, this will be recorded in a consent order made by the judge. 

At this stage, the necessary evidence and documentation required to negotiate or come to an agreement should be available to both parties. If you are unhappy with your spouse’s disclosure, this should be flagged in advance of the hearing. 

In many ways, an FDR is more akin to mediation rather than a typical court hearing. Parties will be expected to make their best offers, consider any offers made to them, and generally try to come to a resolution. Given this focus on negotiation, parties may make “without prejudice” offers. 

Negotiations and without prejudice offers, including provision for children 

FDRs are “without prejudice” hearings, meaning that any statements or offers made cannot be used as evidence against you in a later court hearing. This means that you can try to compromise the case without weakening your position should things be contested all the way to a final hearing. 

A “without prejudice” offer can be made at any point in proceedings, but they are a special feature of the FDR. All offers at the FDR are without prejudice, and so your case is not disadvanatged 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 the children. It is important to remember, however, that after 12 months either party can apply to the Child Maintenance Service or a new child maintenance calculation. 

how to prepare for the fdr

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. 

To know what deal to do, it is necessary to know what assets are worth. For cash and investments, this is straightforward. Where assets are harder to value, for example houses, companies or trusts, expert evidence may be required. 

The court will often order for expert valuations be produced ahead of the FDR. This will 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 are the only family law firm with a dedicated in-house Financial Forensics department. As experts in the identification, tracing, valuation and forensic review of assets, our specialist team can help ensure that you know the full extent of your spouse’s wealth.

Do i have to have an fdr or can i go straight to a final hearing?

Under the Family Procedure Rules, the family court must direct that the case be referred to an FDR appointment, unless the FDA was treated as a FDR, or there are ‘exceptional reasons’ which would made an FDR inappropriate.

Therefore, even if you feel that you won’t be able to come to an agreement with your spouse, and you would like your case to proceed to the final hearing, it is likely that you will still have to attend an FDR hearing.

the differerence between a fdr and private fdr

It is possible to have a private FDR, which is slightly different to a typical FDR. In a private FDR, the parties must pay additional costs, including payment for the judge’s time. This is because, unlike a standard FDR, the parties will select the judge themselves. It will usually be an experienced barrister acting as a ‘judge’ for a private FDR. A key benefit of a private FDR is that they are generally quicker to schedule in comparison to a standard FDR and can be timetabled according to the parties’ convenience. Additionally, the judge will not be subject to the same time constraints faced in a standard FDR as they will not have other hearings scheduled for the same day.