Private FDR Hearings: Are They Worth the Cost?

Private FDRs: Buying Certainty in Divorce Finance

The court-run Financial Dispute Resolution (FDR) hearing is a key stage in family financial proceedings, designed to encourage settlement before a final hearing. However, many families find the court FDR process frustrating—delays are common, judicial time is limited, and complex cases can feel rushed. Increasingly, separating couples are turning to Private FDRs for a more tailored and efficient experience, though this comes with its own considerations.

How Private FDRs Work

A Private FDR is essentially a settlement meeting, but instead of a judge at court, the parties jointly instruct a senior barrister or retired judge to act as a neutral evaluator. The session is usually held in chambers or a neutral venue, and typically lasts a full day. Both parties (and their representatives, if any) present their positions, and the evaluator gives a non-binding indication of what a court might order if the case went to trial. This can be followed by further negotiation, often with the evaluator’s input.

Advantages of a Private FDR

• Flexible Scheduling: Unlike court FDRs, which are subject to the court’s timetable, a Private FDR can be arranged at a date and time that suits everyone. This can dramatically reduce waiting times.

• Unlimited Time: Court FDRs are often squeezed into a short slot, sometimes less than an hour. A Private FDR allows for a full day (or more if needed), giving space to explore complex issues, such as business assets, pensions, or international property.

• Continuity and Mediation: The same evaluator can help mediate settlement terms after giving their indication, which can be invaluable in breaking deadlock.

• Privacy: Proceedings are confidential, and the environment is less formal than court, which can help reduce stress and encourage open discussion.

Disadvantages and Pitfalls

• Cost: The main drawback is the price. Fees typically range from £3,000 to £10,000, split between the parties. This is a significant outlay, especially if finances are already stretched.

• Non-Binding Outcome: The evaluator’s indication is not legally binding. Even if you reach agreement, you must still submit a consent order to the court for approval. The court will usually approve settlements reached at Private FDRs unless they are manifestly unfair or fail to meet the needs of any children (see BD v FD [2016] EWHC 594).

• No Guarantee of Settlement: While Private FDRs have a high success rate, there is no guarantee. If you cannot agree, you may still need a final hearing, incurring further costs and delay.

Legal Status and Court Attitude

Although the outcome of a Private FDR is not binding, courts are generally supportive of the process. If a settlement is reached, the court will almost always “rubber-stamp” the agreement unless it is clearly unjust or fails to provide adequately for children. The process is seen as a way to reduce pressure on the courts and help families reach practical, workable solutions.

Statistics and Trends

Private FDRs are on the rise. In 2024, 78% of Private FDRs settled on the day, reflecting their effectiveness in resolving even the most entrenched disputes. Many families find the investment worthwhile, especially where the alternative is months of uncertainty and escalating legal costs.

Common Ambiguities and Tips for Self-Represented Parties

• Who Pays? Costs are usually split equally, but you can negotiate a different arrangement if one party has greater resources.

• What if We Don’t Settle? The process is confidential, so nothing said or disclosed can be used in later court hearings.

• Do I Need a Lawyer? You can attend a Private FDR without legal representation, but you’ll need to prepare your position statement and supporting documents carefully.

• What Should I Bring? Bring all relevant financial disclosure, a clear summary of your position, and a realistic idea of your settlement “bottom line.”

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Disclaimer: This blog post provides general information for educational purposes only. It is not legal advice. Outcomes can vary based on your personal circumstances.