John Randle, Head of Family Practice
John is a specialist family solicitor with over 40 years’ experience dealing with complex, high value divorce cases.
If you are going through contested court proceedings in relation to financial matters on divorce, you will likely be familiar with Financial Dispute Resolution (FDR). The FDR hearing is a central pillar of the financial remedy court process and is designed to help both parties reach a financial settlement. It can take place at court as part of the usual process, or privately (a “private FDR”), which many couples choose to save time and costs.
This guide is here to help you understand what to expect from your FDR hearing, how to prepare, and what to do if a settlement isn’t reached.
The Ground Rules of the FDR
As the hearing approaches, it is easy for clients to feel buried under legal documents, emails, and Form E material. To cut through the noise, it helps to keep these ground rules in mind:
- The FDR is intended to be a meeting for discussion and negotiation, not a trial.
- The FDR’s purpose is to encourage both parties to make their best efforts to reach a settlement.
- Both parties must attend the hearing in person, unless the court allows remote attendance.
- Your lawyers should be fully familiar with your case and not have been brought in at the last minute.
- You must approach the hearing “openly and without reserve”. Clients must observe this rule at all times.
- The court expects both parties to make offers and consider counteroffers seriously.
- Everything said or offered at the FDR is confidential. Nothing can be referred to later in court if settlement is not reached.
- The FDR hearing will be conducted by a judge who will have nothing further to do with your case after the hearing.
Preparations in the weeks leading up to the FDR
In my experience, leaving preparation to the last minute is both one of the most common and one of the most damaging mistakes clients can make when it comes to the FDR. To ensure you are adequately prepared for the FDR, it is wise to heed the following steps.
- Meet your lawyers, and especially your barrister, well before the hearing. Don’t try to save legal fees by waiting until the day of the FDR to meet your barrister. A late introduction can cause unnecessary stress and last-minute changes of strategy.
- Decide your proposals in advance. Offers should be drafted well before the court deadline, not the night before.
- Be reasonable. Make sure your offer passes the “reasonable test”, i.e. it should be something a judge would view as fair in the circumstances. Making an unrealistic or extreme offer rarely helps. The judge will give an “indication” at the FDR, which isn’t a decision but strong guidance. If the judge describes your offer as “well off the mark,” it can damage negotiations and even derail the day. Sensible, well-prepared offers are more likely to move discussions forward.
- Plan your day. Arrange childcare, work cover, and anything else that could distract you. The FDR will demand your full focus.
What to expect on the day
Assume that you will be involved in the FDR for the whole day. Even if the hearing before the judge is listed for 60 or 90 minutes, there will be extensive discussions between clients and their lawyers before and after the hearing. New offers can be made at any time, things can move back and forward at great speed, and you will need to be able to focus your thoughts for the whole day and not wilt under the pressure of the intensity of the negotiations. The process is demanding, but it is also the best opportunity to resolve matters without going to a contested final hearing.
If Settlement Isn’t Reached
Many clients describe the FDR as bruising or exhausting. If settlement isn’t reached, it is natural to feel drained and want to step away. However, this can be a mistake.
Simply walking away and letting the courts decide at a contested final hearing can create new pressures on clients. Instead, it is often best to build on the momentum from the FDR. Once emotions settle, the parties may realise they are not as far apart as they thought. Rather than letting the case drift, continuing negotiations in the weeks immediately after the FDR may lead to settlement.
Why push on? A final hearing can take 6–12 months to be listed, legal fees will increase significantly, the process is stressful and keeps life “on hold”, and the outcome at a final hearing is uncertain. By contrast, using the progress made at the FDR can save time, costs, and emotional energy.
Does FDR work?
Statistics show that FDR is a remarkably effective way of resolving financial disputes on divorce. Around 50% of court-based FDRs end in settlement, while Private FDRs achieve settlement in 80% or more of cases.
As with most things in life, it all comes down to preparation and attitude. Clients who prepare thoroughly, keep an open mind, and make reasonable offers give themselves the best chance of resolving their case.
Final Thoughts
The FDR is one of the most important stages in your divorce. With proper preparation, a constructive approach, and clear guidance from your legal team, it offers the best opportunity to resolve financial matters without the uncertainty and expense of a final hearing.
If you would like advice about your forthcoming FDR, or any other aspect of financial proceedings on divorce, please contact us.
If you are undergoing divorce and facing financial separation issues, we will be happy to offer a no-cost initial consultation to help you better understand your options.
