If you file for a financial order as part of your divorce or dissolution of your marriage or civil partnership, the court will schedule a financial dispute resolution hearing, commonly known as an FDR hearing. This is a private court session intended to assist couples in resolving any financial disputes.
The FDR provides the best opportunity for a divorcing couple to try to reach a financial settlement through negotiation.
When a financial application is made to the divorce courts, three court hearings are scheduled to take place: a First Appointment, an FDR hearing, and if necessary, a Final Hearing.
But how do you prepare for an FDR court hearing?
FDR First Appointment
Before the First Appointment, each party will have exchanged a document known as Form E, which contains financial information. At the First Appointment hearing, discussions will take place with the judge as to what, if any, additional information is required before the case is ready to proceed to the next stage.
It is vital to play your part and make sure everything that should be disclosed between the parties, has been disclosed. You also need to confirm that all the valuations that need to be produced and agreed are set in train, ready for the next stage: the Financial Dispute Resolution hearing. At the FDR hearing, negotiations will take place on a Without Prejudice basis and a presiding judge will attempt to bring about a settlement.
Chronology Statement of Issues and Questionnaire
Before the first appointment, each party will also have prepared a chronology statement: a brief history of what they see as the relevant facts. Sometimes these will be contentious, but don’t worry too much, they are merely to assist the court.
A draft questionnaire will also be prepared, for the other party to answer. This questionnaire is based upon a statement of issues, which is another document filed with the court. In a statement of issues document the party explains, as succinctly as possible, what the issues are in the case and what still needs to be answered by means of the questionnaire, before the FDR hearing can proceed.
The questionnaire aims to sweep up all outstanding matters the other party may have “forgotten” to deal with when filling out his or her Form E. It may also require further investigated.
Stowe’s experienced in-house forensic accountants can assist in the preparation of clients’ questionnaires and who help to assess the information subsequently provided.
In straightforward cases, the questionnaire may be surplus to requirements. In complicated cases, it is a valuable source of information. However, the judge has to decide whether each question is necessary.
You will frequently find that valuations are contentious, you may see no need for another valuation, you may believe that a valuation is desperately needed to prove that your spouse has placed an unrealistic value upon a major asset. Or if valuation is agreed, you may want your own valuer. It is up to the judge to act in accordance with the overriding objective to decide what is approportionate to the issues involved. Usually that means jointly instructing just one expert, who will give a valuation of a property or shares or pensions, or other valuable items. If it is a complex case, however, and you feel that a single expert is not appropriate, you can still argue for your own.
When the first appointment is over, and you leave court with directions in place, the judge will also have ordered a new hearing date, and the case moves on. All directions given by the court must be complied with, so that the FDR hearing can go ahead.
The FDR and Final Hearings
The FDR hearing is a private court hearing, which provides an opportunity for the case to settle. However, this is not a certainty.
Settling a case at an FDR hearing is far from easy because clients know they can hold out until a final hearing. In this instance, if there is no possibility of compromise between the parties the case will move to the third and final stage.
Conducting a negotiation between feuding former spouses is arguably a tougher challenge for the judge than arriving at a judgment. If the judge can’t successfully push both sides to compromise and arrive at an agreement, then the dispute is prolonged and will go to a lengthier and more costly, Final Hearing. In the final hearing, control over the outcome of the dispute is surrendered to the judge.
However, even if you don’t reach an agreement during the FDR hearing, it’s a good idea to continue to try to negotiate a resolution before the final hearing. If you can reach an agreement prior to the final hearing, you will limit costs and the strain of an ongoing dispute. It can also save time, as the time between a financial dispute resolution hearing and a final hearing date is usually several months.
Useful links
How does financial disclosure work in divorce?
Hidden financial assets in divorce
Get in touch
If you want to learn more about FDRs, or any other family law matters, contact our Client Services Team to speak to one of our specialist family lawyers.
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