The Resolution Together model provides divorcing couples the ability to instruct one solicitor together (as opposed to each instructing their own) to provide legal advice and a forum to negotiate and resolve any issues arising from their divorce, to include financial matters and (where relevant) arrangements for children.
The key features include:
- Both parties meet with the same lawyer for joint sessions (after attending separate assessment meetings to check suitability).
- The solicitor advises neutrally, not representing either spouse, aiming to facilitate a fair outcome for both parties. In the first joint meeting, the solicitor guides the couple on the court’s approach to their assets so that their expectations are realistic as they move forward with discussions.
- Full financial disclosure is exchanged at the outset with supporting documents so that all relevant financial information is obtained to enable informed negotiations to take place. This is then kept up to date as discussions continue.
- Expert advice will be obtained jointly wherever needed (for example, to value properties, business interests or to advise on pension sharing options). It is no less comprehensive in terms of information-gathering than the standard approach two lawyers would take.
- Once all the relevant facts and financial information have been gathered and considered, the solicitor advises on what would constitute a fair outcome for both parties, considering the current legal principles and the approach a court would take. This could involve one or more potential solutions which factors in the wishes of both parties.
- With the benefit of joint, neutral advice the couple is encouraged to negotiate with a view to reaching an agreement. Many couples find this more helpful than mediation where no legal advice is given as the advice can unlock issues that could otherwise be barriers to settlement.
There are a number of advantages to this process, particularly for business owners going through a divorce given the particular issues and challenges that are often faced in such cases, which is discussed in this article.
Examples:
- Preservation of the business – business owners often worry that divorce will disrupt their business or that they could be forced to sell it. With the Resolution Together model, where the focus is on collaboration and achieving a fair outcome for all involved, there is far less risk of that happening. The model reduces the scope for conflict and allows the parties to understand, with advice from the same solicitor (and a jointly instructed expert accountant if necessary), the true value and liquidity of the business and therefore what is realistic in terms of a financial settlement. The parties can then work together to explore financial settlement options that minimise damage to the business.
- Joint neutral advice means complex issues can be explained and resolved more quickly – this is particularly relevant in divorces involving complex business assets. With two separate solicitors advising each party, the scope for dispute increases particularly where there are complex assets that need to be valued.Valuing a business is inherently complex and it can take significant time to agree the content of instructions to an expert and gather the relevant information to provide to that expert where there are two solicitors involved. There is also greater risk of one party taking issue with the expert valuation. The whole exercise is less convoluted where one solicitor has all of the information to hand in order to instruct the expert and advise both parties on the scope of instructions (ensuring all relevant information is sought from the expert) and explain the effect of the expert’s findings once received.
- Speed and cost – using one solicitor means the costs incurred will be significantly lower than if the parties were to instruct different lawyers, as there is no duplication of work and no need to correspond with ‘the other side’ which can be one of the most time-consuming and therefore expensive aspects of a divorce. Questions can be addressed more quickly and information is gathered and shared openly. The process is also much faster because communication is streamlined and there is no risk of delay caused by a lack of engagement from one party. This can be particularly attractive for business owners who want the divorce process to be over quickly so they can get back to focusing on their business.
- Preservation of relationships – where a divorcing couple is able to work together to resolve their finances amicably, there will be less friction and therefore less risk of the relationship being permanently damaged. This is particularly important where there are children involved but can also be very advantageous where there is a business involved, particularly if both parties are involved in that business. In a collaborative process with the benefit of joint advice, the parties can work together to find tailored solutions to maintain and protect the business throughout the negotiations and beyond. Sometimes, although this is rare, separating couples can wish to remain in business together post-divorce.
- Confidentiality and confidence – a business owner going through a divorce will often have concerns about how this may impact the trust and confidence of their employees. Where two opposing solicitors are instructed and matters become acrimonious, it can be difficult to shield employees from what is going on from others working within the business (not least due to the emotional toll) whereas if one solicitor is instructed to advise both parties and the process is more amicable and straightforward, it will be easier to keep it private and there will generally be less cause for concern across the business.
This is not intended to be an exhaustive list – there are significant benefits of the Resolution Together process and business owners should be encouraged to explore this when considering the best way to negotiate a financial settlement on divorce that protects their business for the long term. It is not suitable for everyone but for those who share the aim of arriving at a fair outcome for both of them, who are amicable and willing to openly share information, it is a no-brainer.
If this is a topic you would wish to obtain further information on or receive advice for, then please see our Resolution Together services within our Family Law team.