Private Financial Dispute Resolution

A Private Financial Dispute Resolution (private FDR) is an increasingly popular way for separating couples to resolve the financial aspects of their divorce efficiently and cost effectively. At Stephens Scown, our specialist family finance team have extensive experience representing clients at private FDRs, helping them to reach a fair financial settlement without the delay and uncertainty often associated with a traditional court-based FDR.

What is Private Financial Dispute Resolution?”

A Private Financial Dispute Resolution is a voluntary, out‑of‑court process where both parties jointly instruct an experienced family law specialist (usually a senior barrister or retired judge) to act as a “private FDR judge”.

Much like a court‑based financial dispute resolution (FDR) hearing, the private judge provides an indication of what outcome a court would be likely to order at the end of the case so that, with the benefit of that indication, the parties can seek to negotiate a financial settlement. This indication is given after hearing each party’s arguments and reviewing the financial disclosure.

Key features include:

• A private FDR operates in the same way as a court‑listed FDR hearing, but takes place at a time and venue and before a judge that is chosen by the parties.
• It is entirely confidential and without prejudice, encouraging productive negotiations to take place.
• Parties are represented throughout and the individual acting as the judge will available all day, as opposed to the (often short) allotted time slot at a court-based FDR.
• The private judge’s indication is not binding but is highly influential in helping the parties to reach an agreement.

Our family finance team regularly prepares cases for private FDRs and work alongside leading family law barristers to ensure clients are fully supported throughout the process.

What are the Benefits of Financial Dispute Resolution?”

Private FDR’s (and other non-court dispute resolution options) offers several advantages:

Speed and Convenience

Court delays are increasingly common, with FDR hearings often listed 6 – 8 months following an application to court on a date that is often outside the parties’ control.

A private FDR allows the parties to choose:

• a date that suits them;
• a location that is comfortable and private;
• an expert specifically suited to the issues in their case.

Expertise and Quality

A private FDR judge is typically a highly experienced financial remedy specialist who can give detailed, tailored guidance. This is something that is not guaranteed with a court-based FDR, as the court system is significantly overstretched with the most urgent cases being prioritised on a day-to-day basis.

Cost‑Effectiveness

Although there is a fee for the private judge, the process often reduces costs overall. This is largely because:

• the parties are more likely to achieve a settlement with the benefit of a thorough indication
• a private FDR can be arranged more quickly, at a time and date to suit the parties, thereby avoiding unnecessary delay and the associated costs.

Flexibility and Confidentiality

Private FDRs allow for:

• longer hearings that are less rushed;
• breakout rooms for negotiations (this is not always guaranteed when at court);
• a confidential, comfortable and less adversarial environment.

Higher Settlement Rates

Private FDRs have an excellent track record of leading to a settlement on the day. Our experience is that clients benefit greatly from the combination of a thorough indication from an experienced expert in a comfortable and less adversarial environment, with in-built flexibility to suit the needs of everyone involved.

At Stephens Scown, our specialist solicitors guide clients through every stage of the process.

Frequently asked questions:

How long does a private financial dispute resolution take?

A private FDR normally lasts one full day, although more complex cases may require additional time. The structured yet flexible nature of the process allows parties to negotiate intensively with the support of their legal teams.

Can a financial dispute resolution be delayed​?

Court‑listed financial dispute resolution hearings are frequently delayed due to lack of court and judicial availability. In contrast, a private FDR is rarely postponed unless both parties agree to a new date.

What happens at a financial dispute resolution hearing​?

1. Each party’s barrister sets out their position.
2. The judge gives an indication of the likely outcome if the case proceeded to a final hearing.
3. The parties negotiate with the benefit of the judge’s indication. The negotiations are led by the barrister’s and solicitors supporting each party.
4. If an agreement is reached, the terms are drafted into a binding court order and the case is brought to an end.

What are court costs of a financial dispute resolution hearing​?

For a court‑listed FDR, parties pay their own solicitor and barrister costs. There is no specific court fee for the hearing itself. The court fee paid at the outset when a court process is started covers the court cost of all future hearings.

For a private FDR, parties pay their own solicitor and barrister costs in the same way but the cost of the private judge is shared between them. There are no court costs. This investment is often outweighed by the efficiency, reduced delay and significantly increased prospect of settlement.