Resolving Finances on Divorce

By Anna Patsalides

Associate Solicitor

12 May 2025

Insights News

One of the first things I do when I meet with a new client is to talk them through the various options which are available to them to resolve their finances on divorce.  It is such a crucial decision at the outset of the case and can have a significant impact on the way that a case proceeds and so it is vital at an early stage to find the right option for the client. Each case is dependent on its own facts and what might work for one client is not necessarily right for another.

Mediation:

One of the most effective ways to resolve the division of finances on divorce is for the parties to attend mediation, both in terms of costs and timing. This option typically involves both parties meeting with a mediator in order to identify the issues which cannot be agreed upon. While mediators must remain neutral and cannot give legal advice, they can facilitate discussions between the parties as to the best way forward. 

There are, however, circumstances where mediation is not appropriate, for example, where there are allegations of domestic violence or where one party is refusing to engage or provide financial disclosure.

Negotiations through solicitors:

Another option is for each party to instruct a family law solicitor. This option usually involves some form of exchange of financial disclosure, whereby each party will disclose all of their assets and liabilities together with supporting documentation.

The solicitors will attempt to narrow the issues in dispute and help reach an overall financial settlement. Negotiations will usually take place by way of an exchange of written correspondence, or in some instances by phone or in person in what is referred to as “round table meetings”.

Choosing to carry out negotiations through solicitors can be a cheaper and faster alternative to court proceedings or arbitration and is a useful alternative where mediation has broken down.

Collaborative Law:

In order to reach a financial settlement during divorce, the more traditional approach is for each party to take independent advice from their respective solicitors who will then negotiate a settlement. The Collaborative process differs as it involves both parties sitting down with their solicitors face to face in order to come to a financial settlement. The parties also have the choice to appoint other professionals, such as financial advisors or an accountant who can facilitate the parties coming to an agreement.

This is a beneficial option for parties who are willing to work together. The process is not driven by a timetable imposed by the court; instead the process can be built to tailor the family’s individual needs and priorities. Similarly to mediation, this may not be a suitable option if communication has broken down or where the relationship is acrimonious between the parties.

Court Proceedings:

If parties are unable to reach a settlement outside of Court, then either party may apply to the Court for a Judge to determine a suitable division of their finances. The Court will then set a timetable which each party must adhere to and ultimately if the parties cannot come to an agreement together, the Court will impose a decision on them.

Applying to the Court for a financial order may be appropriate where one party is refusing to engage in financial disclosure, if one party suspects foul play or is asking for completely unrealistic outcomes. However, the Court process is both costly, time consuming and can be immensely stressful for divorcing couples and so should not be seen as the first option.

Alternatives to Court:

Private Financial Dispute Resolution:

In a Private Financial Dispute Resolution (Private FDR), an independent judge is appointed by the parties to give their evaluation of the financial settlement. Unlike the final outcome of court proceedings, the Judge’s indication is not binding on the parties. Instead, the parties may accept this evaluation or use it to facilitate the negotiation of any outstanding matters through solicitors.

Private FDRs can be advantageous as the parties can avoid the significant delays currently faced by the Court and are able to choose their own Private FDR Judge. Private FDRs also lend flexibility to the parties as the parties can choose if they wish the Private FDR to deal with just one or all aspects of the financial dispute.

Arbitration

This process involves the parties choosing an arbitrator, much like in a Private FDR, with the main difference being that the arbitrator’s final decision will be binding on the parties. The process is faster and therefore likely to be more cost effective than court proceedings. It also allows couples to resolve financial disputes in a more flexible, potentially less formal setting than the court.

Early Neutral Evaluation

Similar to a Private FDR, an early neutral valuation provides a useful way for the parties to resolve financial disputes by appointing an independent evaluator who will hear submissions from each party. A non-binding indication is then given as to the likely outcome of the case should it proceed to trial.

This process can aid in facilitating an early financial settlement, helping the parties save and avoid the stress and delays that can often come with the court process.  The process can either take place before proceedings have started, or at any stage during the court process, giving the parties more flexibility.

If you are going through a divorce or considering separating from your spouse, it is important that you seek independent legal advice at the outset. If you would like to find out more, please contact our Family team who would be happy to discuss the contents of this article and any relating questions you may have.

Disclaimer: General Information Provided Only
Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice. We cannot be held responsible for any loss resulting from actions or inactions taken based on this article.