If you’re facing a divorce, dissolution or separation, you may be seeking a way to reach a fair agreement with your former partner regarding finances and property.

From deciding how to divide your money to determining the fate of the house, there are numerous considerations during the divorce or dissolution process. This emotional period can make it challenging to understand your options and the necessary steps.

This is where finance mediation can be beneficial. Divorce financial mediation offers a practical and less contentious way to resolve financial disputes, ensuring both parties reach a fair and amicable agreement, by facilitating communication between the parties to find the best solution for them.

In this guide, we will explain everything you need to know about financial mediation, including what it involves, how it operates, and how to prepare for it.

What is divorce financial mediation?

Divorce or dissolution financial mediation is a process where a neutral third-party mediator helps divorcing or separating couples negotiate and reach an agreement on financial issues. The mediator facilitates discussions, helping both parties understand each other’s perspectives and work towards a mutually acceptable solution. Unlike court proceedings, mediation is collaborative and aims to reduce conflict.

Finance mediation can address various family issues, such as dividing property and savings after divorce or dissolution, arranging child support, spousal maintenance agreements, sorting out pensions, and handling debts and liabilities. The mediator’s role is to facilitate effective communication between both parties, helping them work together to reach a fair and mutually agreeable resolution to their financial disputes.

So, if you’re looking to organise your finances as part of your divorce, dissolution or separation and prefer a collaborative and non-confrontational approach, financial mediation might be an excellent option for you.

Victoria Walker

Victoria Walker

Partner | Family

020 8334 0315

Helping you through a divorce or separation

At Moore Barlow, we understand that family disputes can be emotionally draining and complex. That’s why we offer family mediation services to help you resolve issues in a calm and constructive manner.

Find out more

The benefits of financial mediation

Cost-effective

Mediation is typically less expensive than going to court. By avoiding lengthy legal battles, both parties can save on solicitor fees and court costs, making mediation a cost-effective alternative as the cost of the mediator is divided between the parties.

Timesaving

Mediation can be significantly quicker than court proceedings. While court cases can drag on for months or even years, mediation sessions are often scheduled promptly and can resolve disputes in a matter of weeks.

Confidential

Unlike court cases, which can result in judgments being published, mediation sessions are private and confidential. This allows both parties to discuss sensitive financial matters openly without fear of public exposure.

Control and flexibility

Mediation gives both parties more control over the outcome. Rather than having a judge make decisions, the couple works together to create a tailored agreement that suits their unique circumstances. This flexibility can lead to more satisfactory and sustainable solutions.

Less adversarial

Mediation focuses on cooperation and communication, reducing the adversarial nature of divorce or dissolution. This approach helps maintain a more amicable relationship between the parties, which is particularly beneficial if children are involved.

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How does financial mediation work?

Initial meeting

The mediation process begins with an initial meeting, where the mediator explains the process and assesses whether mediation is suitable for the couple. Both parties will have the opportunity to ask questions and understand what to expect. This meeting is called a Mediation Information and Assessment Meeting (MIAM) and both parties attend this separately.

Gathering financial information

If a mediator determines mediation to be suitable, before a joint mediation session begins, both parties need to gather and disclose all relevant financial information. This includes income, assets, liabilities, expenses, and any other pertinent details. Full disclosure is crucial for a fair and transparent mediation process.

Mediation sessions

During mediation sessions, the mediator facilitates discussions between the parties. The mediator does not take sides or make decisions but helps guide the conversation, ensuring both parties have the opportunity to express their views and work towards a resolution. Sessions may cover various financial issues, such as property division, spousal maintenance, and child support.

Reaching an agreement

The goal of mediation is to reach a mutually acceptable agreement on financial matters. Once an agreement is reached, the mediator will draft a document outlining the terms. Both parties should review this document with their solicitors to ensure it accurately reflects their agreement and protects their interests.

Making the agreement legally binding

To make the agreement legally binding, it must be formalised in a financial consent order. A solicitor can help draft the financial consent order and submit it to the court for approval. Once approved, the financial consent order becomes a legally binding document that both parties must adhere to.

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When is financial mediation not suitable?

While financial mediation offers many benefits, it may not be suitable for all couples. Mediation may not be appropriate if there is a significant power imbalance between the parties, or if one party is unwilling to participate in the process in good faith. In such cases, seeking legal advice and considering alternative dispute resolution methods or court proceedings may be necessary.

The role of solicitors in financial mediation

Even though mediation is a more informal process, the role of solicitors remains crucial. Family mediation solicitors provide legal advice throughout the mediation process, ensuring that their clients’ rights and interests are protected. They can help review the agreement reached in mediation and assist in making it legally binding in a financial consent order.

Divorce financial mediation offers a practical, cost-effective, and less contentious way to resolve financial disputes during a divorce, dissolution or separation. By fostering cooperation and communication, mediation helps couples reach mutually acceptable agreements, ensuring a fair and sustainable resolution.

At Moore Barlow, we are committed to supporting you through the mediation process, providing expert advice and compassionate service to help you achieve the best possible outcome for your financial future.

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Helping you through a divorce or separation

At Moore Barlow, we understand that family disputes can be emotionally draining and complex. That’s why we offer family mediation services to help you resolve issues in a calm and constructive manner.

Find out more

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