When you’re going through a divorce or separation and need to sort out finances, it can feel overwhelming. There are different ways to reach an agreement, and it’s important to know what each option means for you and your family. Here’s a simple guide to the three main choices: court-based FDR, private FDR, and arbitration.
Court-Based FDR (Financial Dispute Resolution)
This is a special hearing at court where a judge helps you and your ex-partner try to agree on your finances.
- What happens? The judge listens to both sides and gives an idea of what they might decide if the case went to a final hearing. This is to encourage you to settle.
- Is it final? No. The judge’s suggestion is not legally binding, but you will be asked to negotiate in light of the indication they have given, and it can help you reach a settlement.
- Who is the judge? The court chooses the judge.
- Cost and time: You pay your own legal costs, but there’s no extra fee for the judge. You may have a long wait for a court date. The judge will likely have a number of matters in the court list they have to deal with and therefore their time on the day will be shared between their cases.
Private FDR
A private FDR is like the court-based version, but it happens outside the court system.
- What happens? You and your ex agree to hire a private judge (often a barrister with experience in financial remedy work, sometimes one who sits part time as a judge at court) to give an opinion on your case.
- Is it final? No. The private judge’s view is not legally binding, but again can help you reach agreement.
- Who is the judge? You choose your own judge. This enables you to ensure someone both parties are happy with and that they have the right experience and background in matrimonial finances.
- Cost and time: You pay for the judge’s time and the venue, so it’s more expensive than the court-based FDR, but you can usually arrange it much faster. You will also have as much time as you need on the day as it will be the only matter the private judge is dealing with.
If you reach an agreement, you still need a court order to make it legally binding but this can usually be done by sending in a written order for a judge’s approval.
Arbitration
Arbitration is a more formal process where you and your ex agree to let a neutral expert (the arbitrator) make a final decision about your finances.
- What happens? The arbitrator listens to both sides and then makes a decision, which is called an “award.”
- Is it final? Yes. The arbitrator’s decision is legally binding and can be enforced like a court order (once approved by the court).
- Who is the arbitrator? You choose the arbitrator together. Again this would usually be a barrister who is qualified in arbitration.
- Cost and time: You pay for the arbitrator and the venue, but it can be quicker and less stressful than going to court.
Which Option Is Right for You?
- If you want a quick, private, and expert opinion to help you settle, a private FDR is a good option.
- If you want someone to make a final, binding decision, arbitration is the way to go.
- If you prefer to use the court system and avoid extra costs, a court-based FDR may suit you.
A Word from Fay Rothery
As Fay Rothery, Director at Staffordshire Family Law, says:
“Every family is unique, and so is every financial situation. The right process for you depends on your priorities—whether that’s speed, cost, or having a final decision made for you. Our role is to guide you through your options and support you every step of the way.”
How Staffordshire Family Law Can Help
At Staffordshire Family Law, we understand that dealing with finances after a separation can be daunting. Our experienced team will:
- Explain your options in plain English
- Help you decide which process is best for your circumstances
- Support you through negotiations, whether in court, a private FDR, or arbitration
- Ensure any agreement is made legally binding
We’re here to make the process as smooth and stress-free as possible, so you can move forward with confidence.
For more information or to discuss your situation, please contact us on 01785 336617 or by email at family@sflsolicitors.co.uk