A Financial Dispute Resolution (FDR) hearing is a private court-arranged session attended by both divorcing parties with the aim of helping them reach a fair financial settlement. The Financial Dispute Resolution is the second stage of the divorce financial order process and comes after the First Directions Appointment (FDA). Often, one FDR is sufficient to resolve the divorce financial dispute, but if not, further sessions can be arranged. If the FDR does not lead to a resolution, a final hearing may be required at which a judge will make a final decision for you.
Attending an Financial Dispute Resolution can be highly beneficial for a number of reasons. Firstly, FDR negotiations take place ‘without prejudice’ – meaning that any offers, concessions, or statements made during the FDR hearing cannot be used as evidence in court if the case later proceeds to a final trial. This is advantageous because it allows both divorcing parties to negotiate openly without worrying that their words will be held against them later. As a result, FDRs can lead to more productive settlement discussions, increasing the likelihood of reaching an agreement.
FDR hearings are generally more efficient, cost-effective, and less stressful than a full trial. You can even opt for a private FDR / non-court dispute resolution by hiring a private judge, which is often faster and provides greater privacy and flexibility, as it does not require going through the traditional court system.
How to prepare for an FDR hearing?
In order to prepare for an FDR hearing, it is important to:
- Speak to a family law solicitor
- Review your financial resources and needs
- Prepare and submit the required documents to the court
Speak to a family law solicitor
We recommend speaking to a family law solicitor about the purpose of the FDR session, what will happen, who will attend, the rules to be followed, and what is expected of you. They will also explain the likely outcome of the session and what will happen next, depending on what you and your ex-partner agree on. See below for more details on what happens at the FDR session.
Review your financial resources and needs
Before your Financial Dispute Resolution hearing, you will need to ensure that you fully understand your financial position and needs. This includes ensuring you have an updated statement of your financial position (Form E) and a realistic understanding of your financial needs.
Prepare and submit the required documents
Before you attend your FDR hearing, you will need to prepare and submit several documents to the court. Your family law solicitor will prepare these for you. These documents include (this list is not exhaustive):
- Information on your position on reaching an amicable outcome of your financial disputes (Form FM5) (filed no less than 7 days before the FDR)
- Case Summary (Form ES1)
- Summary of your financial assets (ES2)
- Completed questionnaire (filed no less than 14 days before the FDR)
- Any other court bundle documents
What happens at the Financial Dispute Resolution hearing?
On the day of your FDR hearing:
- You and your ex-partner will need to arrive at the court and meet with your legal representative no less than an hour prior to your FDR session time
- The judge will review the case paperwork (for both parties)
- The legal representative for each party will summarise the settlement proposals – the judge may ask questions at this stage
- The judge will then provide an ‘indication’ regarding what they consider is likely to happen at a final hearing if the case is not settled
It is important to bear in mind that the judge cannot impose an order at the Financial Dispute Resolution without the consent of you and your ex-partner. Following the session, you and your ex-partner will have the opportunity to attempt to reach an agreement on your matter with a view to avoiding the need to attend a final hearing. Following these negotiations, you will need to return to the court hearing with your family law solicitor to update the judge on the progress of your negotiations. If an agreement has been reached, your solicitor will draft a final financial order to be agreed by the Judge. If an agreement has not been reached, a final hearing will be arranged at which a Judge will make a decision on your financial matter for you.
Can I skip the FDR hearing?
In most cases, it is not possible to skip the FDR hearing and go straight to the final hearing. However, it may be possible to skip the Financial Dispute Resolution if the first appointment or part of it has been treated as an FDR appointment and was effective. It may also be possible to bypass the FDR if there are exceptional circumstances; this is ultimately at the discretion of the judge. However, in a recent High Court decision, the judge issued a reminder of the importance of the FDR, rejecting a previous judge’s decision to dispense with the FDR because, in their view, it would be difficult to foresee a situation where this should be allowed.
