In England and Wales, there has been a growing trend towards resolving disputes through Alternative Dispute Resolution (ADR) methods such as mediation, arbitration, and adjudication. One such method is the Private Financial Dispute Resolution (pFDR), which is becoming increasingly popular in family law cases.
What is a private FDR (pFDR)
A Private FDR is a confidential and voluntary process whereby parties involved in a financial dispute can meet with a privately instructed judge (usually a family law barrister who also works as a judge) to help resolve their dispute. The FDR process is like a court hearing, except it is less formal and less adversarial.
What is the main purpose?
The primary goal of the FDR is to assist the parties in reaching a settlement agreement. The FDR process is confidential, which means that anything said or discussed during the process cannot be used in court. This allows the parties to speak openly and freely without fear that anything they say will be held against them.
How does it work?
Both parties would need to agree to have a pFDR.
- One of the solicitors will discuss options with their client for potential pFDR judges, and with the client’s approval, will send the other solicitor a short list from which to choose their favoured option.
- The cost for the pFDR judge is split between the parties.
- The pFDR takes place at the judge’s offices – which will likely be barrister’s chambers in London.
- Each party has their solicitor and barrister with them for the day.
- Each party will have a room to use with their team, for the day.
- Negotiations take place throughout the day, with each barrister meeting the other, in a separate room to put forward their client’s instructions.
- There will be a separate room where the pFDR judge is based. They will ask everyone to meet there to let them know how the negotiations are going, and what proposals have been made by each party. The pFDR judge will give advice on how to move things forward as well as give their opinion about what they think the financial settlement should be. They cannot make the final decision but hearing their opinion tends to be very persuasive to the parties to know what they should be thinking of for the financial settlement.
- If a settlement is reached, the terms of the agreement can be recorded.
- After the pFDR, one of the solicitors/barristers will prepare a draft consent order setting out the terms of the financial settlement, which once approved can be sent to the court for approval, to become a binding court order.
What are the benefits?
Private FDRs have several benefits over traditional court proceedings:
- You get to choose (by agreement) the judge.
- You get to choose (by agreement) the date for the pFDR instead of having to accommodate the date set by a court.
The FDR takes place in the judge’s offices (this tends to be the barrister’s chambers) which will be a much more comfortable environment than a public court:
- You have your own private room for you and your legal team,
- You are supplied with snacks and drinks, and the bathrooms are much nicer than in a public court.
- They are less formal – which can help reduce stress and anxiety for the parties involved.
- They can be less expensive than going to court.
In conclusion
The Private FDR process is becoming an increasingly popular alternative to traditional court proceedings in England and Wales. The process is confidential, voluntary, less formal, more flexible, and can be less expensive than going to court. The FDR judge’s role is to assist the parties in reaching a settlement agreement. If successful, the settlement is recorded in writing, signed by both parties and will become ratified by the judge to become a binding court order.
For more advice on the legal process, click here: Legal Process
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