There are various options available to deal with financial matters. To formalise any agreement it is extremely important that a court order is drawn up dealing with both parties’ claims and importantly, dismissing those claims where necessary.
If a court order is not drawn up, parties’ claims against each other remain open (despite being divorced). This leaves open the possibility of claims being made in the future, or against a spouse’s estate after their death.
Here are some options for resolving matters without full court proceedings:
A. Disclosure and negotiations through solicitors
This is the most common way of resolving matters and most of the cases we deal with are concluded in this way. We would normally write to the other party or their solicitors inviting them to complete a Form E financial statement. The Form E is a court form used to set out clearly a person’s financial position within court proceedings but is usually also used when trying to resolve matters amicably, because it is comprehensive.
The Form E, which both parties have to complete separately, sets out all of their assets, liabilities, income etc. and they also have to attach supporting documents such as bank statements, valuations and pay slips etc. Form Es are exchanged simultaneously, and we will then review the documents and check the disclosure is complete and that nothing is missing. We would work with you to try and obtain a full picture of your and your spouse’s finances and then discuss with you a proposal for settlement in the hope of reaching an agreement by negotiation with your spouse. If an agreement is reached, a financial remedy consent order can then be drawn up and submitted to the court for approval.
Best for those who want legal guidance throughout and a structured approach.
B. Mediation
You can attend mediation with a mediator who will work with you both to try and reach agreement. We can work with you as you go through this process and provide advice and support. Part of the mediation process will involve you providing financial disclosure to each other. The mediator will be helping you both and will not advise you separately. It is wise to have legal advice in parallel to mediation to obtain advice on the discussions that are taking place in mediation. If an agreement is reached at mediation, it is not binding but the mediator will advise the parties to seek legal advice to get a financial remedy consent order drawn up and get advice on the agreement reached.
Best for couples who can communicate reasonably and want to save costs and time.
C. Direct discussions
You can discuss financial matters with each other and come to an agreement. However, it is important that you are aware of each other’s financial positions and of your legal rights so that you understand what you are entitled to and what you may be agreeing to give up. You should have legal advice in relation to the agreement you have reached to check that it is fair and workable and to have the agreement recorded in a financial remedy consent order.
Best for couples with high trust and straightforward finances.
D. Arbitration
An alternative to court proceedings is arbitration. Whilst similar to court proceedings in that an independent person will be asked to make a decision for you (because it has not been possible reach an agreement yourselves), there are some differences as well.
Best for couples who cannot agree but want to avoid lengthy court battles.
Option | What It Involves | Pros | Cons |
Solicitor Negotiation (with Form E disclosure) | Both parties disclose finances (often via Form E). Solicitors negotiate on your behalf to reach agreement. | Structured & thorough – Legal advice throughout – Common & reliable approach | Can be costly if negotiations are lengthy – Depends on cooperation |
Mediation | Neutral mediator helps you both negotiate. You disclose finances and work towards agreement. | Usually cheaper & faster than court – Keeps control with both parties – Can improve communication | Mediator cannot give you legal advice – Agreement not binding until made into a court order |
Direct Discussions | You and your spouse negotiate directly, then use solicitors to formalise agreement. | Lowest cost option – Quick if both are cooperative – Keeps things amicable | Risk of imbalance if one party dominates – Easy to overlook legal rights – Must still seek legal advice |
Arbitration | Independent arbitrator (like a private judge) hears the case and makes a binding decision. | Legally binding outcome – Quicker & more flexible than court – Private & confidential | Can be expensive – Binding decision may not favour you – Both must agree to arbitrate |