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.