Most separating couples find it difficult to reach a fair financial agreement. There is no simple mathematical formula to solve the financial disputes between couples going through a divorce or separation. Financial mediation can help couples reach a financial settlement amicably.
What is Financial Mediation?
Financial mediation is a way of sorting out financial and children’s arrangements with the help of an unbiased third person. This third person is called a mediator which helps parties reach an agreement in relation to property, money, and children.
The separating couple can either try financial mediation first or ask the solicitor for advice on whether using mediation would be helpful. To clarify, neither party can be forced to go to mediation.
The Financial Mediation Process
Here is a step-by-step guide to the financial mediation process
- MIAM – Mediation Information and Assessment Meeting is an introductory meeting that explains the mediation process, why it is important, and how it would help you settle disputes.
- Financial Disclosure – The next step requires both parties to do a full financial disclosure. In terms of financial disclosure, the parties must fill out and sign Form E, as required by the court.
- Agreeing on the Financial Disclosure – The key to reaching a financial statement is that both parties agree with the financial disclosures. The mediator will take you through the disclosure and check that both parties agree.
- Exchanging Financial Disclosures – Prior to the first joint mediation session, the mediator will exchange the financial disclosure between the two parties allowing them to take helpful legal advice.
- Deciding on Division of Assets & Debts – The mediator will help both parties reach a fair, good, and manageable agreement by dividing up assets and debts fairly considering future needs.
- Is This Affordable – The family mediator will sense-check the agreement to see if there is a requirement for ongoing payments between the couple.
- Paperwork & Legal Advice – After reaching an agreement, the mediator will draft two documents; a financial statement and a memorandum of understanding. A financial statement will state the assets, income, and debts that you have. The memorandum of understanding shows how the assets and debts will be divided and any ongoing payments. It is not yet legally binding and you can contact a solicitor to take legal advice.
- Make the Agreement Legally Binding – Once you have reached a fair agreement, make it legally binding by getting a financial consent order. It will outline what will happen to the property, pensions, and other assets on divorce.
How Much Does Financial Mediation Cost?
Although it is not free, mediation is definitely cheaper and quicker than going to court. If you cannot afford mediation, you can get legal aid to pay for the introductory meeting and multiple mediation sessions.
Conclusion
If both the parties can not reach a fair agreement through financial mediation, they can move to sort out their differences and get a fair settlement. However, it would be more costly than taking the mediation route.
