We are actively encouraging our clients to look at having a private financial dispute resolution hearing to assist them in reaching a more swift conclusion to their case. Find out more here.
A private financial dispute resolution (FDR) hearing is a simple concept. The parties pay for a financial remedy specialist to act as a private FDR judge. That person may be a solicitor, barrister or retired judge. No additional qualification is required. The private FDR takes place at a time convenient to the parties, usually in solicitors’ offices or barristers’ chambers, and a full day is normally set aside to maximise the prospects of settlement. It takes the place of the in-court FDR.
Parties choose to temporarily opt out of the court process and timetable and arrange a private FDR in lieu of a court FDR.
1) Speed – A private FDR is not subject to the court’s availability and can usually be arranged within a matter of weeks rather than months as soon as the required evidence is in place.
2) Convenience and Choice – The hearing can take place on a date and time convenient to the parties. The parties can choose their own judge (usually a senior barrister or retired judge), which means that if there is an aspect of the case that would be aided by a judge with particular expertise, the parties can select such an individual.
3) Preparation – The private FDR judge will be given ample time to read all the papers, understand the issues and fully prepare for the hearing. Given the pressures on the court system, this is not always the case with a court FDR.
Cost – Unlike with a court FDR, the parties will be required to pay the fee for the private FDR judge and this fee is usually shared between the parties. However, this additional cost is usually counterbalanced by having the matter dealt with quickly.
In the event that the parties are unable to negotiate a financial settlement at FDR, the case can re-enter the court system and await the listing of a final hearing. Alternatively, the parties may wish to consider family arbitration as a means of resolving the matter.
Family arbitration. This is a form of private dispute resolution in which the parties appoint an arbitrator to adjudicate a dispute and make an award. The arbitrator’s decision is final and binding, just as with a judge’s decision at a final hearing in court. Arbitrators are usually experienced barristers or retired judges.
As with a private FDR judge, the parties can choose the arbitrator, venue, date and time. The parties will need to pay the arbitrator’s fee, but the flexibility and ability to get a final decision more quickly than through the court process may mean that arbitration is more cost-effective than court. More information about family arbitration can be found on the Institute of Family Law Arbitrators’ website.
