If you’re going through a separation or divorce, one of the most challenging aspects to deal with is how to split your finances fairly. Whether it’s deciding who gets the house, how to share savings or what to do about joint debts, financial disputes can easily escalate into stressful situations. Family mediation offers a structured, less stressful way to reach agreements without needing to go to court. But how exactly does family mediation work for financial disputes?
What is Family Mediation?
Family mediation is a process where an independent, trained mediator helps you and your ex-partner work out an agreement regarding your financial situation, child arrangements, or other issues. Instead of going to court and having a judge decide for you, family mediation allows both parties to stay in control of the decisions. It’s a voluntary process designed to keep communication open and constructive.
When it comes to finances, mediation can help with everything from dividing property and assets to pensions, debts and even monthly maintenance payments. If you and your ex-partner are willing to try and reach a financial agreement, mediation can save you time, stress and money.
How Does Family Mediation Work for Financial Disputes?
Initial Meeting – The MIAM
Before the mediation process begins, you’ll both need to attend a Mediation Information and Assessment Meeting (MIAM). This is a short 1 hour session where the mediator explains what mediation is, how it works, and whether it’s suitable for your situation. Don’t worry, it’s not a commitment to start the mediation process—just a chance to get some information and see if it’s right for you.
The Joint Mediation Sessions for Financial Settlements
Once you’ve both agreed to go ahead with mediation for your financial settlement, you’ll attend a series of sessions. These sessions are led by the mediator, who will act as a neutral third party, helping both of you discuss and resolve your financial issues, such as asset division and debt settlement. The mediator doesn’t take sides or make decisions for you; they simply facilitate constructive communication and keep the conversation focused on finding a solution for your matrimonial finances.
Each session usually lasts 90 minutes, and you can have as many sessions as needed to reach an agreement on your financial disputes. Typically, financial disputes are resolved in about 3-5 sessions, but this varies depending on the complexity of your situation and the specifics of your assets and debts in the UK.
Full Financial Disclosure in Mediation
One of the key elements of mediation for financial disputes is full financial disclosure. This means that both parties must be transparent about all their assets, debts, income and expenses. You’ll need to provide documents like bank statements, mortgage details, pension information and anything else relevant to your finances. Full disclosure ensures that the decisions you make are based on an accurate picture of your financial situation, which is crucial for reaching a fair agreement.
Finding a Financial Agreement Through Mediation
The goal of mediation is to help both parties find a mutually acceptable agreement. The mediator will guide you through discussions about various aspects of your finances, such as:
-
- How to divide property (including the family home)
- What happens to savings, investments, and pensions
- How to deal with joint debts
- Ongoing financial support, such as child or spousal maintenance
Because mediation is a collaborative process, you’re free to come up with creative solutions that work for both of you—something that might not happen if a judge were to decide upon your financial settlement.
Documenting the Financial Agreement
Once you’ve reached an agreement, the mediator will draft an Outcome Statement or Memorandum of Understanding. This document outlines what you’ve agreed to, but it’s not legally binding on its own. To make it legally binding, you’ll need to take it to a solicitor, who can turn the agreement into a consent order. This is then submitted to the court as part of the divorce process (after the Conditional Order has been granted) for approval, making it enforceable.
Why Choose Family Mediation for Financial Disputes?
Mediation has a number of benefits over going to court:
- Cost-Effective: Mediation is generally far cheaper than going to court. Court fees and solicitor costs can add up quickly, whereas mediation fees are more predictable and affordable.
- Quicker: The mediation process is typically much faster than the court system. With fewer formalities and no waiting for court dates, mediation can help you resolve financial disputes in a matter of weeks or months.
- Less Stressful: Mediation encourages cooperation and communication, which can help reduce the stress and emotional strain that often comes with financial disputes in a divorce or separation.
- Confidential: Unlike court proceedings, mediation is a private process. What is discussed during mediation stays confidential between you, your ex-partner, and the mediator.
- Control: You and your ex-partner remain in control of the outcome, rather than leaving it in the hands of a judge. This often leads to better long-term agreements that both parties are more likely to stick to.
Family Mediation is the Solution for Financial Disputes
Family mediation can be a lifesaver when it comes to resolving financial disputes during a divorce or separation. It allows both parties to work together in a calm, cooperative environment to reach an agreement that suits everyone. If you’re facing financial disagreements and want to avoid the stress and cost of court, mediation could be the perfect solution.
Feel free to contact us at Vollans Mediation for more information, or book a MIAM today to start your mediation journey.