Recently published statistics from the Ministry of Justice indicate that there has been an increase in cases going to court where couples cannot agree on the financial aspect of their separation. This is a disappointing and worrying development because of the long delays we are now seeing with the court. Couples are having to rely on a process which is slow and uncertain, with scheduled court hearings often being postponed at short notice because there are no judges available, or courtrooms to host the hearing.

Couples have an obligation to try and resolve financial issues using some other form of ’NCDR’ (Non-Court Dispute Resolution).  These alternative routes, which include mediation, solicitor-led negotiations and arbitration, all rely on a degree of cooperation which is not always there. One would hope that the majority of the contested applications would not have to go all the way to a final court hearing (where a judge decides the outcome) and that an agreement can be reached either once both parties’ financial disclosure has been provided after the first court hearing, or after hearing the non-binding indication from the judge at the FDR (the Financial Dispute Resolution hearing).  

There are usually two reasons that couples require the assistance of the court to determine the financial division. The first is that the asset structure is complicated. There may be trusts, companies, investment funds or other structures in place. The assets could be located all around the globe which makes the disclosure exercise more cumbersome and difficult and therefore professionals like accountants, actuaries and lawyers are required to assist with the computation exercise.

The second reason impacts every couple to some degree.  Sometimes it is just too hard to discuss money with your ex and to make compromises. This isn’t necessarily always a reflection on your overall relationship and ability to communicate with one another. Financial decisions are emotive and tricky for couples even when pulling in the same direction towards a shared goal. When it comes to deciding your own, separate and independent financial future, it can become impossible.  It can simply be too hard for couples to come up with a solution which they can live with because the stakes are so high.

The solicitors at Burgess Mee strive to make the financial negotiation process as straightforward and as non-confrontational as possible. We support our clients through the disclosure process and provide clear and pragmatic advice about settlement so that there is the best possible chance of reaching an agreement, without having to resort to the court. However, there are occasions when whether due to the nature of the relationship, the structure or nature of the assets, the assistance of the court is necessary to break the impasse and achieve a resolution.  

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