If you’re going through a separation or divorce, you will want to reach an appropriate settlement with your ex-partner regarding your finances, including the disposition of any shared property: Who will live in the family home, or will it be sold, and the proceeds shared? What provisions will be made for the maintenance of any children?
This guide will give you an idea how financial settlement mediation can help you to deal with these issues.
If you’re looking for a collaborative and non-confrontational approach to reaching agreement on child support, spousal maintenance, property division, pensions, assets, and debt management, mediation is a great option.
The impartial mediator fosters effective communication and cooperation to identify the issues and achieve fair solutions. The process of financial mediation is cost-effective and efficient, defusing the possible tensions of the situation to enable a collaborative, non-confrontational approach.
Financial mediation typically involves the following steps:
- Attending a Mediation Initial Assessment Meeting (MIAM)
- Disclosing financial information
- Attending a joint meeting (discussion of priorities)
- Exploration of the available options for financial settlement
- Reaching a financial agreement and direction on how to make it legally binding
In the MIAM, we assess the suitability of the couple for financial mediation.
The mediator explains the process, its benefits, and what the couple can expect to happen during mediation. Participants can ask questions, gain insights, and learn the cost, probable duration of the process, and what steps they will need to take if mediation fails.
After agreeing to proceed with financial mediation, the next step is to disclose details of the participants’ finances.
Information is provided by each participant about their income, property, savings, debts, pensions, and expenses. The mediator assists in identifying necessary corroborative documentation.
Transparency and accuracy of both parties are crucial for fair agreements. The mediator requires a clear understanding of the couple’s financial situation to explore suitable options for resolution.
The mediator will prepare a summary of the financial statement, known as an Open Financial Statement (OFS). It includes information about your capital, your liabilities, your income and your anticipated future expenditures.
The mediator’s primary duty is to foster open communication, ensuring both parties can voice their perspectives and concerns. They pinpoint areas of accord and discord, guiding you to recognise shared interests. By maintaining impartiality, they help you to navigate emotional complexities, enabling a clear focus on the pivotal issues for each participant.
The mediator guides you through your options to resolve any financial issues. They break down each issue into manageable parts, providing legal context. Then, they assist in identifying viable solutions, delving deeper into each. This involves brainstorming, assessing implications and feasibility. The mediator will encourage you to consider each other’s needs and interests to help you reach a fair and sustainable agreement.
Once a preferred solution is reached with the assistance of the mediator, practical aspects of the solution are thoroughly examined to ensure workability and completeness.
Assuming both parties agree to proceed with this financial arrangement, the mediator drafts a summary, known as a Memorandum of Understanding. This document outlines the non-binding terms of the agreement, for review with your solicitor, who may then incorporate them into a document called a Consent Order, which may be submitted to the Court for judicial approval, making it legally binding upon acceptance.
The cost of financial mediation varies depending on the chosen mediation service, the complexity of the participant’s situation (e.g., the number of assets involved) and any other variables involved.
In any case, it’s assured that the expense of financial mediation will be significantly less than pursuing an adversarial approach involving solicitors and court proceedings. The process is also significantly less disturbing to the participants.
For a clearer understanding of the usual costs involved, explore our property and finance mediation fees.
Agreements reached in mediation can become legally binding, depending on the type of agreement and on if the appropriate legal steps are taken after mediation: Preparation of a Consent Order by a solicitor, and presentation to the Court for judicial approval. Mediators can guide you through this process.
Opting for mediation instead of court can save time and money while ensuring a fair and lasting agreement. Moreover, mediation offers privacy and control over the outcome in a confidential setting.
If mediation is of interest to you contact Salam Mediation click here
