The Financial Dispute Resolution hearing, known as the FDR, is widely regarded as the most significant hearing in financial remedy proceedings. It is specifically designed to encourage settlement, and the majority of financial remedy cases are resolved at or around this stage.
What makes the FDR different?
The FDR is a without-prejudice hearing, meaning anything said during it cannot be used in any later proceedings. This is what makes it useful: both parties can speak more openly about their positions and what they might accept, without it being held against them if the case proceeds to a Final Hearing.
The judge's indication
At an FDR, the judge will give an indication of what they consider a fair outcome. This is not a binding decision, and the judge who gives the indication cannot then hear the Final Hearing if the case proceeds, but it is enormously influential. Most parties take judicial indication seriously.
Negotiation on the day
Parties often spend time negotiating outside the courtroom at an FDR, sometimes with the judge facilitating. Many cases settle on the day or in the days following the FDR.
If the FDR doesn't result in agreement
If the case does not settle at FDR, it proceeds to a Final Hearing, which is listed separately, often many months later. The FDR judge steps aside and plays no further part.
How to prepare for an FDR
Preparation is everything at an FDR. The judge will have read the documents in advance and will form a view quickly. Arriving with a clear, realistic position puts you in the best place to reach agreement.
- Ensure all financial disclosure is complete and up to date
- File your Form ES2 (schedule of assets and income) on time
- Consider your best and worst case outcomes, and your walk-away position
- Understand your pension position and obtain CETVs if you have not already
- If possible, take legal advice before the hearing even if you are self-representing
What happens on the day
Both parties attend, along with any legal representatives. The judge will usually meet with both parties together first, then may meet separately with each side to give their view on what they consider a fair settlement. This is not a binding judgment but is very influential. Most FDRs then involve negotiation, either directly or through representatives. If you reach agreement, you will ask the court to approve a consent order. If not, the case proceeds to a final hearing.
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