Family Law explained: Private Financial Dispute Resolutions

Following a separation or divorce, clients often find the resolution of financial matters to be one of the most stressful stages of their family proceedings.

A Private Financial Dispute Resolution (PFDR) hearing offers a flexible and highly effective alternative to waiting for a court-listed Financial Dispute Resolution (FDR) appointment.

In some cases, instructing an experienced Family Law barrister to act as the private FDR judge can help parties reach a fair settlement more quickly and cost efficiently.

What is a Private Financial Dispute Resolution hearing?

A PFDR is a voluntary, confidential process in which both parties agree to appoint a privately funded evaluator – usually a specialist Family Law barrister or retired judge – to conduct an FDR-style hearing.

The process mirrors a court FDR but takes place at a time and location chosen by the parties – avoiding delays commonly associated with the court system.

Here, the barrister’s role is to provide an independent, legally informed evaluation of what the outcome may be if the matter proceeded to a final hearing, as well as assist the parties in working towards a mutually agreed settlement.

How does the PFDR Process work?

While the process for each PFDR will be informed by the clients’ situation, a typical PFDR follows these steps:

Agreement to proceed
Both parties must agree to resolve their financial dispute through a PFDR and together select a suitably qualified barrister with expertise in family finance to assist them.

Preparation of papers
Each party prepares and exchanges the relevant financial disclosure and position statements in a manner similar to most court-based FDRs. These papers are provided to the barrister in advance.

The PFDR hearing
The hearing can either take place in chambers, solicitors’ offices or remotely via video call. At this stage, the barrister will:

• Read the papers in advance
• Hear brief submissions from each side
• Provide an indication of the likely court outcome
• Assist with negotiations throughout the day

Critically, the barrister does not impose a decision on the separating couple; instead, he or she will offer robust guidance to help the parties arrive at an agreement independently.

Reaching settlement
Thanks to the involvement of a barrister to guide proceedings, many cases settle on the same day as the hearing.

If an agreement is reached, the terms will be recorded and later converted into a consent order for approval by the court.

Why involve a barrister?

Using a specialist family law barrister brings particular advantages:

• Judicial-level expertise – barristers conducting PFDRs often regularly appear in complex financial remedy cases and will possess a clear understanding of how judges approach issues such as needs, sharing, pensions and non-matrimonial assets
• Realistic outcomes – both parties receive a clear, authoritative view of the strengths and weaknesses of their case, providing clarity and managing expectations throughout
• Gravitas and neutrality – an independent barrister’s indication often carries significant weight, helping parties move away from entrenched positions

What are the advantages of a Private FDR?

A PFDR offers several key benefits over the traditional court process:

• Speed and convenience – court FDR appointments can take many months to secure, however a PFDR can be arranged far more quickly, allowing momentum to be maintained and uncertainty reduced
• Choice and flexibility – parties choose the barrister, the date, the venue and the format. Additional time can be allocated if needed, rather than being constrained by court timetables
• Confidentiality – PFDRs are conducted in private, offering discretion for those who value confidentiality
• Higher settlement rates – because of the focused preparation, expert input and dedicated negotiation time, PFDRs often result in settlement – avoiding the emotional and financial cost of a final hearing
• Cost effectiveness – although there is an upfront cost in funding the barrister and venue, this is frequently outweighed by the savings achieved through resolving matters earlier and avoiding prolonged litigation

Could a PFDR be right for your situation?

A PFDR is suitable for many financial remedy cases – particularly in instances where:

• Full financial disclosure has been exchanged
• Both parties are willing to negotiate
• A clear, expert evaluation would assist progress

An experienced Family Law solicitor will be able to advise whether a PFDR is appropriate in your circumstances and help you select the right barrister for your case.

How we can help

If you’re currently going through a separation and would like to know whether a PFDR would enable you to find a quicker, more amicable separation to your dispute, our Family Law team are here to help.

Contact us on 03333 058375, or via email at [email protected] for personalised guidance and support from our friendly experts.