Private financial dispute resolution

Q: What is early neutral evaluation?

Early neutral evaluation is a process in which both parties provide information about their dispute to an experienced, independent family lawyer, who then gives an assessment of the likely outcome if the matter went to court. The assessment is non-binding: neither party is required to accept it or settle on the terms suggested. Its purpose is to give both sides a realistic, independent picture of where they stand so that negotiations can be better informed.

Q: How is early neutral evaluation different from arbitration?

In arbitration, the arbitrator makes a binding decision that both parties have agreed in advance to accept. In early neutral evaluation, the evaluator gives an opinion on the likely outcome, but neither party is obliged to act on it. Arbitration produces a definitive result; evaluation provides an informed assessment to assist negotiation. Many cases that begin with early neutral evaluation then proceed to a negotiated settlement.

Q: Can early neutral evaluation be used for disputes about children?

Yes. An evaluator can give an assessment of how the court is likely to approach the arrangements in dispute, what weight it would give to each party's position, and what outcome is most probable. This can help parents reach agreement without the delays and pressure of court proceedings.

Q: Is an early neutral evaluation confidential?

Yes. The evaluation process and the assessment given are confidential and cannot ordinarily be used in court proceedings. This encourages both parties to engage openly without concern that what is said or assessed will be used against them if the matter does proceed to court.

Q: Do both parties have to agree to early neutral evaluation?

Yes. Early neutral evaluation requires both parties to agree to participate and to agree on the evaluator. If the other party will not engage, the process cannot proceed. In that situation, other options such as mediation, arbitration, or a court application may be more appropriate.

Q: What happens after the evaluation?

Once the evaluator has given their assessment, it is for the parties and their solicitors to decide what to do with it. Many cases settle in the period following an evaluation because both parties now share an independent view of the likely court outcome. If settlement is not achieved, the parties can proceed to further negotiation, mediation, arbitration, or court.

Q: Is early neutral evaluation the same as a private Financial Dispute Resolution?

They are closely related but not identical. A private Financial Dispute Resolution mirrors the FDR hearing in financial remedy proceedings, in which a senior lawyer helps the parties negotiate but does not impose a binding decision. Early neutral evaluation is a broader concept that can be used at an earlier stage and can be more informal. Both involve a neutral expert giving a view on the likely outcome; the differences lie in timing and procedural framework.

Q: How much does early neutral evaluation cost?

The cost includes the evaluator's fee, which varies depending on their seniority and the complexity of the issues, as well as your solicitor's time in preparing your case for evaluation. Please visit our pricing page at https://www.purcellsolicitors.co.uk/pricing/ for further information.

Question 1

Can private financial dispute resolution be used for disputes about children?

Answer

A private FDR focuses on financial matters rather than deciding arrangements for children, such as where they should live or how much time they should spend with each parent. However, your children’s financial needs, including their housing needs, may be relevant to the financial settlement.

If you need help resolving disagreements about arrangements for your children, we can advise you on other options, including mediation, children arbitration or a court application, depending on your circumstances.

Question 2

Do both parties have to agree to private financial dispute resolution?

Answer

Yes. Both parties need to agree to take part and to the appointment of the independent specialist conducting the hearing.

If your former partner does not agree to a private FDR, we can advise you on the other ways to move your case forward. The appropriate approach will depend on the issues in dispute, any existing court proceedings and whether another form of non-court dispute resolution is suitable.

Question 3

How is a private FDR different from a court-based FDR?

Answer

Both processes aim to help you reach a financial settlement by providing an independent indication of the likely court outcome. Neither involves imposing a final decision on you.

A court-based FDR takes place before a judge as part of financial remedy proceedings. With a private FDR, you jointly appoint and pay an independent family law specialist, giving you greater flexibility over the appointment, timing and location.

Unlike a court judge, the private FDR specialist cannot approve a consent order or make directions for the future conduct of your case. If court proceedings are already underway, the arrangements for a private FDR must be coordinated with the court timetable.

Question 4

How is private financial dispute resolution different from arbitration?

Answer

The main difference is whether the appointed specialist makes a decision or helps you negotiate an agreement. At a private FDR, the specialist gives a non-binding assessment of the likely court outcome. You remain free to accept or reject their suggestions.

In arbitration, you appoint an arbitrator to decide the disputed issues and agree to be bound by their decision, subject to the applicable legal safeguards and court procedures. A private FDR therefore supports negotiation, whereas arbitration provides a determination of the dispute.

Question 5

How much does private financial dispute resolution cost?

Answer

The cost will depend on the complexity of your finances, the issues in dispute and the fees charged by the specialist conducting the hearing. You will also need to account for your own legal fees for preparing the case, advising you and representing you during negotiations. The independent specialist’s fee is usually shared between the parties, although a different arrangement can be agreed.

We will explain the anticipated costs before you proceed so that you can make an informed decision about whether a private FDR is suitable for your circumstances.

Question 6

Is private financial dispute resolution confidential?

Answer

Yes. A private FDR is conducted on a confidential, “without prejudice” basis. This means that settlement discussions and the specialist’s assessment cannot ordinarily be used as evidence at a later contested hearing.

This allows both parties to explore possible compromises without those proposals being used against them if an agreement is not reached. It does not remove either party’s obligation to provide full and accurate financial disclosure.

Question 7

What happens after a private FDR hearing?

Answer

Following the specialist’s assessment, you and your solicitor can consider what it means for your position and continue negotiating with the other party. Negotiations may take place on the day or continue afterwards.

If you reach an agreement about your divorce financial settlement, your solicitors can record its terms in a draft consent order and submit it to the court for approval. The specialist conducting the private FDR cannot make a binding court order.

If an agreement is not reached, we can advise you on further negotiations, arbitration or the next steps in court proceedings.