Step 1- The MIAM meeting

The first step in resolving financial issues on divorce, in the mediation process is for each person to have a Mediation Information and Assessment Meeting (MIAM). This meeting offers you the chance to find out more about mediation and whether mediation is suitable for you and your family. This meeting will also be an opportunity for you to find out what other options there may be to resolve the issues you are having to deal with.

You will both need to have a separate MIAM with the same mediator, to review the suitability of mediation before the first joint meeting can be booked.  MIAMs are confidential.

If the mediator considers it appropriate, and you both agree, a joint meeting can be scheduled.

Step 2- Gathering financial information

Before there can be any discussions about how to sort out the future financial arrangements everyone must provide full financial disclosure.

We have some detailed financial information forms that everyone completes. Supporting documents need to be provided.

We go through the forms in the first joint meeting and discuss what other information needs to be provided. Every case is different, so we tailor the information required to each situation. The additional information that may be needed is often things like, information about mortgage capacity, examples of houses to meet future housing needs, tax calculations and business valuations.

We then agree how long everyone needs to provide all the information and agree a date to exchange it all.

Everyone then has a chance to look at the information provided to see if there are any questions about it.

This is how we deal with cases where no financial disclosure has been provided. Sometimes, we are asked to help where some financial information has already been provided or where cases are in court and the couple have decided they would like to try mediation. In these situations, we would discuss how far everyone has got with the disclosure process and agree what needed to happen before a joint meeting could take place.

Step 3- Experts

Sometimes the issues we need to consider when mediating cane assisted by an expert who can be asked to prepare a report or provide information that can then be used in the mediation meetings to help understand options and the fairness of solutions being considered. Some examples of experts that might be needed include; -

·      Financial Neutral

Having advice and assistance from a financial adviser, acting in a neutral capacity, can help explore financial options and alternatives and help you understand how realistic those options are from a financial perspective.

  ·      Pension Adviser/Actuary

Understanding pensions, their values, different ways of sharing pensions and what future income they could create, can be very valuable in the mediation process. A pension expert can also help you understand any pension charges that might be relevant and relevant tax issues.

·      Mortgage advisers

Mortgage advisors can assist with understanding what mortgage borrowing options you may each have, including the repayment cost of this.  This can help open up options for rehousing and enable informed conversations about monthly costs and incomes.

·      Tax advisers

The sale and transfer of assets as part of a divorce can have tax consequences, including Capital Gains Tax.  Knowing likely tax consequences and any tax efficient methods to transfer assets, can maximise the assets available for division.

·      Property and Business Valuers

Often properties and business can be our most valuable assets.  Having expert advice on the values of these assets, which can then be used in mediation (and outside of mediation) helps narrow issues and provide accurate information to commence negotiations.

Step 4- How we help everyone sort it out

After all the necessary financial information has been provided and any expert information obtained, we will guide a couple through all the decisions they need to make in a series of meetings.

It normally takes 3-5 meetings to create a set of proposals that would settle all the financial issues.

Every case must consider how the capital assets should be shared, what should happen to any pensions, what financial arrangements do there need to be for any children and then is it a case where spousal maintenance is necessary and if yes, how much is needed and for how long.

We can’t give legal advice but we do provide lots of information to help couples create their final proposals. It is also our job to explain all the options available which couples can find really helps them reach agreement.

No one is bound by anything in mediation until they have had the opportunity of obtaining independent legal advice but after that court documents can be prepared for approval by a Judge.

Step 5 How are financial proposals converted into a binding court order

Once some proposals have been discussed that you would like to proceed with, these can be written up into a document called a Memorandum of Understanding (MOU)and Open Financial Summary (OFS). Sometimes this information is shared in a detailed email instead. The MOU/email is not a binding or enforceable document and is still Without Prejudice, meaning it cannot be referred to before a judge.

The OFS and the MOU/email can then be sent to your lawyer with the information they need to advise you on the fairness of the proposals. If following this advice, you are both happy to proceed, your lawyer can draft the financial agreement which is a document called a Financial Consent Order, and they will use the OFS document to prepare a form called a D81. If your financial agreement includes a pension sharing order, before this can be sent to the court, it will need to be approved by your pension provider.

You don't have to use lawyers, there are companies now who can prepare the court documents for you, both will often agree a fixed fee for you.

The Financial Consent Order and D81 would both need to be signed by each of you and can then be submitted to the court for a judge to review and approve. There is normally no need to attend court to do this, as the application is made electronically/in paper form.

Once an order has been approved by the court, steps to implement the agreement can be taken and the final order of the divorce can be applied for. If there is a pension sharing order you should not finalise your divorce until 28 days have elapsed from the date of your approved financial order from the Judge. Pension companies have 4 months to implement pension sharing orders.

It is important that all the order is implemented, which may mean you need to chase some aspects of it to make sure they happen.

If you would like to discuss how we can help you resolve the financial issues that need to be discussed as part of your divorce you can email us at hello@familymandm.co.uk or you can book a free call with us by going to the BOOK NOW tab on the homepage of our website.

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