Financial Dispute Resolution (FDR) in divorce or dissolution
Financial Dispute Resolution (FDR) in divorce or dissolution: A complete guide for clients
Sorting out finances after a separation can feel overwhelming, especially when you are already dealing with the emotional strain of divorce or dissolution of a civil partnership. Moreover, the terms used - terms like ‘financial remedy’, ‘disclosure’, ‘FDR’ and ‘financial dispute resolution appointment’ – will likely make this area of family law seem highly technical.
It is true that the process has rules and stages that can feel unfamiliar. However, it is absolutely essential that every divorcing couple understands the basics of Financial Dispute Resolution (FDR). Even a simple grasp of how it works can make a significant difference to achieving the fairest possible financial outcome. Why? Because the FDR is not just another court date. It is the single most important opportunity in the financial settlement process required to reach a practical, cost-effective and mutually acceptable agreement.
It is the moment when both sides, with the help of a judge’s guidance, can step away from conflict and toward closure.
Our specialist family lawyers guide clients through the FDR process every day. We have used this experience to put together this explainer in which we’ll break down what the FDR involves, why it is crucial you understand it and how we can support you through the process so you get the strongest possible result.
What is Financial Dispute Resolution (FDR)?
Financial Dispute Resolution is a key stage within the financial settlement process in divorce and civil partnership dissolution proceedings in England and Wales.
It is a court hearing focused entirely on negotiations and settlement. However, unlike a final hearing, the judge at an FDR cannot impose an order but they can make an order by consent should the parties reach an agreement that the judge is willing to endorse.
What the judge at an FDR does:
- Look at both parties’ financial disclosure
- Consider each side’s proposals for settlement and concerns
- Give an experienced indication of what outcome they believe a final hearing is likely to produce
This indication is incredibly valuable because it provides a reality-check for both sides. Most couples are able to reach agreement based on that guidance. This means the case can be resolved on the day without the cost and anxiety of continuing to a final hearing.
How does FDR provide a safe space for negotiation?
Many clients are surprised to learn that the FDR is actually designed to be a safe space for negotiation. The law encourages honest, open discussion by making the whole process ‘without prejudice’. In practice, this means that nothing said at the FDR can be shown to the judge who deals with the final hearing, that offers made cannot later be used against you and that you can negotiate freely without fear of weakening your position if settlement is not reached.
The recent decision on BC v BC [2025] EWFC 236 highlighted the importance of this without prejudice protection.
The court confirmed that the integrity of the FDR depends on parties being able to negotiate confidently, without worrying that discussions or concessions will later be exposed. The message from the family court was clear. The FDR must remain an open, solution-focused space, not a legal battleground.
What happens at an FDR?
To help demystify the process, here is what typically happens on the day:
- Both parties and their lawyers attend court in person or remotely.
- Negotiations begin, usually with the support and guidance of the legal teams.
- The judge reviews all documents and listens to short submissions from both sides.
- The judge then gives their indication, a realistic view of what outcome a final hearing might produce.
- Further negotiations take place based on that indication.
From there, if an agreement is reached, a final order can be drafted and approved the same day. However, if settlement is not reached, the case is listed for a final contested hearing. This cannot be heard by the same Judge that heard the FDR and gave their indication as to likely settlement.
It is important to note that because of the ‘without prejudice’ principle, nothing can be discussed at the FDR that could undermine your position later.
Why can FDR often provide the best chance to settle?
Clients often ask if holding out for a final hearing might secure them a better result.
In reality, this is rarely the case; the Financial Dispute Resolution hearing offers major advantages that a trial simply cannot. It is far less expensive. It allows both parties to retain control over the outcome rather than handing decisions to the court. It also creates space for solutions that suit the needs of the family rather than just the minimum a judge would be required to impose.
Although there are situations where a final hearing is unavoidable, a high percentage of separating couples achieve a better outcome by settling at the FDR stage. Doing so brings clarity and closure sooner and avoids the stress and unpredictability of a full trial. In many cases it also allows everyone involved to move forward both emotionally and financially with the security of having a fair and practical agreement in place.
How to get the best result from an FDR
The most successful outcomes require good professional advice, thorough preparation and a clear strategy. In order to achieve this combination, we would suggest:
- You ensure all financial disclosure is complete and accurate.
- You are and remain realistic about likely outcomes and legal principles.
- You remained focussed on solutions, not ‘winning’.
- You remain focussed on your and your former partner’s future needs, not past grievances.
Most of all, you must take the advice your lawyer gives you as the judge’s indication is often very close to the final result and they will be able to use their experience to interpret this indication.
How can we support you through the FDR process?
We understand that the FDR can feel daunting and confusing. Our role is to support you at every stage.
We’ll take the time to help you understand your financial needs and entitlements. We’ll work with you to prepare clear and persuasive proposals for settlement. Then, on the day we will negotiate firmly but realistically on your behalf to secure the fairest outcome and once the agreement is reached, we’ll make sure it is converted into a binding court order so that your settlement is both final and enforceable.
Most of all, we’ll ensure your divorce or dissolution concludes with you having not only financial clarity but also emotional certainty so you and your former partner can move forward to the next stage of your lives with confidence and stability.
If you are approaching an FDR or need guidance on the financial side of divorce or dissolution, we are here to help however straightforward or complex your situation. Contact us below to arrange an initial free consultation, or call us on 0114 266 6660
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