A discussion in relation to how your financial matters may be resolved either on separation or as part of a divorce process is, in my view, one of the most important negotiations you will have in your life. That is why it is important to get it right. Rushing into discussions when you are still in the midst of working through the emotions that follow the end of any significant relationship is not always beneficial and often not productive.
Slowing down the pace, being able to work rationally together, managing your emotions so that they do not impact your ability to think carefully is key to finding long term solutions that both of you feel able to commit to. I will help you firstly explore whether this is the right time to fully engage in a mediation process and if so, whether you may benefit from some additional emotional or practical support along the way. I will then help you explore your options as to how best to proceed. This is a key benefit to mediation in that the process can be tailored to your needs. It is not a streamlined process which pays no attention to your individual circumstances. We create a process and a plan together.
That plan will almost always involve an exchange of financial information. In order for you to be in a place to make the best, informed decisions, about how your financial matters may be resolved, you firstly need to understand what is in your family pot and what you each have individually. So, here are some options as to how you may wish to share your financial information in mediation:-
- Completing a financial statement known as a Form E and gathering together all of the required supporting financial information – this is a court form but it is used widely when looking at the financial position. In mediation we use this when we want a detailed exchange of information. The link to the form is here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1128798/Form_E_0123_save.pdf
I will usually offer a meeting before you each individually complete this to take a look at the form, answer any questions and set out a timeframe for you each to complete and send this to me so that I can mutually exchange it between you. You will therefore see each other’s form and supporting documentation as part of that exchange.
- Completing a financial statement known as a Form E without the supporting financial documentation – this is an option if you both feel you do not need to see each other’s supporting documentation. If, when you see the other persons form you need any accompanying documentation, this can be requested afterwards.
- Completing a financial statement known as a Form E but tailoring the accompanying supporting financial documentation to your circumstances – We will discuss at a preliminary meeting what information you each consider you will need and what you may decide is not necessary. For example, the Form E asks for 12 months bank statements for all bank accounts listed. You may decide that you only want to see 3 months or the accompanying statement to confirm the balance at the date of your statement. You may decide only one of you needs to provide some of the joint information, such as if one has access to the documentation in relation to a joint policy but the other does not. They can provide this as part of the exchange rather than both of you having to dig out this information.
- Completing a shortened version of financial information using a Statement of Information for a Consent Order D81 form – if the thought of using the Form E is daunting and you do not think it is necessary this form can be used to set out your financial information, without providing supporting financial documentation.
- Deciding not to use any form but exchanging some financial information to aid your discussions. For example, if you just want to explore financial support for your children, you may just want to exchange information regarding your income.
- If you have already exchanged financial information outside of mediation, either through solicitors or an alternative process, mediation can progress with an agreed schedule of assets summarising the exchange that has already taken place.
- Progressing without any form of financial information – it is possible for me to facilitate a general discussion without any form of financial information being shared where you can discuss your hopes for any financial resolution and put forward your thoughts for any financial outcome. I cannot in these circumstances help you by giving any legal parameters for any financial settlement without first understanding your financial position so this involves a general facilitative discussion only.
- You may also think of an alternative way which you would like to move forward which I am always happy to discuss with you both.
The key here is that you both need to decide jointly how you are going to move forward. From my experience, sharing the financial information is a helpful first step. It brings you into the process gently without having to come up with immediate answers when you may be unsure and overwhelmed.
By talking about your financial pot you can start to gain an understanding of each other’s financial circumstances. You can also start to focus your mind on what your financial future may look like. It also helps if you have a solicitor and want to take advice from that solicitor to help you with your financial negotiations. Most solicitors will want to be reassured that you have exchanged financial information and they will help you then explore in greater detail your options for resolution.
I often hear clients say ‘I just want someone to tell me what I am entitled to or what is a fair financial outcome.’ Often this is accompanied by frustration that they have not yet been able to get this information. Solicitors struggle, often without lengthy disclaimers, to be able to give detailed advice on financial outcomes without seeing the financial disclosure. I will, if you both want this, prepare an Open Financial Statement after you have exchanged your financial information which sets out clearly the financial information shared and your financial pot (the joint and individual position) and this can be provided to solicitors or just used by you when you are reflecting in between sessions and considering your financial options.
If you decide not to exchange any financial information, I will help you understand some of the common pitfalls of this (solicitors not being able to advise, you both not being fully informed of the full financial picture are just two examples). The main issue with this is that if you want your financial proposals to be incorporated into an order which is approved by the court, a Judge will want to be satisfied that your outcome is fair and this can only be carefully explored if you have made those decisions on an informed basis, knowing the full financial picture which really can only be achieved by exchanging some financial information between you.
I hope this is helpful with an overview of your options. These will always be discussed with you before mapping out the best route for your mediation to progress.
