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Out-of-court dispute resolution vs court-led proceedings

Divorce can be one of life’s most difficult challenges and can be a complex, daunting process for everyone involved.

Not only must you navigate the breakdown of your relationship, but you also need to consider financial settlements, child arrangements and how to move forward with rebuilding your life post-divorce.

The divorce process can be exhausting, especially when understanding your assets and the impact of divorce or if you are divorcing a narcissist. Many people think the only way to go through a divorce is through going to court, however, Non-Court Dispute Resolution (NCDR) is sometimes a more effective alternative, especially for working professionals or private individuals.

Ward Hadaway’s specialist divorce solicitors can provide legal advice tailored to your personal situation and can advise on resolving disputes outside of court, and we offer out of hours appointments to suit professionals and private individuals.

Out-of-court dispute resolution

Out-of-court dispute resolution involves separating couples negotiating the terms of their separation – including finances, assets and child arrangements, if necessary – without going through the court process.

There are several NCDR methods which can be used to settle legal disputes outside of traditional court litigation, including mediation, arbitration, solicitor-led negotiations and collaborative law. These methods can help in achieving amicable divorce.

Mediation involves working with a neutral third-party mediator to help disputing parties identify, understand and resolve issues through communication, leading to a mutual agreement on how to move forward. The agreement reached during mediation is not legally binding, however, it can lead to a legally binding consent order thereafter. Hybrid mediation is a specific type of mediation, where divorce solicitors would attend mediation sessions with you.

During arbitration, a neutral third-party arbitrator hears the case of a couple, and, unlike mediation, issues a legally binding decision. The arbitrator will listen to both sides and review evidence in a hearing, and will then issue a final award, which has very limited grounds for appeal.

In a collaborative divorce, couples work with expertly trained divorce solicitors, known as collaborative lawyers, and other specialists if necessary – like a financial adviser or family consultant – to resolve issues. During this process, you and your former partner will meet individually with your separate divorce solicitors to talk about what to expect in collaborative meetings. Then you and your respective lawyers will meet together to reach agreements. During the collaborative process, you will sign an agreement that commits you to trying to resolve matters without going to court.

Lawyer-led negotiation involves parties instructing separate lawyers to advise you and negotiate on your behalf. Couples wishing to separate amicably can also consider our One Lawyer service launched to support amicable divorces, which involves separating couples jointly instructing one lawyer. In these cases, there is no need for contested, high-cost court hearings as you are approaching matters together.

Benefits of out-of-court dispute resolution

Out-of-court dispute resolution has numerous benefits compared with going through the court. These benefits include:

  • Faster, cheaper resolution: out-of-court dispute resolution methods are often faster, cheaper and less confrontational than traditional litigation, with out-of-court methods typically resolving financial and child-related issues in less than a year.
  • Preservation of relationships: especially useful for co-parenting relationships, NCDR methods focus on minimising conflict and maintaining communication, which can be useful if you are handling emotional burnout during a divorce.
  • More control over outcomes: couples can tailor agreements to their specific financial and family circumstances rather than adhering to standard court processes.
  • Confidentiality: Out-of-court divorce negotiations are private and confidential, which can help reduce stress during a divorce.

Limitations of out-of-court dispute resolution

As well as the list of benefits to the out-of-court divorce process, there are some limitations. For example, couples must be willing to cooperate and negotiate and it is not a suitable method for use in domestic abuse scenarios.

Agreements also require legal formalisation, which requires specialist divorce solicitors to make agreements legally binding.

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Court-led divorce

If couples cannot reach an agreement together outside of court, an application can be sent to court to resolve matters. This involves a formal legal process where a judge oversees matters and it follows a structured and mandatory timetable to ensure a fair final outcome.

The court plays an active role in managing, facilitating and imposing a fair settlement for couples. The process is transparent and structured, especially when one party refuses to engage, conceals assets or if disputes arise.

Court proceedings are used when divorcing couples are unable to reach a mutual agreement on finances, assets and children through NCDR methods. It is also used in dealing with high-conflict divorces or in cases of divorce and financial/domestic abuse.

This process is also used when complex assets are involved with private individuals, like complex business structures, significant pensions or international assets. A Private Financial Dispute Resolution (FDR) can offer a quicker and more cost-effective way to resolve these issues.

Benefits of court-led proceedings

A court-led divorce is especially advantageous in complex or high-conflict situations where agreements outside of court are not possible. The benefits of this process include:

  • Protective measures: designed to safeguard vulnerable parties, like victims of domestic abuse, court-led divorce prevents intimidation, harm and re-traumatisation during legal proceedings; under the Domestic Abuse Act 2021, victims are automatically eligible for these measures.
  • Structure: if negotiations have stalled or assets are complex, court-led divorce provides a structured approach with strict procedures and timetables to ensure a comprehensive resolution for both parties.
  • Legally binding decisions: a Judge will make a final legally binding decision, making it harder to reopen agreements in the future and providing certainty for both parties.

Limitations of court-led divorce

Whilst court-led divorce is useful in situations involving high-conflict scenarios, complex assets and paused negotiations, there are some limitations of this process.

Legal costs are often higher when court proceedings are involved. Pursuing matters through the court system also often results in longer timescales, meaning the divorce process often lasts longer than it would with NCDR methods.

Out-of-court divorce vs court-led divorce: which is right for you?

There is no ‘one size fits all’ approach when it comes to resolving matters. When considering which process may be right for your circumstances, you should first consider what the main issues are. For example, the division of assets on divorce may be the only issue to resolve, or you might have children matters to consider too. There may be safety concerns that would render out of court processes unsuitable. The nature of the relationship between parties and communication levels are also relevant. For working professionals or private individuals, the timescale must be considered to see if court proceedings will be appropriate for their lifestyle.

Obtaining legal advice from specialist divorce solicitors before making a decision on an approach is recommended, to support working towards an amicable divorce.

However, it is important to remember that both out-of-court and court-led approaches can be combined if necessary. For example, you can begin with mediation or another form of NCDR and if the process is unsuccessful, you can apply to court.

How Ward Hadaway’s divorce solicitors can support you

At Ward Hadaway, we understand that going through a divorce is difficult for anyone, but it can be made even harder and more stressful if complex assets are involved or if negotiations break down.

Our divorce solicitors are experts in supporting individuals and couples through the divorce process. We offer out of hours appointments for working professionals and private individuals who require later appointments to suit their lifestyle.

Contact us for a confidential chat today.

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    Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.

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