Finances on Divorce – Winner takes all?

It’s sad to note the number of divorcing couples who still believe that they must battle in court over finances. The driving force is usually fear or anger:

Finances on Divorce Focus Mediation Blog

  • I need a solicitor or barrister who will roll their sleeves up and fight to secure me what’s fair.
  • I have been treated so badly I will take them to court and show them I won’t be walked over. I want them to be punished.
  • Mediation is for amicable couples. We can’t agree so mediation is pointless.
  • I can’t mediate – they will walk all over me. They are manipulative and will convince a mediator that they should receive far more than me.
  • The finances are too complicated for mediation – it’s got to go to court.

The reality is that they will invest tens of thousands of pounds in litigation that often involves huge delay and escalates conflict – destroying hope of a future co-parenting relationship. In a recently reported case, a Judge despaired that a wealthy couple with children had been involved since 2011 in litigation that had been “bitterly contested, highly acrimonious and extremely expensive”. He said the litigation had all but exhausted the parties’ liquid capital and he was left to focus on future income only as there were no longer assets to share.

A gamble that won’t pay off.

I saw a divorcing client recently regarding child arrangements as finances were being litigated at court. They’d already spent £75,000 each in legal fees and were only at first hearing. The marital assets were 1 million. Her solicitor said the costs would at least double by final hearing. So the assets in dispute would dwindle to £700,000 (or less). The starting point for sharing the original assets was 50/50 – so £500,000 each. Now the starting point would be £350,000 each. The client said she would have settled for £550,000 but her ex refused. Now if a court awarded her £550,000, she would receive 78.5% of the assets – a tall order. Pre-litigation, £550,000 had been 55% of the assets. The method employed by each to provide them with a share they felt was fair and met their needs, would cost them approximately 30% of their joint assets.

Why wasn’t court a last resort?

Why hadn’t they used Alternative Dispute Resolution (it’s cheaper, quicker and actually promotes improved communication); Mediation, collaborative law, MedArb, or Arbitration? The client was worried that her ex, an accomplished businessman, would ‘out manoeuvre’ her in mediation. Mediators are trained to bridge power imbalances and ensure everyone fully understands the assets and options available. Litigation was the least likely vehicle to provide a satisfactory outcome – they had each gambled on winning at court and the other losing. That was the only way the numbers would add up as there was no longer enough money in the pot. There was a flaw in the plan – the court looks for fairness and its objective is to meet the parties’ needs. There is seldom a winner and loser, just two dissatisfied people.

Finances resolved in just a day.

At Focus we offer family mediation sessions spread out over a period of weeks – solicitors can advise alongside the process so clients are supported.  We also specialise in a one day civil mediation model. It costs £1000 each and our most experienced dual trained mediators facilitate resolution of finances in a day. It works. Solicitors attend and advise clients throughout the day and proposals are later that day made binding. It saves countless thousands and many tears.  Surely that’s a much safer investment in meeting needs? Gambling at court means risking hard earned assets for a victory that will probably never be theirs.

Call us on 01908 231132 or Email: info@focus-mediation.co.uk for further information or to book a Mediation Information & Assessment Meeting (MIAM) (11 Locations – Milton Keynes, Bedford, Broxbourne, Hemel Hempstead, London, Northampton, Oxford, Potters Bar, St Albans, Harrow and Watford). Read more about family mediation (including our client testimonials) at  www.focus-mediation.co.uk 

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