High Net Worth divorces are rarely conducted in the courtroom, and resolution is primarily achieved through Non-Court Dispute Resolution (NCDR) including attendance at a pFDR hearing.

A private FDR hearing (pFDR) mirrors the court-based FDR hearing but is conducted privately, providing numerous benefits to the parties. Private FDRs have grown in popularity over recent years as an alternative to a court-based litigation.

Together, the parties appoint a private judge, typically an experienced family law barrister or retired judge. As with the court-based FDR, both parties will be represented by barristers who prepare written position statements and set out your case orally in submissions. When the private FDR judge has considered the positions of both parties, they deliver an indication as to the likely outcome of the case should it proceed to a final hearing. The indication is not binding but is often a magnetic and helpful mechanism to encourage active negotiations and settlements.

These hearings are not subject to the court’s availability and take place in a neutral setting (often a barrister’s chambers). A pFDR takes place for a full day (or occasionally over 2 full days in the issues are particularly complex), with regular access to the pFDR Judge who can be requested throughout the day to provide additional guidance, clarity and steer to assist the parties in resolving matters.

Benefits of the Private FDR process:

(i) Confidentiality: pFDRs are conducted on a “without prejudice” basis, meaning discussions and negotiations are confidential and cannot be used in future court proceedings. This facilitates open and honest communication between the parties, encouraging a more effective negotiation process.

(ii) Control: parties can choose a private judge who specialises in financial disputes, ensuring that the individual presiding over the case has the necessary expertise and experience. This can lead to more informed and relevant guidance during negotiations.

(iii) Flexibility: there is greater flexibility in a settlement which is reached by consent. At a final hearing a judge is limited in what they can order, leading to more rigid outcomes. A negotiated agreement via a pFDR allows for creativity and flexibility in the division of assets/ timing and structures.

(iv) Scheduling: unlike court-based FDRs, the scheduling of which can be subject to long waiting times, private FDRs can be scheduled at a mutually convenient time for both parties. This allows for a swifter resolution of disputes, reducing emotional and financial strain associated with lengthy litigation.

(v) Time: the privately appointed judge will be provided the papers in advance and will read into the matter carefully. This benefit and time is often not afforded to court-based judges. A private judge will often provide a clear and comprehensive written indication to guide you through the next stages of negotiation and will be present and available for the entire day, to assist in negotiations and provide any further indications or guidance as needed.

(vi) Reduced costs: whilst there is a fee for instructing a private judge, the overall costs of this procedure are often lower than those associated with lengthy court proceedings. By resolving matters in a more streamlined fashion, parties inevitably save on legal fees.

(vii) Increased likelihood of settlement: the combination of confidentiality, expert guidance and a supportive environment increases the chances of reaching a settlement. The private judge’s indications can help clarify the likely outcomes if the case were to proceed to court, encouraging parties to reach a consensus.

(viii) Less adversarial: pFDRs have the benefit of being less adversarial than court-based litigation due to their collaborate nature.