Mediation – Conversations About Money
Family mediation can be a very useful tool in assisting you and your ex-partner with resolving any financial issues you may have upon separation. Mediation can help you to agree upon the division of your assets and liabilities in a way that is both time and cost effective and allows you both to retain control of the process as opposed to issuing a formal Court application for which the process can often be extremely financially and emotionally draining.
There are many benefits to resolving the finances associated with your relationship/marriage within the mediation process including but not limited to: –
- Discussions in relation to money can often be uncomfortable and ones that you wish to avoid. The mediation process encourages open and frank dialogue between you and your ex-partner so that you are both aware of each other’s positions and expectations and can work together towards a realistic settlement that you are both content with.
- It is arguably extremely difficult and certainly not advisable to make any decisions in relation to a financial settlement without having a clear understanding of both yours and your ex-partner’s financial circumstances. The mediation process allows you the opportunity to explore and understand the financial implications of any proposals that are put forward before you reach an agreement.
- At the outset of the mediation process, you and your ex-partner will exchange financial documentation so that you are both fully aware of the facts and figures before you start negotiating a settlement with the help and guidance from the mediator.
- Any discussions which take place within the mediation process are “Without Prejudice” which means they are confidential and in the event that you cannot reach an agreement, any proposal discussed or put forward by either party cannot then be relied upon outside the mediation process. The benefit of this is that it means the mediation forum is a safe space for both of you to speak freely and confidentially. However, all financial disclosure exchanged is open which means that you can show the documentation to your solicitors and seek legal advice in between the mediation sessions.
- In the event that you and your ex-partner reach an agreement, this will be documented in writing in documents known as a Memorandum of Understanding (MOU) which will set out the basis and terms of your agreement and an Open Financial Statement (OFS) which will set out your respective finances. These documents are not legally binding themselves however a solicitor can formalise them for you for example by way of a consent order if you are going through divorce proceedings.
For more information or to make a referral to our mediation service in Leeds or Harrogate please visit our mediation web page. Alternatively, contact us on 0113 322 9222 or mediation@consilialegal.co.uk