Posted 25 Nov, 2024

Reaching a financial agreement during a divorce is rarely straightforward. Even when both parties initially agree to keep things amicable, disagreements over property, pensions, savings, and maintenance can derail negotiations. If you and your ex-spouse cannot agree on how to divide assets, what happens next?

In England and Wales, there are several routes to resolving financial disputes, ranging from alternative dispute resolution (ADR) methods to court intervention. Understanding your options can help you achieve a fair settlement while avoiding unnecessary stress and costs.

What Are Your Options If Negotiations Fail?

When negotiations stall, your next steps depend on the level of disagreement and the complexity of your financial situation. The main options are:

Mediation – A Collaborative Approach

Mediation is often the first step when financial discussions break down. A neutral third-party mediator helps both spouses communicate and explore possible compromises. While mediators cannot give legal advice, they can help you reach an agreement that works for both parties.

✔ Pros: Faster and cheaper than court; encourages cooperation.
✖ Cons: Not legally binding unless turned into a consent order.

Arbitration – A Private Court Alternative

If mediation fails, arbitration offers a legally binding resolution without going to court. A trained arbitrator (often a senior lawyer or former judge) reviews both sides of the dispute and makes a final decision.

✔ Pros: More private than court; often quicker.
✖ Cons: The decision is legally binding, meaning you must follow it.

Solicitor Negotiation – Legal Guidance for Settlements

Your solicitor can negotiate directly with your ex-spouse’s legal representative. This is useful if emotions are running high or if there are complex assets involved (e.g. businesses, offshore accounts, pensions).

✔ Pros: Ensures legal protection; useful for high-value settlements.
✖ Cons: Can be costly if prolonged.

Court Proceedings – When All Else Fails

If all other methods fail, you can apply to the court for a Financial Order. This is a formal legal ruling on how assets should be divided. The court will consider factors such as:

  • The financial needs of both parties.
  • The welfare of any children involved.
  • The length of the marriage.
  • Each party’s income, pension, and earning potential.

A First Directions Appointment (FDA) will be scheduled, where the judge will assess whether further negotiations can take place. If no agreement is reached, a final Financial Dispute Resolution (FDR) hearing will be arranged, where a judge will encourage settlement before a final court order is issued.

✔ Pros: Legally binding; court ensures fairness.
✖ Cons: Time-consuming and expensive.

Which Option is Right for You?

Choosing the right approach depends on your circumstances:

If communication is still open → Mediation or solicitor-led negotiations may work.

If a binding decision is needed quickly → Arbitration could be the best choice.

If your ex is being uncooperative or hiding assets → Court intervention may be necessary.

Finalising the Agreement

Whichever method you choose, your financial settlement should be turned into a consent order. This ensures the agreement is legally binding and prevents future claims. Without a consent order, an ex-spouse could claim further financial support even years after the divorce.

Why You Should Seek Legal Advice

Financial disputes can be complex, and making the wrong decision can affect your future stability. A solicitor can help by:

✔ Ensuring you explore all ADR options before court.
✔ Drafting a legally binding consent order.
✔ Representing you in negotiations or court proceedings.

If financial negotiations have broken down, don’t panic - you still have options. Speak to a family law solicitor to understand the best course of action for your situation.