Finance Mediation Services for Families

Mediation  helps with all issues concerning family finances including money and property. This  is usually a cost effective way of reaching a detailed financial settlement on which you can then seek legal advice or complete your divorce

• What happens regarding the family home.
• The division of assets.
• How debts/liabilities will be dealt with.
• How all other finances will be split, such as pensions, savings and investments.
• Child support and who pays what  in the future if you have children

How will money and property be tackled in mediation?

This is the same procedure as using solicitors and/or going to court but mediation can be more effective as the financial information is openly discussed and you gain a full understanding of your finances

You will be asked to provide details of expected income and spending (as far as this can reasonably be predicted) and details of the value of your assets and any major debts . This means:

• Making a list of all the money you usually earn or receive over a given period of time (weekly, monthly, etc).
• Making a reasonable estimate of what you would expect to have to pay for in the future including housing when you live separately.
• Providing details of any property, savings, shares, insurance policies, pension valuations and other capital assets in which either of you have an interest.
• Identifying loans and debts for which either of you are liable.

Using this information, you will be helped to negotiate on such matters as:

The Family Home – who should live there, should it be sold and, if so, when and how should the money be divided? (In the case of a rented home, should the tenancy be changed or transferred?)

Maintenance and Child Support – how much should each contribute towards the living costs of the children. (and possibly of the adults)

 

Principles of financial and property mediation

Everyone such as mediators, lawyers and judges start from the principles of needs and fairness.

• Needs – the needs of any children  and the adults involved e.g. the need for each parent to have a home where the children can stay overnight
• Fairness- Any agreement has to be fair and balanced rather than one person getting everything and the other nothing. If there are no dependent children then 50/50 shares of joint assets is the usual starting point.

We would then also look with you at what is realistic and practical.

 

 

Financial Mediation services for families

This can involve any aspect of your financial situation –  what assets and debts you have ; child support, pensions etc.

It helps reduce stress and uncertainty about  your financial future  for most people –  and to  disentangle your joint finances and plan for as separate future

The mediator sees each person separately and helps  them to agree what settlement meets their needs and is fair. Both have to provide full financial information so that discussions are fair and well informed.

All financial  mediation is based on “full financial disclosure” which means you both have to be honest and share information about your finances.

How does financial mediation work in the UK?

In the UK financial  issues are dealt with differently in legal terms depending on whether you were married or not If you were legally married then each of your pensions, the house and any other assets would be seen as  part of any settlement

This is useful detailed  guidance from the  Family Justice Council

https://www.judiciary.uk/wp-content/uploads/2023/06/1.-Sorting-Out-Finances-on-Divorce-2024.final-for-publication.pdf

With regard to pensions  these can be a substantial asset and  there may be a big difference between the  future value of each of your pensions  .On a divorce, the family court has the power to make a “pension sharing order” to adjust pension savings between the partners if needed.

Pensions can be complex but this is useful guidance

https://www.advicenow.org.uk/guides/survival-guide-pensions-divorce

If you are not married  even if you have lived together for  a long time then you would have no right to share the other person’s pension  and both assets and liabilities would start from  in whose name they are  held.

Costs are kept as low as possible on a sliding scale based on your income. Please visit our costs page to understand more. 

Legal Aid can also be available for financial  mediation  if your are on benefits and the value of your property is not too high . These are complex calculations which will be done with you and the mediator. View our legal aid leaflet.

When to Choose Mediation for financial  Disputes?

As with most mediation best to approach a Mediation service early in any dispute between you before positions become fixed or either of you take decisions with financial consequences for the other. It is very difficult to alter financial aspects after a divorce.

 

The benefits of financial mediation?

Agreeing matters in mediation obviously saves you  having to spend a lot on legal fees which can be significant if you cannot agree and need to go to court. It is also usually quicker and you remain in control of any decisions rather than a judge having to decide

For many people it also ensures they have a full understanding of their finances whereas in the relationship one person may have taken the lead on this.

It also reduces stress and uncertainty if you can plan what happens next and timescales especially if you are still both living in the family home.

FAQs

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