Information for Mediation on Financial Arrangements
Why do I have to fill in the Family Matters Financial Disclosure Form?
Family Matters Mediation has developed its own version of the standard form which solicitors and the court use (Form E) to gather a shared picture of all your financial information. It is a standard form and not all the questions may be relevant to you. It will help you collect all your financial information for disclosure.
What is disclosure?
This is the process of sharing documents relating to everything you and the other person own (for example your house, bank accounts and pension), any debts you have (for example credit cards or loans) and your income and outgoings.
Why do I need to do it?
It is important that everyone has a full picture of all your financial circumstances before agreeing the arrangements for the future.
Your solicitor and the court also must be certain that there is complete picture of your financial arrangements and before a judge is able to approve any agreed arrangements.
Why do we need to share financial information when we both know what there is already?
Both people and the mediator need to be clear about what you each own and what you own together, any debts you each have or have together and the income you each receive before you make decisions about your separate financial futures.
There also may have been changes in each persons’ financial situation since the separation took place. As one mediator commented ‘you need to know what you are saying ‘no’ to’.
How far back does disclosure need to be?
Usually from the time that you separated or from the time that you decided your marriage/civil partnership was over. Family Matters’ form asks for information for the last 6 months. This is a starting point. The Form E asks for information for the last 12 months.
Face to Face Mediations: Why do I need to bring in three copies of everything?
So that everyone has the same documents, we ask you to bring one copy for yourself, one copy to share with the other person in the mediation and one copy for your mediator. As many of our mediators work in outreach offices in other towns, not in Doncaster, they did not have access to photocopiers; it speeds up the process and saves costs for you if disclosure can be shared at a mediation meeting. Family Matters will charge £1.00 per sheet for photocopying .
Online Mediations: How do I share my documents?
We ask that you email to the mediator allocated to your case a completed copy of the financial questionnaire [2nd step document] before your first mediation meeting.
Your bank statements, credit card statements and other evidence of your financial circumstances should be screenshot or scanned and emailed to your mediator [these documents are outlined in the 1st step document]. The mediator will speak to you both in your meeting as to how the documents are shared with you both.
The mediator is not responsible for redacting or blocking out information you want to keep confidential.
**When emailing documents be aware of your Data Protection obligations under GDPR.
We do not want to share pensions do I have to bring the valuation?
Yes. To be able to make informed decisions in mediation both people must have all the information about the joint financial situation, including pensions. This means information about your financial situation including pensions and the other person’s financial situation including pensions. Your solicitor will not be able to give you accurate advice unless they have all the information. The court will not make an order without all the information about your financial situation.
What is a CEV?
Pensions are different from other kinds of savings and investments. The law relating to pensions, how they are valued and how they are dealt with on divorce is complex. The starting point is to request your pension company to provide a Cash Equivalent Value. It may take some time for this information to be provided so it is a good idea to request it early.
What about my State Pension?
You can request a state pension forecast by completing Form BR19 and additional state pension/protected payment forecast by completing Form BR20, available to download on the government website.
https://www.gov.uk/government/publications/application-for-a-state-pension-statement
My Pension is in payment do we have to talk about it?
Yes. Even if a pension is in payment, you will be required to provide the document giving the cash benefit value of the pension.
Can our mediator tell us whether our settlement proposal is “fair”?
No. As mediators we are impartial and give either person advice as that means we will be taking one persons’ side and we are not able to do that. In mediation you both retain control of the decisions made and options reached. We will provide information to you both about the factors which the court takes into consideration when making or approving a fair financial arrangements order. Your solicitor will provide specific advice particular to your circumstances.
What would the court look at when deciding what is fair?
in If you are divorcing the most relevant guidelines are known as the ‘Section 25 Criteria’ and are set out in Section 25 of the Matrimonial Causes Act 1973 (Section 25). In brief:
- The circumstances of your case
- The welfare of your children
- No one factor to be more important than the other
- Financial Resources you each have available. This means
- your income and earning capacity
- your earning potential
- any property owned in both names or one person’s name
- your financial expectations such as an inheritance
- Your financial needs, obligations and responsibilities
- Your standard of living during the marriage
- Your ages
- How long your marriage lasted
- Whether either of you has a disability
- Contributions you have each made
- Your Conduct during the marriage – ‘extreme’ behaviour only
- Value of any benefit lost by either of you as a result of the divorce.
- If you were not married the court application would be different and different rules and expectations would apply
Why do I need a Court Order?
The arrangements you reach in mediation are not legally binding, although they are evidence of your agreement in the process. A Financial Arrangements Court Order in your divorce proceedings makes the arrangements legally binding, so a financial claim cannot be reopened in the future. If a pension is to be shared, there must be a court order for that to happen.
What is a short marriage?
There is no legal definition of “a short marriage”. Generally, a marriage of less than five years where there are no children may be considered a short marriage, depending on any other relevant circumstances.
Is it relevant that:
- We lived together for a long time but were only married for a short time?
- I live with my new partner .
- I have a child with my new partner .
These are all potentially relevant factors, and you should talk about them within your mediation process.
How long will I have to pay maintenance for the children and my ex -wife?
There is a difference between financial support for children and financial support for your former partner. Both can be talked about during your mediation.
I have a company with my mother and father. Why do I need to value my company?
As with any other asset or liability, it is important to know the value of your business so that it can be considered in mediation when you decide how finances should be shared. That does not necessarily mean that the other person in the mediation will be able to claim half of your business. It is still important to have the full picture of the financial situation and make sure nothing is left out that could be raised at a later date.
We have agreed that my company will not be included in the discussion, do I still need a valuation?
Yes. Within the mediation process you can both agree how best to consider your business and how it should be valued.
I used the proceeds of my house to buy our house together; will that be considered?
It depends how the house is legally owned between the two of you and how both of you (and any children) may be rehoused following your separation.
I was left some money in a relative’s will after the separation; is it included in the discussions?
This information should be shared to give a full picture of your financial circumstances. Its relevance will be considered at your mediation depending on other assets available.
USEFUL INFORMATION ABOUT FINANCIAL ARRANGEMENTS ON DIVORCE CAN BE FOUND HERE:
https://www.familymediationcouncil.org.uk/
www.judiciary.uk/wp-content/uploads/2016/04/fjc-financial-needs-april-16-final.pdf
www.advicenow.org.uk/guides/sorting-out-your-finances-when-you-get-divorced
