Mediation and non-court dispute resolution methods are increasingly being used in aspects of family law. This approach can seem less confrontational, and allow parties to devise more customised solutions that better fit their family’s needs. In some cases, mediation can also offer a more cost-effective and expedient way to resolve disputes. According to government statistics from June 2024, mediation outcomes have increased by 5% year on year, with 59% of these cases successfully reaching an agreement.
Preparing for financial disclosure in mediation
Engaging in mediation for financial remedy proceedings, often a key concern of divorce or separation, necessitates a structured and detailed approach. This process can be stressful and, sometimes, overwhelming. To maximise the effectiveness of mediation, it is crucial to have a clear understanding of your financial situation and future needs.
The initial step is to identify the necessary documents you will require, which can be categorised into the following:
- Income: recent pay slips, latest P60, recent tax returns if self-employed, and details of any benefits.
- Assets: including bank statements (current, savings, and other accounts) for the last 12 months, investment account statements, property valuations and mortgage statements, vehicle ownership and valuation (resale price), pension statements ideally including cash equivalent transfer value (CETV), and business accounts for business owners.
- Debts and liabilities: credit card statements, loan agreements (personal, car, student loans), mortgage statements, details of any other outstanding debt.
- Needs: an income needs schedule (this can take different formats, but the easiest way to think of it is as an excel spreadsheet, setting out various types of expenditure).
Most mediators will discuss with the parties the level of financial disclosure required. Some may have a specific format, while others might request the completion of a Form E (a detailed financial statement). Creating a checklist can help ensure all necessary documents are gathered.
Legal advice
It is advisable to consult a solicitor before engaging in mediation. Mediation can take some of the sting out of separation and divorce, but obtaining independent legal advice before finalising any agreement following mediation is crucial. Family solicitors often provide advice between mediation sessions, to allow clients to be fully prepared.
In certain cases, involving allegations of domestic abuse, mediation may still be appropriate if safeguards can be put in place to ensure both parties feel safe, comfortable to proceed with mediation and feel there is no or little power imbalance, which would ultimately allow them to negotiate the outcome of the financial settlement.
How to prepare for mediation
Equally important are the soft skills necessary for effective mediation. Chloe O., a CDC certified divorce coach has developed a five-step approach to help her clients prepare for mediation:
- Shifting mindset: View divorce as a negotiation requiring compromise, not a battle to win. While conflict is inevitable, it can be managed constructively.
- Defining success: Clearly outline your goals and priorities to work towards arrangements that align with your envisioned future.
- Gathering facts: Collect and organize all necessary financial documents ahead of negotiations. This includes creating a budget and obtaining asset valuations.
- Learning how to negotiate strategically: Employ interest-based negotiation techniques to focus on underlying interests and generate multiple options. Managing emotions to stay calm and professional is equally important.
- Communicating effectively: Strive to be clear and concise, avoiding inflammatory language. Positive body language and tone will help maintain an open and constructive conversation.
Thorough preparation of your financial position, together with effective communication and negotiation strategies, can help you navigate the mediation process to work towards a fair and agreeable resolution, without fireworks.
Contact the Peacock & Co’s Family team for more information on specialist mediation and how we can help support you with all aspects of separation, divorce and child arrangements.