Introduced to reduce time and costs in 1996
In England, a significant method for settlement of financial matters in divorce cases is through a hearing process called Financial Dispute Resolution.
The Financial Dispute Resolution (FDR) hearing is a judge-led meeting held for the purpose of discussion and negotiation over financial issues on divorce. It was introduced as part of an experimental rule change on a pilot scheme basis in 1996, which overhauled the procedure in ancillary (financial) relief cases with the distinct aim of reducing delay, facilitating settlement and limiting costs. Over the last 18 years it has undoubtedly been a success in terms of speeding up applications and ensuring as far as possible that cases are settled in the relatively early stages.
The old ancillary relief procedure often involved delay and huge costs. Cases could take years to be concluded, rather than months. There was no court-imposed timetable. The Family Proceedings Rules 1999 ensure that, if agreement on financial issues is not easily reached early on in a case, the court has a quick and cost effective procedure to deal with the assets on divorce and help keep legal fees in check. This is the procedure employed in the great majority of cases.
The procedure under the Family Proceedings Rule 1991 (FPR 1991) follows three stages, with each stage culminating in a court hearing:
- Stage 1 From filing an ancillary relief application until the end of the first appointment (or FDR hearing if the parties agree to convert the first appointment to an FDR).
- Stage 2 From the end the first appointment until the end of the FDR hearing.
- Stage 3 From the end of the FDR hearing until the final hearing.