When a marriage is at an end and assets are £500,000 or less (excluding pensions), it is important to reduce divorce costs wherever possible. Spending too much on legal fees can significantly impact each person’s ability to secure suitable housing and meet essential living costs. Understanding the most cost-effective approaches to reaching a financial settlement can make a substantial difference to your future financial stability.
If a financial resolution case is progressed through the court, then fees can be anything from £7,000-£50,000 exclusive of VAT, each. On any cost benefit analysis, even at the lower end of fees, this will significantly impact the money available for each person going forward on an asset base of £500,000 or less, excluding pension fund values. It can make the difference between a house being affordable or not affordable.
The cost effective options in terms of legal fees will often involve the use of Resolution Together, Mediation, or, cooperating together in one version or another of Round Table work. It can be confusing to understand the differences.
Resolution Together
The couple instruct the same solicitor to work for both of them to reach a reasonable outcome. The solicitor needs the additional qualification to work in a Resolution Together agreement with the couple. The solicitor can provide legal advice to both parties at the same time but is trained to do so in a way that is fair and constructive to avoid being divisive. With any solutions reached, the same solicitor can draft any documentation required, such as a court order, to bind the couple to the agreement reached. The couple are only instructing one solicitor to do all of the work and it tends to be a much faster process than the court process – 2 – 6 months as opposed to 12 – 24 months. Both of these factors make the use of Resolution Together much more cost effective.
Mediation
The couple instruct the mediator jointly. The mediator is involved as a neutral facilitator and cannot give specific legal advice to one party or the other. The mediator has had specific training to work as a mediator to assist the parties to reach solutions that are good enough as outcomes for each of them. The mediator provides outcome documents which can then be turned into binding documents, such as a court order, but often by a separate solicitor (or solicitors if each party is using a solicitor at that stage) rather than the mediator. Where a mediation is successful, the outcomes can be achieved, commonly, within 3 – 6 sessions (normally lasting 1 – 2 hours) which often translates into a timeline of 2 – 6 months. The cost of the mediator is divided between the parties which again means that Mediation can be both swift and cost effective. The paperwork to start mediation is sometimes easier for the couple to work through and understand than the paperwork at the onset of Resolution Together, but not everybody finds this and for some, the ability to be given legal advice by the same solicitor is more helpful than working with a neutral mediator who cannot give specific legal advice to one party or the other.
Round Table
Unlike Resolution Together or Mediation, working in a Round Table style does not come with pre-prescribed rules or paperwork. Sensible rules are chosen to provide a framework in which to operate, depending on the needs of the couple. Round Table can involve one solicitor acting for one person with the other party not choosing to use a solicitor, or, instead taking background advice from time to time to protect his or her position within the negotiations. Alternatively, each of the couple can instruct solicitors and the solicitors either have meetings involving the couple, or, have meetings without the couple, if this is helpful and appropriate. Using the Round Table approach works well where one or both of the couple want to work cooperatively, but also want the safety net of a solicitor. This may be because the solicitor is looking out specifically for that party’s interests as well as presenting the best possible case, if confidence or anxiety to do so is an issue. Whilst the cost of the solicitor is not shared, unless agreed, the process tends to be much quicker and therefore far more cost effective, because the meetings cut straight to the heart of the issues and can move the pace on, as fast as is appropriate. There is no required training for a solicitor to undertake Round Table work but an experienced solicitor using this approach will often have an additional qualification such as Resolution Together, Mediation, or Collaborative training.
All of the above approaches are voluntary. Neither party can be required to work together in any of these ways unless both consent to do so. Either party can choose to stop working within any of the approaches, if the process is not working for him or her. Where a relationship has broken down, it is often possible to focus on the need to work together to use a process that is controlled by the couple and where the outcomes are achieved by what is important to the couple. If some degree of pragmatism is possible, this effectively outweighs the fact that the couple do not want to continue in the relationship and may have some degree of turbulent emotions because of that.
How Prettys’ Family Solicitors can help
Our family law team advises clients on no-fault divorce and is highly experienced in a wide range of dispute resolution methods, including mediation, round-table meetings and collaborative divorce. We help clients choose the approach best suited to their circumstances and guide them through the process with clarity and sensitivity.
If you would like advice on your options following separation, you can contact Georgie Hall in confidence. For more information on the services our firm offers you click here to find out more.