27 March 2025
The settling of financial disputes in divorce has changed. From April 2024, courts made it clear: mediation and other non-court dispute resolution (NCDR) methods should come first. Now in place for a full year, these rules mean couples must seriously consider alternatives before heading to court, or risk delays and even cost penalties. With the introduction of Form FM5, judges expect proof that mediation has been attempted or if not, that there is a solid reason why it hasn’t. If you’re divorcing or separating, understanding these changes could save you time, stress and money. What are the key changes to be aware of? 1. Expanded definition of NCDR: this term now encompasses various methods beyond traditional mediation, including arbitration, neutral evaluation by a third party and collaborative law. This broader definition allows parties to choose the most suitable approach for their specific circumstances 2. Mandatory consideration of NCDR: parties are now required to actively consider NCDR options before initiating court proceedings. This pre-application protocol involves attending a Mediation Information and Assessment Meeting (MIAM) , where the benefits of different NCDR methods are fully explained. They must also exchange financial information before filing an application, ensuring transparency and reducing unnecessary court involvement. Judges will expect full compliance with this protocol 3. Introduction of Form FM5: at least seven days before the first court hearing, parties must submit Form FM5, detailing their engagement with NCDR. This form requires explanations for not pursuing NCDR, ensuring that parties have thoughtfully considered alternatives to litigation 4. Court's authority to adjourn for NCDR: courts now have the power to adjourn proceedings to encourage parties to engage in NCDR, even without mutual consent. This measure emphasises the judiciary's support for resolving disputes outside the courtroom 5. Cost implications for non-compliance: failure to engage in NCDR without a valid reason can lead to adverse cost orders. This serves as a deterrent against unnecessary litigation and promotes the use of alternative dispute resolution methods What are the benefits of embracing NCDR? ● Cost-effective: NCDR methods, such as mediation, are generally more affordable than traditional court proceedings, reducing financial strain on parties ● Time-saving: resolving disputes through NCDR can be quicker, allowing parties to move forward without prolonged legal battles ● Preservation of relationships: NCDR fosters a collaborative environment, which can be particularly beneficial in cases involving children, helping to maintain amicable relationships post-dispute ● Flexibility: parties have more control over the process and outcomes, tailoring resolutions to their unique needs and circumstances Gibson Young's commitment to NCDR At Gibson Young Solicitors LLP, we recognise the importance of these reforms and are dedicated to assisting our clients in navigating the complexities of family disputes, without unnecessary conflict. Where possible, we encourage resolving disputes amicably and outside of court, whether achieved through mediation, arbitration or other alternative dispute resolution methods. Our team provides clear legal guidance, ensuring you understand your options and are fully prepared for any non-court resolution process. We assist with financial settlements, arrangements for children and international divorce, always aiming for solutions that protect your interests while considering the needs of the wider family. As members of Resolution, we are dedicated to a constructive, non-confrontational approach, working towards fair outcomes with minimal distress. If you need expert advice on your family law matter, contact us today for a free initial consultation.