Finance and Property Mediation

When couples separate, financial discussions often involve much more than maintenance payments. Finance and property mediation can help separating couples work through money, property, pensions, debts, savings and future financial arrangements in a structured way.

Mediation is designed to help people reach their own agreement with the assistance of an impartial mediator. It is not the same as legal advice, and the mediator does not take sides or impose a decision.

What Financial Issues Can Mediation Cover?

Finance and property mediation can cover most practical financial issues arising from separation, divorce or civil partnership dissolution. This may include the family home, mortgages, savings, pensions, debts, loans, investments, shares, businesses, vehicles, household contents, income, maintenance and child support.

The aim is to help both people understand the full financial picture before making decisions that could affect their future security.

Financial Disclosure

Before meaningful financial discussions can take place, both people usually need to provide full and honest financial disclosure. This means setting out assets, debts, income, outgoings and future financial needs.

Disclosure may include bank statements, mortgage statements, pension valuations, property valuations, payslips, tax returns, business accounts, loan agreements, credit card statements and details of savings or investments.

Form E and Mediation

Form E is the detailed financial statement used in court financial remedy proceedings. Some mediators may use Form E, or a similar financial disclosure document, to help structure the information needed for mediation.

Even where court proceedings have not started, using a detailed disclosure format can help ensure that both people understand the financial position before proposals are discussed.

The Family Home

The family home is often the most significant asset and may be the most difficult issue to resolve. Mediation can help couples consider whether the property should be sold, transferred, retained for a period, or otherwise dealt with.

Issues may include who will live in the property, who will pay the mortgage, whether one person can buy out the other, how sale proceeds should be divided, what happens if the value rises or falls, and how children's housing needs will be met.

Mortgages and Borrowing

Where both people are named on the mortgage, separation can create practical problems. A person who no longer lives in the property may remain legally responsible for the mortgage and may find it harder to obtain a new mortgage elsewhere.

Before agreeing that one person will keep the home, it is important to check whether the mortgage lender will agree to release the other person or whether a remortgage is affordable.

Pensions

Pensions can be among the largest assets in a relationship, sometimes worth as much as, or more than, the family home. They should not be overlooked.

Mediation can help identify whether pension sharing, pension offsetting or another arrangement should be explored. Specialist pension advice may be needed, particularly where there are final-salary pensions, public-sector pensions, large pension pots, or retirement-income issues.

Savings, Investments and Debts

Mediation can also consider savings accounts, ISAs, shares, investments, personal loans, credit cards, overdrafts, family loans and other liabilities.

It is important to identify whose name each account or debt is in, whether the debt was used for joint or personal purposes, and how future responsibility should be handled.

Maintenance and Child Support

Financial mediation can include discussions about spousal maintenance, child maintenance and day-to-day financial support. Child maintenance is often calculated using the Child Maintenance Service formula, although parents may agree practical arrangements between themselves where appropriate.

Spousal maintenance depends on the financial circumstances, needs and resources of both parties. It is separate from child maintenance and may require legal advice.

Business Interests

If one or both people own a business, mediation may need to address company shares, partnership interests, director loans, business income, retained profits, and valuations.

Business assets can be complex. Accountancy, valuation and legal advice may be needed before proposals are agreed.

How Many Mediation Sessions Are Needed?

The number of sessions depends on the complexity of the finances and the level of agreement between the parties. Some couples may resolve matters in a few sessions. More complex cases may require additional meetings and input from solicitors, pension experts, mortgage advisers or accountants.

Mediation works best when both people are willing to disclose, listen to each other, and consider realistic options.

Memorandum of Understanding

If proposals are reached in mediation, the mediator may prepare a Memorandum of Understanding. This records the proposals discussed and the broad agreement reached.

The Memorandum of Understanding is not usually legally binding. It is normally taken to solicitors so that formal legal documents can be prepared.

Open Financial Statement

The mediator may also prepare an Open Financial Statement. This records the financial information disclosed by both people during mediation.

Unlike without prejudice discussions about settlement, the Open Financial Statement may usually be shown to solicitors and the court because it records factual financial disclosure.

Making an Agreement Legally Binding

An agreement reached in mediation is not legally binding on its own. For divorcing couples or civil partners, the usual route is to ask solicitors to draft a financial consent order and submit it to the court for approval.

Until a court-approved consent order is made, either person may still be able to make financial claims, even if an informal agreement has been reached.

MIAMs and Court Applications

Before making many family court applications, a person may need to attend a Mediation Information and Assessment Meeting (MIAM), unless an exemption applies.

The MIAM explains what mediation is, whether it may be suitable, and whether another form of non-court dispute resolution may help. Mediation may not be suitable where there is domestic abuse, serious safeguarding concern, intimidation, urgency or a major imbalance of power.

Family Mediation Voucher Scheme

The Family Mediation Voucher Scheme may provide a contribution of up to £500 towards mediation costs in eligible cases. The scheme is intended to help separating families resolve disputes outside court where mediation is suitable.

Eligibility should be checked with an accredited mediator, as the scheme depends on the type of dispute and current funding rules.

Why Take Legal Advice Early?

It is sensible to take legal advice before or during mediation, not only at the end. A solicitor can explain likely court outcomes, identify issues that may have been missed, and advise whether proposals are fair and workable.

If legal advice is left until after mediation has finished, one person may discover that the proposed agreement is unsuitable, incomplete or unlikely to be approved by the court, which can mean further negotiation is needed.

When Mediation May Not Be Suitable

Mediation may not be suitable where there has been domestic abuse, coercive control, threats, serious non-disclosure, hidden assets, addiction, severe mental health issues, safeguarding concerns or an urgent need for court protection.

In these cases, legal advice should be sought on whether court proceedings, protective orders, or another process would be safer or more appropriate.

When Legal Advice May Be Needed

Legal advice may be needed before mediation, during mediation or after proposals have been reached. This is especially important where there is property, pensions, business assets, trusts, inheritance, debts, unequal contributions, children's housing needs, maintenance or suspected non-disclosure.

A family solicitor can advise on financial disclosure, likely court outcomes, consent orders, pension sharing, mortgage issues, child maintenance, spousal maintenance, tax, property transfers and whether a proposed settlement is fair.

Current Position

Financial and property mediation can help separating couples resolve money and property issues without contested court proceedings. It can cover the home, mortgage, pensions, savings, debts, income, maintenance and wider financial arrangements.

Any agreement reached in mediation should usually be reviewed by solicitors and converted into a legally binding consent order where divorce or civil partnership dissolution financial claims need to be resolved.

Disclaimer

Solicitors.com is not a firm of solicitors and does not provide legal advice, mediation services or financial advice. The information on this page is for general guidance only. It should not be relied upon as a substitute for advice from a regulated solicitor, accredited mediator, mortgage adviser, pension expert or financial adviser. Family law, mediation rules and court procedure can change, and how the law applies will depend on the facts of each case.

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