Sorting Out Finances Using Mediation
Going through the divorce process, or separation, is one of the most stressful activities that you can possibly undertake. family mediation can help.
Relationships do not always work out as expected. Conflicts and misunderstanding sometimes arise. In some extreme circumstances, break ups become inevitable, however unfortunate. When a couple is breaking up, dividing up property and financial arrangements between them is unavoidable. The decisions to be made here are not always easy. Some of the issues that usually arise are around income, assets and liabilities, how to share the assets, liabilities and incomes, how to handle the debts jointly incurred, maintenance for the spouse and child support and so forth.
These questions mean that your financial situations need to be reviewed and solutions found. Different approaches of sorting out the finances may be used. A Mediation service is a starting point to gain useful information a separation agreement. This is where a neutral and independent party comes on board and aids the couple in this process. Sorting out finances using mediation is a process aimed at reaching an agreement on how the finances of the couple are to be shared between them. Sorting out finances using mediation is often advantageous since the mediator ensures neutrality and hence fairness. A mediator will work to find a fair and balanced solution for everyone.
What is financial mediation in separation? Financial mediation in separation is a process where a neutral family mediator helps separating couples or civil partners negotiate a financial agreement. This includes discussing the division of assets, financial support, and other family matters to reach a fair and legally binding agreement.
How does the financial mediation process work? The financial mediation process typically involves several steps:
1. Mediation Information and Assessment Meeting (MIAM): The process starts with a MIAM to provide mediation information and assess if mediation is suitable for the parties involved.
2. Documentation and Disclosure: Both parties must complete Form E and provide bank statements, pension valuations, and other financial documentation to ensure transparency.
3. First Mediation Meeting During this meeting, the mediator helps outline the financial issues and set goals for the mediation.
4. Mediation Sessions: Multiple sessions may be needed to discuss and negotiate the terms of the financial agreement, including the division of assets and financial support.
What is Form E and why is it important? Form E is a detailed financial statement that both parties must complete and exchange. It includes information about income, expenses, assets, and liabilities, ensuring transparency and helping the mediator understand each party’s financial situation.
Can legal aid be used for financial mediation? Yes, legal aid may be available for individuals on a low income to cover the costs of financial mediation. Eligibility depends on financial circumstances and other criteria. Speak to our mediators to learn more.
What is a consent order and why do I need one? A consent order is a legal document that makes the financial agreement reached during mediation legally binding. It outlines the terms of the agreement and is approved by a court. This ensures that both parties adhere to the agreed terms.
How are pensions handled in financial mediation? Pensions are an important part of financial mediation. The mediator will consider the cash equivalent value of pensions and may involve the pension company to understand the valuation. This ensures fair division of pension assets.
What if there are issues of domestic abuse? If there are issues of domestic abuse, mediation may not be appropriate. The safety and well-being of all parties are paramount. The mediator will assess whether mediation is suitable and may recommend alternative legal routes.
Can financial mediation be done online? Yes, financial mediation can be conducted online through services like an online MIAM. This can be convenient and accessible, especially for those who cannot attend in person.
What is the role of a solicitor in financial mediation? A solicitor can provide legal advice on the terms of the agreement reached during mediation. They can also help draft the consent order and ensure that the agreement is legally binding.
How is the value of assets determined? The value of assets, including property and pensions, is determined through financial disclosure and valuation. This may involve obtaining professional valuations to ensure accurate and fair division.
What happens if we cannot reach an agreement through mediation? If an agreement cannot be reached, the next step may involve making a court application. The court will then decide on the division of assets and financial support, taking into account the needs of both parties and any children involved.
How can I start the financial mediation process? To start the financial mediation process, contact our mediation team to schedule a MIAM., our experienced mediators can help guide you through the process. You can also contact mediators directly for more information.
For more detailed guidance and to begin the financial mediation process, speak to MIAMS visit our contact us page. Our platform provides resources and support to help you navigate financial mediation effectively, ensuring a fair and legally binding agreement.
It is first a good idea to get a full financial disclosure and set it out in a format referred to as Schedule of Assets and Liabilities for your first meeting. To obtain this, the mediator issues disclosure forms to both partners. This is to ensure that none of the partners hides any financial information which may be unknown to the other. Concealing such information may lead to one partner being unduly disadvantaged. The information is normally filled in those forms in such a manner that it meets the threshold of acceptability before a family court.
Then, the mediator helps each of the partners to understand and identify their assets, financial obligations, revenues and expenditures at the initial meeting. This will include helping them to correctly classify their assets, liabilities, revenues and expenses. The necessity of this in the process of sorting out finances using mediation is that it helps to evaluate available options and the likely effects of undertaking either of them. Each of the partners will then give suggestions on how best to divide the finances. The mediator aids in the negotiations and in reaching the agreement on sharing the finances to find a fair financial settlement.
Moreover, the MIAMS mediator will help the partners identify necessary tasks needed for the financial agreement during and after the process of separation and hence be able to make good choices. Keeping records for the mediation process is also a necessary endeavour and the onus rest with the mediator. The need for the records is that the same will be of great help should one require legal advice to supplement the mediation session. Lastly, the mediator will prepare a document outlining all the proposal and agreements arrived at by the partners. This document is called the Memorandum of Understanding. The Memorandum of Understanding is not in itself legally binding in family law but it will be used in making the agreement of the partners legally binding. Speak to MIAMS Mediation today.
General information about Mediation, Please click the links below to find out more info:
Family’s are deeply affected by divorce or separation, especially when there are children in the family. Often these painful situations can be helped with the supportof a mediator who will hold a Mediation Information Assessment Meeting or MIAM. A MIAM can guide communication and set the tone for the goals of mediation.
When attending a court proceeding on the matter, the family will need to present an FM1 (Family Mediation 1 form) which confirms that a MIAM has been held.
As of April 2014, significant changes were made to the judicial system regarding separation and divorces, particularly where children were involved. These changes ensure that the welfare of the children is paramount, with minimal impact on the children and as little negativity as possible. One of the major changes was a requirement for a mediation session or MIAM to be attended before any court proceedings to do with financial or custody matters (hence the need for a FM1 to be produced).
If the split is acrimonious and both parties find it difficult to be in the same room, as would happen with face to face mediation, it is possible to ask for shuttle mediation.
Shuttle sessions happen when the two parties are seated in separate rooms either virtually or physically and the mediator shuttles between the two, discussing issues and offering solutions.
Shuttle mediation is often a good solution with distance between the parties allowing for rational and reasoned thinking.
[MIAMS Mediators can also help with will disputes: resolving issues between and coming to an acceptable compromise to the conflict that arises as a result of separation.