30/12/2025
When divorcing or separating from your spouse or partner, any agreement reached in relation to finances should be approved by the court, who will approve the agreement as being reasonable and, so far as is possible, dismiss any further financial claims in the future.
However, this does not mean that court proceedings are an essential part of reaching an agreement; recently, the onus has been put on parties using NCDR where possible.
NCDR stands for Non-Court Dispute Resolution (previously known as Alternative Dispute Resolution), the umbrella term for the various methods that parties to potential proceedings may use to settle their cases outside court. The law relating to NCDR changed as of 29 April 2024. The definition has now been widened to include mediation, arbitration, evaluation by a neutral third party (such as a private Financial Dispute Resolution process) and collaborative law.
The court expects parties to have fully considered and engaged with NCDR prior to the issuing of any proceedings. A form called the Form FM5 must be completed prior to the first Directions hearing. This sets out the parties’ attempts to resolve matters outside of court, including which methods of NCDR they have engaged with or are willing to engage with. If they have not attended NCDR, they must state whether any exemption still applies and why NCDR is not appropriate in their case.
In addition to this, the court still requires a party making an application for proceedings to complete a MIAM (Mediation Information Assessment Meeting). This is an initial meeting with a mediator to discuss whether or not mediation is appropriate. The exemptions to completing this assessment have been reduced.
In both children and financial proceedings, it is open to the court to make a costs order against a party who has failed to engage with NCDR without good reason. The court may also choose to adjourn proceedings and order both parties to attend some form of NCDR to resolve matters outside of court even if this is not by consent. However, this will be on a case-by-case basis and will not apply to cases of domestic abuse.