Know what a judge is likely to say, before you pay to have a judge decide. That is the entire logic behind a Private Financial Dispute Resolution hearing, usually called a Private FDR. For couples with significant assets, businesses, pensions, inherited wealth or international property, it is one of the most effective routes to a settlement without a final hearing.
When couples separate, the hardest question is often not whether they need to resolve their finances, but how. The traditional court process can feel slow, expensive and uncertain. A Private FDR offers an alternative. Both parties obtain an independent assessment of their financial dispute from an experienced family lawyer, barrister, KC or retired judge, with the aim of settling before a final hearing is ever needed.
What Is a Private FDR?
A Private FDR is a confidential settlement hearing. Both parties present their financial positions to an independent evaluator. The evaluator considers the relevant documents, evidence and legal arguments, then gives an indication of what they believe a court is likely to regard as a fair outcome.
The evaluator does not impose a decision. The purpose is to give both parties a realistic, independent assessment of the strengths and weaknesses of their positions. Once the evaluator has given that indication, the parties negotiate with the assistance of their lawyers. If they reach agreement, their solicitors can incorporate the terms into a Consent Order and submit it to the Family Court for approval.
In simple terms, a Private FDR lets you obtain an informed view of what a judge may say. You get that view before taking the financial and emotional risk of asking a judge to decide the case at a final hearing.
Is a Private FDR Actually Worth It?
For many cases, yes. A final hearing can involve substantial additional legal costs, delay and uncertainty. Both parties may have to give evidence and be cross-examined, and the eventual decision is taken out of their hands. A Private FDR gives the parties a genuine opportunity to settle before reaching that stage.
Its value lies in the fact that both parties hear the same independent assessment. That can matter enormously where one party has an unrealistic view of the case, where negotiations have become entrenched, or where there is a significant gap between the parties’ proposals. Set against the cost and risk of preparing for a contested final hearing, the cost of a Private FDR is often relatively modest.
How Is a Private FDR Different From a Court FDR?
The objective is essentially the same: settlement. At a court FDR, the court allocates the judge and the hearing date. At a Private FDR, the parties usually have much more control. They can normally choose the evaluator, agree the hearing date, and decide whether the hearing takes place in person or remotely.
This can be particularly helpful in complex financial cases, because the parties can choose someone with specific experience of the issues involved, for example:
- business valuations
- trusts
- international assets
- substantial pensions
- inherited wealth
- pre-nuptial agreements
- complex remuneration structures
The ability to select the right evaluator can be one of the most significant advantages of the private process.
Is the Evaluator’s Decision Binding?
No. The evaluator gives an indication, not a binding decision, and neither party has to accept it. This is one of the key distinctions between a Private FDR and family arbitration. At a Private FDR, the parties remain in control of whether they settle. In arbitration, the arbitrator determines the dispute.
Although the indication is not binding, it can carry considerable weight in negotiations. Both parties have heard how an experienced family lawyer views the case, and can then make an informed decision about whether continuing to litigate is commercially sensible.
What Actually Happens on the Day?
Before the hearing, the evaluator receives the documents needed to understand the dispute. Depending on the case, these may include:
- Forms E or equivalent disclosure
- property valuations
- company accounts and business valuations
- pension information
- mortgage evidence
- schedules of assets and liabilities
- income information
- expert reports
- previous offers
- chronologies and written position statements
At the hearing, each side’s lawyer explains their client’s position. The evaluator then gives an indication of how the court is likely to approach the case. That can cover capital division, housing needs, maintenance, pensions, businesses, inheritance, non-matrimonial assets and the overall structure of a settlement. The parties then negotiate privately with their lawyers, and the evaluator may remain available during the day to assist further.
Will You Have to Give Evidence?
Normally, no. A Private FDR is not a trial. Clients do not usually go into a witness box and are not normally cross-examined. The hearing focuses on financial analysis, legal argument and settlement, which is one reason many clients find it considerably less stressful than a final hearing.
How Quickly Can a Private FDR Be Arranged?
Flexibility is one of the major advantages. A court hearing depends on court availability. A Private FDR can often be arranged around the availability of the parties, lawyers and chosen evaluator, which can matter enormously where delay is itself causing financial damage, for example where:
- a property needs to be sold
- mortgage costs are increasing
- a business needs certainty
- one party wishes to relocate
- children need stable housing
- funding arrangements are expiring
- professional fees are continuing to increase
How Much Does a Private FDR Cost?
There are usually three main elements. First, the evaluator’s fee, commonly shared between the parties, though the parties can agree a different arrangement. Second, the cost of preparing the case, which may involve reviewing financial disclosure, dealing with valuations, preparing schedules and offers, and ensuring the evaluator receives the correct documents. Third, the cost of representation at the hearing, which in more complex cases may involve both a solicitor and specialist family counsel.
At Paradigm Family Law, we offer fixed-fee options for defined stages of financial remedy work, so clients understand the likely cost at the outset.
Who Pays for the Private FDR Evaluator?
The evaluator’s fee is commonly divided equally between the parties, though that is not compulsory. The parties can agree that one person pays initially, split the cost differently, or deal with the issue as part of the overall negotiations. The correct arrangement depends on the financial circumstances of the case.
Do Both Parties Have to Agree to a Private FDR?
In practice, yes. A Private FDR requires both parties to participate, and normally to agree the identity of the evaluator. If financial remedy proceedings are already underway, the parties’ solicitors can also deal with the procedural steps required to accommodate the Private FDR within the court timetable.
Can You Have a Private FDR Without Going to Court First?
Potentially, yes. Couples can use a Private FDR as part of an entirely out-of-court settlement process, though that does not mean it suits every case. The financial information needs to be sufficiently complete and reliable. If there are unresolved disclosure problems, missing valuations, or concerns about enforcement, you may need to address those issues first, as we cover in our guide to financial disclosure.
Can a Private FDR Deal With Businesses and Complex Assets?
Yes, and Private FDRs can be particularly effective in exactly these cases. A business case may require consideration of company value, maintainable earnings, liquidity, director’s loan accounts, retained profits, tax, and whether to retain or sell the business. A trust case may involve questions about beneficial entitlement, distributions, and whether to treat trust assets as a financial resource.
Pension cases may involve defined benefit schemes, SIPPs, public sector pensions or offsetting. Inheritance cases may involve arguments about matrimonial and non-matrimonial property, needs, and whether inherited wealth has become mixed with marital assets. The ability to select an evaluator with real experience of the particular issue can be extremely valuable.
Can a Private FDR Work in an International Divorce?
Yes, and Private FDRs are often well suited to international financial remedy cases. These can involve overseas property, international businesses, offshore assets, foreign pensions, trusts, international income, foreign tax, jurisdiction disputes, and pre-nuptial agreements signed abroad. The key is preparation: the evaluator needs a clear and accurate financial picture before anyone can give meaningful settlement advice.
How Do You Choose the Right Evaluator?
There is no single answer. The choice should be driven by the nature of the case. A specialist junior barrister may suit one case entirely; a KC or retired judge may make more sense in another. Frank Arndt, founding partner of Paradigm Family Law, weighs it against several factors: the value of the assets, the legal issues involved, whether there are businesses or trusts, whether an authoritative indication is particularly important, and whether the cost is proportionate.
Frank’s rule of thumb: an expensive evaluator is not necessarily the best evaluator. The right person is the one whose expertise matches the case.
Private FDR or Mediation: What Is the Difference?
The processes are different. A mediator helps the parties communicate and negotiate, but does not normally give a judicial-style assessment of what the court is likely to decide. A Private FDR does. Some cases need help with communication; others need somebody independent to tell both parties that their current positions are unrealistic. Couples can also use the two processes together.
Private FDR or Arbitration: Which Gives You More Control?
The key difference is control. At a Private FDR, the evaluator gives an indication and the parties decide whether to settle. In arbitration, the arbitrator determines the dispute. A Private FDR may be more appropriate where both parties still want to retain control over the final agreement. Arbitration may be more appropriate where the case needs a binding determination.
What Happens If the Private FDR Does Not Settle the Case?
Nothing prevents the case from continuing. The parties may return to negotiation, use mediation, proceed to arbitration, or continue through the court process. Even where the case does not settle on the day, the Private FDR can still narrow the issues dramatically, or expose weaknesses in one party’s case that later lead to settlement.
What if One Spouse Simply Ignores the Evaluator’s Indication?
They are entitled to do so. The indication is not binding. But a party who rejects a clear, well-reasoned indication should understand the risk they are taking. They may ultimately spend significant additional sums progressing towards a final hearing, only to receive an outcome broadly similar to the one they previously rejected. That is why post-FDR advice matters so much. The legal team should advise not only whether the indication is reasonable, but what offer to make next, and whether further litigation remains proportionate.
Do You Need Both a Solicitor and a Barrister?
Not necessarily. The legal team should be proportionate to the case. For some cases, representation by an experienced solicitor may be sufficient. In more substantial or complex financial remedy cases, specialist counsel can add considerable value: analysing the case, testing the legal arguments, presenting it to the evaluator, and negotiating on the day.
How Should You Prepare for a Private FDR?
Preparation is critical. The strongest cases are usually those where the legal team has narrowed the key issues down to a small number of clearly defined disputes. Before the hearing, the legal team should understand:
- what assets actually exist
- which valuations are reliable
- what each party needs
- which assets are matrimonial or potentially non-matrimonial
- what the other side’s strongest arguments are
- what the evaluator is likely to think about those arguments
- what settlement range is realistic
- what should happen if no agreement is reached
A Private FDR is not just another hearing. Approach it as a serious opportunity to end the litigation.
Specialist Advice on Private FDRs and Financial Remedy Strategy
At Paradigm Family Law, we focus heavily on financial remedy work involving substantial and complex assets. Our work regularly covers businesses, pensions, trusts, inherited assets, international property, complex disclosure, pre-nuptial agreements, jurisdictional issues and high-value financial settlements.
We approach every Private FDR strategically. We ask not just what our client wants, but what the other side is likely to argue, how the evaluator is likely to respond, what the realistic settlement range is, and at what point continuing litigation stops making financial sense. That analysis happens before the Private FDR, not after it.
If you are currently dealing with divorce finances and want to know whether a Private FDR could be right for your case, take advice early. Positions harden and legal costs escalate the longer you wait.
Not every case is ready for a Private FDR straight away. Some couples simply want an early, informal steer on how a judge is likely to view their case, before committing to the cost of instructing an evaluator. Our sister service What Would a Judge Say? provides exactly that: a fixed-fee, judge-led written opinion, usually within six weeks. It is a useful first step towards the same goal a Private FDR serves, knowing what a judge is likely to say before anyone pays to have a judge decide.
Contact Paradigm Family Law for specialist advice on Private FDRs, evaluator selection, and financial remedy strategy for complex and high-value cases.
Call us on +44 (0) 203 637 4967 or visit paradigmfamilylaw.co.uk.
Related Reading
- How to Avoid the Family Courts: 12 Ways to Stay Out of Court
- Mediation & Going to Court
- Family Court Fee Increases from April
This article provides general information about financial remedy law in England and Wales and does not constitute legal advice.
