NA v LA [2024] EWFC 113: Judge Orders Non-Court Dispute Resolution

Contact

Lisa Pepper

Table of Contents

Financial Claims: Judges Can Order Parties To Attempt Non-Court Dispute Resolution

As was expected, the court has been quick to flex its muscles and utilise new rules which came into force in April to act as a check on divorcing parties litigating through the courts without properly considering the possibility of resolving financial disputes through mediation or other methods of non-court dispute resolution (NCDR). If you’re considering divorce, note that the courts now have greater powers to require parties to actively engage in NCDR, as a new case demonstrates.

At Osbornes Law, our specialist divorce and financial remedies solicitors work with clients in high value divorces. We are experienced in helping clients reach fair financial settlements outside of the courtroom.

Non-Court Dispute Resolution

Litigation is expensive, stressful and time consuming. Our specialist team works hard to encourage clients to approach the issues around financial matters in the most efficient and cost-effective ways available.

In the absence of a pre-nuptial agreement, agreeing a fair division of assets on divorce can be particularly challenging. Sometimes, we will advise that litigation is the only way in which your financial interests can be properly protected. But we will encourage you to first explore the possibilities of NCDR for two key reasons:

  1. In most cases, agreeing a settlement outside of the courtroom reduces animosity and encourages a better relationship between the parties in future and saves considerable legal fees.
  2. The Family Procedure Rules r3.4 have given family Judges new powers to stay proceedings and require the parties to engage in NCDR – even if the parties don’t agree.

Court orders mediation

In a recent ‘big money’ case1, the husband (H) was wealthy and his father a reputed billionaire; while W was a ‘conventional housewife’.

The court was hearing the return date of ex parte non-molestation and occupation orders (which required H to leave the family home) – and an order for the detention, custody or preservation of two London properties. W had also filed her divorce petition and other applications, including for maintenance pending suit (MPS).

The Judge had earlier suggested to counsel for each party that he was considering staying proceedings to enable them to attempt settlement of W’s financial claim. He observed that it was not an unduly complex case in legal terms, and nothing to suggest the case would be unsuitable for NCDR.

The court is required to consider, at every stage in proceedings, whether NCDR is appropriate, such as mediation, arbitration, collaborative law or third party evaluation.

The Judge concluded that this case was “a paradigm case for the court to exercise its new powers”. NCDR was appropriate and he encouraged the parties to engage in it. This would not only benefit them emotionally and financially, but would also be to the benefit of their children.

Proceedings were stayed, with immediate effect, to allow for NCDR.

The mounting legal costs were undoubtedly a factor in the Judge’s decision. W’s had already reached £125,000 with estimated further costs reaching at least £60,000. (H had not instructed solicitors until two days before the Judgment).

The Judge urged them both to place the costs issue and proportionality of incurring costs at the forefront of their minds – something we frequently emphasise to our clients.

How we can help

It is important to explore and understand the options available to resolve financial claims on divorce before court litigation becomes necessary. The divorce team at Osbornes Law can guide you through your options, partnering with you to protect your interests throughout.

Contact the leading divorce partner Lisa Pepper here; or call us now on

1NA v LA [2024] EWFC 113

Share this article

Contact us today

Email us Send us an email and we’ll get back to you

    • [honeypot quickcontact-mobile id:quickcontact-mobile]






    • Osbornes is vastly experienced and able to think around the issues and consider them in a new and refreshing way

      Chambers UK 2024

    • Excellent in every aspect.

      Property Department Client

    • Elspeth explained everything very clearly and made us feel comfortable.

    • Laura Swaine is another product of the Osbornes academy of excellence, Laura has drive and energy that are the envy of her contemporaries. Nothing is too much trouble and she instils confidence in her clients.

      Legal 500 2022

    • "Bridget Thompson is a firebrand. She has her clients’ back. She is dogged and fierce."

      Legal 500 2023

    Accreditations

    • Wills and Inheritance quality logo
    • The Times Best Law Firms 2025
    • The Law Society Personal Injury Accreditation

    Related InsightsVIEW ALL

    1. pension pot
      27.8.2024

      Pension Sharing Orders

      Pension Sharing in Divorce With so many things to consider when dividing up your finances during a divorce or dissolution...

      Read more
    2. divorced man with empty wallet
      4.12.2023

      My spouse is going bankrupt. Will it affect...

      Divorce and Bankruptcy In 2022, more than 1 in 10 businesses reported a moderate-to-severe risk of insolvency. More than one in five (22%) of...

      Read more
    3. union jack
      23.3.2023

      Does Divorce Jurisdiction Matter?

      Jurisdiction in divorce I am a family law practitioner with a large client following in England and in Gibraltar. I...

      Read more
    4. two people walking
      22.3.2023

      Breadwinner or homemaker in divorce. Does it matter?

      Breadwinner vs Housewife Divorce Rights When it comes to deciding how wealth is split in a divorce, English courts do...

      Read more
    5. lady with two children
      22.3.2023

      What is Parental Responsibility?

      Understanding Parental Responsibility Parental responsibility is the legal term used to describe parents’ duties and responsibilities for their children. These...

      Read more
    6. couple holding hands
      16.3.2023

      Are trusts protected from divorce?

      Can trusts protect an inheritance from your spouse? A trust is a separate legal entity. Neither spouse owns its assets....

      Read more
    7. cube cafe camden
      16.3.2023

      Is a limited company protected from divorce?

      Is my spouse entitled to half of my business? If you are involved in running a limited company, then it...

      Read more
    8. man looking out
      16.3.2023

      How is a pension split in a divorce?

      Pensions and Divorce In a divorce, pensions are taken into account together with all other financial assets. Once all assets...

      Read more
    9. Camden house red door
      16.3.2023

      Who gets the house in a divorce?

      How is a house divided in a UK divorce? For most people thinking about getting a divorce, one of the...

      Read more
    10. Prenup agreement and gavel
      7.12.2022

      IR v OR: Judge Dismisses Pre-Nup in Landmark £184...

      One of the reasons I am still passionate about family law, after 20 years in the field, is that it is...

      Read more
    11. door knocker
      30.8.2022

      What is a transfer of equity?

      Transfer of equity in divorce Transfer of equity refers to the process of transferring part or all of a property...

      Read more
    12. people holding cups
      30.8.2022

      Do You Have To Go To Court For...

      Can you divorce without going to court? If your divorce is uncontested and there are no disputes over issues such...

      Read more
    13. Two keys with splitted key ring
      22.8.2022

      Capital Gains Tax on Divorce

      CGT Changes Could Reduce Stress for Divorcing Couples The government has proposed a number of changes to the capital gains...

      Read more
    14. woman hand open empty purse
      6.5.2022

      My Spouse Has Cut Me Off During Divorce

      Can my spouse cut me off financially? Unfortunately, it is far too common that when clients say it’s over,...

      Read more
    15. Close up of african american man with calculator
      6.5.2022

      How the Court views loans from parents during...

      A frequent issue in financial divorce cases is a loan from a spouse’s parent, often to pay legal fees,...

      Read more
    16. mesher order house
      5.5.2022

      Mesher Orders Explained

      What is a Mesher order? A Mesher Order allows the sale of the family home to be postponed in the...

      Read more
    17. husband signing decree of divorce
      11.4.2022

      Financial Dispute Resolution (FDR) for Divorce

      What is FDR for Divorce? Traditionally, a divorce financial settlement is dealt with by mutual agreement between the parties or...

      Read more
    18. Two rings on the background of the lgbt flag
      31.3.2022

      10 Interesting Facts About Same Sex Marriage and Divorce

      Eight years after same-sex marriage was written into law, we’re looking at these major life events by the numbers.  1....

      Read more
    19. signing contract
      28.2.2022

      Decree Nisi

      Update: With the introduction of no-fault divorce in April 2022, a Decree Nisi became a Conditional Order, and a decree absolute...

      Read more
    20. family in poppy field
      18.1.2022

      6 cases that shape a private children dispute

      Family disputes involving children can be particularly emotive, which is why our expert children lawyers work tirelessly to understand how...

      Read more
    21. Unhappy Couple
      9.12.2021

      Are irreconcilable differences grounds for divorce?

      If you have come across this article, it may have resulted from an online search to see if you and...

      Read more
    22. squirrel hiding assets
      16.11.2021

      Uncovering hidden assets in your divorce

      Hiding Assets During a Divorce As part of your divorce, you and your ex will have to agree on dividing...

      Read more
    23. businesswoman and businessman signing contract
      10.11.2021

      Difference between Decree Nisi and Decree Absolute

      Update: With the introduction of no-fault divorce in April 2022, a Decree Nisi became a Conditional Order, and a decree absolute...

      Read more
    24. Twitter app
      9.11.2021

      Keeping social media out of divorce proceedings

      We’ve recently seen the playing out on Twitter and Instagram of the high-profile separation of actor Ioan Gruffudd and...

      Read more

    VIEW ALL