The Financial Dispute Resolution (FDR) hearing

What is the FDR?

The Financial Dispute Resolution hearing is the second major hearing in financial remedy proceedings — after the First Appointment and before any final hearing. Its sole purpose is to help the parties reach a negotiated settlement.

The FDR is unique in the court process because it is explicitly without prejudice. Both parties put their cards on the table, discuss positions openly, and the judge gives a frank indication of what they think is fair. Because this happens in a without-prejudice context, none of it can be referred to if the case proceeds to a final hearing.

Most financial remedy cases settle at or shortly after the FDR. It is, for many couples, the most important day in the entire process.

Before the FDR

Evidence must be complete

By the time of the FDR, all disclosure — replies to questionnaires, expert reports, valuations — should be complete. Both parties should have a clear picture of the full financial landscape.

Make an offer

Before the FDR, both parties should put written settlement proposals on the table. This shows good faith and gives the hearing something to work with.

Offers made before the FDR are typically without prejudice (or Calderbank offers) — they can’t be referred to in any final hearing if the case doesn’t settle. However, they are shown to the FDR judge to inform the hearing.

Prepare an FDR bundle

The parties file an FDR bundle containing all relevant financial documents, the questionnaire replies, expert reports, and any offers. The judge reads this before the hearing.

Position statements

A short position statement setting out your case and what you’re proposing is helpful. The judge will want to know: what are the assets, what are the issues, and what does each party want?

What happens at the FDR

At the start

The judge confirms what assets and issues are in play. Both parties (or their legal representatives) briefly set out their positions.

Negotiation

Before or during the FDR, the parties — usually through their solicitors in a corridor or separate room — negotiate. The judge may see each party separately to get a clearer picture of the sticking points.

The judge’s indication

At some point during the FDR, the judge gives their indication — a frank assessment of what they think would be a fair outcome if the case went to a final hearing. This is not a decision or an order. It’s a judicial steer.

The indication is invaluable. It tells both parties what an experienced judge — who might hear their case — thinks is fair. It takes much of the uncertainty out of the equation.

Settlement

Armed with the judge’s indication, the parties continue to negotiate. If they reach agreement, the judge can record it as a consent order — ending the proceedings there and then.

If agreement is very close but not quite reached, the parties may continue negotiations after leaving court and submit a consent order once it is agreed.

If no agreement is reached

If settlement is not possible, the FDR judge gives directions for a final hearing — listing it before a different judge, setting out what evidence will be needed, and fixing a timetable.

The “without prejudice” rule

Everything said at the FDR is without prejudice. Offers made, positions revealed, and the judge’s indication cannot be referred to at any final hearing. This is what makes the FDR work — parties can speak frankly without fear that doing so will damage their position later.

The FDR judge cannot hear the final hearing. A fresh judge — who hasn’t heard the without-prejudice discussions — will decide the case if it doesn’t settle.

How to make the most of the FDR

Come with authority to settle — if you have a solicitor or barrister, make sure they know what you will and won’t accept. The FDR can move quickly and you need to be able to make decisions.

Listen to the indication — the judge’s view is worth taking seriously. Even if you disagree with it, the indication represents what a judge is likely to do if the case goes further. The cost and stress of a final hearing may outweigh the benefit of fighting on.

Be prepared to compromise — the purpose of the FDR is settlement. Going in with a position of “I won’t move” rarely helps.

Have your numbers ready — know what you’re asking for and why. Know what you could accept as a minimum. Have your financial documents with you in case specific figures are queried.