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Your Financial Circumstances in Mediation |
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Separating couples often feel quite vulnerable and anxious at the prospect of having to disclose and discuss their financial circumstances in mediation but it makes sense that, before deciding how to share their assets and income, they need to agree on the assets, liabilities and incomes to be shared.
The Mediator provides them both with a Financial Disclosure booklet and an outgoings/income spreadsheet to complete to the best of their ability, not expecting this to be fully completed and everything agreed before the mediator takes the couple through these forms.
Indeed, it may make sense, in some circumstances, for the mediator to arrange a joint meeting first to take the couple through the blank financial disclosure forms and explain what is required from each person and agree a timetable, in order to alleviate some of the anxieties they may be feeling.
Far too often, communication breaks down and conflict escalates over an issue about the value of something before mediation even starts when, in fact, it would have been easy to resolve these issues with information and explanation from the mediator.
The mediator will also provide Guides to help with completing these forms, which the couple can each refer to as they go along. If their circumstances are particularly complicated the mediator might also recommend the assistance of a solicitor and/or independent financial adviser and possibly an account for each person or for them to share.
A joint mediation meeting is then arranged to go through the financial information each person has gathered. During this meeting the couple get the chance to ask questions about information being disclosed and the mediator has the opportunity to offer explanation and seek clarification about the facts and figures, ensuring that sufficient relevant financial information is provided to enable constructive and productive discussions to take place about the assets, liabilities and income that are going to share.
A typical outcome of this joint ‘financial disclosure’ meeting might be;
• A draft financial summary excel spreadsheet prepared by the mediator as an ongoing working document A list of outstanding information to be obtained by the clients
• A task list relating to things such as obtaining valuations
• A note of relevant background facts relating to the assets for the mediator to prepare in support of the financial summary
• Agreed instructions to valuers and an agreed process for instructing them
• An agreed timetable
• Agreed communication protocol for communications between clients, mediator and other experts, between mediation sessions. Having completed this stage of the mediation, the couple will then be ready to move on to explore their financial options regarding how to split their assets, spousal maintenance, and child maintenance, among others.
Written by John Hind. Mediator, Lawyer, Mediation Practice Consultant, Family Cosultant, Group Facilitator, Conflict Management Consultant and Skills Trainer
at Compass Resolution. Visit website at www.compass-resolution.com for further information.
PHOTO CREDIT: ALON
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