How to Calculate Your Financial Dispute Resolution (FDR) Baseline
Avoid attending court altogether! Try non court dispute resolution (NCDR)again? https://www.familymediationcouncil.org.uk/
NCDR a non starter? OK. Try and reach a settlement that means you can avoid the stress of a court attended FDR. Prepare a well structured and fair settlement proposal. Send your proposal to your partners solicitor outlining why you believe it is fair to both parties.
If the above is unsuccessful your work on proposals will be invaluable at the FDR. When you walk into a Financial Dispute Resolution (FDR) hearing, the Judge will be focused on helping you to reach a settlement. Your pre hearing proposals will land well with any Judge and the other party will be questioned as to why they reject the proposal. If you haven't done your homework, it is incredibly easy to make emotional concessions you will regret later. You have already done the work needed to ensure you are in control, you have calculated your Settlement Baseline before setting foot in the building. This is your absolute bottom-line figure—the lowest financial split you are willing to accept before walking away to a Final Hearing.
How to find your baseline numbers:
Your Capital: total up the net equity in the matrimonial home, pensions, bank accounts, investments and any other assets you own. Calculate the bare minimum cash injection you need to rehouse yourself.
Partners Capital: compare your capital and your partners capital. Do the maths.
There is capital and there is Capital: it's vital you understand how the court sees capital. for example an index linked defined contribution vs a defined benefits pension are very different. Cash is assed differently to assets.
The Income Gap: chart your post-divorce living expenses against your guaranteed income. If there is a shortfall, this dictates your baseline position on spousal maintenance.
The Legal Cut-Off: factor in the projected cost of going to a final trial. If settling at the FDR saves you £15,000 in future legal fees, your baseline can afford to be slightly more flexible.
Never walk into an FDR room to "see what they offer." Walk in knowing your exact exit number.
