Hodge, Jones and Allen (HJA) has pioneered what it believes is the first fixed-fee arbitration service for divorcing couples, and is calling on other firms to join it in bringing about a “seachange” in separation
The initiative is aimed at middle income couples, and offers both parties a cheaper, faster but also legally binding alternative to court. It is also suitable for co-habiting couples who are separating. In S v S [2014] EWHC 7 (Fam), Sir James Munby confirmed that a divorce financial settlement reached through private arbitration is legally binding and cannot be appealed.
According to HJA, court proceedings can last for a year and cost up to £50,000 while the new service will cost a fraction of that and last about four months. They say the service will be more conciliatory since both solicitors will act for the same fee, there will be no witness box and the arbitration will take place in a neutral setting such as a hotel.
Toby Hales, partner and head of the family team at HJA, said: “It is clear that the court system just doesn’t work for middle income families. “The impact of the delays and inflated legal fees associated with agreeing a financial settlement in divorce proceedings leads either to financial hardship or an avoidance of the judicial process altogether, which results in unsatisfactory financial settlements. We hope that other family law practices will sign up to offer arbitration for financial settlements to divorcing clients and that this will spark a seachange in how separation is handled.”
.tmb-mov69x69.png?sfvrsn=9a8f1ea9_1)
