Showing posts with label trusts. Show all posts
Showing posts with label trusts. Show all posts

'Divorce Without Pain ' : The Model

What we do?
We assist you with all of the issues that arise from separation, divorce or the breakdown of civil partnership: financial arrangements, arrangements for the children and wider planning arrangements for your family.

Put simply, we facilitate a settlement of your dispute, similar to going to court, but at a fraction of the cost, in a fraction of the time, and with a fraction of the stress.

Divorce Without Pain provides a bespoke service based on simple modules, generally conducted online. This way, you control and limit what you spend.

We facilitate:
  • financial arrangements following divorce, partnership breakdown, and probate issues - sorting out what will happen to the home, property and other assets - and dealing with maintenance.
  • arrangements for children, including where a child will live, and contact arrangements for parents and grandparents.

Who we are?

We are a group of specialist legal and facilitation practitioners and e-mediators who are used to working closely with the family courts. We are all accredited facilitators / arbitrators and work as a co-operative. Most of us have worked as barristers or solicitors.

How we work?

We work in partnership with both of you. Each referral receives a 'designated guide', who will guide you both. Your guide will come up with practical ideas which generally result in agreement on most, if not all issues. We are known to, and trusted by the courts and work hand-in-hand with them.


  • We offer a cost-free, unhurried telephone conversation about your case. This is to give you information about 'the DWP Co-Operative', discuss what you are seeking and how we can help you, and to point you in the right direction for further help, or to arrange a meeting with you.
  • At the first meetings with each of you (conducted online), we record all the facts about your case, and check to see that you are happy to engage with DWP. Here, each of you tell us in detail about the problems as you see them, and we can identify the options to move things on.
  • Once the facilitator has all of the facts, we ensure that information is exchanged and shared, and that you are both on an equal footing. At this point we will identify the detailed options specific to your needs and wishes.
  • We aim to bring about a settlement with which you are both content. If this is achievable, we will set out the agreement in a settlement document which can be filed with the court if you wish, or simply retained as a binding agreement of your dispute, bringing the case to an end.
  • If we haven't been able to get to an agreement, we arrange a joint meeting through online video conferencing where the facilitator works with you together and separately towards a settlement. Here we are over 80% successful in reaching agreements. The agreement will be prepared and agreed by each party.
  • The courts will uphold your agreement unless there are exceptional circumstances to depart from it (see S v S (2014) EWHC Fam).

Why use Divorce Without Pain?

  • The courts want you to use this process and have endorsed the scheme.
  • This process can be conducted wholly online.
  • We work with your solicitors if you have one, or can deal you on your own without a solicitor if you wish. This way you control what you spend.
  • We work with both parties to focus on 'court-type settlements'. We minimise conflict.
  • You have the service of a single, experienced, dedicated, fair and impartial practitioner who stays with you both throughout the process.
  • We do not charge hourly rates. Pricing is in simple, transparent modules. We contain rather than maintain cost.
  • We work towards the type of compromise that best meets your needs in a way the court will approve.
  • Our facilitation online meeting generally takes place on a specific day (using the commercial model), as opposed to a 'drip feed' series of face-to-face meetings over several weeks.
  • Where settlement of all of the issues is not possible, we offer the chance of a binding private arbitration of outstanding issues.

Family Finance Modules : a guide                       

We help you to make sensible financial arrangements following separation, divorce or partnership breakdown. With over 30 years of experience of court outcomes we will guide you to a settlement that the courts will approve, should you wish this.

Module 1

·         Individual telephone contact with each of you separately;
·         Individual Zoom, Skype or Facetime meetings with each of you;
·         Preparation of chronologies, asset schedules, and position statements;
·         Guidance on reaching agreement on assets;
·         Preparation of joint outline of issues - or settlement agreement if you can agree.

Module 2 - if you have not settled in Module 1

·     A facilitated video conference meeting with both of you (to include your solicitors where appropriate) to deal with the issues between you and to reach agreement and settlement;
·     Preparation of a binding settlement agreement, or if no settlement, a Schedule of Outstanding Issues.

Module 3 - alternative to Module 2

·    An online arbitration meeting to determine a settlement. 
.     Preparation of a binding written, reasoned award.


Children Modules: a guide                  

We will guide you in relation to residence and contact arrangements which are most suitable for you and your family.

Module 1

·     Individual telephone contact with each of you separately;
·     Individual Zoom, Skype or Facetime meetings with each of you
·     Preparation of parenting plans: see free parenting plan;
·     Guidance on further information needed;
·     Joint outline of issues or settlement agreement.


Module 2 - if you have not settled in Module 1

·     A  facilitated conference meeting with both of you (to include your solicitors where appropriate) to deal with the issues between you and to reach agreement and settlement;
·     Preparation of settlement agreement, or if no settlement, a Schedule of Outstanding Issues.

Module 3 - alternative to Module 2

·    An arbitration meeting to determine a settlement. 
.     Preparation of a binding written, reasoned award.



For the Children modules: where both parties agree to this, it is frequently possible to move straight to Module 2, and many clients prefer this cost-saving approach. Whether this is possible will depend on the particular issues of your case.

Divorce Without Pain © : Case Study 4



Note that the case studies mentioned in this blog have been anonymised and particular details changed so as to avoid any chance of recognition or attribution.

THE FACTS
'Divorce Without Pain ©' were consulted by three solicitors - each instructed on behalf of separate parties to a family dispute. The issue concerned property, money and possessions following the death of a 28 year old man. The parties were his parents, brother and sister; his girlfriend; and the trustees under his Will.

Jake, a soldier with HM Forces, died just after his 28th birthday following a short illness. Leading to his death he had cohabited with his girlfriend/partner Terri for four years. They had no children. The relationship between Terri and Jake's family had been fraught, resulting in Jake, his parents and his siblings being estranged for some time. Jake's parents blamed Terri for the family difficulties. Jake's brother Tom supported his parents in their view, Jake's sister Emily being a little more sympathetic to Terri's situation.

Before Jake left home five years earlier, he had made a Will, an unusual but important step for a then twenty three year old solider. At that time he was not in a significant relationship and had made provision for his parents Norman and Irene, his brother and sister, Tom and Emily, and left small bequests for his twin nephews Rick and Kye, sons of his brother Tom.

The reason for Jake's Will became clear. Jake's parents, Norman and Irene had taken Inheritance tax advice and as a consequence, disposed of fairly large parts of their estate to their three children, believing that they would survive them. The share that Jake received had provided a very substantial payment for his apartment; and it was this into which Terri had moved four years earlier, selling her own flat and pooling their resources. Jake's apartment had remained in his sole name. There was a dispute as to what had happened to the modest equity coming from Terri's flat.

Whilst 'Divorce Without Pain' as facilitators are not obliged to steer cases in accordance with strict legal principles, it is important to know that a number of legal points arise in situations like this. First, the validity of the Will. In this case, Terri did not challenge its validity, however she asserted that she was financially maintained by Jake and that the terms of the Will could be challenged under sections 1(e) and 2 of the Inheritance (Provision for Families and Dependants) Act 1975 so as to make provision for her. Second, Terri asserted under the Trusts of Land and Appointment of Trustees Act 1996 that she had a part-interest in Jake's apartment by virtue of her contributions and Jake's promise that she would be given a legal share of the property. Of interest, the Law Commission has recently recommended that the law relating to cohabitees should be changed http://www.justice.gov.uk/lawcommission/publications/intestacy.htm, although this is still at the recommendation stage.

THE ISSUES
The 'Divorce Without Pain' mediators quickly established that Terri was wanting to remain in the apartment and to avoid any part of its value, or any of the contents of the apartment passing under Jake's Will. Norman and Irene contended that the apartment only existed because they had sold their interest in an investment property to transfer money to Jake for its purchase. Their point was that this was family money and had not been contributed to by Terri. Tom, Jake's brother supported his parents and pointed out that unless the apartment was sold, not only would he loose out, but also would his twin sons, Rick and Kye. Emily had some sympathy for Terri, believing that she should receive some support from Jake's estate, but that what Terri was seeking was far too much. Terri's answer to the family was that she had sold her own flat and that the proceeds of sale had effectively been shared by her and Jake on the basis that she would acquire an interest in his apartment. She was for saying that she would not have sold up and moved in without such an assurance. The trustees had a financial duty to ensure that Jake's estate was administered properly, and as the terms of his Will had been challenged, were involved but not directly participating.

THE FACILITATION
In this case two mediators worked together in a co-mediation model. Both were experienced in family property issues and versed in Trusts law. The parties selected the co-mediation model because of their number (Norman, Irene, Emily, Tom, Terri, a trustee and their respective legal representatives). It was clear that with two mediators, no-one would be left waiting for any significant period of time, and the momentum of the mediation could be kept going. The parties also elected to attempt to resolve all of the issues in one day, for which the co-mediation model is ideal. The two mediators were very used to working seamlessly together, albeit with different personalities and complementary styles. Both mediators moved between all of the parties, sharing between the two of them all of the information that came into their possession. Under this model, the mediators will work side by side, and separately, depending on the stage of the process.

The one common intention of all of the parties was to avoid litigation if at all possible. The parties' solicitors estimated, should the matter have to go to trial before a judge, that their joint legal bills would exceed £60,000. This would probably fall to be paid by the estate, and only the balance of what was left would be available for distribution. Using the co-mediation model, the total cost of the facilitation was £2,500 plus VAT.

OUTCOME
The parties realised that they each had a different view of the both the facts and the law. Only a judge could determine whether Jake had indeed promised Terri that she would acquire an interest in the apartment. This would be a critical aspect of any trial, because should Terri have successfully proved such common intention, she could assert a proprietary interest. Certainly it appeared that Terri had contributed £10,000 from the sale of her own flat to the joint finances. Moreover, following her redundancy from work (those monies having been spent before Jake's death), she had in fact become dependant on Jake's financial support. This could provide good reason for a judge to vary the terms of Jake's Will.

In the light of the differences of points of view and positions, it was decided that a solution should be driven by pragmatism rather than conjecture about legal outcomes.

Due to the amount of equity (value after borrowing) in the apartment, it was clear that the apartment would have to be sold to accommodate a compromise. Whilst at first this was resisted by Terri, after careful thought she conceded the point. The parties had been advised by the mediators to obtain advice on tax liability (which they had done) and to agree a valuation of the apartment (which they failed to do). However, they followed the mediators' advice and jointly instructed a property agent who advised the current attainable market valuation. The simple question was how best to divide the equity.

After all borrowing on the apartment, outstanding bills (including legal, valuation and mediation costs) discharged, and taxation liability paid, the parties agreed that there would be about £100,000 remaining. The parties agreed that they would vary the terms of Jake's Will to provide £30,000 to Terri, £10,000 each to Norman, Irene, Emily and Tom, and the remainder of about £30,000 to be placed in trust for the grandchildren. It was also agreed that, save for personal items belonging to Jake and certain items of antique family furniture and paintings, Terri would retain the contents of the apartment.

POSTSCRIPT
The mediators observed that the question of legal costs made this a dispute that could not have been litigated. If legal costs up to and including a two day trial had been (as their solicitors suggested) in the region of £60,000 - the value of the estate would have been reduced to about £40,000 before sharing. In the circumstances of the case it was highly unlikely that any one party would have succeeded outright, thus gaining a prized but illusive costs order. In the event, the family retained @ £70,000 worth of assets and Terri the remaining £30,000. Importantly, the family were able to move a significant part of Jake's estate into trust for the grandchildren. The grandchildren's fund alone was ⅔ the total fund that would have been available after a trial.

Interestingly, despite the conflict both before Jake's death and following it, the parties both shook hands and hugged at the end of the agreement signing. Both Norman and Irene said, "We lost our precious son, but we have felt for the first time that we have gained a daughter in law".