Who Pays For Mediation Costs in the UK?
You may have heard about a government voucher scheme to cover the cost of family mediation.
In this article, we delve into the voucher scheme and answer your frequently asked questions about who pays for family mediation.
What are mediation costs?
Family mediation costs can be broken down into:
- The cost of the Mediation Information and Assessment Meeting.
- The cost of each mediation session.
- Any supplemental costs.
The Mediation Information and Assessment Meeting (MIAM) is an intake meeting where the mediator explains how mediation works and assesses whether mediation is a suitable alternative dispute resolution option for you. It may not be suitable if you have been subjected to domestic abuse and safety measures aren’t deemed to be sufficient to protect you or if you fear that your former spouse will take the children overseas without your agreement unless you get the protection of a prohibited steps order.
If the mediator believes you are both capable of engaging in mediation, some mediation sessions will be scheduled. Typically, each session lasts no more than 90 minutes. The number of sessions needed will depend on the complexity of the issues or your finances.
The supplemental costs of mediation can range from the expenses of jointly instructing a forensic accountant to value a family business or a pension actuary to value a pension to the mediator’s fees for drafting a memorandum of understanding after a successful mediation.
Who pays for privately funded family mediation?
Usually, a couple will share the cost of mediation. This could be achieved by having each party pay 50% of the cost of each session or by paying for mediation out of their joint savings. Each party will be responsible for paying their family lawyer, who will provide legal support during mediation.
There are no hard and fast rules about who pays for privately funded family mediation. If one spouse has a reduced income or is reliant on spousal maintenance and child support, the financially stronger party may be responsible for covering all the costs of mediation.
Mediators are independent of the parties and of the solicitors who refer divorcing couples to them. The outcome of the mediation sessions will, therefore, not be affected by your decision on who pays for the sessions.
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What is the Family Mediation Voucher Scheme?
The Family Mediation Voucher Scheme is a government-led, time-limited mediation payment scheme designed to encourage separating couples to resolve family law disputes through family mediation.
If you are eligible for the scheme, your mediator will receive a voucher worth up to £500 to cover all or part of the mediation costs. The voucher cannot be used to pay for the MIAM; it can only be used to cover the costs of mediation sessions.
The £500 covers both of you. You cannot each claim a separate voucher or ask for vouchers to cover separate children and financial mediation sessions.
Whether the £500 voucher covers all the mediation costs depends on the number of sessions held, but it is intended to be a contribution rather than a full payment. If a surplus remains, the money cannot be used to cover legal fees that support you during mediation or to pay your divorce solicitor to obtain a no-fault divorce.
For further details on the government scheme, please visit this link.
The main eligibility criteria for the voucher are that you must be mediating about:
- A dispute regarding a child.
- A family financial dispute in which you are also involved in a dispute related to a child.
For example, you need to reach an agreement on whether the children live with you, the contact arrangements with the non-residential parent and the divorce financial settlement. The financial settlement may encompass child support, spousal maintenance, lump sum payment, the sale of the family home, the transfer of property or the making of pension sharing orders.
Frequently Asked Questions on Family Mediation
What does family mediation do?
Family mediation is designed to help you reach an agreement with your estranged or former spouse or partner over a family law-related dispute.
A qualified mediator conducts the mediation. They facilitate discussion to help reach an agreement. If an agreement is reached, the mediator will draw up a memorandum of understanding. In some cases, this memorandum is then converted into a binding court order.
If agreement cannot be reached, the parties have the option of using a different type of alternative dispute resolution method to help them reach an agreement or to make an application to court.
What family law disputes can mediation resolve?
Mediation can be used to resolve disputes on the following:
- The living and contact arrangements for children post separation
- Whether a parent should be allowed to take a child overseas to live
- New living or contact arrangements for children
- Whether a child should be introduced to a new partner of mum or dad
- Financial settlements after a divorce
- Property settlements after a cohabiting relationship has broken down
Mediation isn’t confined to resolving disputes between warring parents. It can be used to resolve:
- Grandparent contact.
- Step-parent contact.
- Inheritance disputes where claims are made that a Will or the intestacy rules don’t make reasonable financial provision for the claimant.
How does family mediation work?
Family mediation works in a five-stage process:
- Referral to mediation.
- Mediation Information and Assessment Meeting (MIAM) with each party.
- The mediator conducts a screening process to determine if both parties are suitable for mediation.
- Mediation sessions start and continue at the couple’s pace.
- If an agreement is reached, the mediator draws up a memorandum of understanding.
There are several types of mediation and various kinds of mediators. That’s why it can be helpful to speak with a family lawyer and to discuss the options during the MIAM. For example, you may prefer shuttle mediation because of previous incidents of domestic abuse, or you may want to include older children in the process with a child-inclusive mediator.
Many couples choose to seek independent legal advice before embarking on mediation and in between mediation sessions. This is because the mediator’s job isn’t to advise on family law but to facilitate an agreement. A family law solicitor can provide legal mediation support.
What is legal support in mediation?
Legal support in mediation is broad-ranging and tailored to your needs. It can include:
- Initial separation advice and answers to questions such as ‘can I change the locks?’
- Advice on the range of alternative dispute resolution non-court options, such as arbitration.
- Expert advice on the range of orders the court has the power to make and the likely range of orders in your situation.
- Guidance on financial disclosure in the mediation process.
- Advice on the need for expert instruction during mediation, such as the instruction of a pension actuary.
- Advice on proposed settlement options discussed in mediation.
- Help with converting your mediated agreement into a court order.
- Assistance with sorting out all the legal aspects of your separation, such as applying for a no-fault divorce, drafting a new Will, or preparing a Lasting Power of Attorney.
- Assisting with the implementation of your financial court order, including legal work, such as transferring the family home from joint names to a single name.
- Advice on enforcing the agreement or court order.
Taking advice from a family law solicitor before and during the mediation process can help you reach a mutually beneficial agreement, as your family lawyer provides you with the knowledge and confidence to negotiate a settlement that meets your needs and those of your children.
Evolve Family Law has offices in Holmes Chapel, Cheshire, and Whitefield, North Manchester. We also offer remote meetings via telephone appointments or video calls.
