Divorce is a challenging experience, laden with emotional and financial concerns. Many individuals worry about the costs — both emotional and financial — associated with the divorce process. However, alternative dispute resolution methods can offer less contentious and often more efficient ways to reach a financial settlement.

Options couples may consider include direct discussions. They might discuss their financial settlements directly after receiving advice from their respective lawyers. If both parties are aware of the assets and their values, lawyers can advise and potentially formalise an agreement reached by the couple. However, many separated couples find such discussions uncomfortable owing to emotional reasons or the complexity of their matrimonial assets.

Another path is negotiations through lawyers. Once both spouses have disclosed their financial information and obtained any relevant expert evidence, negotiations can proceed through their lawyers. These negotiations can occur via correspondence or in a meeting with both parties and their lawyers. Such interactions are typically “without prejudice”, meaning they cannot be disclosed to a judge if the case proceeds to court.

A third process is mediation. It involves both parties meeting with a trained mediator who facilitates discussions to help them reach a settlement. Parties usually receive legal advice, engage in financial disclosure and obtain asset valuations before mediation. Lawyers can advise on issues arising during mediation, aiding in the exploration of settlement structures. All mediation discussions are “without prejudice”, and any agreement reached can be formalised by the parties’ lawyers.

Another way involves arbitration. This allows parties to present their case to a jointly appointed arbitrator — a specialist family lawyer experienced in financial matters on divorce. The arbitrator's decision is binding. This process can be customised to the parties’ specific needs, addressing financial issues, disclosure and hearing procedures.

There is also the court route. If a spouse is uncooperative or fails to provide financial disclosure, court proceedings may be necessary to compel participation. The court can order financial disclosures and obtain evidence from third-party experts, such as property valuations.

If a settlement cannot be reached, the court will direct a trial where both parties present evidence and the judge provides a resolution. The court process can be halted at any time if the parties reach a settlement.

To conclude, there are numerous ways to achieve a financial settlement in divorce proceedings. It is crucial to seek advice from a family lawyer and explore the different ADR options available.

• Jonathan Casey is an associate lawyer in the Bermuda office of Conyers. He specialises in family and matrimonial law