Mediation is a formal alternative dispute resolution system that helps people to compromise when seeking to resolve significant disagreements. Spouses preparing for divorce proceedings frequently attend mediation. If they are successful, they can pursue an uncontested divorce instead of litigating.
Any significant disputes that spouses have to resolve can be part of the mediation process. For many couples, the focus during mediation is on resolving disagreements regarding how they allocate their shared assets and marital debts. Attempting to negotiate property division matters can be an emotional and mentally taxing process. If spouses simply respond based on their feelings in the moment, they could struggle to agree on anything.
People who prepare appropriately in advance have the best chances of feeling satisfied with the outcome long after the courts finalize their divorce. How can people prepare for mediation focusing on financial matters?
Conducting a financial review
Effectively mediating financial matters requires an understanding of the marital estate. Spouses may need to review their financial records from during the marriage and establish a thorough inventory of assets. They also need to know what debts are marital and factor them into the process.
Once they know what assets they need to address and what they are worth, they can set reasonable goals and focus on achieving them during mediation proceedings. People who are unfamiliar with the contents of the marital estate, the fair market value of their assets and the debts that they have to address may find themselves playing catch-up during mediation sessions instead of prioritizing the best outcome.
Learning about the law
To effectively settle issues during mediation, spouses typically need to know what is possible during litigation. California’s community property rules govern the outcome of litigated divorce.
Spouses hoping to settle property division matters in mediation may need to sit down with their lawyer to learn about the standard approach to property division in a litigated divorce scenario. People who know what might occur should they litigate can better recognize when a proposed mediation settlement is inappropriate.
Provided that spouses do reach workable compromises with one another, divorce mediation can lead to a signed agreement and an uncontested divorce. Preparing in advance for financial mediation can increase the chances of both spouses agreeing on key terms.