How to make sure financial mediation works, in challenging situations- MAPS

Mediation (using MAPS and a 5 Part preparation and support plan)

Subject matter/The challenge

Agreeing maintenance (Financial support) for a spouse using a Mediation 'Team' and the 'Divorce Manual' of information and resources

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Brief facts

·???????? H and W in the mid 50’s. Long marriage. Pension report based on parity of income on retirement at 65.

·???????? One child 14 years old.

(Not enough capital for Spousal maintenance clean break)

·???????? H net income ￡7000 pmth plus Bonuses and W net income ￡2500 pmth

·???????? Both working full time and maximising earning capacity

·???????? Both prepared monthly expenditures schedules

·???????? Disposable incomes (‘surplus’) (income less monthly expenditure, and after factoring in child support )

o?? H ￡3500

o?? W ￡500

Difference of views

H’s view is that W’s and child’s monthly reasonable needs are met, with W having a surplus of ￡500 pmth

W’s view is that it would be unfair, after a long marriage, which had affected her earning capacity, where the child is still living with her and will continue for the foreseeable future, for her to have a ‘significantly’ difference standard of living to her husband between now and when they both take their pensions at 65.

The Legal process

H and W and their solicitors have spent many months, involving letters going backwards and forwards, with different schedules and various documentary evidence including bank statements, arguing about whether various items of expenditure are reasonable, how they are each spending their money, whether they are doing their best to earn and income, and so on with the effect that the process has been long, costly and very frustrating for H and W who have become increasingly frustrated and fraught with each other, as if they weren’t already, blaming each other and their solicitors, for the situation.

They are both now ready to go to court where they face many more frustrating and very costly months.

• 6 months has gone by since H and W first saw their solicitors hoping to reach a quick settlement.
• Each spent approximately ￡15-20,000

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The MIAM- MAPS (Mediation Assessment Preparation and Support)

They come to see the Mediator for a mediation information and assessment meeting, during which the mediator speaks to each person in confidence, to build an in depth understanding of what W and H are each needing from the process and each other, and help them to understand what will be required to be able to fully and actively engage in sorting out their situation for themselves, with the right preparation and support.

This preparation includes working through and with a pre-mediation questionnaire H and W complete and discuss with the mediator.

H and W decide to work with the mediator and prepare for mediation:

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Preparing for mediation

Preparing the monthly expenditure schedules

The mediator recommends the Budget specialist member of the mediation team.

H and W both work with an expenditure budget specialist to ensure that, when the time comes in mediation, they can each explain to each other how and why they spend what they do and why this is reasonable in their situation, increasing the likelihood in mediation that they can agree reasonable total monthly expenditure schedules together.

Income and earning capacity

W and H each ensure that they can explain fully to each other why they believe they are doing their best to earn what they can in their situation. Again, if necessary, proportionate, and appropriate they can each or both work with an employment and earning capacity expert on this to ensure that they can validate their views and income situation.

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Having fully prepared, they come into mediation where the mediator (an expert in facilitated communication and problem solving) helps H and W to work together, ensuring that H and W feel like they are working together to explore options, make decisions and create outcomes which work for both of them, often the result of a reciprocal bit of give and take.

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The 5 step Spousal Maintenance Calculation Model

The mediator invites H and W to work with the mediator using the mediators’s 5 step methodology and frameworks to calculate spousal maintenance in mediation

1.????? Agreeing the net monthly income figures to work with

2.????? Agreeing the figures in their monthly expenditure schedules (monthly expenditure for them and their child) together

3.????? Agreeing the net figures they are working with (net income less expenditure)

4.????? Agreeing a child maintenance figure (perhaps using, as a starting point the Child Maintenance Service online calculator)

5.????? Agreeing their monthly disposable incomes (surplus) (net incomes, less expenditure and taking into account child maintenance paid by H and received by W)

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H and W see the monthly disposable incomes they each? have, in ‘black and white’, having carefully prepared these with expert support, ?enabling them to consider and discuss their views about

1.????? whether additional maintenance is reasonable, by way of maintenance for W (spousal maintenance) and if so,

2.????? how much,

3.????? what to take into account when calculating this (including the factor of Standard of Living),

4.????? when it will come to an end and, finally,

5.????? when it does come to an end, whether W should be entitled to extend it, in justifiable circumstances.

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The mediator helps W and H to have a carefully managed and contained discussion, ensuring that they fully understand what it is they need to make decisions about in law (see above 5 points, providing them with legal guides as and when necessary), in their specific situation, ensuring that they each have the opportunity to express and listen to each other views and, very importantly, the reasons for these views, acknowledging and respecting these differences, in an attempt to help H and W reach a decision together which feel 'fair enough' to both of them, often resulting from a bit of give and take

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MAPS Strategy, Plan and skills

There are many strategies and skills a mediator uses to achieve this.

Indeed, to get to this point, where W and H are able to reach their own decisions, determine their own future and outcomes, maintaining some control over the time it takes them, keeping their costs down and avoiding court, in a way in which they both feel a sense of autonomy, agency and empowerment, a number of aspects are at play.

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5 Part Mediation Preparation and Support Plan

H and W

From the outset, H and W both need to understand what mediation will require of them and feel committed and ready for the mediation process and this way of working with each other.

The Mediator

It is the mediator’s job to assess for this, enabling, empowering and motivating W and H for the task ahead of them. The Mediator needs to use their skills and experience to facilitate and support the necessary quality of communication and collective problem-solving process.

The Mediation Process

The Mediator needs to provide a right safe, secure, ‘thinking space’ for H and W to collectively problem solve together. The mediation process can take many different forms, designed around meeting the need of W and H to feel adequately supported in the process. This 'support' also takes many different forms from a practical, emotional and psychological aspect.

Resources- The Divorce Manual

The mediator needs to help W and H properly prepare, providing them with the right documents to complete as well as guidance notes and resources to refer to, as and when necessary.

• How to prepare to communicate in mediation
• How to reach your own maintenance agreements in 5 stages

Financial Experts supporting H and W and the process

The mediator needs to help W and H both to properly prepare, helping them to work with the right experts (Financial support team), if needed, to ensure that they feel properly prepared and supported, when the time comes. These experts can even attend the mediation sessions, if necessary to support the H and W and the process ('Mediation Teaming').

Other Organisations

If necessary, H and W can work with support organisations and organisation support programmes to ensure that they come to each mediation properly prepared and supported from a practical, emotional and psychological point of view.

In this way, following the M-APS process and using the 5 Part Plan, there are very few reasons why most mediations should not be successful.

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