What is a Memorandum of Understanding?
Congratulations! You have reached an agreement in Mediation. Now what? Our Mediator, Kimberley Davies, explains the key documents you will rely upon and what will need to happen next.
Memorandum of Understanding – This is the document which will summarise any financial terms of agreement reached between you in mediation. It will be marked as “Without Prejudice”. This means that the terms are not yet binding, but this simply allows time for you to check the terms with your solicitor and ensure that everything has been considered. Your solicitor will then record the terms of the Memorandum of Understanding into a separate document known as a Consent Order. The Consent Order is the document that will be sent to the Court for a Judge to approve, and make legally binding.
Open Financial Statement – This is a supporting document to the Memorandum of Understanding. It summarises all financial information relied upon within the mediation process, to help shape the terms of financial settlement reached. This will include information relating to what capital you hold, what liabilities need to be considered, what your income is and what your anticipated future expenditure will be.
Parenting Plan – This is a document which can be created by parents in mediation. It will set out a summary of the key arrangements (such as who will the children will spend time with each week), and can also include more nuanced decisions. This could be, for example, whether the parents would like to commit to always buying a “joint” birthday present for their child, when new partners would be introduced, or committing to attending school parent’s evening together. A Parenting Plan is not a binding document, but should always be referred back to when considering the arrangements for the children.
For more information or to set up an initial Mediation appointment please get in touch here or call 0800 2800 421.