Mediation can be an effective solution for dispute resolution and a quicker, lower-cost solution versus formal legal proceedings. Often used in divorce proceedings and commercial disputes, it can be a powerful tool to help you and your counterparty agree on a path forward. Here are a few tips to help you prepare for mediation. As a reminder, this isn’t legal advice, won’t apply to all circumstances, and you should seek the opinion of qualified counsel before engaging in mediation. Not every dispute is suitable for mediation, and legal advice can help you determine if mediation is right for you. If mediation is a path you are pursuing, these tips will help you achieve the best possible outcome.
Come Prepared
Mediation can be an intense and draining. You should plan sessions when you can be well rested and have had adequate time to prepare. If mediating with counsel or other professionals, spend time with them in advance to understand each party’s role. Attorneys are sometimes present during mediation, but it’s a mistake to think they will handle all the preparation. Every party participating in the mediation should be fully informed about the issues at hand. If the mediation involves financial assets, everyone must understand the assets and their economic and tax characteristics. A financial adviser or financial neutral can help with this preparation. Bringing printed notes and relevant data, like statements and valuations, can also help make the time more productive. It’s impossible to mediate effectively without a thorough understanding of your position and your options, including what compromises you may be willing to make to solve mediation.
Come Focused
Turn off your phone. Tell your kids and colleagues you’ll be unavailable during scheduled mediation sessions. Avoid checking your email and close other sources of distraction, especially if you are meditating virtually. You have the best chance of getting a positive outcome if you are focused and engaged. Failing to take the time seriously sends the wrong message to the other parties in the session.
Understand the Role of Your Mediator
Mediators have a role that is unlike most of your other advisers. They are tasked with staying neutral and helping both parties. They may ask hard questions and work to help all parties consider a range of solutions. While mediators often conduct separate sessions with parties to help them prepare and move discussions forward, it’s essential to note that your mediator is not your lawyer or therapist. There are different styles and approaches to mediation, and it’s critical to understand the ground rules with your mediator before you begin. This should be covered in a written mediation agreement signed by both parties.
Stay Results-Oriented
Often, mediation occurs when trust and relationships have broken down. You may have strong feelings about the other parties, and it’s easy for emotions to cloud your judgment and influence how you mediate. Mediation is often most successful when parties can set aside their feelings and focus on the financial or commercial aspect of what they want to achieve. Ensure you have the emotional support you need outside of mediation. It’s also important to keep the momentum going. Keep the time between mediation sessions limited, prioritizing progress. When parties are prepared and focused, mediation can often be completed in a few sessions over a matter of days or weeks, not months.
Don’t Agree to Anything You Can’t Adhere To
Nothing disrupts mediation and destroys progress like interim agreements that are not followed. Be realistic before you commit to something, and once engaged, adhere exactly to what you’ve agreed. There may be circumstances you can’t foresee that cause a change – an unexpected bill, an auto debit, or a change in a child’s school schedule, for example. If something comes up, communicate quickly and in writing to the other party. Don’t make assumptions about anything that is not explicit and clear. The same is true of the mediation agreement itself. Make sure you understand and are prepared to follow the rules before commencing mediation. Mediation agreements often include strict confidentiality clauses so knowing who you can and can’t discuss your mediation session with is also important.
Known When Not to Mediate
Mediation isn’t the right solution for every conflict. If you cannot communicate and represent your interests, it can be not easy to make progress. In some cases, parties need time to work through complex emotional issues before they can mediate well. If you’re unsure about mediation or whether it’s the right time, consulting a mediation-trained attorney, especially one trained in collaborative practice, can be beneficial. You may also need to speak with several different mediators before you find a good fit. If all parties agree, you can also include other support professionals in the mediation.
Know When to Walk Away
Unfortunately, in some circumstances, counterparties don’t act in good faith or engage in behavior that makes mediation impossible. In some cases, bringing attorneys to the mediation or splitting the mediation into separate rooms and eliminating all direct contact can help rectify issues. But in some cases, you’ll need to cease mediation and pursue other avenues to resolve your disputes. If you aren’t sure, you can continue to mediate, you can ask to pause mediation while you get legal advice and consider all your options.
DISCLOSURES
The information provided is for educational purposes only. The views expressed here are those of the author and may not represent the views of Leo Wealth. Neither Leo Wealth nor the author makes any warranty or representation as to this information’s accuracy, completeness, or reliability. Please be advised that this content may contain errors, is subject to revision at all times, and should not be relied upon for any purpose. Under no circumstances shall Leo Wealth be liable to you or anyone else for damage stemming from the use or misuse of this information. Neither Leo Wealth nor the author offers legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.
This material represents an assessment of the market and economic environment at a specific point in time. It is not intended to be a forecast of future events or a guarantee of future results.
