Program History
In 1997, the General Assembly adopted N.C. Gen. Stat. §7A-38.4 establishing a pilot program for pretrial mediated settlement of equitable distribution and other family financial cases. At the conclusion of the Program's pilot phase, the General Assembly adopted N.C. Gen. Stat. §7A-38.4A providing forstatewide expansion of the Family Financial Settlement Program effective October 1, 2001.
Program Summary
The Supreme Court's Rules for the Family Financial Settlement (FFS) Program provide for mandatory referral of equitable distribution disputes (disputes over division of marital property and debts) to mediated settlement unless the parties elect to participate in some other form of dispute resolution provided for in the program rules, i.e., neutral evaluation, judicial settlement conference or a settlement procedure provided for in local rules. If the parties are willing, they may also discuss other financial issues relating to their divorce, including disputes over child support and/or spousal support. In those judicial districts where a child custody mediation program exists, the parties may discuss custody and visitation issues only when they agree to do so and have been exempted from or have fullfilled the requirements of the Custody and Visitation Mediation Program.
The FFS Program is designed as a "party-pay" program in that parties, and not the court or State, pay for the mediator's services. Since they are paying, parties are encouraged to select their mediator or other neutral. Parties may choose a mediator who is certified by the Dispute Resolution Commission or they may nominate a non-certified mediator to conduct their mediation. (The Commission encourages parties to select certified mediators since they can be assured that such individuals have been formally trained as mediators and that their conduct is governed by the NC Supreme Court's Standards of Professional Conduct for Mediators). Certified mediators are qualified attorneys and non-attorneys who have met the requirements for certification set forth in Rule 8 of the Rules Implementing Settlement Procedures in Equitable Distribution or Other Family Financial Cases. If the parties cannot agree on a mediator or take no action to select one, a district court judge or his or her designee will appoint a certified mediator to conduct the mediation. The mediator is responsible for scheduling the conference and finding a location where it can take place. Conferences are normally held in the courthouse, the office of the mediator, or the office of one of the attorneys. Court-appointed mediators are paid $125.00 per hour for mediation services plus a one time, per case administrative fee of $125.00. A mediator selected by the parties is compensated as agreed upon between the mediator and the parties.
During mediation, the mediator will work withthe parties and their lawyers, if they have them, to talk through their areas of disagreement and to help thembrainstorm options for settling their differences. It is the mediator's job is to help theparties reach their own agreement, not to decide matters for them. If mediation is successful, the parties' agreementwill be reduced to writing and signed and the court will be notified that the case has been settled. If mediation is not successful, the mediator will report an impasse to the court and the case will proceed to trial. Many times, cases which impasse at mediation go on to settle in the coming weeks as parties and their attorneys continue the discussion begun in mediation. The mediation process is confidential and, when a case cannot be settled in mediation, the mediator will not talk to the judge or jury about any offers or counter-offers proposed in mediation.