21 November 2024
We are pleased to share the findings of a new cost-benefit analysis on the economic and social benefits of our family dispute resolution (FDR) services for parenting matters.
Conducted by Inform Economics, the analysis offers compelling evidence of the significant advantages FDR provides to families, the family law system and the broader community.
Also known as family mediation, FDR is a professional service designed to assist separating couples to resolve disputes about parenting arrangements, as well as property and financial matters. In Australia, separated parents must usually attempt FDR before undertaking court proceedings related to arrangements for children and parenting matters.
Having pioneered the service in Australia in the early 1980s, and as Victoria’s largest FDR provider, we see every day how FDR changes lives and improves outcomes for children. The new report has quantified this impact, by assessing the costs and benefits of FDR compared to when family disputes are resolved without such interventions.
Key Findings
The analysis demonstrates a benefit-cost ratio of 20.8, meaning that for every dollar invested in FDR, more than $20 in benefits are returned. These benefits span financial and non-financial impacts, delivering meaningful outcomes for:
- The family law system: FDR diverts cases from the courts, reducing costs and freeing up resources for more complex disputes.
- Families: FDR helps families avoid expensive and protracted legal processes, reduces time spent in disputes, and fosters improved family outcomes through non-adversarial processes.
- Society: FDR contributes to broader societal gains, such as improved health and productivity.
Importantly, the study did not exclude clients affected by family violence, demonstrating that the benefits of FDR can extend to families experiencing family violence, where it is deemed safe for them to participate.
Beyond Financial Metrics
A unique feature of this analysis is its consideration of non-financial outcomes, such as enhanced mental health, family safety and child wellbeing. FDR not only helps families resolve disputes but also contributes to lasting positive changes that ripple through communities.
Implications
The findings demonstrate the substantial value of FDR in addressing parenting matters, and support the recommendations of the recent Family Relationships Services Program Review. The report by Andrew Metcalf AO was commissioned by the Attorney-General, The Hon Mark Dreyfus KC MP, and includes a recommendation for a 35% increase in funding to meet growing demand and complex needs of clients.
The analysis also supports prior RAV research showing that FDR can be effective even for clients who are expecting to progress to court, with almost two-thirds of clients reaching an agreement on one issue, and the majority experiencing less acrimony after using the service.