Divorce Real Estate and Mortgage Journal July 2024 (2)

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Understanding Anchoring in Mediation

Anchoring typically occurs early in negotiations when one party makes an initial offer or demand that

unduly influences the mediation process. For example, if one spouse demands an unrealistically high share

of assets, this figure can set a precedent, making any subsequent negotiations revolve around this inflated

value rather than a fair assessment of the assets.

The Impact of Anchoring

Skewed Negotiations: Anchoring can cause the negotiation process to skew heavily in favor of the party

who sets the initial anchor, often leading to imbalanced settlements.

Emotional Distress: When one party feels the anchor is unfair, it can lead to increased emotional

distress, resentment, and a communication breakdown.

Prolonged Mediation: Anchors can prolong the mediation process as parties struggle to move past the

initial figures and reach a mutually acceptable agreement.

Strategies to Diffuse Anchoring

As a divorce professional, there are several strategies you can employ to mitigate the effects of anchoring

during mediation:

Set Clear Guidelines: Before mediation begins, set clear guidelines and expectations. Explain the

potential pitfalls of anchoring and encourage both parties to focus on equitable outcomes rather than

initial positions.

Use Objective Data: Introduce objective data and benchmarks early in the process. These can include

financial statements, property appraisals, and legal precedents. Grounding the discussion in factual

information can reduce the influence of arbitrary anchors.

Encourage Open Communication: Foster an environment where both parties feel comfortable expressing

their concerns and needs without resorting to extreme positions. This can help prevent the establishment

of unreasonable anchors.

Diffusing Anchoring in Mediation: A Guide for

Divorce Professionals

10 DIVORCE REAL ESTATE & MORTGAGE JOURNAL

Mediation is crucial to achieving amicable settlements in

the often emotionally charged divorce process. However,

one psychological phenomenon that frequently hinders

productive negotiations is anchoring. Anchoring refers to

the cognitive bias where an individual relies heavily on an

initial piece of information (the "anchor") to make

subsequent

judgments

and

decisions.

For

divorce

professionals, understanding and effectively diffusing

anchoring can significantly enhance mediation, leading to

fairer and more equitable outcomes for both parties.

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