MEDIATION could save taxpayers million of pounds if fewer disputes were taken to court.

As a means of resolving problems, mediation is said to be quicker, cheaper and usually ends up with the parties being happier to comply with the outcome, yet court is often the first port of call for divorcing couples.

A survey for the National Audit Office found that one in three people who had been through a family breakdown were not offered mediation.

If they had been offered the service, about 42 per cent said they would have been interested.

Had these cases been resolved by mediation, it would have saved taxpayers an estimated £10 million.

The watchdog called for law firms to be investigated to check they were offering mediation.

Vicky Hewitt, at Wessex Family Mediation Centre, has been offering mediation for divorcing couples, fighting families and other disputes in Bournemouth since 1999.

She deals with about 70 cases a year in Bournemouth.

Her service is paid for by the government and eligibility is assessed using criteria similar to those of legal aid.

Mrs Hewitt explained that the couple meet with an independent, impartial and specially trained mediator and they identify the areas that need to be covered.

In the case of a divorce this would include children, finances, property and pets.

Then in a series of sessions the couple discuss these with the mediator and eventually reach an agreement.

Mrs Hewitt said: "The main benefit is the couple maintains a relationship.

"The process is usually quicker, cheaper and less stressful because the couple feel more in control of the outcome than if they had gone to court."

She said that in about 70 per cent of the cases she has dealt with - these include divorce, disputes over wills, problems between teenagers and their parents and grandparents wanting access to their grandchildren - an agreement was reached.

The agreement is usually then drawn up by solicitors and signed.

In the case of divorce, this still needs to be granted by the court, but mediation has avoided the need for protracted wrangling over terms.

If an agreement is not reached by mediation, the parties can still go to court.

Experts agree that not every case is suitable for mediation.

Cases in which there is a substantial power imbalance, bullying or domestic violence may make it impossible for people to speak their mind.

There is another option - collaborative family law, which is similar to mediation but both parties in the dispute have their lawyers present during discussions.

Lynn Wallis, head of the dispute resolution team at law firm Horsey Lightly Fynn, explained: "Collaborative family law is not as daunting as mediation because the clients always have their lawyer present."

She believes that, like mediation, the couple are more likely to stick to the decision if it is decided in this way rather than imposed by the court and that at the end of the process they are usually still talking.

She added: "When there are children involved, divorced couples must still have some communication.

"They must be able to work out key decisions about the future together."

Chris Lathbury, assistant solicitor in the family team at law firm Lester Aldridge, agrees.

He said: "After mediation or collaborative family law process the couple are more likely to stick to the spirit of the decision rather than just the letter, to comply with the bits in between the ruling that require good will."

He added that because it is becoming more difficult to get legal aid for divorce cases, people are interested in finding other ways of resolving disputes.

It is not just family matters that can be resolved by mediation.

Rob Kelly, from Horsey Lightly Fynn, is a mediator for civil matters such as breach of contract between individuals and companies.

Mr Kelly said: "At the end of court cases people usually feel very embittered and sometimes both sides feel upset by the ruling.

"But at the end of mediation people are usually happier because they have reached the decision themselves and are therefore more likely to stick to it."