No-fault divorce, introduced in April 2022, allows couples to divorce without assigning blame, aiming to reduce conflict during an already daunting time. However, this divorce process does not address the financial settlement aspects, which are dealt with separately and parallel and can often continue after the divorce is finalised. Even if both parties agree on wanting a divorce, financial issues often prove to be a source of difficulty and disagreements, as couples may struggle to reach an agreement on how to divide their assets and finances after the end of their marriage or civil partnership.
Reforming Financial Remedies on Divorce and Dissolution
At the end of 2024, the Law Commission published an extensive 373-page scoping report reviewing whether there needs to be a reform in the laws governing financial remedies for divorce and dissolution. The report concluded that the current laws under the Matrimonial Causes Act 1973 (and mirrored in the Civil Partnership Act 2004) do not reflect the significant developments to financial remedies law established through judicial decisions.
The Law Commission highlighted a key issue: the law, as it stands, lacks clarity and accessibility, making it difficult for individuals to understand how their financial settlement might be determined. As a result, outcomes can be unpredictable, and the system can feel inconsistent and uncertain for those going through divorce or dissolution. This uncertainty often contributes to prologued disputes and increased legal costs. A summary of the scoping report can be found here: Financial remedies on divorce.
The scoping report also identified several other aspects that could be reformed to improve fairness and efficiency in the system, including:
- The introduction of binding nuptial agreements (“pre-nups”)
- What consideration courts should give to the serious misconduct of separating parties, including domestic abuse, when making financial remedy orders
- Whether there should be wider powers given to the courts to make orders for children aged eighteen and over
- Whether there should be a time limit on how long a person can be required to pay maintenance for an ex-spouse
- Whether sufficient account is taken of pensions when dividing the divorcing parties’ assets.
Commissioner for Property, Family and Trusts, Professor Nick Hopkins, said:
“The end of a marriage or civil partnership is a stressful time for couples. It is important that when this happens, people should be able to understand what the law says about how their finances will be divided. Our report concludes that the current legislation, which has not been updated for 50 years, does not provide couples with a cohesive framework for a fair or sufficiently certain outcome. We offer several models for reform for Government to consider and are well placed to provide final recommendations for reform once Government has decided which of these models to adopt.”
Source: https://lawcom.gov.uk/law-commission-publishes-scoping-report-on-financial-remedies-on-divorce/
Solicitors for Financial Settlements in Divorce
While this is undoubtedly a positive step forward for family law in England and Wales, it is important to realise that it may take some time before any potential reforms are implemented and before any substantial changes to the laws regarding financial matters in divorce are finalised.
At Rose & Rose, we understand how distressing a separation or divorce can be, and financial issues can be particularly challenging, with many complex matters to consider. Understanding which forms you must complete, and which options are best for your situation can be confusing, but we can help.
Our specialist matrimonial finance solicitors in Kingston are here to help you with all aspects of divorce, dissolution and separation. We can provide practical advice regarding all divorce financial settlement matters, consent orders, and clean break agreements. Additionally, our team has specialised expertise in handling cases involving divorce and foreign nationality.
For further advice on information in this article, divorce, and other aspects of family law, please get in touch with our Family Law team today by clicking on the profiles below.
Read some of our previous articles for related information:
Importance of Using a Regulated Professional for Financial Settlements in Divorce
No Fault Divorce Reaches Its First Anniversary
This blog post is not intended to be taken as advice or acted upon. If you are seeking legal advice, please contact our team of solicitors.
