2 in 3 divorces are completed without a binding agreement about finances and assets – leaving thousands of couples open to future claims from their ex.

Figures from 11 regional divorce centres show that, of the 88,089 divorces completed in 2017, a financial remedy order was only made in 27,889 instances. That means the parties are able to re-marry, but that no binding agreement has been made about how to share what the two parties earn and own, now and in the future.

The figures were obtained through Freedom of Information by law firm Ridley & Hall, and are cause for concern according to the firm’s Matrimonial Partner, Melanie Hartley. She urges separating couples to make sure they make a formal and clean split.

“The rise in DIY divorces have made it seemingly easier for couples to divorce, but sadly these breaks are often ‘incomplete’. Most people really want an amicable divorce, and some feel that they are best able to achieve that by not involving lawyers. Sadly, it seems they are then missing a crucial step in the process, which could come back to haunt them in the future,” Melanie comments.

When the court makes a financial order, details of who gets what in terms of cash, property, pensions and more is set out by law and is final. A financial agreement is not a legal requirement to a divorce, but without such an agreement, a former spouse can return years later and demand a share in their former spouse’s pension or assets.

Melanie says: “Without a binding agreement about who gets what, either party can return with a claim for money or assets at any point in the future. We have already dealt with several of these types of claims, and that could just be the tip of the iceberg. Most people believe that a divorce means the door to the past is closed. Unfortunately, this does not seem to be the case in around 70% of divorces.”

The figures also showed that fewer people are managing to agree a final financial settlement, despite setting out to do so. In 2017, there were 35,095 financial remedy applications made in England and Wales, but just 27,889 succeeded.

Melanie comments: “It’s a clear trend that people are representing themselves in court. But it’s a misnomer that this is always an easier and cheaper solution. Family lawyers in the main are very solution-driven. They know the law and are able to help manage their clients’ expectations in terms of what the courts will deem fair and reasonable. This means less time is wasted by either party making unreasonable demands.

“As standard, a good family lawyer would always suggest that a financial agreement is made, so that all assets are accounted for and distributed, and to ensure neither party can return with a claim against the other in the future. Once someone has moved on in life, potentially has a new partner and maybe had more children, a claim against what they own and earn at that point can be hugely difficult to deal with.”

Notes: 11 centralised divorce centres were introduced throughout 2014 and 2015 in England and Wales.

– North East: Durham, Doncaster and Bradford (Nov 2014)
– North West: Liverpool (Feb 2015)
– Wales: Neath, Newport and Wrexham (Jan 2015)
– Midlands: Nottingham and Stoke (Feb – Apr 2015)
– South West: Southampton (Feb – Apr 2015)
– London & South East: Bury St Edmunds (Apr – Oct 2015)

Melanie Hartley is partner at Ridley & Hall‘s Family & Matrimonial department based in Leeds. Get in touch with Melanie on 0800 8 60 62 65.

Melanie Hartley – Partner