The ongoing costs of living, with hikes in inflation and associated costs, have caused much pressure on households for some time now through the worry, fear and financial woes that many are continuing to suffer. Everything from salaries and earnings to household costs, to house values have been affected, and it is notable that financial difficulties are cited as being one of the most common contributors to relationship breakdown. We all hope that some of the economic pressures are beginning to ease in 2024; however, many may take different relationship paths once the financial dust has settled.

The financial position of divorce economics continues to evolve. Indeed, it has been a turbulent time in the 'twenties' and this was considered with Mary-Ann Wright, Managing Partner of Manders Law in London via their excellent blog in 2020. More can be found here:

The Chapters Financial team sees regular enquiries from individuals seeking to understand the process and to consider the financial aspects of any separation, including any pensions to be divided (pensions in divorce).

I have been involved in providing advice on the financial aspects of divorce for over a decade (even longer if I count my own experience of divorce!), having been trained and tested by the Resolution organisation in 2007, and the options of how an individual may proceed through their divorce have changed over this time.

There has been significant and welcome ongoing increase in couples using mediation services to reach agreement. Parting couples come together in a constructive format to try to formulate a set of proposals with which they are happy to move forwards.

Contentious divorces still continue, and this is unlikely to change, although it would be fair to suggest that you pay to argue. The needs and care of any children of the family is likely to remain paramount to all involved in the process and you would not normally finalise a Final Order (previously known as a Decree Absolute) with the Court without financial matters being resolved, either by agreement or adjudication, to include, where appropriate, division of pensions.

There are many terms that you may come across in the process of divorce, such as 'Conditional Order' (previously known as Decree Nisi), which means that the court has jurisdiction to regulate financial matters, and 'Final Order' (previously Decree Absolute), which brings a marriage to a conclusion. You might need a Form E, a Pension Sharing Order, a State Pension BR20 form to name but a few. You might understand that we are advocates of individuals seeking professional legal advice at each turn of the process.

Also, please be under no illusion that the UK family law court system continues to be under great pressure due to the number of divorce cases and that can make the process lengthy, even when non-contentious. It is sensible to manage time and cost expectations as you proceed.

One recent development is the need for the UK legal system to consider 'no-fault' divorce, rather than one party having to petition on the basis of a fault within the marriage. Many are keen advocates of this proposal.

To further the consideration, I am delighted that my colleague, Karin Walker of KGW Family Law in Woking, has provided additional notes, as follows:

It is vital that separating couples have a clear understanding of their combined financial position as the task, which must be undertaken either by the couple through negotiation and discussion or by the court, is to ascertain what the resources and liabilities are and then how they should be divided. In this context it is important to obtain a pension report from an actuary in order to properly understand the value of the assets and the outcome of any pension sharing order.
More often than not couples are encouraged to find a form of process which enables them to be involved in the future of their family and make their own decisions within the parameters of that which is fair.
If it is impossible for agreement to be reached and some 3rd party intervention is required, the process of arbitration is very much more time and cost effective that the traditional court process. The couple are able to select the date and location of their hearing. They can choose their arbitrator who will be entirely committed to their case and will have read all of the papers, something which often the Judge in the Court process simply has insufficient available time to do.The process can be concluded in a matter of weeks and therefore the costs (in terms of both fees and emotional stress) are significantly reduced.
The most important thing is to receive proper clear advice from professionals who are specifically trained to help you reach the best possible future outcome for yourself and your family

Karin Walker of KGW Family Law can be contacted through the company's website here:

The team at Chapters Financial is well versed in the financial aspects of divorce and the individual topics that may arise. We have recently posted an updated blog on 'Pensions in Divorce / State Pension Update' here:

Please do get in touch if you would like to consider what's involved and what might need to be arranged as you go through the process.

No individual advice is provided during the course of this web article.

Keith Churchouse

Director of Chapters Financial Limited

Author of The Journey of Divorce: Addicted to Wedding Cake