Divorce and finances: the biggest mistakes people make

When a relationship breaks down, the decisions made in the first few months can shape the outcome for years to come. Many people do not know their rights on divorce and finances until they need them.

In this episode of Legally Sound, the Ansons Law podcast, Victoria Simpson talks to Joanne Vernon, Head of our Family Law team. Joanne has more than 25 years' experience, and she explains how the process works in practice and where people most often go wrong.

Key takeaways

• Divorce is now no fault. Neither party needs to blame the other, and the process is online.
• Mistakes in DIY divorce applications are common and can delay the financial settlement by months.
• The finances can be dealt with during the 20-week wait before the conditional order, so the divorce and the financial settlement progress together.
• Even if you agree terms between yourselves, take advice before signing anything.
• Parties are encouraged to try mediation or other non-court dispute resolution in an effort to reach an agreement on the financial settlement.

What is no-fault divorce?

Since April 2022, a divorce no longer requires evidence of adultery, unreasonable behaviour or a period of separation. The applicant simply states that the marriage has broken down irretrievably.

Before the change, we spent a great deal of time drafting allegations of unreasonable behaviour. That kept clients focused on the past rather than on resolving arrangements for the children and the finances. The "applicant" has also replaced the "petitioner", and couples can now apply jointly or one party can apply alone.

In our experience, few couples choose a joint application. It adds steps, because both parties must confirm each stage. A sole application gives the applicant more control over when to apply for the conditional order and the final order.

Why can a DIY divorce cost more in the long run?

The online portal looks simple, but it is easy to trip up. Common errors include names that do not exactly match the marriage certificate, wording that differs from the certificate, and boxes left unticked.

These errors are often not picked up until the application for the conditional order, five or six months into the process. The application may then need to be amended, or withdrawn and started again, with a further court fee. The financial order cannot be made until the divorce reaches the conditional order stage, so any delay to the divorce also delays the financial settlement.

How are finances divided?

There is a 20-week waiting period between the divorce application and the conditional order. We use that time to deal with the finances, so the divorce and the financial settlement progress together.

1. Financial disclosure. Both parties provide bank statements, pension valuations and details of property and other assets.
2. Expert input. Where needed, we arrange property valuations, pension reports and financial advice.
3. Negotiation. Once the full picture is known, we negotiate a settlement.
4. Consent order. The agreement is recorded in a consent order and approved by the court once the conditional order is made.

If everything goes to plan, the divorce and the finances can be resolved within seven or eight months.

Couples who can talk to each other and agree terms themselves should still take advice before signing anything. An agreement may seem fair, but without a true picture of the other party's assets it may not be.

Do we have to go to court?

Not usually. The court now expects both parties to consider non-court dispute resolution first, such as mediation or round-table meetings with both solicitors. Before every hearing, each party must complete a form confirming whether they have attempted non-court dispute resolution.

Mediation is not suitable in every case. Where there has been domestic abuse, you will not usually be expected to attend mediation before applying to court, and your solicitor can negotiate on your behalf instead.

If the other party will not engage or provide disclosure, the court has the power to make them. In financial cases, a financial dispute resolution hearing allows a judge to indicate what order they would make. That indication often leads to a settlement on the day.

How we can help

Our Family Law team advises on divorce, finances, arrangements for children, cohabitation disputes, prenuptial and cohabitation agreements, and protective injunctions. The first conversation is an opportunity to understand your options, with no obligation.

If you need advice on divorce or the finances, please fill out the contact form on this page, email info@ansons.law or call 01543 267988 and a member of our Family Law team will get back to you.

This article is for general information only and does not constitute legal advice. Specific legal issues always require the advice of a qualified legal professional.