In recent years, England and Wales have witnessed a curious shift in family law dynamics. The number of divorces has dropped significantly but financial disputes between separating couples are increasing.
There were 76,000 divorces in 2023 marking a 30% decline from 2021. It is thought that this is because of the introduction of no-fault divorce legislation in 2022.
Although there are now seemingly fewer divorces, the number of contested financial remedy orders has dramatically increased. In 2023, 10,300 financial remedy cases were contested being the most recorded since 2008. Several factors can be contributed to this such as the current economic climate including the cost of living, complicated financial structures and assets or perhaps the delay which exists in the family court.
A proactive approach is essential to combat the increase in contested financial remedy cases that may be likely to end up before the Court. There are several approaches that can be adopted by parties to try and avoid contested financial remedy proceedings.
Alternative Dispute Resolution (“ADR”)
The use of ADR either through mediation, or private Financial Dispute Resolution hearings can offer faster, less confrontational paths to settlement via the Court. With the family courts facing significant backlogs, it is crucial for parties to consider exploring private hearings where possible, to avoid the potential delay (and significant cost) court proceedings can cause.
Identifying areas of dispute early
Early identification of any potential disputes, such as those involving complex assets, power imbalances or unrealistic expectations, can also help parties prepare effectively. Being able to engage in full and transparent financial disclosure from the outset can help reduce the likelihood of surprises that might derail parties’ negotiations.
Experts
The engagement of financial experts such as forensic accountants, pension actuaries and chartered surveyors and tax specialists can also assist parties in clarifying complex issues before they escalate. It can assist in streamlining discussions and avoiding unnecessary litigation.
For expert legal advice on financial matters arising from divorce proceedings, contact our family law team on 01792 655178.