Category: Family & Divorce

The biggest shakeup in divorce law in over 50 years came with the introduction of no-fault divorce in April 2022. This significant change removed the need to assign blame for the breakdown of a marriage, a long-standing source of conflict between spouses. Before this change, many divorces were framed as a “blame game,” with one spouse often seeking to place full responsibility on the other. But as we all know, it takes two to tango, and divorce is rarely the fault of just one person.

With the introduction of no-fault divorce, the aim was to reduce animosity and conflict, not just between spouses, but also to protect the children caught in the middle. The idea was simple: remove the need to assign blame and foster a more amicable separation. The Ministry of Justice had predicted that the number of divorce applications would rise as a result of this change. However, the statistics tell a different story.

Key Statistics Since No-Fault Divorce

• 28,865 divorce applications were made between January and March 2024.
• 76% of these were sole applications; only 24% were joint applications.
• This represented a 5% decrease in applications compared to the same period in 2022 under the old law.
• Divorce filings have decreased by 29.5% overall since 2022.
• There was a 19% drop in financial remedy applications between October and December 2023.

What Do These Numbers Mean?

One of the most surprising findings is the decline in divorce filings after the no-fault law was introduced. Contrary to expectations, the new process has not led to an increase in applications. The breakdown between sole and joint applications is also notable: three-quarters of applications are sole applications. This suggests that in many cases, one spouse is still more eager to proceed with the divorce than the other. Under the old law, a spouse could contest the divorce if they disagreed with the grounds cited. However, with the new system, there is no option to contest a divorce unless there are jurisdictional issues, which are rare.

The new system has also created a more collaborative environment for divorcing couples. Previously, the attribution of blame set an acrimonious tone right from the start, making it difficult for couples to agree on key issues such as children and finances. Now, with no-fault divorce, both parties can reach a mutual decision to end the marriage and focus on resolving their issues amicably.

This trend towards cooperation is also supported by the requirement introduced in April 2024 that couples engage in Non-Court Dispute Resolution (NCDR) before filing for financial remedy proceedings. Legal experts have found that this has helped reduce animosity at the outset, making it easier to settle matters without court intervention.

Challenges in the New Divorce Landscape

Despite the positives, there are some challenges with the new no-fault system. The introduction of a 20-week cooling-off period has extended the divorce process, with the average time from application to final order now standing at 65 weeks. This extended timeline has led some couples to seek faster alternatives, such as separation agreements, especially if they are unsure about fully committing to divorce proceedings.

The other big factor influencing divorce rates is cost. With the current economic climate and the cost of living crisis, many couples have found that divorce is simply too expensive right now. As a result, some are choosing to postpone their divorces or explore alternative arrangements.

Interestingly, the online divorce process has made it easier for couples to manage their own divorces without legal representation, reducing the need for solicitors. This shift has helped couples save on costs, but it has also led to a decrease in financial remedy applications—as couples are more willing to negotiate financial agreements between themselves rather than pursuing contested proceedings.

Why You Still Need Legal Guidance

While many couples are successfully navigating the new system without legal help, it’s crucial to remember that any financial agreement reached during a divorce must be formalised in a Consent Order to be legally binding. Without this, your ex-spouse could potentially make a financial claim against you in the future, especially if your financial circumstances change.

If you’re going through a divorce or separation, or if you need help formalising a financial agreement, our expert team at Vyman Solicitors is here to guide you. Whether you’re dealing with no-fault divorce, financial remedy proceedings, or need assistance drafting a Consent Order, we can help you navigate this process smoothly.

by Minoli Vehella

Trainee Solicitor I Family Law 

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Get in Touch

For assistance with no-fault divorce, financial remedy proceedings, or formalising financial agreements, contact the Family Law team at Vyman Solicitors on 020 8427 9080.

We’re here to support you every step of the way.

In 2021, the Family Court took steps towards greater openness with the report Confidence and Confidentiality: Transparency in the Family Court. This report aimed to make the court more transparent while still protecting the privacy of those involved in family disputes. One major change from this report was the introduction of the Family Court Reporting Pilot.

What Is the Family Court Reporting Pilot?

Introduced in January 2023 in cities like Cardiff, Leeds, and Carlisle, this pilot allowed accredited journalists and legal bloggers to attend and report on family court cases. The goal was to help the public better understand how family courts work while still protecting the identities of those involved, particularly children. By January 2024, the pilot expanded to cover more courts, including the Central Family Court in London.

What Is a Transparency Order?

While the reporting pilot aims to increase openness, the Family Court still has the power to issue Transparency Orders. These orders protect the privacy of individuals by preventing the release of information that could identify children or families involved in a case. The court can issue such an order based on its own judgment or upon request from one of the parties. The goal is to protect privacy where needed, with each case being assessed individually.

The Case of Goodman v Walker

In a recent case, Goodman v Walker, involving well-known celebrities, the court had to decide whether privacy or transparency should take priority. Typically, the court protects the identities of children involved in cases like this, but Judge Hess chose to publish his judgment without hiding the names of the parties or their children.

Why did this happen? Judge Hess argued that since the individuals had already shared many details of their dispute with the public, any potential harm to their children had already been done. He believed it was more transparent to publish the full judgment without redactions, allowing the public to form their own opinions.

What Does This Mean for Family Court Transparency?

The Goodman v Walker case is an exception, not the rule. In most cases, especially those involving children, the court will continue to prioritise privacy and issue Transparency Orders when necessary. However, this case shows that in certain high-profile situations, the court may choose a more open approach.

Balancing transparency and privacy in the Family Court is complex and evolving. While Goodman v Walker was an unusual case, it highlights how the court can make different decisions based on the unique circumstances of each case. At Vyman Solicitors, we are here to help you navigate family law with sensitivity and expertise, ensuring your privacy is protected throughout the process.

By Tanya Patel Trainee Solicitor I Family Law

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Sources

• https://www.judiciary.uk/wp-content/uploads/2021/10/Confidence-and-Confidentiality-Transparency-in-the-Family-Courts-final.pdf
• https://www.justice.gov.uk/courts/procedure-rules/family/parts/part_27
• Para 88, Goodman v Walker
• Para 93, ibid.
• Paras 93 and 94, ibid.
• Para 94, ibid.

Marriage is a significant milestone, but it’s natural for couples—and their families—to have concerns about safeguarding their wealth. Whether you’re planning for your future or considering how to protect your assets in case of divorce, understanding the right steps is essential. At Vyman Solicitors, we frequently address these concerns and provide expert guidance on protecting wealth before and after marriage.

Protecting Your Assets Before Marriage

1. Pre-Nuptial Agreements
   Pre-nuptial agreements are a powerful tool to outline how assets will be divided in case of divorce. While not legally binding in the UK, they hold considerable weight in court when drafted correctly, offering a solid layer of protection for your financial interests.
2. Declarations of Trust
   A Declaration of Trust is ideal when third parties, such as parents, contribute to assets like property. This document provides clarity on ownership and ensures fair asset distribution, avoiding confusion later on.
3. Loan Agreements
   If you’re lending money to a family member or spouse-to-be, a formal loan agreement can outline repayment terms and protect the lender’s interests, making it a critical tool for financial security.
4. Legal Charge
   A legal charge provides extra security by allowing a lender to place a charge on property, safeguarding repayment in case the borrower defaults. This is particularly useful for protecting significant financial contributions to property purchases.
5. Post-Nuptial Agreements
   Post-nuptial agreements, similar to pre-nuptial agreements, can be drafted after marriage. These agreements help redefine asset distribution and can be an excellent way to protect both parties, especially if circumstances change during the marriage.
6. Trusts for Wealth Protection
   Trusts offer a flexible way to protect and transfer wealth, ensuring your assets are safeguarded for future generations. With the right structure, trusts provide privacy and control over how assets are distributed.
7. Long-Term Family Wealth Planning
   At Vyman Solicitors, we specialise in comprehensive family wealth planning, including setting up family investment companies and strategic tax planning. These tailored solutions help secure and grow your family’s wealth over the long term.

What Happens If Things Go Wrong?

If your marriage faces challenges, it’s crucial to understand how the courts approach divorce and financial settlements. Here are some key considerations:

1. The Court’s Objective in Divorce
   The court’s aim is fairness. Typically, the starting point is a 50:50 split of assets. However, this can be adjusted based on factors such as the financial needs of both parties and any children involved, ensuring a fair and balanced outcome.
2. Spousal Maintenance
   In some cases, spousal maintenance may be ordered to ensure that both parties can maintain a reasonable standard of living post-divorce. Each party is expected to work towards financial independence, but the court will assess their needs on a case-by-case basis.
3. Pensions
   Pensions are often overlooked but are just as significant as other assets in a divorce. In many cases, pensions can be split equally between both parties, ensuring financial stability for both after the marriage ends.
4. Pre-Marriage Assets and Inheritance
   Assets owned before the marriage and inheritances are generally protected. However, if these assets were used for the benefit of the family, they may be considered part of the marital estate. The court has discretion to include or exclude these assets, depending on the financial needs of the parties.

Get Expert Legal Advice at Vyman Solicitors

Whether you’re preparing for marriage or facing the complexities of divorce, Vyman Solicitors is here to help you protect your assets and plan for the future. Our team of expert family lawyers, led by Zharna Sutaria, specialises in family law and wealth protection strategies, offering tailored solutions to meet your specific needs. Get in touch with the Family Law team at Vyman Solicitors on +44 (0)20 8427 9080.

Contact Us for a Consultation

One of the most common concerns when couples contemplate marriage, and which are often shared by parents who may be considering gifting to their children, is how they can safeguard assets they have inherited or accumulated from their own endeavours prior to the marriage. They may also wonder what will happen if things don’t work out; how will the division of their assets be decided?

In this article, we address our most frequently asked questions:

A. How can I safeguard my assets before I marry, if I were to divorce in the future?
B. What happens if it all goes wrong?

A. HOW TO SAFEGUARD YOUR ASSETS IN DIVORCE

1. Pre-Nuptial Agreements

Although not infallible, these agreements carry significant weight in English courts and provide a documented framework for asset division. A thoroughly drafted pre-nuptial agreement that meets the relevant criteria can be instrumental in preserving financial interests during divorce proceedings.

2. Declarations of Trust

These documents can record beneficial ownership interests of third parties (e.g. parents) especially in circumstances where there may otherwise be ambiguity in determining the real ownership of an asset. If prepared in a timely manner, declarations of trust can help to eliminate doubt and clearly define each party’s share. They are also helpful for couples who intend to cohabit in a property that they have bought together but may not have contributed to the purchase in equal shares. 

3. Loan Agreements

A well-crafted loan agreement prepared prior to any sums being lent not only outlines repayment terms but also serves as a legal instrument protecting the interests of the lending party.

4. Legal Charge

By securing a debt against an asset, parties can introduce an additional layer of safeguarding. A legal charge allows a lender to secure the money they have lent to an individual or a married couple. It can also be registered against the property at the Land Registry (and Companies House, if relevant).

5. Post-Nuptial Agreements

Post-nuptial agreements are prepared after marriage, offering an opportunity to redefine asset division terms. While their enforceability may vary, provided they also meet the relevant criteria, they serve as valuable tools in addressing changing circumstances and help to reinforce financial agreements within the marriage.

6. Other Trusts

By transferring ownership of assets to a trust, parties may be able to create a protective buffer. Standalone trusts, when appropriately structured, offer flexibility and privacy while safeguarding assets for future generations.

7. Long Term Family Wealth Planning

This may involve utilizing various types of trusts, establishing family investment companies and employing strategic tax planning. Tailoring strategies to the specific needs of each client ensures the most effective protection.

B. WHAT HAPPENS IF IT ALL GOES WRONG?

It is important that any couple considering divorce understands how the court would deal with division of marital finances on divorce as their expectations may be very different to what actually happens.

1. The Overall Objective

The overall objective of the court is to achieve a result that is fair and non-discriminatory. The starting point, regardless of the length of the marriage, is always 50:50 and the overriding factor in most cases will be the reasonable needs of the parties.

The court must, however, have regard to all the circumstances of the case, the first consideration being given to the welfare of any minor child of the family. They must also specifically consider the following:

• Financial resources;
• Financial needs, obligations and responsibilities;
• Standard of living enjoyed during the marriage;
• Ages of the parties and the length of the marriage;
• Any physical or mental disability that either party has;
• Financial or other contributions made or likely to be made in the foreseeable future;
• Conduct of each of the parties if that conduct would be unfair to disregard; and
• Value to each party of any benefits that they may will lose the chance of acquiring.

When taking these factors into account an equal split of the assets may not be fair. In those circumstances the court can decide to deviate from the equality rule.

2. Spousal maintenance

There is an expectation that each party will aim to maximise their ability to earn or receive an income on divorce even if that means seeking employment for one party who had never worked during the marriage.

If maintenance is likely, there is no ‘formula’ that determines how much might be paid; the court tends to apply a broad-brush approach looking at the reasonable needs or requirements of each party and the income that is available.

3. Pensions

Most working people these days are likely to have some form of pension provision whether that is through their employer or paid privately. Despite this fact many divorcing couples remain unaware that, like other assets of the marriage, pensions can also be shared equally.

4. Pre-marriage Assets

Generally, assets that one party owned prior to the marriage such as property or investments will fall outside of the marital pot. However, the court can include assets that were subsequently used for the family within the pot to share. The court also has a discretion to include such assets where not to do so would mean that there are insufficient financial resources to meet the party’s needs.

5. Inheritance

Inheritance, in the first instance, is considered non-matrimonial property and can be ring-fenced or set apart from the assets of the marriage especially if acquired before marriage or after separation. However, there are circumstances where an inheritance may not be excluded.

DO YOU NEED OR KNOW SOMEONE WHO MAY NEED ADVICE?

Navigating the complexities of family law requires a comprehensive and adaptable approach. Our lawyers are specialists in this field and can advise parties about the options available as well as the pitfalls they may face in their specific circumstances with a view to securing their financial well-being both before marriage and/or throughout the challenging process of a potential divorce.

Understanding how the court might approach your circumstances could alleviate any anxieties and help you to decide your next steps. Taking legal advice may be essential in ensuring that you receive a fair share of the marital assets.

Zharna Sutaria heads a specialist and experienced Family Law Team at Vyman Solicitors.

Zharna has been practising family law for over 25 years, is a Law Society accredited specialist and a member of Resolution meaning her focus is on achieving an amicable settlement whenever possible.

Shreeti Rajdev and Tulshi Shah are also specialists in this field with considerable skill and experience having been in practice for many years. Vyman have a dedicated of team family lawyers, trainee solicitors and support staff whose aim is to help clients understand and manage family related issues in a constructive and cost effective way.

Zharna Sutaria is available on 020 3927 7779 or email zharna.sutaria@vyman.co.uk