Navigating Fair Financial Resolutions in Family Law: Understanding the Cost of Cutting Corners

Navigating the financial intricacies of divorce demands attention to detail, especially when it comes to ensuring fairness. In the realm of family law, the division of finances in a financial settlement is complex, critical and often misunderstood. The recent Nuffield Foundation-funded research, ‘Fair Shares? Sorting out money and property on divorce,’ led by esteemed legal professionals and researchers, sheds light on the challenges and crucial considerations for divorcing couples in England and Wales.

Understanding the Landscape

This comprehensive study offers the first holistic view of financial and property arrangements during divorce proceedings, a critical aspect often clouded by limited data. Contrary to media portrayals focused on high-value cases, most divorcing couples possess relatively modest assets. The median asset pool, includes homes and pensions, and sometimes debts, often hovers around £135,000, with substantial variations for those with no assets in the marriage to divide and those with a more wealthier asset pool.

Financial Vulnerabilities and Gender Dynamics

One striking revelation from the study is the financial vulnerability experienced by wives, particularly mothers, in the aftermath of divorce. Disparities in employment, earnings, and pension provisions contribute to a precarious financial position for many women post-divorce, affecting their standard of living, especially when shouldering the main responsibility for child care.

Knowledge Gaps and Legal Guidance

A prevailing lack of financial awareness among divorcees who were unaware of critical financial aspects during the marriage, such as assets, mortgages and pensions, was found to have significantly impacted upon their ability to navigate and negotiate settlements effectively to achieve a fair outcome. While legal advice from a solicitor emerged as a primary source of guidance for many, the study highlighted that other divorcing couples did not obtain formal legal advice and that there was a fragmented landscape of information sources and clarity of guidance sources particularly online, which created confusion, often hindering informed decision-making. Nearly 12% of divorcees sought no advice at all, signalling potential risks in their financial arrangements.

The Path to Equitable Arrangements

Understanding how financial resolutions are reached unveils a complex picture. While a minority engage in court proceedings, a substantial portion of divorces are settled outside the courtroom, with couples negotiating directly or through mediation. The study highlights that whilst those who did not seek advice from a solicitor as they were often deterred in concern of costs, the involvement of a solicitor providing legal advice significantly correlated with and influenced fairer outcomes, particularly in addressing pension allocations through adequate consideration and ongoing support for spouses after divorce. The report noted that ‘where legal or mediation costs were incurred the amounts spent were relatively modest’.

While in the study it revealed that equal asset sharing wasn’t the norm, it is always advisable for each spouse to seek advice from a solicitor, so that the financial interests of both can then be safeguarded to achieve a fair outcome.

The study emphasizes the need for robust information dissemination and accessible legal guidance early in the divorce process. It highlights the importance of considering the circumstances of the majority, not just the wealthy minority, to shape policy changes beneficial for all the divorcing population in England and Wales. While advocating for broad discretion in financial settlements to accommodate diverse circumstances, the study urges increased attention to incorporating pensions into arrangements for a substantively fair resolution.

Key Takeaways and Recommendations

The study highlights crucial policy considerations:

  • Accessible Information: Initiatives providing clear, accessible legal information are imperative, aiding divorcing couples in making informed decisions early in the process.
  • Diverse and Alternative Resolution Avenues: Encouraging and facilitating various dispute resolution methods while ensuring affordability can help cater to the diverse needs of different couples.
  • Pension Awareness: Greater emphasis on integrating pensions into divorce settlements is vital to achieve substantive fairness, considering its significant impact on post-divorce financial stability.


Navigating financial divisions during divorce necessitates informed decision-making and a nuanced understanding of legal processes. Cutting corners by failing to obtain proper legal advice or lacking comprehensive financial insight can lead to detrimental outcomes which can impact far into the future.

Ultimately, the research highlights that prioritizing comprehensive financial awareness and accessible legal guidance can empower divorcing couples to pursue just and equitable financial outcomes that take into account their unique circumstances and future prospects, which is important for all including the more financially vulnerable and where there are fewer matrimonial assets to be shared.

Here, at Whitehead Monckton, our team of family solicitors provide a full range of services and can assist you with clear legal advice and information when you are contemplating divorce, which is important to have at an early stage. In support of ensuring that our advice is accessible to all divorcing clients; those with a large asset pool and those without, we offer an initial fixed fee meeting with a family solicitor, at a reduced cost. We will provide you with information on the law and initial advice on your circumstances and the options that may be available to you, to help you decide on the next steps. If you wish to instruct us after the initial meeting then we can advise and support you throughout your divorce and financial settlement. Whilst many divorcing couples assume that they will need the involvement of the Court in order to reach agreement on a financial division of the assets, this is not the case for many of our clients. Many matters can be settled and resolved with the assistance of one of our solicitors, collaboratively trained solicitors or mediators, through discussion and negotiation, avoiding the delay, costs and stress of Court.

If you are contemplating separation or divorce, please do not hesitate to contact a member of our family team, who will be happy to assist.