Why DIY divorces can be a ticking time bomb for both ex-partners: Ellie Foster

But add to that the financial headache of splitting property, pensions, savings and other assets, then a DIY divorce may not be possible without one of the parties potentially losing out.

Recent research by the Nuffield Foundation highlighted that whilst over 100,000 couples divorce each year, only one-third get a court order to formalise a financial agreement and only two in five divorcees use a lawyer.

Legal fees, especially in the context of divorce, can easily feel like a luxury when there’s a cost-of-living crisis going on. DIY divorces aren’t a new concept but the publicity surrounding the simplified ‘no fault divorce’ (introduced in 2022) seems to have encouraged more people to consider this approach. However, there are many misconceptions about divorce.

The most common misconceptions that lawyers come across are:

• A divorce also severs financial claims….no

Divorce legally ends the marriage but financial claims survive the final divorce order and, theoretically, could be raised out of the blue many years later. Who wants to run the risk of their subsequent hard-earned assets or a windfall (such as a lottery win), successful business venture or an inheritance, being the subject of a claim from an ex-spouse years down the line? This emphasises the need to take advice to ensure that financial claims are sorted out at the point of divorce.

• Instructing a solicitor means a fight in court…..no

Court should be a means of last resort and there are other constructive and cost effective ways a couple can address and resolve their financial relationship.

Mediation and collaborative family law are just two options. A specialist family lawyer can help navigate and negotiate a fair settlement.

• We’ve agreed everything between ourselves – we don’t need to do it formally

Claims remain live unless and until they are dismissed by a court ancillary to divorce.

Any agreement reached directly should be recorded in a financial consent order and submitted to court for approval. This provides certainty and maximises the chances of each person receiving what has been agreed.

A further wrinkle is that in England and Wales pensions can only be shared or adjusted as a result of a court order on divorce – a scheme won’t implement an informal agreement and this often comes as an unwelcome 11th hour surprise.

• Failing to investigate the finances properly or not knowing the law can lead to unfair results

A prime example is pensions. They are often confusing, can be overlooked and/or their value underestimated. This can lead to one party agreeing a settlement without fully understanding what they’re giving up.

You only get one bite of the cherry. Getting legal advice can ensure that nothing is overlooked.

• Moving on - the remarriage trap

With very limited exceptions, remarrying without making financial claims in relation to a previous marriage means you lose the right to do so. There can be devastating financial consequences. Remarriage and/or cohabitation during ongoing financial discussions can also cause problems and prejudice financial claims. If you’re thinking of remarrying or living with someone and haven’t sorted out a settlement with your ex-spouse you should take advice.

A DIY Divorce can be a tempting quick fix to cut costs and sever emotional ties, but it can create more problems than it solves. Most people know the phrase “Marry in haste repent at leisure”.

Perhaps the same adage can apply to DIY divorce as well.

Ellie Foster is Legal Director for Raworths Family team