Behind the decline: why contested financial remedy orders are soaring despite fewer divorces
In recent years, England and Wales has witnessed a curious shift in family law dynamics. While the number of divorces has dropped significantly, financial disputes between separating couples are surging.
In 2023, there were 76,000 divorces. This marked a 30% decline since 2021 and the lowest number since 1971. This decline is largely attributed to the introduction of no-fault divorce legislation in 2022.
Despite fewer divorces, the number of contested financial remedy orders has skyrocketed. In 2023, 10,300 financial remedy cases were contested – a peak since 2008. Several factors can be contributed to this, including economic uncertainty (given the rise in living costs causing financial insecurity for many), complex financial portfolios and delays within the family court system itself.
To counter the rise in contested financial remedy cases, a proactive and strategic approach is essential. 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 through mediation, arbitration and private Financial Dispute Resolution hearings can offer faster, less adversarial paths to settlement, especially as court delays continue to grow. With the family courts facing significant backlogs, it is crucial for parties to consider exploring private hearings where possible, in order to avoid the potential delay court proceedings may cause for many parties.
- Early identification of potential disputes
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.
- Engaging experts early
The engagement of financial experts such as forensic accountants, pension specialists etc. can also assist parties in clarifying complex issues before they escalate. It can assist in streamlining discussions and avoiding unnecessary litigation.
Should you require any advice in relation to your finances following a separation, please contact one of our specialist solicitors on 029 2019 7203 to arrange an initial appointment.
