Why a DIY divorce could have major financial implications

A new report has warned thousands of people could be losing out due to DIY divorces, carried out by couples with little or no knowledge of the subject.

The warning, from Emma Hitchings, Professor of Family Law at the University of Bristol, comes after 20,000 members of the public were asked a range of questions on the law surrounding the division of property and finances.

Overall, the public’s understanding of the law around finances and property on divorce was found to be patchy – and often poor – with a substantial proportion of the public having little awareness of the legal position.

The report found the most common mistaken belief was that assets are automatically split evenly on divorce. Nearly a third (30%) incorrectly said they believed this was the case.

Similarly, only 37% of people knew that the law states the longer the marriage, the more equally couples should divide assets and debt.

DIY divorces – which see couples decide between them how to split their assets – have become significantly more popular in recent years after Legal Aid (which helped those of limited means to pay for legal help) was scrapped in England and Wales. But Ms Hitchings, said it is “highly discretionary and a legally difficult concept”.

In the report, Professor Hitchings said the lack of Legal Aid has led to less awareness and knowledge which among divorcing couples which is “potentially problematic” because it means that people are relying on “their own misunderstanding of the law which tends to lead to poor settlements”.

Experienced solicitor Donna Sandall, founder of Donna Sandall Family Law, said the research shows the value of seeking expert legal advice to avoid being short-changed following a divorce.

She said: “When Legal Aid was stopped for almost all divorce cases in 2012, there was a big increase in couples attempting DIY divorces and that continues to be the case today. This research from the University of Bristol demonstrates some major misunderstandings which are commonly held and which could have an adverse effect on settlements which are agreed.

“A third of people believe that assets are automatically divided up equally when couples divorce. This is a myth. Courts tend to take many factors in account, such as the length of the marriage, the financial and non-financial contributions of each spouse, and ongoing needs—especially if there are children involved.

“This can, and often does, see one spouse receive significantly more than 50 per cent of assets to ensure their needs, and those of any children, are met satisfactorily.

“The goal is to ensure both parties leave the marriage on as equal a footing as possible.

“A solicitor experienced in family law can help you get the best possible settlement. Taking the DIY route may seem a cheaper option at first, but there could be major unexpected financial implications if those involved do not receive what the court would regard as their fair share.”

The full report can be found here.

How over-50s use property wealth to fund a divorce

New research from Legal & General shows that one in ten couples aged over 50 use property wealth, such as the sale of a family home or equity release, to fund their divorce.

The report, which explored the financial impact of divorce in later-life, also revealed that property wealth is the most important consideration for most couples at the point of divorce.

For many over 50s, property wealth is their most significant financial asset, with people over 55 holding the majority of housing wealth in the UK, totalling more than £3.5 trillion in property assets alone.

Many over 50s will buy their partner out using savings (18%), with one in 20 couples turning to equity release to stay in their homes.

Despite the complexity of dividing finances, only 8% take financial advice about their separation, according the report which can be found here.

 

New home for Darlington law firm Donna Sandall Family Law

After a successful first four years of trading, Darlington-based law firm Donna Sandall Family Law has moved into a new office.

The firm, which specialises in family and matrimonial law, is now based at Innovation Central, in John Williams Boulevard South, near to Darlington Train Station.

The £8 million office development was opened in 2022 with the aim of encouraging and supporting the growth and development of innovative businesses in the town.

It was jointly funded by Darlington Borough Council, the European Regional Development Fund (ERDF), £3.55million from the Tees Valley Mayor and Combined Authority, and the Government’s Getting Building Fund.

Donna Sandall, who has over two decades’ experience as solicitor, said Innovation Central offers many opportunities.

She said: “The building is very impressive and located close to the town centre and just a few minutes’ walk away from the train station.

“It benefits from free parking for visitors, a welcoming reception area, and it’s great to be able to informally network with other business owners who also have a base at the site.

“It’s bright, spacious and modern and a great place to work and hold meetings with clients.”