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.