A recent report, led by the University of Bristol and funded by the Nuffield Foundation, reveals that, unlike the high profile divorce cases in the media, most divorcing couples have limited assets to share, often lacking financial and legal knowledge.

The research indicates that the median total assets of divorcing couples, including homes, pensions, and debts, amounts to £135,000, with equal division of these assets being uncommon. Only around one-third of divorcing couples formally resolve their financial matters through the legal system, and a mere one in ten couples resort to court proceedings.

The majority of divorcees arrange crucial matters, such as housing, pensions, and ongoing financial support, outside the legal framework.

 The lead author Emma Hitchings, Professor of Family Law at the University of Bristol, said:

“The research highlights that the total value of assets most couples have is modest. This presents a totally different picture to the media portrayal of substantial divorce settlements of the very wealthy and gives an important reality check on what ‘everyday’ couples are experiencing on divorce. Overall, the report exposes the considerable financial vulnerability of women post-divorce. Although legal processes are largely fair, these are not being used, especially by those with least means but most need.”

 The study, called Fair Shares, surveyed over 2,400 divorcees, and found that nearly 20% of couples had no assets to divide. Among those who did, only 30% received half of the net asset pool. 25% of divorcees ended up with no assets or only debts. Most couples preferred a clean financial break, and only 22% had spousal maintenance arrangements, typically for a fixed period.

The research found that only 32% of divorcees had made use of legal services in relation to their financial arrangements, with 42 per cent of those who did not do so saying they had been deterred by fear of the cost. More than 10% did not seek any advice or information during their divorce process.

Where divorcees’ financial and property arrangements had been finalised through lawyers or with a court order (whether by consent or adjudicated), there was evidence to suggest some difference in outcomes compared with divorcees who did not obtain legal advice. Not using a lawyer made it more likely that the pension position would not be adequately addressed, with men more likely to share their pension if they had received legal advice. The use of legal advice was also linked to a greater likelihood of: wives receiving ongoing support, the home being transferred to the wife, and, where the home was sold, the wife receiving a higher percentage of the proceeds.

Additionally, the research highlighted that pensions were frequently misunderstood and underutilised assets, as only 10% of divorcees with pensions had arrangements for pension sharing.

Annually, approximately 100,000 couples get divorced in England and Wales. This research underscores the need for improved awareness and understanding of the legal process and individual rights among divorcing individuals, particularly if many couples are scared to approach lawyers due to fears about costs. Legal advice makes a difference, and it is alarming that so many are being deprived of accessible early stage advice.

You can read the executive summary here: Fair Shares Executive summary.

Author Name: Editor

Published content by The Divorce Surgery Editorial Team.

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