Affording a Divorce in a cost-of-living crisis

March 7, 2023

Divorce can be a financial burden at any time but in the current climate of rising inflation, spouses are finding it increasingly difficult to finance their separation. Below are some tips on how divorce costs can be kept to a minimum in a cost-of-living crisis.

Avoiding Court Proceedings

A key objective when trying to limit the cost of divorce is to avoid court proceedings regarding financial matters where possible. However, as a last resort a party may have to begin court proceedings if there are extensive delays or they cannot agree. Court proceedings can lead to more acrimonious separations and lengthen the process, making it costly. As such, it is sensible to attempt to negotiate voluntarily before doing this. To avoid the need for court proceedings being issued, both parties need to focus on working together with the aim of reaching an outcome that will work for their futures when negotiating potential settlements.

Mediation

Mediation involves both spouses attending meetings with an independent third party who acts as a neutral to facilitate the discussions.  There is a cost to mediation but, as both parties effectively share the payment of the mediator’s professional fees it can be a cheaper option of settling matters if it is successful.

Collaborative law

Collaborative law can be a cost-effective alternative to court proceedings. This allows couples to participate in meetings and take part in the process, often leading to quicker resolutions as the parties may only need a few meetings to agree key decisions. At the beginning of the process, spouses are asked to sign a participation agreement which states that if the process broke down, they would both have to instruct new lawyers.  This ensures that they all have an incentive to make the process work and avoid the need to go to court.  As a result, it has a high success rate.  As this route is often quicker than court proceedings, the parties can also get to grips with their financial settlements earlier and settle into their new lives more quickly, rather than waiting for the courts to make a decision which neither of them may be happy with.  

No Fault Divorce  

Th introduction of the “no-fault” divorce process in April 2022 allows spouses to divorce without any blame being assigned on either party. This has reduced the time spent on the application process as parties no longer need to provide reasons to separate and instead the couple simply provide a statement confirming the marriage has irretrievably broken down. This can allow for a smoother, quicker and cheaper journey to divorce as the parties no longer spend time negotiating the contents of the divorce application.

Financial Support

There is also help available with court fees if your income falls below a certain level. Please see the Government website link below for further information on who qualifies for financial support for court fees.

https://www.gov.uk/get-help-with-court-fees

Being realistic about your assets

An important way to reduce costs is to try and be realistic about your assets. For example, many couples heavily debate about who will keep the family home. The family home can either be sold, transferred to one of the parties or it can remain in joint names and then sold at a later date when the children reach a certain age. Particularly in a cost-of-living crisis, it is important to establish early on if either party can feasibly take on the financial burden associated with the family home. Whilst there is understandably a significant emotional value placed on assets like this, being practical and reaching a decision quickly can help to limit expenses.

The continuing importance of legal advice

It is perhaps more important than ever to instruct a solicitor to guide you through the process of divorce. The help of solicitors can be instrumental to assist you with dividing assets appropriately, saving anguish in the long term. This legal guidance can help to ensure a fair and reasonable outcome is achieved for you and your family as quickly and cost-effectively as possible.

If you are in the process of separating or divorcing and wish to talk to a member of our Family team please contact us on 0121 705 7571.

Charlotte Peplow
Paralegal – Commercial Department

This article is for general information purposes only. It does not constitute technical, financial, legal advice or any other type of professional advice and is no substitute for specific advice based on your individual circumstances. We do not accept responsibility or liability for any actions taken based on the information in this article. For more information, please click here.