Family lawyers brace for ‘Divorce Day’ spike – with warning over hidden financial risks

Family lawyers at Banner Jones say they are bracing themselves for a surge in enquiries around so-called “Divorce Day”, as couples return to work after Christmas and take steps to formally separate.

But the firm is warning that the divorce law procedure of no fault and online applications, which was introduced in April 2022 has led to more people completing the divorce procedure online, without properly resolving their finances, potentially leaving them exposed to future financial claims.

Lawyers say many people wrongly assume that once a divorce is finalised online, their financial ties are automatically severed. In reality, only a court-approved Financial Remedy Order (often referred to as a Consent Order) containing a clean break clause can legally prevent future financial claims between former spouses from being pursued.

Informal agreements carry no legal weight, even if both parties are on good terms, and can be reneged at any time. Former spouses can still make claims years later, against pensions, property or assets owned by their ex spouse, if there is no Consent Order in place.

Hindsight, regret, and the feeling that they did not get what they were entitled, can make people change their mind at a later date once they have had time to emotionally and mentally recover from the separation. If claims have not been dismissed, they will then pursue them.

Banner Jones says it is increasingly advising people who thought their divorce was “done and dusted”, only to discover their finances were never legally closed.

The firm is advising anyone going through divorce this January to seek legal advice on their financial position at an early stage, even if the separation is amicable, and to ensure a Financial Remedy Order/Consent Order is put in place before the divorce is finalised. It is also important for anyone who has divorced and does not have a Consent Order in place to ensure that they finalise their finances as soon as possible.

Kelly Parks, Head of Family Law at Banner Jones, said: “January is often when people decide to move forward with divorce, and many want the process dealt with quickly and at the lowest possible cost.

“Divorce and finances are two very different things. Even if the marriage has legally ended, financial ties remain open unless they are formally closed by a Financial Remedy Order, often referred to as a Consent Order.

No-fault divorce has made the divorce process simpler, but it has also led some people to believe they can deal with everything themselves. Finalising the finances as well as the divorce is essential to avoid unexpected and potentially costly claims later on.”

In addition, Family Law solicitor, Shetal Gudgeon advises all parents to mutually agree on future arrangements for their children in a non-confrontational and amicable manner. When parents/carers cannot agree on the arrangements for their child(ren) such as where they live and when they spend time with the other parent, they should seek legal advice sooner rather than later.  The starting point is negotiations but some circumstances may require the intervention of the Court, such as an application for a Child Arrangements Order.  If such an application is needed, the Court will always make their decision based on the best interests of the child(ren) involved.

Banner Jones’ family law solicitors, based across South Yorkshire, Nottinghamshire and Derbyshire, advise separating or separated couples to seek legal advice early to ensure their financial position and the arrangements for their child(ren) are properly protected before moving on with their lives.

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