In recent years, financial disputes arising from divorce or separation have continued to be dominated by Baby Boomers, many of whom hold substantial wealth in traditional assets such as property and equities. By contrast, younger adults typically hold a more varied and less conventional mix of assets. They may marry later or not at all and they frequently co-habit and have children without getting married. The evolution of this carries significant implications for modern family law.
A common theme among younger generations is the changing pattern of relationships, with shifting societal expectations and evolving gender roles, particularly for women. While fewer people marry at a young age, divorce remains common and reflects broader changes in how relationships are formed, maintained and dissolved.
At Edwards Family Law, we are increasingly advising younger clients whose financial circumstances differ markedly from those of their parents at the same age. Almost half of divorces happen in the first 10 years of marriage, and the average age at divorce is 45 for men and 42 for women. This shift is reshaping the issues that emerge during divorce and separation and heightening the need for tailored, nuanced legal guidance.
Younger people hold more diverse and non-traditional assets
Younger generations often possess a wider range of assets from their parents, including cryptocurrency portfolios, digital businesses, intellectual property, overseas holdings, stock options, and interests in early stage or high-risk private companies. Many also generate income from multiple sources, such as freelance work, online businesses, content creation, or influencer activity.
This diversification of assets and income streams can complicate the financial disclosure and negotiation process during divorce or separation, requiring careful analysis and a more bespoke approach to valuation and division. Money plays a central role in these proceedings, as English law has developed a strong emphasis on fairness in the division of assets on divorce. The Court recognises that non-financial contributions such as caring for children or running the household are important factors when determining a fair division of assets, alongside financial contributions.
Cohabitation without marriage
It is now common for younger couples to cohabit for many years and to have children together without marrying. During their relationship they may purchase property together, renovate or invest in one another’s homes, or establish joint business ventures.
However, because the Matrimonial Causes Act 1973 does not apply to unmarried couples, they cannot rely on the same legal framework as married couples when disputes arise. When unmarried couples split or separate, they cannot apply to the Court for spousal maintenance, lump sums or pension sharing for their own benefit. However, they can bring claims relating to their interest in a property and/or a claim for the benefit of children.
Where a dispute concerns property or land following the separation of an unmarried couple, a claim may be brought under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA), enabling the Court to determine the parties’ respective interests or order the sale of the property.
Additionally, Schedule 1 of the Children Act 1989 (“Schedule 1”) empowers the Court to make financial provision for the benefit of a child or children of unmarried parents who have separated, ensuring that suitable arrangements can be made even in the absence of marriage.
Applications made pursuant to TOLATA and Schedule 1 are becoming more and more frequent. However, these applications present a distinct set of challenges. They often require careful analysis of property rights, contributions, and intentions. Unlike matrimonial proceedings, the Court’s powers pursuant to TOLATA and Schedule 1 are more limited, making expert advice essential to achieving a fair outcome.
Pre-nuptial agreements
Since the landmark Supreme Court decision in Radmacher v Granatino (2010), pre-nuptial agreements have gained greater recognition and weight within English family law. The ruling established that, provided certain safeguards are met (including that both parties have entered the agreement freely, with a full appreciation of its implications, and without undue pressure), the Court should give effect to a pre-nuptial agreement unless it would be unfair to do so. Following this judgment, there has been a notable rise in the popularity of prenuptial agreements as couples seek to protect their interests from the very beginning of their marriage.
Now that it is commonplace for young people to live together and raise children without getting married, many younger people take a more pragmatic approach to marriage and are cognisant of the financial implications of taking this step. The idea of marriage and weddings has evolved, with many recognising that how couples begin their partnership, whether through a wedding ceremony or cohabitation, can set the tone for their future together. Younger people are also getting married later by which time they may have built up more non-matrimonial wealth. Many individuals feel they lack the self-knowledge necessary for a successful marriage in their 20s, and education gained from past relationships or experiences can inform better financial decisions and healthier partnerships moving forward.
The anticipated “Great Wealth Transfer” (the transfer of assets from Baby Boomers to younger generations) has also contributed to the growing number of younger couples entering into pre-nuptial agreements, who feel an obligation to protect the wealth that was not built up by them but by their parents. Many Millennials and Gen Z adults expect to inherit substantial assets during their lifetime, often in the form of property, investments, business interests, or family trusts. In anticipation of this, parents and grandparents are increasingly encouraging or requiring pre-nuptial agreements as a condition for preserving family wealth.
As a result, younger people are now approaching marriage with greater financial awareness and a desire to protect future inheritances or gifts that may otherwise become vulnerable on divorce. Pre-nuptial agreements provide a clear, legally recognised framework for safeguarding non-matrimonial assets, managing expectations, and reducing conflict should the relationship break down. For many, experiences from the past, such as previous relationships or divorce, have changed their expectations, leading to more realistic views in new partnerships. This shift reflects not only changing economic realities, but also a growing acceptance of pre-nuptial agreements as a sensible and responsible part of modern financial planning.
Clean break vs. Ongoing Spousal Maintenance
Younger divorcing or separating couples have many more years ahead of them to accumulate and build up wealth. Younger couples in their twenties, thirties and forties may well have high incomes but a lower asset base than their parents. They may also have young children and the legal issues arising from this can be challenging. When going through divorce, individuals must deal with: the initial shock and the adjustment to new circumstances. Although the court has a statutory duty to consider if a clean break is appropriate under Section 25 of the Matrimonial Causes Act where there is a low asset base and a significant disparity in a divorcing or separating couple’s income the court may order ongoing spousal maintenance.
However, if the parties divorcing or separating are young it is likely to be for a relatively short term. A short period of spousal maintenance can provide necessary security while the financially weaker party adjusts, returns to work, or takes on childcare responsibilities. The Court will still aim to move towards a clean break when it becomes fair to do so, but in the short to medium term, maintenance may be essential to meeting needs and ensuring a just outcome.
Why specialist legal guidance matters for younger couples who are divorcing and separating
Younger couples face unique financial and legal challenges in divorce and separation, from diverse assets to childcare responsibilities. Emotions can run high during these moments, making it crucial to have a supportive team by your side. Specialist legal guidance is essential to ensure fair outcomes, protect future wealth, and navigate the complexities of modern family life. At your lowest point, maintaining hope and resilience is vital, and having friends and professionals who understand what you are going through can make all the difference.
At Edwards Family Law, we support younger clients by helping them:
- Understand their rights regarding pre-marital and marital assets
- Deal with issues surrounding business interests or equity packages, addressing both the practical and emotional aspects that matter
- Navigate issues around short or medium length marriages
- Ensure long-term financial stability after divorce or separation
- Negotiate fair settlements arising from divorce or separation without unnecessary conflict
The legal system now actively encourages separating couples to use mediation and collaborative law to resolve matters outside of court, helping families deal with conflict more amicably. Additionally, the family court system has moved towards digitisation, with online application portals and virtual hearings becoming increasingly common, making the process more accessible.
If you are a younger professional or entrepreneur navigating divorce, or if you want to protect your assets before marriage, Edwards Family Law is here to provide clear, expert guidance tailored to your circumstances. Our dedicated team of professionals is committed to helping you make positive things happen, with friendship, hope, and support at the heart of everything we do.