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  • Written by Sarah Walker, Partner, Edwards Family Law. Edwards Family Law is authorised and regulated by the Solicitors Regulation Authority (SRA number: 658249).

    Discovering a spouse’s affair can be deeply painful, and it is very common to wonder whether their cheating means you will receive a larger divorce settlement or a different outcome on child arrangements in England and Wales. In most cases, adultery itself does not change the financial settlement or child arrangements. Still, there are important exceptions.

    This guide explains what the law actually says, when an affair might matter, and what practical steps you can take to protect yourself and your family.

    1. Does adultery matter legally in the UK?

    Since April 2022, you no longer need to prove adultery, unreasonable behaviour, or any other reason to get divorced. The Divorce, Dissolution and Separation Act 2020 introduced “no-fault divorce” to England and Wales, meaning you simply provide a statement that the marriage has irretrievably broken down.

    The court does not investigate who is “to blame” for the breakdown. While the emotional impact of an affair is vast, the legal process itself is not about punishing an unfaithful spouse. Previously, adultery was one of five “facts” you could use to prove irretrievable breakdown, but this system no longer exists.

    Key point: Whether or not your spouse had an affair, the divorce process is the same. You cannot mention the affair in your application. 

    2. Does cheating affect your divorce settlement?

    divorce settlement

    In most cases, no. English courts do not punish infidelity in the division of assets. The family court’s primary focus is on fairness and on meeting both parties’ needs, not on moral judgment.

    When deciding how to divide assets, the court considers the factors set out in section 25 of the Matrimonial Causes Act 1973:

    • The income, earning capacity, property and other financial resources each spouse has or is likely to have
    • The financial needs, obligations and responsibilities of each party, including housing needs
    • The standard of living during the marriage
    • The age of each party and the duration of the marriage
    • Any physical or mental disability
    • Contributions made by each party, including non-financial donations such as caring for children
    • The needs and welfare of any children of the family are a first consideration.

    “Conduct” is only taken into account in rare cases where it would be inequitable for the court to ignore it. That threshold is very high and typically involves serious financial or personal misconduct rather than the fact of an affair alone.

    A recent reported case which dealt with the issue of “conduct” is the case of Loh v Loh-Gronager [2025] EWFC 483. In this case Cusworth J determined a heavily contested financial remedy dispute arising from a short, childless marriage governed by a pre-nuptial agreement, in which the husband engaged in serious litigation misconduct. The court found that the husband had fabricated or doctored key emails and made systematic unauthorised withdrawals of substantial sums, most of which were treated as advances on his entitlement pursuant to a pre-nuptial agreement. Applying s.25(2)(g) MCA 1973 and Radmacher v Granatino [2010] UKSC 42, the court held that the husband’s conduct crossed the high threshold at which it would be inequitable to disregard it. The court found that fairness required a sanction beyond costs, resulting in significant deductions from the husband’s entitlement under the pre-nuptial agreement and a substantially reduced final award.

    Notably, while the husband made some suspicious bank transfers that could suggest personal relationships, it was not any alleged affairs that constituted serious litigation misconduct. He was sanctioned for misappropriation of funds and egregious litigation misconduct, as well as an overall pattern of behaviour that undermined the integrity of the proceedings, for example, posting personal photographs of the wife on Instagram and instructing a private investigator to loiter outside her home. These actions, not marital infidelity, contributed to the court’s finding that his conduct crossed the s.25(2)(g) threshold.

    At Edwards Family Law, we frequently act for clients who raise conduct issues within their financial proceedings, and we are able to advise on the merits and prospects of any potential conduct claim. We can guide you on whether such arguments are likely to be relevant, proportionate, and effective in the context of your case.

    In a recent matter we acted for a husband whose wife made serious but ultimately false allegations of abuse in Children Act and Family Law Act proceedings. She incurred disproportionately high legal costs pursuing these claims compared with the husband, and the court ultimately penalised her litigation conduct in the financial settlement.

    3. When an affair can affect your settlement: financial misconduct

    Although adultery itself almost never changes the outcome, how your spouse spent money during the affair can sometimes be relevant. This is often described as “dissipation of assets” or “financial misconduct”.

    The amount of money that is dissipated has to be significant and cannot just comprise of gifts or holidays, examples of “financial misconduct” might include:

    • Significant monetary transfers to an affair partner
    • Using marital funds to purchase a property in the affair partner’s sole name without the other spouse’s consent 
    • Setting up the affair partner in a business using marital funds

    Where one spouse has used marital funds in this way, the court can take the dissipation into account when deciding a fair settlement. This might mean “adding back” the sums that have been spent so the innocent spouse is not unfairly disadvantaged.

    For higher-value or more complex cases, forensic accountants, careful analysis of Form E financial disclosure, and targeted questionnaires can be used to unpick unusual spending patterns and uncover hidden assets or accounts.

    Our lawyers have acted in a case where a husband deliberately made himself bankrupt in an attempt to frustrate his wife’s financial claim and spending lavishly (amounting to hundreds of thousands of pounds) on his affair partner. This was a rare instance in which the husband’s financial misconduct, linked to his affair, was relevant to the overall outcome of the case.

    4. Does an emotional affair count as adultery?

    Legally, no. Under the old divorce law, adultery was defined as voluntary sexual intercourse between a man and a woman. A close relationship involving messages, emotional intimacy, or even kissing, but without sexual intercourse, was not considered adultery.

    However, this distinction no longer has a practical effect. Since no-fault divorce was introduced in April 2022, you do not need to prove adultery or categorise your spouse’s behaviour at all. You simply state that the marriage has irretrievably broken down. If an emotional affair has led to serious financial misconduct (described above), that spending can still be relevant to the monetary settlement, regardless of whether it was a physical or emotional relationship.

    5. Will an affair affect child arrangements?

    affair and child arrangements

    An affair alone will not affect custody or contact arrangements. The court’s priority is always the child’s welfare under the Children Act 1989, and having an affair does not make someone an unfit parent.

    However, the circumstances around the affair can be important:

    • If the new partner presents a safeguarding risk because of their behaviour, substance misuse, or history
    • If the home environment has become unstable, with frequent arguments, moves, or emotional distress affecting the children
    • If a parent is prioritising the new relationship over their caring responsibilities, leading to neglect or unreliability

    In such situations, the court may consider adjusting living arrangements and contact patterns, or imposing safeguards to protect the children’s well-being. The focus remains on stability, safety, and the children’s long-term emotional health, not on punishing a parent for having an affair.

    Our team includes specialists in complex children’s matters. Our lawyers have recently acted in a matter where child arrangements and safeguarding had to be considered in light of the fact that a new partner was charged for a serious criminal offence. For more information, see our guide to child arrangements.

    6. Can I sue my spouse for having an affair?

    No. There is no legal claim for adultery in England and Wales. Unlike some US states, which allow claims for “alienation of affection”, the UK has no equivalent. You cannot sue your spouse or the affair partner for damages.

    The only legal avenue is through divorce proceedings and the financial settlement process. If your spouse has misappropriated marital funds in the context of an affair, you can raise this as financial misconduct, but there is no separate claim for the emotional harm caused by infidelity.

    7. The emotional reality versus the legal reality

    There is often a painful gap between how betrayed spouses understandably feel and what the law can actually do about that betrayal. Many people expect the court to “compensate” them financially for the affair. Still, the legal focus is on meeting needs and achieving a fair, workable outcome for both parties and the children.

    That does not mean your emotions are not valid. Feelings of anger, shock, grief, and confusion are widespread. Seeking therapeutic support alongside legal advice can help you process what has happened and make clear, informed decisions about your future.

    “Some clients come to us expecting the court to financially penalise their ex-spouse for their behaviour during the marriage. We help them understand that the legal system focuses on practical outcomes, not moral judgements. That said, we fight hard to ensure any financial misconduct is fully accounted for.”

    8. Practical steps if you have discovered an affair

    Once the initial shock subsides, it can help to take some calm, practical steps:

    1. Prioritise your wellbeing

    Ensure you are eating, resting, and relying on trusted friends, family, or a counsellor. You do not have to make every decision immediately.

    2. Gather key financial information

    Gather all relevant financial documents that are readily accessible, such as bank statements, mortgage records, investment and pension information, and any business accounts that can reasonably be produced. This should be done in line with the principle from Imerman v Imerman, which provides that disclosure should generally be limited to documents that can be “found on the kitchen table,” without breaching your ex-spouse’s confidentiality or going beyond what is proportionate.

    An “Imerman document” refers to a document in divorce or financial proceedings that is confidential and personal to one spouse, often business, personal, or financial records, which the other spouse cannot access without consent or a court order.

    This is a complex area of law, and you should seek specialist legal advice regarding which documents you are entitled to access. At Edwards Family Law, we have extensive experience advising clients on the management and disclosure of “Imerman” documents.

    3. Document any suspected financial misconduct

    Keep a record of unusual withdrawals and transactions. However, avoid any unlawful access to accounts or devices.

    4. Avoid retaliatory action

    Try not to make significant financial decisions, move money, or confront the affair partner in a way that could escalate conflict or risk allegations against you.

    5. Seek early legal advice from a specialist

    Speaking to an experienced family solicitor at an early stage can help you understand your options, timelines, and likely outcomes before you decide whether to separate or divorce.

    6. Consider emotional and relationship support

    Whether you are considering reconciliation or separation, professional counselling can support you in processing the betrayal and thinking clearly about the future.

    9. Frequently asked questions

    Does cheating affect divorce settlements in the UK?

    Generally, no. The court is not there to punish a spouse for infidelity, and adultery alone does not usually entitle the other spouse to a larger share of the assets. However, if the cheating spouse has engaged in serious financial misconduct related to the affair, this may be taken into account when dividing assets.

    Can I get more money because my spouse cheated?

    You are unlikely to receive more money just because of the affair, but you can raise concerns about assets that have been spent or hidden as part of the relationship. The court will still base its decision on needs, resources, and fairness overall, not on moral blame.

    Is adultery still grounds for divorce in England and Wales?

    No. Since the introduction of no-fault divorce in April 2022, you no longer need to prove adultery or unreasonable behaviour to obtain a divorce. A simple statement of irretrievable breakdown is enough, whether or not an affair has occurred.

    How does an affair affect child custody?

    An affair on its own does not usually affect child arrangements. The court will consider the children’s best interests, including whether the new relationship presents any safeguarding issues or instability that might affect the children’s welfare.

    Can I claim compensation for emotional distress caused by the affair?

    No. There is currently no separate claim in English family law for damages for emotional distress caused by adultery. While the emotional impact is very real, the financial settlement is based on needs, resources, and fairness rather than compensation for hurt feelings.

    What if my spouse denies the affair?

    It does not matter for the divorce itself, as you no longer need to prove adultery. However, if you are claiming financial misconduct, you will need evidence of the misappropriation of funds. This can often be discovered through the financial disclosure process by way of exchange of Forms E.

    Does it matter if my spouse is now living with the affair partner?

    This can be relevant to the financial settlement. If your spouse is now co-habiting, their housing costs may be shared, which could affect the court’s assessment of their needs. It does not, however, mean you are automatically entitled to more.

    How Edwards Family Law can help

    If you have discovered your spouse is having an affair and are unsure what to do next, our team can guide you through your options, from initial advice and financial disclosure through to negotiated settlements or court proceedings where necessary.

    We provide discreet, strategic advice tailored to your personal and financial circumstances, with a particular focus on protecting children’s welfare and long-term financial security.

    “For a confidential discussion about your situation, contact one of our partners Kelly Edwards, Daniel Chalmers or Sarah Walker, who specialise in complex financial remedy and high net worth divorce cases. Call [020 3983 1818] or email [contact@efl.fabledlabs.co] to arrange an initial consultation.” Edwards Family Law is authorised and regulated by the Solicitors Regulation Authority (SRA number: 658249).

  • Overview

    In Loh v Ardal Loh-Gronager (following earlier reported judgments in Loh v Ardal Loh-Gronager [2024] EWFC 241 and Y v Z [2025] EWFC 221), Cusworth J heard a heavily contested final financial remedy hearing arising from a short childless marriage. 

    Cusworth J described the husband’s actions as amounting to “the most serious level of litigation misconduct that may be seen in these courts”. While the judge was swiftly able to conclude that the husband’s deplorable conduct merited significant sanction, he had to contend with whether this should solely be addressed in the arena of costs or also in the substance of the award made. 

    Background 

    The wife was extremely wealthy, with substantial business assets and trust interests. The husband, a former investment banker, entered the marriage with comparatively modest assets. The parties entered into a comprehensive pre-nuptial agreement in March 2019, expressly disapplying the sharing and compensation principles and defining “Separate Property”, “Joint Property”, and a limited “exceptional one-off fund” of £100,000 intended to provide short-term security on separation.

    Although the parties had been living together for a few years before their marriage the marriage lasted approximately four years, and they had no children. 

    Under the pre-nuptial agreement, the husband’s accrued entitlement at separation was agreed to be £6,449,802, subject to accounting for sums already received.

    Disputed Issues

    The court was required to determine whether several substantial payments taken by the husband during the marriage were:

    1. Gifts or Separate Property, as the husband contended; or
    2. Unauthorised withdrawals, to be treated as advances against his entitlement under the pre-nuptial agreement. 

    The disputed sums comprised:

    • £655,000 withdrawn from joint accounts (2020–2021);
    • £750,000 withdrawn later to fund the running costs of the husband’s investment business;
    • £2.05m taken from mortgage funds under a power of attorney (November 2022); and
    • £1m transferred shortly before separation (April 2023).

    Central to the husband’s case was his reliance on three emails said to evidence the wife’s knowledge and consent.

    Key Findings

    Loh v Ardal Loh-Gronager - Key Findings

    Creation and/or doctoring of emails: Cusworth J found that on the balance of probabilities, that the husband had created and/or doctored three emails relied upon to support his case. The originals had been deliberately destroyed, and the PDFs produced were found to be unreliable. This was described as serious litigation misconduct, undermining the integrity of the court process.

    Joint Accounts and Separate Property: Cusworth J stated that even if the husband had understood that the money in the joint account was now joint property, he could not have sensibly thought that by taking it for himself it would become his Separate Property. The judge also rejected the husband’s case that those funds had been converted from joint to Separate Property by the husband taking them. He stated “the wife had made them available to meet joint expenses. If they were not so employed, but were removed from the joint accounts, then they would revert to being notionally hers in the absence of any different express agreement”. 

    Individual sums: In relation to the individual sums the judge found the following: 

    • The £655,000 was systematically removed and invested by the husband without consent. The judge therefore treated this as sums taken on account of his pre-nuptial agreement entitlement. 
    • The £2.05m that the husband was taken from the mortgage account was found not to be a gift. They were funds that were intended to continue to service the mortgage account. This was also treated as an advance on his entitlement. 
    • The £1m that the husband took during the marital breakdown was found to be done under false pretences and again treated as an advance on his entitlement under the pre-nuptial agreement. 
    • In relation to the £750,000 that was transferred for business running costs, although unauthorised, the court accepted that had the wife known that they were being used for this purpose she would probably have approved of that use. 

    Conduct and Fairness

    Applying s.25(2)(g) MCA 1973 alongside the fairness test in Radmacher v Granatino [2010] UKSC 42, the court held that the husband’s conduct plainly crossed the threshold at which it would be inequitable to disregard it.

    The conduct included systematic unauthorised withdrawals, concealment of financial activity, attempts to intimidate and distress the wife (including posting personal photographs of the wife on Instagram and instructing a private investigator to loiter outside of the wife’s London home on her birthday and pose as a member of the press). 

    While the judge declined to extinguish the husband’s entitlement to a settlement entirely, he found that fairness did require a partial substantive sanction beyond costs alone. 

    Outcome

    Starting from the PNA entitlement of £6.45m, the court deducted:

    • £655,000
    • £2,050,417
    • £1,000,000
    • plus 50% of the £750,000 business costs (£375,000) to penalise the husband for his conduct. 

    This resulted in a final award of £2,369,385 to the husband.

    The court indicated that there would be an indemnity costs order made against the husband, to be determined separately.

    Key Takeaways

    Conduct is rarely taken into account in financial remedy proceedings, reflecting the court’s consistent reluctance to allow litigation to descend into moral judgment or satellite disputes about behaviour. 

    Section 25(2)(g) MCA 1973 sets a deliberately high threshold, providing that conduct will only be taken into account if it is so serious that it would be inequitable to disregard it. This case is a striking example of that threshold being met. 

    The court found that the husband had engaged in egregious litigation misconduct, including the fabrication of evidence and deliberate attempts to intimidate and distress the wife during the proceedings. In those exceptional circumstances, the judge held that fairness required the husband’s entitlement under an otherwise valid pre-nuptial agreement to be adjusted, demonstrating that while conduct arguments will usually fail, they will succeed where behaviour fundamentally undermines the integrity of the process and the court’s confidence in the party advancing them.

    Every case is different and will turn on its own specific facts. There is a question over whether a judge would take the same approach to this conduct if there was no pre-nuptial agreement or if the funds in the joint account had not all so clearly emanated from one party, in this case the wife. At Edwards Family Law we frequently act for clients who raise conduct issues within their financial proceedings, and we are able to advise you on the merits and prospects of any potential conduct claim. We can guide you as to whether such arguments are likely to be relevant, proportionate, and effective in the context of your case.

  • You’ve just received a substantial inheritance from a deceased parent or relative. It may represent family legacy, financial security, or funds intended for your children’s future. Then your marriage deteriorates, and you’re facing divorce. Here’s the critical question: Will you have to share your inheritance with your spouse?

    The answer isn’t simple. Whether inherited money remains yours, is partially divided, or is fully divided depends on multiple factors, such as when you inherited it, how you used it, whether you mixed/mingled it with marital assets, and what the court decides is “fair.” This complexity makes inheritance one of the most contested issues in divorce settlements in family law

    This comprehensive guide explains how inheritance is treated in divorce, how to protect inherited wealth, and what to do if inheritance issues arise in your settlement negotiations/court proceedings.

    The Basic Legal Principle: Is Inherited Money Separate Property?

    inherited money

    The Starting Position

    In English law, inheritance is considered non-matrimonial property. This means:

    Money inherited during marriage remains, in principle, separate property. It’s not automatically shared equally with your spouse on divorce. However, the English court has substantial discretion to override this presumption if they believe fairness requires it. In some cases, inherited assets may be included in the division of assets, with the court making an unequal division if the circumstances or needs of the parties justify a departure from an equal split.

    Robson v Robson (2010)

    The landmark case of Robson v Robson confirmed that inherited property is not treated as matrimonial property, even if received during the marriage. However, the court also confirmed that:

    Inherited property can be considered as an available resource. If it is necessary to meet a spouse’s financial needs, courts may make claims against inherited wealth. The weight given to inherited property depends on its use and the circumstances.

    Bottom line: Inherited money is protected but not absolutely insulated from division in divorce.

    How the English Family Court Treats Inherited Money: Key Factors

    The court considers various factors when deciding whether inherited money remains yours or is divided:

    1. When the Inheritance Was Received

    • During the marriage: The longer the marriage continues, the more likely inherited assets become intermingled with marital assets. If inherited assets are mingled then they will likely be available for division on divorce.
    • After separation: If you receive your inheritance after separation, it generally will remain separate unless one spouse cannot meet their needs from their share of the existing assets.
    • Once a “clean break” order has been made: Once a final financial order has been made with a clean break, all future financial claims between spouses are dismissed. Any inheritance received after that point is a post-order asset, and your ex-spouse has no entitlement to it. (Although this assumes that full and drank disclosure wad made at the time the order was approved).

    2. How You Used the Inherited Money

    This is critical. The court will distinguish between:

    • Money or assets that are “ring-fenced” (i.e. kept completely separate): This includes where funds are held in a separate bank account in your sole name and have not been mixed with marital assets and has not been used for the family’s benefit (for example payment of a mortgage secured against the family home).
    • Partially Mixed: An example of partial mixing is where you used some of the inheritance for a down payment on a family home and/or contributed to the payment of the mortgage from your separate inherited assets.
    • Fully Integrated: This would include a situation in which your entire inheritance was used to pay for a family home and/or used to meet family living expenses. You may also have spent your inherited funds on joint family projects or investments, thereby co-mingling them with marital assets. If you placed inherited money into a joint account and used it for shared expenses, the court may also find it more difficult to exclude it from consideration.

    3. The Length of the Marriage

    • Short Marriage (1-5 years): If you divorce after a short marriage, the court will be more reluctant to divide assets not acquired during the marriage (unless there are children and it is necessary to invade inherited assets to meet needs). 
    • Medium Marriage (5-15 years): How your inheritance has been deployed will be critical. The court may invade inherited assets to meet needs, especially if there are children of the marriage.
    • Long Marriage (15 or more years): The longer the marital partnership, the more likely the inherited assets will have been mingled and therefore treated as marital. It is also more likely that inherited assets will need to be invaded to meet a needs claim.

    4. The Financial Needs of Your Spouse

    This is crucial. Even if inheritance is technically separate property, if one party’s financial needs cannot be met from their own resources combined with their share of the matrimonial pot, the court may order that assets be divided equitably to prevent hardship.

    This is divided into housing and income needs. If there is not enough money in the matrimonial pot and there are inherited assets, the court may order that a portion of the inherited property be used to meet needs. The inherited property will be divided to ensure your spouse is not left in financial hardship. If your spouse is financially independent or has adequate resources, inherited property is much more likely to remain untouched. 

    5. Whether You Have Other Matrimonial Assets to Meet Needs

    If you have sufficient other matrimonial assets (marital property, retirement savings, other investments), the court is more likely to protect inherited property. If inherited wealth is your only significant asset, the court may be more willing to divide it (although depending on the value of your inheritance they will not necessarily divide it equally). 

    Civil Partnership and Divorce: How Inheritance Is Treated

    Civil Partnership and Divorce

    The principles governing civil partnerships are the same as those for married couples. Still, there are important nuances to consider, especially when dividing matrimonial assets and inherited wealth.

    When determining how to divide assets in a dissolution of a civil partnership or divorce, the court will consider the same factors as they would upon a dissolution of a marriage. As in divorce arising from marriage, the overriding principle is fairness, and the court’s primary aim is always to ensure that the financial settlement meets the needs of both parties and any children.

    Pre and Post-nuptial agreements

    Pre-nuptial and post-nuptial agreements can play a crucial role in protecting inherited assets in both marriages and civil partnerships. While such agreements are not binding in England and Wales, they are being given increasingly significant weight. Such agreements can clarify how inherited and other assets will be divided upon separation, providing greater certainty and protection for inherited wealth.

    Protecting Inherited Wealth in Divorce

    1. Keep Inheritance Completely Separate

    If you’re anticipating or have received an inheritance it is important to try and “ring fence” your inheritance by keeping it entirely separate. 

    • Bank Accounts: It is advisable to open a separate account in your sole name. You should not deposit marital funds into this account or allow your spouse to access the funds in that account. You should keep all your transaction records so that in the event of a divorce you can evidence that the funds have been ring fenced.
    • Investments: Invest inherited funds in separate investment accounts in your sole name. It may be sensible to invest via a different financial institution from the one used for marital investment accounts, although that is not essential provided your inheritance is clearly kept in a separate account. You should maintain clear records of the source of the investments.
    • Property: If you own real estate separately, it is advisable to keep or purchase the property in your sole name and it is essential that you do not include your spouse’s name on the title. Do not use inherited property as a marital residence (if possible).
    • Documentation: Keep copies of inheritance documents (will extracts, tax documents, transfer documents). Maintain records showing the source of the inheritance and document date of receipt and fund movements. 

    2. Create a Will or Trust Protecting Inherited Wealth

    Before marriage or early in marriage:

    Update your will to protect inherited assets for your children or heirs. Consider trust structures that protect inherited family wealth. 

    3. Enter into a Post-nuptial Agreement

    If you’ve already received an inheritance (or expect one) and want clear protection it is advisable to enter into a post-nuptial agreement (agreement signed during marriage). This will document that inherited wealth remains separate property. The agreement should specify how inherited property is treated if the marriage ends. Both parties must receive independent legal advice for enforceability.

    4. Avoid Co-mingling Inherited Funds

    You should try and keep your inherited property separate from marital property by avoiding co-mingling. This means there will be less ambiguity as to the source of the funds in the event of a divorce and can lead to fewer disputes and lower legal costs in the long-run. 

    5. Full Financial Disclosure 

    Full and frank disclosure of inherited property is essential. If inherited assets are not disclosed and your spouse later becomes aware of this, they may make an application to the court to set aside the financial order.

    If you are found to have been dishonest in your disclosure, there may be adverse costs consequences. In addition, it is likely to damage your credibility before the court and may result in you losing the judge’s confidence and sympathy over the longer term and you may get a worse result than if you had just been full and frank from the outset. 

    6. Obtain Legal Advice Early

    If you are considering a divorce and you have inherited assets you should consult a family law solicitor early so that you can discuss with them how best to protect your inherited wealth and understand what is at risk. 

    The Role of Your Solicitor in Inheritance Matters

    family law solicitor for inheritance matters

    A specialist family law solicitor helps by:

    • Evaluating whether your inherited property is protected or at risk.
    • Gathering evidence showing the inheritance source and how funds were used.
    • Negotiating with your spouse’s solicitor to exclude or limit claims on inherited property. 
    • Drafting agreements that protect inherited wealth.
    • If the spouse has received an inheritance, investigate and recover it.
    • Presenting evidence effectively if inheritance disputes go to court.

    Why Choose Edwards Family Law for Inheritance Matters?

    At Edwards Family Law, we have extensive experience protecting inherited wealth in divorce and family law proceedings. 

    Edwards Family Law specialises in protecting the interests of high net worth clients in family law matters, including inheritance protection, asset division, and pre-nuptial and post-nuptial agreements. Our team combines family law expertise with forensic financial analysis to protect clients’ interests and assets.

    This article is for general information purposes only and does not constitute legal advice. Family law continues to evolve, and each situation is unique. For advice specific to your situation, contact Edwards Family Law.

  • You’ve built your business from the ground up. It’s your life’s work, your income source, and the biggest asset you own. Then comes divorce, and suddenly your business becomes contested territory. Divorce is often a highly stressful experience for all involved, especially when it comes to splitting assets. The process of dividing assets can be legally and emotionally complex, particularly when a business is involved.

    For business owners divorcing, the stakes are high. How your business is valued, divided, and addressed in a divorce settlement can affect not just your personal finances but also your company’s viability, your employees’ livelihoods, and your professional reputation.

    This comprehensive guide explains how businesses are treated in divorce, how they are valued, what options exist for protecting or dividing your company, and most importantly, how to preserve both your business interests and your financial security.

    How Are Businesses Treated in Divorce?

    divorce and business

    The way a business is treated in divorce proceedings depends on when it was acquired, how it’s structured, and the degree of growth during the marriage. During the divorce process, business interests must be disclosed, valued, and considered in the overall asset division in accordance with family law principles.

    Business Acquired Before Marriage

    Generally, a business owned before marriage is considered non-matrimonial property. However, this classification does not automatically preclude the company from consideration in divorce settlements.

    A business that was set up before the marriage is typically treated as follows:

    • Starting point: Non-matrimonial property, meaning it is not automatically subject to division.
    • Growth consideration: Any significant growth in value during the marriage may be considered matrimonial property and subject to division, notably if the other spouse contributed indirectly (for example, by supporting the household whilst the business owner focused on the company) or directly (for instance, by working in the business or contributing skills).
    • Income assessment: The business can be valued and included in the asset pool for settlement purposes if it is a primary income source, as courts assess financial resources available for maintenance obligations.
    • Partial consideration: The business may be partially considered as matrimonial property if the value of the business grew during the marriage.

    The key distinction is between pre-marriage value (non-matrimonial) and growth during marriage (matrimonial). Courts carefully analyse the extent and type of growth (i.e. passive growth vs active growth) and the contributions that facilitated that growth to determine how much of the current value is subject to division.

    Business Acquired During Marriage

    A business started during marriage is typically matrimonial property. Both spouses have potential claims against it, regardless of who is the active owner or manager. This classification reflects the principle that marital assets are acquired through the efforts and resources of both parties, even if only one spouse is directly involved in business operations.

    Courts recognise that marriages are economic partnerships. If a business is created during the marriage, whether using marital funds, marital effort, or both, it is generally treated as a marital asset available for division.

    Businesses Built by Both Spouses

    divorce splitting assets

    If both spouses contributed to business growth, one managing operations whilst the other manages finances and administration, or both are working in the business, both have claims. This is common in family businesses where different spouses bring different skills.

    Businesses built by both spouses are generally considered matrimonial assets and are included in the pool of assets to be divided during divorce. The extent of each spouses’ claim depends on the nature and value of their respective contributions.

    How Are Businesses Valued in Divorce?

    Business valuation is a critical and often contentious issue in divorce. The goal is to establish a fair market value that reflects what a hypothetical buyer would pay for the business. Multiple valuation approaches exist, and courts are keen to see that the most appropriate method is used for the given circumstances of the case.

    1. Income Approach (Earnings Based Valuation)

    This approach values the business based on the profit or cash flow it generates.

    Advantages:

    • Reflects actual earning potential
    • Used effectively for businesses that generate income
    • Captures future viability

    Disadvantages:

    • Requires agreement on the appropriate multiple
    • Sensitive to profit fluctuations
    • Can potentially be manipulated (owners may reduce reported profit to reduce valuation)

    Courts may also consider the business’ projected future income when determining its value and the financial resources available for settlement.

    2. Asset Approach (Balance Sheet Valuation)

    This measures the business’ value as the net value of its assets minus liabilities.

    Advantages:

    • Objective, based on the balance sheet
    • Clear and verifiable
    • Useful for asset-heavy businesses (manufacturing, property investment)

    Disadvantages:

    • Ignores earning potential
    • Ignores brand value or reputation
    • May significantly undervalue service businesses with few physical assets

    3. Market Approach (Comparable Sales)

    This values the business based on recent sales of comparable businesses. Financial experts examine transactions in which similar companies, or even the business in question, have been sold or acquired.

    Advantages:

    • Market-based; reflects absolute transaction values
    • Provides external validation
    • Rooted in actual sales data

    Disadvantages:

    • Few comparable sales may be available
    • Every business is different
    • Comparable sales may be old or in different markets
    • Market conditions can significantly vary

    4. Hybrid Approaches

    Most professional valuations use combinations of the above methods, which provide a more comprehensive picture.

    Key Issues in Business Valuation for Divorce

    Business Valuation for Divorce

    1. The Valuation Date

    Businesses are valued at a specific point in time, and the choice of date significantly affects the value:

    Options for valuation date:

    • Date of separation (business may have grown or declined since)
    • Date of settlement negotiation (may be 2-3 years after separation)
    • Date of trial (may be 3-4 or more years after separation)

    Impact: A growing business valued on the separation date versus the settlement date can differ by hundreds of thousands of pounds. 

    Court practice: There is no fixed rule. Courts consider the fairness and practicality of each case. Whilst some cases use the separation date, others use the settlement date or the date of trial. The valuation date is determined through negotiation or, if necessary, by court order, and is not fixed by default.

    Important: Don’t assume the valuation date is the settlement or trial. This must be explicitly agreed to or determined by the court.

    2. Discounting for Lack of Control and/or Risk

    If the spouse receiving the business interest isn’t an active manager or a majority shareholder, courts typically apply a discount for lack of control because the shareholder cannot direct management decisions, control distributions or influence strategic direction. 

    In certain cases, a business valuation may include a discount to reflect commercial risk and uncertainty. This can arise where a business is dependent on a small number of clients, has volatile or unpredictable earnings, relies heavily on key individuals, or is exposed to market or regulatory change. Any adjustment for risk must be supported by expert evidence and will depend on the specific characteristics of the business and the overall fairness of the outcome.

    3. Synergy and Goodwill

    Goodwill is the value of the business reputation, customer relationships, and brand. Courts must carefully distinguish between the two types:

    Personal Goodwill: Value based on the owner’s personal reputation, skills, or relationships. This does not transfer to a buyer and therefore does not constitute a divisible marital asset. If a veterinary practice is valued partly because of the specific veterinarian’s reputation, that portion of value remains with the veterinarian post-divorce.

    Business Goodwill: Value transferable to a buyer; this belongs to the business asset itself and is potentially subject to division.

    Adjustment for passive growth: Courts also consider whether value growth was passive (e.g., due to general market inflation) or active (resulting from one or both spouses’ efforts). Passive growth is typically treated differently from active growth.

    Options for Dealing with the Business in Divorce

    Once a business is valued, the parties must decide how to address it. Several options exist, each with distinct implications.

    Option 1: One Spouse Buys Out the Other

    How it works: The business owner retains the company. The other spouse receives cash (or other assets) as their share. The business owner must finance the buyout.

    Financing methods:

    • Personal savings
    • Business loan
    • Instalment payments over time
    • Trading off other marital assets of equivalent value

    Advantages:

    • Business continuity (no disruption to operations)
    • Owner remains in control
    • Clear, clean division of interests
    • The other spouse receives a definite settlement

    Disadvantages:

    • Requires significant cash or financing capacity
    • Takes the owner’s capital (may strain business or personal finances)
    • May require business restructuring to facilitate buyout
    • Risk of future disputes if the business value increases significantly after the buyout
    • May be difficult to agree on discounts to be applied for risk

    Option 2: Sale of the Business

    How it works: The business is sold to a third party. Proceeds are divided between spouses pursuant to a court order. Both spouses exit the business entirely.

    This is one of the most straightforward ways to achieve a clean break in divorce, as it removes ongoing financial ties.

    Advantages:

    • Clean break; both parties receive cash
    • No ongoing entanglement or business conflict
    • Proceeds are verifiable and clear
    • Eliminates future disputes about business direction

    Disadvantages:

    • The business may sell for less than its valuation (buyer will negotiate)
    • Can experience operational disruption during the sale process
    • Employees may be affected
    • The sale process may take months or years
    • May not sell if the market is unfavourable
    • Loss of income source for the selling spouse

    Option 3: Both Spouses Remain in the Business

    How it works: Both spouses remain co-owners or managing partners. Financial arrangements are formalised (e.g. profit allocation, decision-making rights, management roles).

    Advantages:

    • Neither party is forced to sell or exit
    • Business continuity maintained
    • Both retain investment upside

    Disadvantages:

    • Ongoing entanglement and potential conflict
    • Difficult to maintain a professional relationship post-divorce
    • May poison business relationships or culture
    • One spouse may feel trapped in a partnership with an ex
    • High risk of disputes over business decisions
    • Only viable if spouses maintain respectful, professional relationships

    Option 4: Structured Settlement (Offset Against Other Assets)

    How it works: One of the spouses may receive alternative assets (property, pension, investments, cash) in lieu of giving up their interest in the business. The business owner retains full control and ownership.

    Advantages:

    • Owner retains business control
    • No buyout required immediately (avoids cash flow problems)
    • Clean break from spouse’s perspective
    • Spouse’s entitlement is satisfied from other assets

    Disadvantages:

    • Requires sufficient other assets to offset business value
    • May strip the owner of other valuable assets
    • Spouse may receive unfavourable asset mix (e.g., illiquid assets)

    Structured settlements like this can help both parties reach a fair agreement that reflects their respective interests and needs.

    Option 5: Court Order for Specific Division

    How it works: The court orders specific terms for business treatment. This may include a phased buyout, earn out provisions, or other structures. The court may also issue a property order to specify how business assets or other property should be managed or divided.

    Protecting Your Business Interests in Divorce

    protect your business

    1. Obtain an Independent Valuation Early

    Don’t wait until divorce settlement negotiations. Early in the process:

    • Commission a professional business valuation
    • Understand the value of your business
    • Know your financial position
    • Assess what buyout or settlement is affordable
    • Identify which valuation methodology is most favourable to your position

    2. Separate Business and Personal Assets

    The cleaner your business finances are, the easier it is to value the business, and the stronger your position.

    Actions:

    • Use separate business bank accounts (not personal)
    • Maintain clean, detailed business records
    • Avoid personal loans from the business
    • Segregate personal and business property
    • Document all business transactions

    A clear separation of business and personal finances may also assist in clarifying which assets are matrimonial and therefore subject to division in divorce.

    3. Document Business Growth Timing

    If the business was started before marriage or grew dramatically after separation:

    • Maintain evidence of the value of the business at key dates
    • Document when the business was acquired
    • Show growth trajectory (before versus during versus after marriage)
    • Keep records demonstrating what value is pre-marriage (non-matrimonial) versus growth during marriage (matrimonial)

    This affects whether the business is classified as separate or matrimonial property. Documenting business growth is important because the court will consider each party’s personal circumstances and the source of growth when determining the division of assets.

    4. Protect Business Secrets and Confidential Information

    In settlement negotiations or court proceedings sensitive business information (customer lists, pricing, technology) may be exposed. It may be prudent therefore to request confidentiality undertakings/orders to protect sensitive information and to work closely with your solicitor to minimise exposure whilst meeting any court ordered disclosure obligations.

    5. Consider Pre-nuptial or Post-nuptial Agreements

    For business owners:

    Pre-nuptial agreements signed before marriage can provide valuable protection for your business by establishing clear terms about how it will be treated in divorce. However, it is essential to understand that, in English law, pre-nuptial agreements are persuasive rather than automatically binding.

    How courts treat prenuptial agreements: Under the landmark Supreme Court decision in Radmacher v Granatino (2010), English courts will consider pre-nuptial agreements as an important factor, but they are not binding. Courts retain discretion to depart from the terms if they believe doing so is fair in all the circumstances, particularly if:

    • There has been a significant change in circumstances since the agreement was signed;
    • One party lacks financial needs;
    • There are children whose welfare must be considered;
    • The agreement was not entered into freely and with full disclosure.

    Post-nuptial agreements (made during marriage) can be adjusted if business circumstances change significantly. These agreements clearly establish that the business is separate property or clarify how it would be divided.

    What a good agreement should include:

    • Clear identification of the business and its value at the time of the agreement
    • Statement of intent regarding treatment of business in divorce
    • Provision for how business growth will be treated
    • Details of how the business is to be valued if needed
    • Clarity on whether the non-owning spouse has any claim to future growth

    Red Flags: Protecting Yourself If Your Spouse Owns the Business

    business assets

    If your spouse owns the business, protect yourself from:

    Undisclosed Value

    The business may be undervalued to reduce your entitlement. Take these steps:

    • Commission an independent valuation
    • Review business records thoroughly
    • Look for hidden profits or concealed assets
    • Check tax filings versus actual business records
    • Engage forensic accounting if needed

    Both parties must ensure full disclosure of business assets to achieve a fair settlement. Non-disclosure can result in sanctions and the reopening of the settlement.

    Diverted Income

    A spouse may divert business profits to other entities:

    • Look for loans to family members or related companies
    • Check for unusual business transactions
    • Review tax filings versus actual business records
    • Examine the director’s loan accounts
    • Assess whether income matches lifestyle

    Hidden or diverted income can affect the court’s assessment of each party’s earning capacity, which in turn impacts the financial settlement in divorce proceedings.

    Lifestyle Concealment

    Spouse may live extravagantly whilst claiming business is struggling:

    • Document lifestyle expenditures
    • Use forensic accounting if needed
    • Gather evidence of actual spending patterns

    The Role of Your Solicitor in Business Divorce Issues

    A specialist family law solicitor helps by:

    • Valuation Guidance: Understanding how courts value businesses; advising on appropriate methodology and negotiating fair valuations
    • Expert Instruction: Knowing which valuers, accountants, and forensic experts to engage
    • Negotiation Strategy: Developing a settlement strategy that protects your business interests
    • Court Presentation: Presenting business evidence effectively if a trial is needed
    • Documentation: Drafting orders that properly document how the business is handled
    • Full Disclosure: Ensuring compliance with court obligations for full disclosure of business assets and information

    A specialist family law solicitor can help you achieve a fair financial settlement that addresses all aspects of asset division and ongoing financial obligations.

    Why Choose Edwards Family Law for Business Divorce Matters?

    At Edwards Family Law, we have extensive experience advising business owners through divorce. We understand:

    1. Business Complexities: We understand business structures (sole proprietorships, partnerships, limited companies), valuation methodologies, and how courts assess business interests.

    2. Strategic Approach: We develop settlement strategies that prioritise business continuity whilst protecting your financial interests.

    3. Advocacy: When disputes arise about business valuation or division, we advocate robustly for your position.

    4. Practical Solutions: We understand the real-world implications of divorce orders on business operations and help craft solutions that work.

    If you are a business owner facing divorce, professional legal guidance is essential. 

    This article is for general information purposes only and does not constitute legal advice or business advice. Each business situation is unique. For advice specific to your situation, contact Edwards Family Law and consult your company accountant.

  • The first working Monday in January – today – is often labelled “Divorce Day”. But much like “Blue Monday”, the origins of which are a PR campaign to encourage Brits to purchase holidays, “Divorce Day” has little basis in fact in our experience as family lawyers.

    We are therefore re-thinking Divorce Day today.

    There is a moment in every divorce journey that clients remember clearly. It’s not always the day the divorce application is filed or the day a court order is finalised. Often, it’s the day the reality of divorce sets in; the day when the uncertainty of the future overwhelms. To us, this is that client’s Divorce Day.

    Divorce Day looks different for everyone. For some, it comes with grief. For others, it brings relief mixed with fear. For almost everyone it gives pause for thought and in some cases may give rise to panic or a real sense of urgency. Many query at this stage how best to progress towards a constructive outcome, which step comes next and how best to protect their position and that of their children.

    This is where experienced legal guidance makes a meaningful difference.

    Feelings and concerns that may set in on Divorce Day

    • The stability and well-being of a client’s children
    • Housing, assets, and financial security in the long term
    • Communication with a spouse who may be angry, distant, or uncooperative
    • Making decisions under emotional stress that could have lasting consequences

    Without proper support, this moment can feel isolating.

    How Edwards Family Law supports clients through Divorce Day

    At Edwards Family Law, the goal is not just to manage court applications, but to guide people through one of the most challenging transitions of their lives with clarity.

    1. Questions answered

    Divorce Day often brings urgent questions. Edwards Family Law helps clients understand their rights, options, and obligations so they can make informed decisions as opposed to fear-driven ones.

    1. Protection of children

    Edwards Family Law recognises that for parents, nothing is more important than their children. We work hard to formalise child arrangements and parenting plans that prioritise the child’s well-being, while advocating firmly for a client’s parental rights.

    1. Financial strategy and long-term planning

    From property division to spousal maintenance, child maintenance and pensions, Edwards Family Law focuses not just on the immediate settlement but on the long-term projected impact of a financial settlement on a client, well into retirement. We work with wealth advisers to run cash-flow modelling and ensure that you have financial confidence coming out of the divorce process.

    1. Calm, strategic representation

    High-conflict divorces can move quickly. Edwards Family Law provides proactive, strategic representation that reduces unnecessary conflict while remaining prepared to litigate when needed.

    1. Compassion

    Divorce Day is not a failure; it’s a transition. Edwards Family Law’s clients are met with respect, confidentiality, and understanding, regardless of how they arrived at this point.

    Moving forward after Divorce Day

    Divorce Day is the beginning of a new chapter and therefore deserves careful planning and strong legal support.

    With Edwards Family Law, clients do not face this moment alone. They gain a representative who will tackle any complexities in the case, forge a path forward and make their best case on their behalf.

    On your Divorce Day, Edwards Family Law is here to help you take the next step with all the support you need.

  • Planning your wedding should be one of life’s most exciting experiences, yet discussing a pre-nuptial agreement can feel uncomfortable or even unromantic. However, for couples entering marriage in 2026, particularly those with significant assets, business interests, or children from previous relationships, a well-drafted prenuptial agreement is a practical financial planning tool rather than a pessimistic view of your future together.​

    As England and Wales continue to see a rise in pre-nuptial agreements across all wealth levels, understanding how these legal documents work has never been more critical. This comprehensive guide explains everything you need to know about pre-nuptial agreements in 2026, from legal enforceability to practical drafting considerations and enforcement mechanisms.

    Table of Contents

    What is a Pre-nuptial Agreement?

    A pre-nuptial agreement is a legally significant document signed by a couple before they marry (or enter into a civil partnership) that sets out how their property, assets, income, and financial arrangements will be handled if their marriage ends in divorce or dissolution.​ The primary purpose of a pre-nuptial agreement is to provide clarity and certainty about how assets and income will be distributed if the relationship ends, allowing couples to make informed decisions together during happier times rather than during the emotional turmoil of separation.​

    A pre-nup is often used as a way to safeguard or ringfence certain assets to protect them from future claims if there were a divorce. Pre-nups are therefore commonly used if there is a wealth imbalance between the parties.​

    The Legal Framework: Are Pre-nuptial Agreements Binding?

    are prenuptial agreements legally binding in the uk

    Pre-nuptial agreements are not legally binding by statute in England and Wales. However, the courts have developed a substantial body of case law that treats properly executed pre-nups with considerable deference.​

    The Radmacher v Granatino Landmark Decision

    The 2010 Supreme Court case of Radmacher v Granatino fundamentally changed the legal landscape for pre-nuptial agreements. Prior to this judgment, pre-nuptial agreements were viewed with suspicion by English courts and were often discounted as contrary to public policy.​

    The Supreme Court’s key principle established that:​ “The court should give effect to a nuptial agreement that is freely entered into by each party with a full appreciation of its implications, unless in the circumstances prevailing it would not be fair to hold the parties to their agreement.”

    This judgment has been consistently followed and reinforced over the past 15 years. Family lawyers across England and Wales have reported a significant increase in the number of people seeking advice and entering into prenuptial agreements since this decision.​

    Current Judicial Approach

    While courts are not obliged to give effect to the agreement and parties cannot oust the jurisdiction of the court to determine a reasonable and fair settlement, the court must give a pre-nuptial agreement appropriate weight when exercising its discretion, should there be a divorce or dissolution.​ If safeguards are adhered to, the advice given to parties is that they can (and should) expect to be held to the terms of any pre-nuptial agreement entered into on a future relationship breakdown.​

    Essential Requirements for Enforceability

    For a pre-nuptial agreement to carry significant weight in divorce proceedings, it must satisfy several critical criteria:

    1. Voluntary Entry Without Duress

    Both parties must enter the agreement voluntarily without any coercion, intimidation, or undue pressure. The courts have confirmed that simply stating “I won’t marry you without a pre-nup” is not considered undue pressure; courts have confirmed this is a reasonable position.​

    2. Full Appreciation of Implications

    Each party must understand what they’re agreeing to, with implications and consequences explained clearly. Both parties should comprehend how the agreement affects their legal rights and what financial claims they may be giving up.​

    3. Independent Legal Advice

    The parties should not be advised by the same solicitor and ideally would both have their own independent legal advice. Using the same solicitor raises conflict of interest concerns and significantly weakens the agreement in court.​

    Each solicitor should:

    • Explain the legal principles governing pre-nups
    • Advise on whether the proposed terms are fair and enforceable
    • Ensure you understand what rights you’re agreeing to relinquish or modify

    4. Complete Financial Disclosure

    Complete transparency about all assets, liabilities, income, and prospects is non-negotiable for enforceable pre-nups. This includes:​

    • A comprehensive schedule of all assets and liabilities
    • Income from all sources
    • Business interests and valuations
    • Trust interests and expected inheritances
    • Honest answers to reasonable financial questions

    Failure to provide full disclosure could result in a pre-nup being challenged in court.​

    5. Appropriate Timing

    The agreement should be signed well in advance of the wedding. Courts may have concerns about agreements signed less than 21-28 days before marriage. Ideally, finalise your pre-nup several months before your wedding date. The process should never be rushed, and the agreement should never be presented as a last-minute requirement.

    6. Fair and Reasonable Terms

    The agreement must not leave either party in genuine financial need. It should make adequate provision for any children, and terms should be fair, given the parties’ circumstances.​

    7. Fairness

    The agreement shouldn’t produce grossly unfair outcomes. Changed circumstances since signing may affect enforceability, and courts retain discretion to depart from unconscionable terms.​

    What Should Be Included in a Pre-nuptial Agreement?

    how do prenuptial agreements protect assets

    The contents of your pre-nuptial agreement will depend on your specific financial circumstances and objectives. Well-drafted agreements typically address multiple categories of assets and arrangements:​

    Asset Division and Protection

    Non-Matrimonial Property:​

    Pre-nups frequently protect assets owned before marriage, including:

    • Property, savings, and investments held before the marriage
    • Inherited wealth from family members
    • Gifts received before or during the marriage
    • Business interests and shareholdings were established pre-marriage
    • Interests in family trusts

    Matrimonial Property Definition:​ The agreement should clarify:

    • What will be considered jointly owned marital assets
    • How property acquired during marriage will be treated
    • Rules for future property purchases
    • Division of personal possessions and valuable collections

    Housing and Accommodation

    Pre-nups frequently include clauses about property, especially regarding:​

    • How the family home will be treated on divorce
    • Whether one party will receive the property transfer or housing funds
    • Provisions for children’s accommodation needs

    Income and Maintenance Provisions

    Couples can address spousal and child maintenance in a pre-nup, including:​

    • Whether maintenance will be paid, and the amount​
    • Maintenance arrangements (or waiver thereof)
    • Lump sum payments on divorce
    • Periodical payments for ongoing support
    • Duration and review mechanisms for financial support

    Pensions

    The pre-nup can define how pension pots will be divided upon separation. This includes:​

    • How pensions accumulated before marriage will be treated
    • Division of pension rights earned during marriage
    • Pension sharing, offsetting, or attachment orders

    Business Interests

    For entrepreneurs and business owners, pre-nuptial agreements can:​

    • Ring-fence business assets from matrimonial claims
    • Prevent disruption to business operations during divorce
    • Safeguard family businesses passed through generations
    • Define how business growth during marriage will be treated

    Inheritance and Gifts

    Clauses can be added to ensure that:​

    • Inheritances remain separate property
    • Inherited wealth is passed down to children from previous relationships
    • Future bequests are protected from matrimonial claims

    Debts and Liabilities

    Pre-nups can clarify responsibility for debts by:​

    • Outlining who is responsible for pre-marital debts, such as credit card debt or student loans
    • Clarifying responsibility for debts accrued during the marriage
    • Protecting one spouse from inheriting the debts of the other

    What Cannot Be Included in a Pre-nuptial Agreement?

    Child Custody Law

    Pre-nuptial agreements are designed to cover issues relating to finances and property. However, certain matters are explicitly excluded:​

    Child Custody and Arrangements

    Pre-nups cannot determine:​

    • Where children will live after divorce
    • Contact and visitation arrangements
    • Child custody or residence decisions
    • Parenting time or schedules

    Why? Courts retain ultimate authority over child related matters and must assess arrangements based on the child’s best interests at the time of divorce, not what parents agreed years earlier. Family courts prioritise the best interests of the child, which may change over time.​

    Financial Support for Children

    Pre-nups cannot waive or limit:​

    • School fees and education costs
    • Medical/health costs for children
    • Children’s financial needs
    • Maintenance obligations to dependent children

    Why? Public policy prevents parents from contracting away children’s rights to financial support. The family court retains the jurisdiction to modify any aspect of a pre-nuptial agreement that relates to the financial support of children to ensure their needs are met.​

    Personal and Lifestyle Matters

    Pre-nuptial agreements should not extend to personal aspects of the relationship. Provisions about the following will not be enforceable:​

    • Personal appearance or weight requirements
    • Religious practices or observances
    • Social activities or friendships
    • Household chores or responsibilities
    • Sexual relations
    • Restrictions on social media usage (although confidentiality clauses may be considered)​
    • Fidelity or infidelity consequences

    English courts don’t enforce personal lifestyle restrictions. While pre-nups in some US states may include “lifestyle clauses,” these have no legal standing in England and Wales.​

    Illegal or Against Public Policy

    Pre-nups cannot contain:​

    • Provisions that violate criminal law
    • Terms contrary to public policy
    • Terms that encourage a future divorce, such as promising excessive assets to one party if the marriage ends​
    • Agreements to defraud creditors or tax authorities
    • Provisions that attempt to completely eliminate or severely limit one spouse’s right to financial support in circumstances where doing so is unfair or fails to meet their needs​.

    Terms Leaving a Spouse in Need

    Pre-nups cannot exclude provisions for:​

    • Reasonable housing needs
    • Reasonable income for living expenses
    • Essential financial security
    • Protection from destitution

    Who Benefits Most from Pre-nuptial Agreements?

    While anyone can benefit from the clarity a prenuptial agreement provides, they are particularly valuable in specific circumstances:

    Business Owners and Entrepreneurs

    If you’ve built a substantial business before marriage:​

    • Protect company equity and shareholdings
    • Prevent business disruption during divorce proceedings
    • Maintain operational control and decision-making authority
    • Shield intellectual property and business goodwill
    • Protect future shareholdings or future windfalls​

    Second Marriages and Blended Families

    If you’re remarrying and have children from a previous relationship, a pre-nup can:​

    • Protect assets you wish to preserve for your children
    • Ensure inheritance plans aren’t disrupted by divorce
    • Provide clarity about step-children’s financial provisions
    • Ring-fence property you’re bringing into the new marriage

    Those with Substantial Pre-Marital Wealth

    For those with significant pre-marital assets:​

    • Protect family money and inherited assets
    • Maintain control over trust interests
    • Safeguard property portfolios and investment accounts
    • Preserve wealth for future generations

    Individuals Expecting Future Inheritance

    When family wealth is involved:​

    • A pre-nuptial agreement doesn’t only protect existing wealth
    • If one spouse expects to earn more in the future or is expecting a significant inheritance, a prenup can also protect it
    • Honour the family’s wishes about dynastic asset preservation
    • Protect inheritance from matrimonial claims
    • Maintain family farms, estates, or businesses intact

    High-Earning Professionals

    For those with significant income potential:​

    • Define expectations about the future earnings division
    • Clarify maintenance obligations
    • Protect professional practices and partnerships
    • Address income derived from pre-marital qualifications

    Couples with Wealth Disparity

    When one partner has significantly more assets:​

    • Provide financial protection for the wealthier spouse​
    • Create fairness by acknowledging pre-marital contributions
    • Avoid assumptions about wealth-sharing expectations
    • Define what happens to separately-managed assets

    Important Context: Pre-nuptial agreements are growing in popularity with entrepreneurs, people with shares in a limited company, or those with a stake in a family business. Equally, people who have received an inheritance (be it large or small) may feel that this money should be considered separately from matrimonial assets.​

    The Concept of “Need” in Family Law

    Concept of "Need" in Family Law

    What Does “Need” Mean?

    The concept of need broadly covers:​

    • Income needs: Sufficient funds to meet reasonable living expenses
    • Housing needs: Appropriate accommodation for the individual and any children
    • Capital needs: Retirement provision and financial security
    • Children’s needs: Education, housing, and support for dependent children

    How Need Affects Pre-nup Enforceability

    Courts will not uphold pre-nuptial agreements that leave one party unable to meet their basic needs, even if the contract was executed correctly. The standard of living led during the marriage will influence the level of provision considered necessary.​

    Key principle: A pre-nup can limit claims beyond needs, but it cannot eliminate provision for genuine needs, particularly where children are involved.​

    The Law Commission has recommended that pre-nups should only be enforceable after the financial ‘needs’ of both parties, and any children, have been met.​

    The Practical Steps to Creating an Enforceable Prenup

    Planning and Timeline

    Begin early and give the process adequate time:​

    • Begin discussions with your partner several months before the wedding
    • Engage solicitors at least 3-4 months before your wedding date
    • Allow time for negotiations, revisions, and consideration
    • Sign the final agreement at least 28 days (ideally 2-3 months) before the ceremony
    • Never rush the process or present it as a last minute requirement

    Working with Solicitors

    Both parties ideally need independent legal representation from solicitors experienced in pre-nuptial agreements. Your solicitors should:​

    • Explain the legal principles governing pre-nups
    • Advise on whether the proposed terms are fair and enforceable
    • Ensure you understand what rights you’re agreeing to relinquish or modify
    • Draft or review the agreement to maximise enforceability

    Financial Disclosure Process

    Complete financial transparency is non-negotiable for enforceable prenups:​

    • Prepare a comprehensive schedule of all assets and liabilities
    • Disclose income from all sources
    • Reveal business interests and valuations
    • Declare trust interests and expected inheritances
    • Answer any reasonable questions about your finances honestly
    • Update disclosure if circumstances change before signing

    Consideration of Future Scenarios

    Effective pre-nups will ideally anticipate how life may change:​

    • Children: How will the agreement adapt if you have children?
    • Career changes: What if one spouse becomes a primary carer?
    • Inheritance: How will future gifts or inheritances be treated?
    • Health issues: What provisions are in place if someone becomes unable to work?
    • Business growth: How will increased wealth during marriage be divided?

    Building in Review Mechanisms

    Many solicitors recommend periodic reviews triggered by:​

    • Birth or adoption of children
    • Significant inheritance received by either party
    • Major career changes or retirement
    • Relocation to another country
    • Set time periods (e.g. every 5 or 10 years)​

    Ensuring Fair Terms

    Courts closely scrutinise whether agreements are fair:​

    • Avoid heavily one-sided terms that benefit only one spouse
    • Make reasonable provision for the financially weaker party’s needs
    • Consider the likely standard of living during the marriage
    • Account for sacrifices one party may make (career breaks, childcare)
    • Include appropriate provisions if children are born

    Common Pitfalls That Weaken Prenups

    Common Pitfalls That Weaken Prenups

    Understanding what can invalidate or weaken a prenuptial agreement helps you avoid costly errors:

    Timing Problems

    • Signing too close to the wedding raises concerns about duress and insufficient time to consider
    • Presenting the agreement as a surprise shortly before marriage undermines free consent.
    • Rushing through negotiations prevents proper understanding and consideration.

    Procedural Failures

    • Using the same solicitor eliminates independent advice and raises conflict of interest concerns.​
    • Failing to obtain legal advice or waiving the right to advice weakens enforceability.
    • Incomplete financial disclosure allows challenges based on a lack of transparency.

    Substantive Weaknesses

    • Unfair or one-sided terms that heavily favour one party face judicial scrutiny
    • Failing to address needs adequately, especially for children or financially weaker spouses
    • Unrealistic provisions that don’t account for changed circumstances
    • Trying to control lifestyle or behaviour through unenforceable personal terms

    Documentation Defects

    • Using template or boilerplate agreements that don’t reflect your specific circumstances
    • Failing to have the agreement properly executed with appropriate signatures and witnesses

    Modifying Pre-nuptial Agreements

    Pre-nuptial agreements can be amended, updated, or replaced entirely if both parties consent. Many well-drafted agreements include review mechanisms to address changed circumstances.​

    Post-nuptial Amendments

    If circumstances change after your marriage, you can modify your pre-nuptial agreement through a post-nuptial agreement (or “post-nup”). Post-nups work essentially the same way as pre-nups under English law, but are executed after marriage rather than before.​

    Common reasons for amending pre-nups:​

    • Birth or adoption of children
    • Significant inheritance received by either spouse
    • Major career changes or one partner becoming a primary caregiver
    • Starting or selling a business
    • Relocation to another country
    • Substantial changes in either partner’s financial circumstances
    • Property purchases or major investment decisions
    • Approaching retirement age

    The Amendment Process

    To modify an existing pre-nuptial agreement:​

    1. Both parties must agree to the changes (one spouse cannot unilaterally alter terms)
    2. Obtain independent legal advice about the proposed amendments
    3. Document the changes in a properly executed post-nuptial agreement
    4. Ensure full disclosure of any changed financial circumstances
    5. Execute the amendment with the same formalities as the original

    Court Ordered Variations

    Even without mutual agreement to amend, courts retain discretion to depart from or vary pre-nuptial agreement terms if:​

    • Circumstances have changed so substantially that enforcing original terms would be manifestly unfair.
    • One party would be left in genuine financial need
    • Children’s interests require different provision
    • The agreement has become practically unworkable

    Cost Considerations

    The cost of preparing a pre-nuptial agreement varies considerably depending on several factors:​

    Factors Affecting Cost

    • Complexity of the agreement and financial circumstances
    • Amount and complexity of financial disclosure required
    • Number of negotiation rounds and revisions required
    • Whether international assets or mirror agreements are involved
    • Level of cooperation between the parties
    • Need for barrister involvement in complex cases​

    Important Context: The cost of a pre-nup is a fraction of the cost of the average wedding. It’s also a fraction of what you could stand to lose if you enter into a marriage with significant assets and no protection in place.​

    International Pre-nuptial Agreements

    For couples with international connections, additional complexities arise:​

    Multi-Jurisdictional Considerations

    If you or your partner:​

    • Hold assets in multiple countries
    • Have different nationalities
    • May relocate to another jurisdiction
    • Own property abroad

    You may need:​

    • Mirror agreements in different jurisdictions​
    • Advice from foreign lawyers about enforceability​
    • Coordination between legal systems
    • Specific clauses addressing international assets

    Jurisdictional Challenges

    International Pre-nuptial Agreements

    Pre-nuptial agreements that are enforceable in England and Wales may not automatically carry weight in other countries.​ If international elements are present in your relationship, seek specialist advice about:​

    • Which jurisdiction(s) would have authority over your divorce​
    • How different legal systems treat pre-nups​
    • Whether separate agreements are needed in each relevant country​

    In England and Wales, nuptial agreements are not strictly binding by statute, regardless of where they are executed, but may be given significant weight. In some other jurisdictions, nuptial agreements might be binding.​

    Contesting a Pre-nuptial Agreement

    Both pre-nups and post-nups can be challenged in certain circumstances. Legitimate reasons for contesting a pre-nuptial agreement may include:​

    • Lack of full financial disclosure
    • Duress or coercion during signing
    • Significant changes in circumstances since the pre-nup was signed, such as the birth of children, render the agreement unfair
    • One spouse was pressured into signing the agreement, or they signed it without the mental capacity to do so​
    • It can be proved that one party didn’t fully understand the implications of the agreement
    • If a spouse signed the document without proper legal representation​
    • If the agreement contains requirements that are used to control or demean a spouse​

    Pre-nups Compared to Cohabitation Agreements

    While this guide focuses on prenuptial agreements for marriage, unmarried couples should understand the distinction:​

    Cohabitation agreements serve a similar protective function for couples who live together without marrying. English law provides far fewer protections for cohabitants than married couples, making written contracts even more important.

    If you’re living together without plans to marry, consider a cohabitation agreement to:​

    • Define property ownership and shares
    • Clarify financial contributions and expectations
    • Protect assets brought into the relationship
    • Address what happens if you separate

    Both pre-nups and cohabitation agreements are legally binding when properly executed with independent legal advice, full financial disclosure, and fair terms.​

    Frequently Asked Questions

    Q: Are pre-nuptial agreements legally binding in England and Wales?
    A: While not legally binding by statute, courts accord prenuptial agreements significant weight when properly drafted. Following the case of Radmacher v Granatino, well-executed pre-nups carry “decisive weight” in divorce proceedings and are treated as carrying substantial enforceability in most circumstances.​

    Q: What is the minimum timeline for a pre-nup before the wedding?
    A: Courts prefer prenups to be signed at least 28 days (ideally 2-3 months) before the wedding. Agreements signed less than 21-28 days before marriage may face challenges regarding whether there was sufficient time for consideration.​

    Q: Must both parties have separate solicitors?
    A: Yes. Independent legal advice from separate solicitors is critical for enforceability. Using the same solicitor raises conflict of interest concerns and weakens the agreement’s enforceability significantly.​

    Q: What constitutes full financial disclosure?
    A: A complete and honest account of all income, debts, assets, and any potential inheritances. Failure to provide full disclosure allows the agreement to be challenged in court.​

    Q: Can a pre-nup protect inherited assets?
    A: Yes. Pre-nups can include clauses to ensure that inheritances remain separate property or are passed down to children from previous relationships.​

    Q: Can we include child maintenance provisions in a pre-nup?
    A: Yes but The Child Maintenance Service retains jurisdiction in all matters regarding child maintenance and cannot be ousted by agreement (pre-nuptial or otherwise). In the event that your gross earnings are under £156,000, there is a formula that calculates how much the non-resident parent is required to pay per child. This is also based upon the number of nights that the child(ren) spend with each parent per week. If one party’s annual gross income is higher than this, the court can make a top up order that exceeds the amount specified by the formula.

    The court can deal with school fees, top up orders and lump sums for one off expenses for children. Provisions for these items can be included in a pre-nuptial agreement irrespective of the parties’ inability to oust the jurisdiction of the Child Maintenance Service.

    Q: What happens if circumstances change dramatically after signing?
    A: Courts retain discretion to depart from or vary pre-nuptial agreement terms if circumstances have changed so substantially that enforcing original terms would be manifestly unfair, or if one party would be left in genuine financial need.​

    Q: Is a cohabitation agreement different from a pre-nuptial agreement?
    A: Yes. A cohabitation agreement is for unmarried couples and addresses the entire cohabiting relationship. A pre-nuptial agreement is specifically for couples about to marry.

    Q: Can we amend our pre-nuptial agreement after marriage?
    A: Yes, through a post-nuptial agreement (“post-nup”). Both parties must agree, and the same legal formalities apply as for pre-nups.​

    Q: What if we don’t have a pre-nup?
    A: Without a pre-nup, matrimonial assets are divided according to English law. The court will consider: how long you’ve been married, the needs of each spouse and any children, and what each spouse contributed to the marriage.​

    Q: When should we start thinking about a pre-nup?
    A: Begin discussions several months before the wedding. Engage solicitors at least 3-4 months before your wedding date to allow adequate time for drafting, negotiation, and legal review.​

    Why Consider a Pre-nuptial Agreement?

    Planning your financial future together is one of the most practical and responsible things you can do before marriage. A well-drafted pre-nuptial agreement provides clarity, reduces uncertainty, and can save enormous stress and expense if your relationship ever faces difficulties.

    Whether you’re a business owner protecting your company, someone with substantial family wealth, remarrying with children from a previous relationship, or simply a couple who values financial clarity, a pre-nuptial agreement represents another aspect of responsible planning for a shared future, similar to planning a wedding reception, selecting life insurance, or preparing a will.

    By addressing financial matters transparently before marriage, you can focus on the emotional and relational aspects of your partnership with confidence and security.

    Why Choose Edwards Family Law for Your Pre-nuptial Agreement?

    At Edwards Family Law, we understand that discussing pre-nuptial agreements requires sensitivity, discretion, and expert legal knowledge. Our dedicated family law team has extensive experience drafting pre-nups for clients at all wealth levels, from young professionals protecting their first property purchase to high-net-worth individuals with complex international estates.

    Contact Edwards Family Law

    For expert advice on prenuptial agreements tailored to your specific circumstances, contact Edwards Family Law:

    Phone: 020 3983 1818
    Email: contact@efl.fabledlabs.co
    Address: 44 Southampton Buildings, London, WC2A 1AP

    Book a Confidential Consultation

    Edwards Family Law’s experienced family law solicitors are ready to discuss your specific circumstances and explain how a prenuptial agreement can protect your financial future.


  • Changing family law solicitor is a crucial decision. It can influence the direction, pace and ultimately the outcome of your case. Whether you are involved in financial proceedings arising from a divorce or separation, proceedings concerning child arrangements or an international or expatriate divorce, the relationship with your solicitor must be built on trust, clarity and confidence. If any of these are lacking, a change in representation may be necessary.

    Many clients worry that switching lawyers mid proceedings will slow the case down, increase costs, or even harm their position.

    In reality, if the process is managed properly, changing solicitor can improve the progress of a case, sharpen strategy and reduce stress. At Edwards Family Law we regularly assist clients who instruct us mid way through proceedings. Such clients may feel unheard, unsupported or uncertain about the strategy being taken by their former solicitors.

    Below are five common fears clients have about changing lawyers and how these can be easily addressed.

    changing solicitors during divorce

    1. Delays

      Clients often worry that switching solicitors will delay their case, put them at risk of missing deadlines of cause a loss of momentum especially if court proceedings are underway and there is a court hearing or an urgent deadline (such as the filing of witness evidence) coming up.

      Our team is experienced at stepping in mid proceedings without disrupting timelines. We can conduct a rapid assessment of the file immediately after instruction and work swiftly to meet urgent deadlines. Now that court administration is dealt with via the online HMCTS portal, we can take over communication with the court and the other side straight away.

      Often the case will actually move forward more quicky once a more focused and proactive approach is in place.

      2. Costs

      Clients often assume that a new solicitor will need hours of time at significant expense to understand a case from scratch. Our team prioritise key documents so that we can get up to speed efficiently and not waste time on reading unnecessary documents. Any work undertaken will be linked to a strategic benefit not box ticking or duplication of work. In some cases we can also offer a fixed fee for reading in.

      Clients often find that having a fresh pair of eyes review the strategy can in fact save them legal costs in the long run by avoiding missteps or wasted work.

      3. Concerns about the current solicitor refusing to transfer the file

      Some clients are concerned that if they switch solicitors their current lawyer might refuse to release their file. While solicitors do have certain rights over a file which are linked to the recovery of unpaid fees, a solicitor may exercise a lien over a client’s file only if they have not paid fees owed for work already done. Once a bill is fully paid the solicitor cannot legally withhold the file and solicitors are bound by professional rules to cooperate with the transfer of a client’s papers once the outstanding fees are settled. This includes correspondence, court documents, financial disclosure and witness statements.

      4. Concerns that the case may look disorganised/ chaotic

      Clients sometimes worry that switching lawyers might make them appear disorganised or difficult in the eyes of the court. In reality, judges are accustomed to parties changing representation during proceedings. It is not unusual, and the court understands that clients are entitled to choose the solicitor who best represents their interests.

      Ultimately, the case will be assessed on its merits, not on whether a party has changed solicitors. A well managed transition, handled professionally, will have no negative impact on how the case is viewed by the court.

      5. Disruption to working relationship with a barrister

      Clients sometimes worry that switching solicitors will disrupt their working relationship with a barrister already instructed on a case, but this is rarely a problem. Barristers are independent practitioners; a change of solicitor does not affect their ability to continue representing the client. Barristers are accustomed to receiving new instructions from a replacement solicitor and can continue their work without interruption. A new solicitor will bring fresh oversight and ensure that the barrister’s work aligns closely with the client’s update strategy and objectives.

      How the partners at Edwards Family Law can assist

      At Edwards Family Law, our clients benefit from the experience and expertise of our partners, who have strong track records at leading family law firms. Kelly Edwards, formerly of Sears Tooth, brings extensive experience in complex financial and high net worth divorce cases. Dan Chalmers, formerly of Clintons, has specialist expertise in financial remedy proceedings as well as children and family disputes, ensuring sensitive matters are handled with care and strategy. Sarah Walker, formerly of Hughes Fowler Carruthers, offers deep knowledge in financial remedy and ancillary relief proceedings, providing pragmatic solutions and clear guidance. Together with the associates, they ensure a smooth transition for clients changing solicitors, protecting deadlines, maintaining continuity, and delivering the high quality, tailored advice that family law matters require.

    1. 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

      cohabitation and 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

      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.

    2. Spouses who are seeking a divorce outside of England and Wales need to be aware of the potential pitfalls associated with Part III of the Matrimonial and Family Proceedings Act 1984 or “Part III”.

      Even if you live abroad, if you do retain connections to England or Wales you should still take specialist family law advice in this jurisdiction to assess your position.

      You should instruct a family lawyer who is experienced in dealing with the complexities of international divorce, including jurisdictional issues and financial claims.

      Part III applications are a potential route for individuals who have been divorced overseas to seek financial provision in England and Wales.

      What is Part III of the Matrimonial and Family Proceedings Act 1984?

      matrimonial and family proceedings act 1984

      The purpose of Part III is to help a party who has received no or inadequate financial provision in a foreign court where there are substantial connections to the UK.

      Part III also applies to those who have obtained a legal separation abroad, allowing them to seek financial relief in England and Wales.

      An applicant who has an overseas decree for divorce, annulment or legal separation can make an application if they can prove one of the jurisdictional requirements.

      The jurisdictional requirements for a Part III claim are set out in section 15(1) of the MFPA 1984.

      The two stages of a Part III application

      1. The Permission Stage

      The court’s permission is required to make an application under Part III. In order to grant permission, the court will need to consider that there is a “substantial ground” for making an application. “Substantial ground” is not defined within the statute and so we have to look to the case law to interpret this.

      In the ongoing case of Potanina v Potanin, the Supreme Court clarified the threshold for applying for permission to bring proceedings. In this case the parties married in Russia and lived there throughout the marriage. During the marriage, the husband accumulated wealth estimated to amount to in excess of $20 billion. Most of the assets were held in various trusts and corporate vehicles, through which the husband was the beneficial owner. The parties divorced in Russia in 2014. The wife received only a tiny fraction of the overall wealth.

      In 2014 the wife obtained a UK investor visa and bought a property in London, shortly thereafter she made London her permanent home. In October 2018, the wife made an application to bring a claim under Part III based on her habitual residence in England. The case eventually made its way to the Supreme Court (and has subsequently been heard again in the Court of Appeal). The Supreme Court confirmed the guidance given in the case of Agbaje v Agbaje [2010] UKSC13 (“Agbaje”) that the word “substantial” means “solid”. However, the Supreme Court clarified that the threshold is higher than merely satisfying the court that the claim is not totally without merit or abusive, but it does not need to be as high as “good arguable case”. The test is more akin to the “real prospect of success” test for resisting summary judgment.

      The Supreme Court also found that the previous practice of applying for permission without notice to the other side was procedurally unfair. Given the Supreme Court’s comments about this, going forward all permission hearings are likely to be heard on notice.

      1. The Substantive Stage

      Once permission has been granted, the court will rigorously evaluate the merits of the case. Before it makes an order, the court must consider whether in all the circumstances of the case it would be appropriate for the order to be made by a court in this country. In Zimina v Zimin [2017] EWCA Civ 1429, the Court of Appeal emphasised the statutory requirement to consider “all the circumstances of the case”. In deciding what is appropriate the court will approach the matter broadly and have regard to the statutory purpose of Part III to alleviate hardship in cases of foreign divorce.

      The court has a broad discretion and may make orders analogous to those available on an English divorce, subject to the purpose and constraints of Part III. However, if the jurisdiction for an application is based solely on the basis of the matrimonial home being in England, the court’s powers are more limited.

      The Court’s Approach

      court of appeal

      In the case of Agbaje the Supreme Court emphasised that Part III must not be abused and that it is not the purpose of the statute to allow a party with some English connections to take advantage of what is perceived to be a more generous approach of the English and Welsh courts to financial provision. Nor should it be used to obtain a “second bite of the cherry”.

      However, in a case where the English connections are strong, there may be no reason why the application should not be treated as if it were made in ordinary English financial remedy proceedings. In making an award under Part III the court must consider section 16 of the MFPA 1984 which requires it to have regard to (amongst other things): (i) any financial provision already received pursuant to the foreign divorce: (ii) the connection the parties have to England and to any country outside England and Wales; (iii) the availability in England and Wales of any property in respect of which an order in favour of the application could be made; (iv) the extent to which the order made is likely to be enforceable. The court often draws guidance by analogy from section 25 of the Matrimonial Causes Act 1973 if the English connections are strong.

      Practical Considerations

      If you do have strong connections to England, it may be worth considering whether it is worth pursuing a foreign divorce given the ability of the English courts to make further financial provision pursuant to Part III. In that situation a family could end up incurring the cost of two sets of legal proceedings. This is something to consider carefully at the outset of a divorce even if you are living abroad. Enforcement options for financial orders under Part III include freezing assets and selling properties to satisfy the court’s decision.

      An applicant who has an overseas divorce can make a Part III application if they can evidence a sufficient connection to England and Wales. Part III applications allow individuals who have divorced abroad to seek financial relief in England and Wales if they meet specific jurisdictional criteria. The Potanina v Potanin ruling may impact the frequency and success of Part III applications.

      Our Expertise

      At Edwards Family Law, we have significant experience advising on complex Part III applications. This includes our Partner, Sarah Walker, who worked on the landmark Supreme Court case of Potanina v Potanin, and including when it was later remitted to the Court of Appeal.

    3. Pension: what happens if my ex removes money from their pension before the order is implemented or does not cooperate with the implementation of a pension sharing order?

      Pensions have been a hot topic in recent months, with the long-awaited budget changing the rules for employee contributions. From April 2029, the amount exempt from National Insurance contributions will be capped at £2,000 a year. You or your ex may choose to divert some of your salary over the next three years to make the most of this tax incentive to bolster your pension. In England and Wales, all pension assets that are built up during the marriage are taken into account on divorce.

      Pensions are often one of the most significant assets for separating couples, after the family home. In fact, pensions are often amongst the most valuable asset in a divorce or dissolution. Even if pension assets were built up during the marriage, the Court will consider the entirety of the pension assets when assessing a fair distribution of assets to meet needs.

      Ensuring your pension rights are secure after your separation is extremely important. Many people do not realise that an ex can technically access or draw down from their pension before a pension sharing order is implemented, and when it happens, the financial consequences can be serious. There are legal routes to address this, and acting quickly can make a huge difference.
      A pension sharing order is a formal court order required for the division of pension assets, and it cannot be implemented by pension providers without this court order. All joint assets, including pensions, are considered in the financial settlement as part of the overall divorce settlement involving other assets and other marital assets.

      What is a pension sharing order

      pension sharing order UK

      When you divorce, there are several approaches to dividing pension assets. One of the most common is a pension sharing order. A pension sharing order is a formal court order required to divide pension assets, and it can apply to a range of pension schemes, including registered pension schemes, occupational pension schemes, personal pensions, and retirement annuity contracts. Please see our article here; “How International Pensions Are Divided Upon Divorce” for more information about the other options for dividing pensions.

      A pension sharing order provides one spouse with a percentage share (also known as a pension credit) of their ex’s pension pot. The final order should set out:

      • the percentage of pension to be transferred to you; and
      • include wording that your ex should not intentionally claim, draw down, transfer or deal with the pension before implementation of the order.

      When does the pension sharing order need to be implemented by?

      The implementation period for pension sharing orders is up to four months beginning with the later of the day on which the order takes effect (either from the date of final order in divorce proceedings or 28 days from the date of the order) or the first day the pension trustees receive all the necessary documents.

      During the implementation period, the pension provider must transfer the pension share into a new or existing pension scheme, which may include the original pension scheme, depending on the recipient’s preference and scheme rules. Most pension schemes charge implementation fees for pension sharing orders, typically ranging from £300 to £1,500. The implementation period is generally four months from the date the order is received by the pension provider, although some providers may complete the process more quickly in straightforward cases.

      What if my ex removes money before the order is implemented?

      Pensions are a complex area of law. If your ex removes money from their pension before the order takes effect, correcting the issue becomes complicated.

      Each case is unique, however one route to rectify the problem is to apply to court to set aside the order pursuant to the “Thwaite” jurisdiction. In exceptional circumstances, the court could exercise this jurisdiction if an order has not yet been implemented or it has only been partly implemented. In the recent case of AP v TP [2025] EWHC 190(b) the court exercised its jurisdiction under Thwaite to set aside a pension sharing order after the final divorce order had been pronounced, in circumstances where the wife refused to cooperate with the pension sharing order’s implementation and the husband could not retire without access to the pension funds.

      Alternatively, if the court cannot set aside the order, you may be able to seek a lump sum to compensate you for the loss caused by the withdrawal. Whether this is appropriate will depend on the type of pension involved, the extent of the loss, and the overall financial circumstances of the case. It is also important to note that even if a lump sum is awarded, you may not be able to pay it back into a pension in full without triggering tax charges or breaching pension contribution limits. For this reason, you should seek specialist legal advice before taking any action, to ensure you understand the most effective and tax-efficient way to resolve the issue. For complex pensions, it may be necessary to appoint a Pension on Divorce Expert (PODE) or actuary to assist with valuation to ensure a fair outcome. Legal representation is crucial in navigating the court process and protecting your interests during proceedings related to a pension sharing order.

      Why Early Legal Advice Matters

      The longer the delay, the more complicated the problem becomes. Pension schemes have different rules, and the financial impact can snowball if not addressed promptly.

      How can Edwards Family Law help?

      As a boutique family law practice, Edwards Family Law has a lot of experience dealing with complex pension sharing orders, including resolving issues when someone transfers money out before implementation.

    4. If you’re a business owner contemplating divorce, you’re facing one of the most complex and high-stakes situations in family law. Your business, often your most valuable asset and the culmination of years of hard work, could be significantly impacted by divorce proceedings. This comprehensive guide explains how divorce affects business owners in England and Wales, what you need to know about protecting your company, and how to navigate this challenging process whilst safeguarding both your livelihood and your financial future.

      Understanding how divorce impacts business assets is crucial for directors, partners, and entrepreneurs with significant equity. In England and Wales, businesses established or grown during marriage are typically considered matrimonial assets, meaning they may be divided during divorce proceedings. Courts prefer to leave the business owner with the business whilst compensating the other spouse with a larger share of other assets or maintenance payments. However, achieving this outcome requires strategic planning, comprehensive financial disclosure, and expert legal guidance from specialist family law solicitors who understand the unique challenges business owners face during divorce.

      Why Your Business Is at Risk in Divorce

      divorce financial settlement

      ​​Many business owners mistakenly assume that because a company is registered in their name or operated as a limited liability company, it will be automatically protected during divorce. Unfortunately, this assumption is fundamentally incorrect under English and Welsh law.

      Businesses as Matrimonial Assets

      ​​Under the Matrimonial Causes Act 1973, courts must consider all assets when determining a fair financial settlement. A business is generally treated as a matrimonial asset if it was established during the marriage or if its value increased significantly whilst you were married. This applies regardless of whether your spouse had any direct involvement in running the company.​​

      The starting principle in English family law is that matrimonial assets should be divided equally between spouses, reflecting the contributions both parties made to the marriage. Courts recognise that whilst one spouse may have built the business, the other may have made equally valuable contributions by managing the household, raising children, or providing emotional and practical support that enabled the company to flourish.​​

      The Reality for Different Business Structures

      Your business structure influences how courts approach valuation and division, but it does not provide automatic protection. According to recent data from the Department for Business and Trade, there were 5.5 million private sector businesses in the UK in late 2024, the majority of which were small and medium-sized enterprises (SMEs). These businesses employ approximately 60% of the UK’s workforce and represent not just financial value but years of dedication, sacrifice, and personal identity.​​

      Sole traders face particular vulnerability because business assets and personal assets are legally indistinguishable. The owner controls business assets but remains personally liable for business debts, meaning income and profitability become central considerations in divorce settlements.​

      Partnerships present additional complexity, especially when other partners beyond the divorcing couple hold stakes. Partnership agreements may include provisions restricting share transfers, and the involvement of third parties can complicate valuations and settlement negotiations.​​

      Limited companies offer some structural separation because they exist as distinct legal entities. However, this does not exempt your shareholding from being valued and included in the matrimonial asset pool. Courts will assess the value of your shares and consider them alongside other assets when determining a fair settlement.​​

      Understanding Business Valuation in Divorce

      Business Valuation in Divorce

      Accurate business valuation forms the foundation of any fair financial settlement involving business interests. The valuation process can be complex, costly, and contentious, but understanding the key methods and principles will help you navigate this critical stage.

      Common Valuation Methods

      ​​Financial forensic experts employ various methodologies to determine what a hypothetical buyer would pay for your business. The appropriate method depends on your business type, structure, and assets.​​

      Asset-based valuation calculates a business’s total value by subtracting its liabilities from its assets. This method suits businesses with significant tangible assets such as property, equipment, or stock, rather than service-based companies. For example, property investment businesses, manufacturing companies, or farming operations typically benefit from asset-based valuations.​​

      Earnings-based valuation focuses on the business’s ability to generate future income. The most common approaches include the Discounted Cash Flow (DCF) method, which estimates and discounts future cash flows to present value, and the Capitalised Earnings method, which applies a multiple to current earnings. This approach suits professional practices, consultancies, and businesses where value derives primarily from ongoing operations rather than physical assets.​​

      Market-based valuation compares your business to similar companies that have recently been sold. This method works best for businesses in well-established markets with readily available comparable sales data. Valuers may employ the guideline public company method or the merger-and-acquisition method to establish market value.​​

      The Role of Expert Valuers

      Courts typically appoint a single joint expert (SJE), usually a forensic accountant, to conduct business valuations. This expert is instructed jointly by both parties to ensure impartiality and reduce costs. The SJE analyses financial statements, management accounts, tax documents, asset registers, and recent trading performance to produce a comprehensive valuation report.​​

      Business valuations can cost between £5,000 and £25,000 or more, depending on complexity. Before commissioning a valuation, you should carefully weigh these costs against the business’s value and consider whether a formal valuation is necessary in your circumstances.

      Factors Affecting Business Value

      ​Several factors influence how experts value your business. The nature of your business significantly impacts valuation approaches. A company that simply serves as a vehicle for your professional work, such as a consulting firm, may have little value beyond your earning potential. In contrast, a company with diversified customer contracts, established brand value, and tangible assets possesses intrinsic value independent of any individual owner.​​

      Business structure and operations require careful evaluation. Experts assess whether the business’s value is closely tied to your involvement, how easily it could be sold or transferred, and what role your spouse played in its development.​​

      Complex financial structures present particular challenges. Businesses with director loans, intertwined personal and business finances, or multiple shareholdings require detailed analysis to ensure accurate valuation. If you’ve been drawing unsustainable income amounts from the company, this can skew perceived value and complicate negotiations.​​

      External factors such as economic conditions, industry-specific challenges, and market trends must be considered. The business’s fortunes may have changed significantly since earlier profitable periods, and valuers must account for such variations when assessing sustainable earnings.

      Matrimonial vs Non-Matrimonial Assets

      A critical distinction in divorce proceedings is whether business value is considered matrimonial or non-matrimonial property. Marital assets are those acquired during the marriage and are typically subject to equal division. Non-matrimonial assets, such as businesses owned before marriage, inherited interests, or gifts, may be excluded from division if sufficient other assets exist to meet both parties’ needs.​​

      The landmark case of Jones v Jones established essential principles for businesses built both before and during marriage. The Court of Appeal determined that pre-marital business value should be excluded from matrimonial assets, whilst value increases during the marriage were subject to division. This ruling emphasises the importance of distinguishing between pre-marital and marital business assets and evaluating each spouse’s contribution to business growth.​

      Even if your business predates your marriage, the increase in value during the marriage will likely be considered a matrimonial asset. Courts may apply various methodologies to calculate this marital accrual, including the accountancy method, linear method, or intuitive approach.​​

      Post-Separation Accrual

      Post-separation accrual refers to increases in business value after the separation date. This can be particularly contentious when business interests fluctuate significantly over relatively short periods. The court may consider factors such as each spouse’s contributions to business growth during separation, whether the growth was passive or the result of active endeavour, and the proportion of post-separation value attributable to each party.​​

      In recent cases involving business valuations at separation versus sale, courts have shown a willingness to distinguish between passive market growth (which remains matrimonial) and active post-separation work that genuinely enhanced value beyond market conditions. This nuanced approach recognises that not all post-separation growth should be equally shared, particularly where one spouse has made exceptional efforts to grow the business after relationship breakdown.

      Protecting Your Business Before and During Marriage

      business assets divorce

      Proactive planning offers the most effective protection for business assets in the event of divorce. Whilst no strategy provides guarantees, several legal mechanisms can significantly reduce risk and provide clarity about how business interests will be treated.​​

      Pre-Nuptial Agreements

      Pre-nuptial agreements (prenups) are among the most effective tools for protecting business interests before marriage. These agreements outline how assets, including business interests, will be divided in the event of divorce.​​

      Whilst prenups are not automatically legally binding in England and Wales, courts increasingly give them substantial weight, provided they meet specific criteria. The landmark case of Radmacher v Granatino significantly enhanced the status of prenuptial agreements, with the Supreme Court ruling that courts should uphold prenups where it is fair to do so.​​

      For a prenuptial agreement to carry maximum weight with courts, it must meet several requirements. Both parties must enter the agreement freely, without duress or undue pressure. Each party must receive independent legal advice from separate solicitors who can explain the agreement’s implications. Full financial disclosure must be provided by both parties, ensuring each person understands what they’re agreeing to. The terms must be fair and reasonable both when executed and when potentially enforced years later. The agreement should be executed at least 28 days before the marriage ceremony to demonstrate it was not a last-minute decision.​

      Pre-nuptial agreements can include specific provisions to ring-fence business interests. They can specify that the business-specific business assets should remain with the original owner, establish a business valuation at the time of marriage to distinguish pre-marital value from marital growth, and stipulate that the non-owning spouse will not make claims on business assets, protecting shareholders or partners from being affected by your divorce.​​

      For business owners with family enterprises, inherited farming assets, or succession planning concerns, prenups provide invaluable clarity and protection. They allow you to agree calmly in advance how assets would be shared, rather than negotiating when emotions run high during divorce proceedings.

      Post-Nuptial Agreements

      If you’re already married and didn’t execute a prenup, a post-nuptial agreement offers similar protection. These agreements are made during marriage and can be particularly valuable if your business circumstances change significantly, such as when you establish a new company, receive substantial investment, or your business value increases dramatically.​​

      Like prenups, postnups are not legally binding, but courts will generally uphold them if they are fair and both parties received proper legal advice. Post-nuptial agreements can address protection of business assets, financial arrangements for children from previous relationships, changes in circumstances since marriage, and succession planning for family businesses.​

      Shareholder and Partnership Agreements

      If you own a business with other parties, shareholder agreements or partnership agreements should include provisions addressing what happens if one owner divorces. These agreements can specify restrictions on share transfers, require divorced shareholders to offer shares to remaining shareholders first, establish valuation methodologies in advance, and protect the business from claims by divorcing spouses.​​

      Such provisions protect not only you but also your business partners, providing security that their interests won’t be adversely affected by your divorce. Clear documentation also facilitates smoother negotiations during divorce proceedings because the framework for handling business interests is already in place.​​

      Maintaining Financial Boundaries

      Keeping business and personal finances completely separate strengthens the argument that the business should be treated as your personal property. This means maintaining separate bank accounts for business and personal use, avoiding paying household expenses directly from business accounts, documenting all financial transactions meticulously, and ensuring any spousal involvement in the business is compensated correctly and recorded.​​

      Clear financial boundaries and thorough documentation provide an audit trail demonstrating the business’s independence from marital finances. This evidence can prove invaluable during disclosure and settlement negotiations.

      The Divorce Process: What Business Owners Need to Know

      The Divorce Process

      When divorce proceedings begin, business owners face unique challenges and obligations. Understanding the process and your responsibilities will help you navigate this difficult period whilst protecting your business interests.

      Financial Disclosure Requirements

      Full and frank financial disclosure is legally mandatory in divorce proceedings. You must disclose all business interests, regardless of whether you consider them protected. This disclosure typically occurs through Form E, a comprehensive financial statement that includes company accounts, management accounts, asset registers, loan and liability records, tax documents and returns, and business valuations if available.​​

      Missing or unclear financial records can significantly slow the process and damage trust between parties. If the court suspects you’re hiding or undervaluing assets, it may draw adverse inferences against you, potentially resulting in a less favourable settlement.​

      Your spouse’s solicitor may request extensive business documentation to verify the information you’ve provided. Forensic accountants may be instructed to examine your company’s books, identify whether income is being artificially reduced, investigate whether assets have been transferred or concealed, and assess the actual value of the business.​

      Freezing Orders

      If you have legitimate concerns that your spouse might attempt to devalue business assets or transfer them to prevent fair division, you can apply for a freezing order. This is a type of injunction that prevents your spouse from dealing with assets.​​

      To obtain a freezing order, the court must be satisfied that there is a genuine risk your spouse will dispose of or devalue assets and that this action would prejudice your ability to obtain a fair share in the financial settlement. If you suspect such behaviour, acting quickly is essential. Preventative action through a freezing order is far preferable to attempting remedies after assets have already been transferred or depleted.​

      Settlement Structures and Options

      Courts rarely order the sale of a functioning business, preferring solutions that preserve business operations whilst ensuring fair division of wealth. Several settlement structures may be appropriate depending on your circumstances.​​

      Asset offsetting allows one spouse to retain full ownership of the business whilst the other receives assets of equivalent value. For example, if you keep your business valued at £500,000, your spouse might receive the family home, which is also worth a similar amount. This approach provides a clean financial break and avoids disrupting business operations.​​

      Buyout arrangements involve one spouse purchasing the other’s interest in the business. Buyouts can be financed through cash payments, instalment plans, or trading off other marital assets of equivalent value, such as property, pensions, or investments. Professional appraisal is crucial to establishing fair market value and preventing future disputes.​

      Spousal maintenance is another option in which one spouse makes ongoing payments from the business’s income. This may be appropriate if the company has sustained the couple’s lifestyle throughout the marriage and ensures that, whilst the industry remains under one spouse’s control, its income continues to support both parties.​

      Staged payments can address liquidity concerns. Suppose your business lacks sufficient cash to fund an immediate lump sum settlement. In that case, the court may order payments over time, allowing the company to maintain working capital whilst gradually satisfying the settlement obligation.​

      Selling the business is generally considered a last resort. Courts may order a sale if both spouses are equally involved in the industry and cannot agree on alternative arrangements. No other assets exist to offset the business value. However, this outcome is rare and typically occurs only when all other options have been exhausted.​

      Impact on Business Operations

      Divorce proceedings can significantly affect your business beyond the financial settlement. The stress and time demands of divorce inevitably distract from running your company. Some business owners feel less motivated to grow their business if they believe increased value will only benefit their ex-spouse.​​

      Staff morale and productivity can suffer if employees sense instability. Clear, consistent communication with your team, without revealing inappropriate personal details, helps maintain confidence and stability during this uncertain period.​

      If the business employs your spouse, you may face employment law complications requiring specialist advice. Terminating a spouse’s employment during divorce proceedings carries significant legal and financial risks that must be carefully managed.​​

      Continuing to Run the Business Post-Divorce

      Some divorcing couples must continue operating their business together, particularly when the enterprise cannot easily be divided or sold. Whilst rare, this arrangement can work if both parties maintain mutual respect and share a vision for the business.​​

      Several strategies can facilitate shared business management post-divorce. Consider appointing a neutral managing director to oversee daily operations, minimising the need for direct interaction. Divide responsibilities clearly, focusing on separate business areas to reduce day-to-day communication requirements. Establish formal communication protocols and adhere to them strictly, such as limiting business discussions to scheduled meetings or using third-party mediators for disputes. Formalise all agreements about ownership, management, and profit distribution in writing to prevent misunderstandings. Agree on exit strategies for either or both parties should continued cooperation become impossible, including provisions for business sale, buyouts, or phased exits.​

      However, experience shows that continuing to operate a business with your ex-partner is highly challenging for most couples. Unless you both possess enormous trust and respect for one another, this arrangement will likely prove difficult and may ultimately harm the business.

      Tax Implications of Dividing Business Assets

      Tax Implications of Dividing Business Assets

      The tax consequences of transferring or dividing business assets during divorce can be substantial and must be carefully considered when negotiating settlements.​​

      Capital Gains Tax

      Transferring shares or selling business assets can trigger Capital Gains Tax (CGT) liabilities. However, if business shares are transferred between spouses within the same tax year of separation (or before separation), this can be treated as an exempt transfer, avoiding immediate tax liability.​​

      It’s crucial to understand that, even if the transfer is initially exempt, the asset may still be subject to CGT if sold in the future. The receiving spouse effectively inherits the original owner’s acquisition cost basis, meaning they will face CGT on the full gain when they eventually dispose of the asset.​

      Business Asset Disposal Relief

      In certain circumstances, shareholders disposing of their shares can rely on Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) to reduce CGT rates. This relief can result in a CGT rate of 10% rather than the standard higher rate, potentially saving significant sums on qualifying disposals.​​

      However, strict conditions must be met to qualify for this relief, including minimum ownership periods and active involvement in the business. These requirements should be carefully assessed before structuring any business asset transfers.​

      Stamp Duty

      Receiving shares as part of a divorce settlement may result in stamp duty charges, depending on the structure of the transfer. Proper tax planning can sometimes minimise or eliminate these charges, but this requires specialist advice.​

      Income Tax Considerations

      If your settlement involves ongoing maintenance payments derived from business income, the income tax treatment of these payments must be considered. Spousal maintenance payments are typically made from post-tax income and are neither deductible for the payer nor taxable to the recipient.​

      Given the complexity and potential significance of tax implications, obtaining tailored advice from a qualified accountant or tax adviser is essential. Structuring transfers and settlements in tax-efficient ways can save substantial sums and avoid unexpected tax burdens that could significantly impact the fairness of the settlement.

      What Courts Consider When Dividing Business Assets

      Courts exercise broad discretion when dividing assets in divorce, guided by Section 25 of the Matrimonial Causes Act 1973. Understanding the factors courts consider helps you anticipate likely outcomes and negotiate effectively.​​

      The Section 25 Factors

      Courts must consider a comprehensive checklist of factors when determining fair financial settlements. The income and earning capacity of both parties, now and in the foreseeable future, influence how business income and potential are assessed. Financial needs, obligations, and responsibilities of both parties, now and in the foreseeable future, affect whether business assets must be accessed to meet essential needs.​​

      The standard of living before the relationship breakdown provides context for assessing reasonable needs and expectations. The age of the parties and the duration of the marriage influence how assets are divided, with longer marriages typically resulting in a more equal division. Any mental or physical disability of either party affects needs and earning capacity assessments.​

      Contributions of both parties to the family’s welfare are considered, including non-financial donations such as homemaking and childcare. Courts specifically recognise that whilst one spouse built the business, the other may have made equally valuable contributions by supporting the family. The conduct of the parties is considered only in limited circumstances where behaviour is so extreme that it would be inequitable to disregard it.​

      Needs, Compensation, and Sharing

      The landmark cases of Miller v Miller and McFarlane v McFarlane established three guiding principles that courts apply when dividing assets in high-net-worth divorces involving business interests. These principles require courts to meet both parties’ reasonable needs, compensate for any economic disparity arising from the marriage (such as one spouse sacrificing career development to support the family), and fairly share the assets accumulated during the marriage.​

      These principles ensure that courts consider not only existing business assets but also future earning capacity and the contributions made by both parties to acquiring and maintaining wealth.​

      The Interests of Children

      First consideration must be given to the welfare of any children under 18. This principle significantly influences housing needs, income requirements, and the overall structure of financial settlements. If keeping the family home for the children’s benefit is prioritised, this may affect the amount of business value that can be accessed for division.​

      Practical Steps to Protect Your Business During Divorce

      Protect your business during divorce

      If you’re facing divorce as a business owner, taking immediate, strategic action can significantly protect your interests and improve your settlement outcome.​​

      Engage Specialist Legal Advice Early

      The sooner you seek advice from family law solicitors experienced in business asset cases, the more options you’ll have. Specialist solicitors understand the unique challenges business owners face and can develop strategies to protect your company whilst achieving a fair settlement.​​

      Edwards Family Law is a boutique law firm specialising in complex divorce and family law matters for high-net-worth individuals. With significant experience representing business owners, directors, and entrepreneurs, the firm provides tailored, discreet advice designed to protect your business interests and secure your financial future. The team regularly handles cases involving business valuations, offshore assets, large property portfolios, and complex financial structures.​

      Explore Non-Court Dispute Resolution

      Alternative dispute resolution methods such as mediation, collaborative law, or arbitration can help you reach agreements without the disruption, expense, and publicity of court proceedings. These approaches often yield more creative, business-friendly solutions because you retain control over the outcome rather than leaving decisions to a judge.​​

      Mediation involves a neutral third party helping you and your spouse negotiate directly, potentially saving substantial legal costs whilst preserving business confidentiality. Collaborative law brings both parties and their solicitors together with a commitment to settle without court intervention. These processes are less adversarial and can help maintain working relationships if you need to continue operating a business together post-divorce.​​

      Assemble Your Professional Team

      Divorce involving business assets requires a multidisciplinary approach. Alongside your divorce solicitor, you should involve a financial planner to assess long-term implications and structure settlements tax-efficiently. A forensic accountant or business valuer provides expert analysis of your business’s value and sustainable income. Your existing accountant can give historical context and documentation.​​

      If your business has partners or shareholders, a corporate solicitor ensures any agreements or share transfers comply with existing corporate governance documents. An employment law specialist may be necessary if the business employs your spouse. A therapist or coach can help you manage emotional strain, enabling more transparent decision-making during this stressful period.​​

      Maintain Transparency and Cooperation

      Attempting to hide, undervalue, or transfer business assets will severely damage your credibility and likely result in court sanctions. Courts take an extremely dim view of dishonesty and may draw adverse inferences that harm your settlement position.​

      Full, frank disclosure from the outset, even of assets you believe are protected, demonstrates good faith and facilitates negotiations. Providing comprehensive, well-organised documentation speeds the process and reduces professional fees. Cooperating with reasonable requests for information, whilst protecting genuinely confidential commercial details, helps build trust and move towards settlement.​

      Protect Confidential Business Information

      Whilst full financial disclosure is mandatory, you can take steps to ensure sensitive commercial information remains confidential. Having all parties involved sign specific confidentiality agreements protects proprietary information. You can restrict access to sensitive information within legal teams to only essential personnel. If specific business details could harm your competitive position if disclosed, you can request that the court impose reporting restrictions or limit document distribution.​​

      These measures balance your disclosure obligations with legitimate business confidentiality concerns.​

      Consider Business Structure and Operations

      Review your business structure with corporate and tax advisers to ensure it’s optimised for the current situation. If appropriate, consider whether restructuring could provide better asset protection going forward. However, any changes must be genuine commercial decisions made transparently; attempting to restructure specifically to defeat your spouse’s claims will backfire.​

      Keep business partners informed appropriately, without breaching confidentiality obligations, to maintain business stability. Partners deserve reassurance that the business’s interests are being protected and that divorce proceedings won’t threaten the company’s viability.​

      Frequently Asked Questions

      Is my spouse entitled to half of my business?

      Not automatically. Whilst matrimonial assets are typically divided equally, the court aims for a fair outcome rather than a rigid 50/50 split. If your business was established before marriage, the pre-marital value may be excluded from division. Courts prefer to leave the company with the business-owning spouse and compensate the other party with alternative assets or maintenance. The final division depends on numerous factors, including the length of marriage, both spouses’ contributions, available assets, and each party’s needs.​​

      Will my business be considered in my divorce?

      Yes. Any business interest you hold must be disclosed and will be included in the overall asset calculation. Even if your business is structured as a limited company, your shareholding represents a valuable asset that must be considered. The court will assess the business’s value and determine how it should be treated within the financial settlement.​​

      Does it matter whether I’m a sole trader, a partner, or a limited company director?

      Yes, business structure significantly affects how assets are owned and valued. Sole traders have no separation between business and personal assets. Partnerships involve shared ownership that partnership agreements may restrict. Limited companies exist as separate legal entities, so you own shares rather than business assets directly. However, none of these structures provides automatic protection from divorce claims; all will be considered in the asset division.​​

      How is a business valued in a divorce?

      Valuation depends on your business type and circumstances. Standard methods include asset-based valuation (total assets minus liabilities), earnings-based valuation (future income-generating capacity), and market-based valuation (comparisons with similar businesses sold). Courts typically appoint a single joint expert, usually a forensic accountant, to conduct an impartial valuation. The expert analyses financial statements, management accounts, tax documents, and trading performance to determine what a hypothetical buyer would pay.​​

      How can I protect my business in a divorce?

      The most effective protection comes from pre-nuptial or post-nuptial agreements that specifically ring-fence business interests. Maintaining a clear separation between business and personal finances strengthens protection arguments. Shareholder or partnership agreements should include divorce provisions. Once divorce proceedings begin, engage specialist legal advice immediately, provide full financial disclosure, explore mediation or collaborative approaches, and consider whether asset offsetting or buyout arrangements can preserve your business whilst achieving a fair settlement.​​

      Will the business I established before marriage be treated differently?

      Potentially. Pre-marital business value is often considered non-matrimonial and may be excluded from division if sufficient other assets exist to meet both parties’ needs. However, any increase in business value during the marriage will likely be matrimonial and subject to sharing. The Jones v Jones case established important principles distinguishing pre-marital business value from marital growth. Courts may apply various methodologies to calculate this distinction.​​

      What happens if both spouses want to keep running the business?

      If the business cannot be easily divided and both spouses wish to continue, you may need to operate it together post-divorce. This requires exceptional trust, respect, and clear boundaries. Strategies include appointing a neutral manager, clearly dividing responsibilities, establishing formal communication protocols, and agreeing on exit strategies if cooperation becomes impossible. However, most divorcing couples find it extremely challenging to continue working together, and this arrangement frequently fails.​

      Can the court force me to sell my business?

      Court-ordered business sales are rare and considered a last resort. Courts strongly prefer solutions that maintain business operations whilst compensating the other spouse through alternative assets or payments. A forced sale might be ordered only if both spouses are equally involved, cannot agree on alternatives, the business is the only significant asset, and no other solution would achieve fairness.​​

      What are the tax implications of dividing business assets?

      Transferring shares or business assets can trigger Capital Gains Tax, though transfers between spouses during the same tax year as separation may be exempt initially. However, the receiving spouse inherits the CGT liability for future disposal. Business Asset Disposal Relief may reduce CGT rates on qualifying disposals. Stamp duty may apply to share transfers depending on the structure. Given the complexity, obtaining specialist tax advice is essential to structure settlements tax-efficiently.​​

      How much does a business valuation cost in a divorce?

      Professional business valuations typically cost between £5,000 and £25,000 or more, depending on the business’s complexity. Factors affecting cost include business structure, financial complexity, number of valuers required, and whether valuations at multiple dates are needed. Before commissioning a valuation, consider whether it’s necessary for your circumstances in some cases, parties can agree on value without formal expert reports.​

      Taking the Next Steps

      Divorce whilst owning a business represents one of the most challenging situations you can face. The intersection of personal relationship breakdown and your professional livelihood creates complexity that requires specialist expertise, strategic planning, and careful execution.​​

      The key to protecting your business lies in early, proactive engagement with experienced family law solicitors who understand business assets. Whether you’re contemplating divorce, currently in proceedings, or simply want to protect your business for the future, expert legal advice tailored to your specific circumstances is essential.​​

      Edwards Family Law specialises in representing business owners, directors, and high-net-worth individuals facing complex divorce proceedings. The boutique firm’s team has extensive experience with business valuations, financial settlements involving trading companies, protecting business interests during divorce, pre-nuptial and post-nuptial agreements for business owners, and navigating international and multi-jurisdictional business assets.​

      Based in London and serving clients throughout England and Wales, Edwards Family Law provides the personalised, discreet service you need during this challenging time. The firm’s solicitors understand that your business represents more than financial value, it embodies years of hard work, your professional identity, and often your primary source of income.​

      Don’t wait until divorce proceedings begin to protect your business interests. Whether you need advice on pre-nuptial agreements, are facing divorce, or require guidance on business asset protection strategies, contacting Edwards Family Law for a confidential initial consultation is the first step towards safeguarding your business and securing your financial future.

      To book your confidential consultation with Edwards Family Law’s specialist business divorce solicitors, visit edwardsfamilylaw.co.uk or call 020 3983 1818. The firm’s experienced team is ready to provide the expert guidance you need to protect your business whilst navigating divorce proceedings with confidence and clarity.

    5. A divorce settlement is intended to provide financial stability and closure for both parties once a marriage has legally ended. Divorce settlements are legal and financial arrangements made between spouses to divide assets such as pensions, property, savings, and other valuables, as well as to allocate responsibilities following separation. Once the court has issued a financial order, each party is expected to adhere to its terms, whether that involves lump-sum payments, property transfers, spousal maintenance, or contributions towards shared liabilities. However, in many cases, one party may refuse or fail to meet their obligations under a divorce settlement, leaving the other party in a difficult position.

      Suppose your ex-partner is not paying what they owe under your divorce settlement. In that case, it is essential to understand both spouses’ legal rights, the available enforcement options, and how to secure compliance through the appropriate legal approach.

      At Edwards Family Law, our experienced divorce and financial settlement solicitors assist clients across England and Wales in enforcing court-ordered settlements and recovering overdue payments from non-compliant ex-partners.

      Understanding Divorce Settlement Payments

      Understanding Divorce Settlement Payments

      A divorce settlement (also known as a financial settlement) sets out how assets, property, pensions, and other finances are divided after a marriage ends. Once the court approves it through an economic order, it becomes legally binding.

      Divorce settlements are typically reached through a financial agreement between the parties or through a court order. The process is designed to divide assets, including matrimonial assets, the matrimonial home, business interests, pensions, and other financial holdings. Asset division is influenced by several factors, including the length of the marriage, the economic needs and responsibilities of both parties, the presence of children, any debts accrued during the marriage, each party’s earning capacity, and other relevant considerations.

      There is a distinction between matrimonial assets (those acquired during the marriage) and non-matrimonial assets (such as inheritances or property owned before the marriage), and both may be considered within the settlement. Financial settlements and financial agreements formalise how these assets and liabilities are divided. Pension sharing is also an essential element of the process, with pensions divided through pension sharing orders to ensure a fair outcome. The agreement may also address the division of personal belongings and the treatment of the matrimonial home. Throughout the process, the court or the parties themselves must take into account the interests of both sides to ensure fairness.

      This order may require one party to make regular payments, transfer assets, or pay a lump sum. When one person fails to meet these obligations, they are effectively in breach of a court order. The court takes such breaches seriously, as they undermine the finality of the divorce process.

      If your ex-spouse has stopped making divorce settlement payments, you are entitled to take action. The court can enforce compliance, and, depending on the circumstances, several routes are available to ensure payment is made.

      Family Law and Civil Partnership

      Family Law and Civil Partnership

      Many couples facing the end of their marriage or civil partnership find themselves navigating the complex world of family law, often feeling overwhelmed by the legal framework governing these relationships. Whether you are going through a divorce or dissolving a civil partnership, understanding family law is essential to protect your financial interests and secure a fair settlement that reflects your circumstances.

      At the heart of family law lies the concept of matrimonial property. This term covers all the assets and property that you, your partner, or both of you have accumulated during your time together. It includes everything from the family home and savings to pensions and other investments built up over the years. These assets are considered when dividing finances to achieve a fair and equitable outcome for both parties, taking into account individual needs and personal circumstances.

      The principles for dividing assets are broadly the same whether you are ending a marriage or a civil partnership, with the court’s primary aim being to ensure that both parties receive a fair share of what has been built together. The process can become complex, particularly when significant assets or business interests are involved and require careful assessment. By understanding your rights and obligations under family law, you will be better equipped to navigate the financial settlement process and work towards an outcome that provides the financial stability you need moving forward.

      Whether you’re ending a marriage or a civil partnership, getting professional advice from experienced family law solicitors who understand these situations can make all the difference in achieving a fair settlement and protecting your interests as you work through dividing up your assets.

      Why Your Ex Might Stop Making Payments

      Non-payment of a divorce financial settlement can occur for several reasons. In some cases, it may stem from genuine financial difficulty; for example, your ex-partner may have lost their job or experienced an unexpected drop in income. In other situations, refusal to pay may be deliberate, motivated by resentment, a desire for control, or an attempt to delay proceedings further. If the agreed amount is not paid, it can lead to additional legal action to enforce payment.

      Even where there is a legitimate financial issue, it is not acceptable for your ex-partner to simply stop making payments without seeking a variation through the court. The correct legal process is to apply to the court to amend the financial order, not to ignore it unilaterally.

      If your ex has chosen not to pay, you are not powerless. There are established legal remedies to help you recover what you are owed. The court typically deals with these situations through established enforcement procedures.

      When a Financial Order Is Ignored

      are divorce settlement payments taxable

      Once a financial order is in place, both parties are legally required to comply with it. If your ex-partner refuses to do so, they are in breach of a court order. You can apply to the court for enforcement, and depending on the circumstances, several enforcement options may be available. Enforcement proceedings may also involve court hearings to determine the most appropriate course of action.

      If you suspect that your ex-partner is deliberately avoiding payments, it is essential to act promptly. Any delay can make it more difficult to recover what is owed, particularly if assets are being moved or dissipated. Working with experienced divorce solicitors in London ensures that your application is managed efficiently and that the most effective enforcement strategy is pursued. Ultimately, the court may issue a final order resolving the matter and ensuring compliance.

      Enforcement Options for Unpaid Divorce Settlement Payments

      1. Enforcement of a Financial Order

      When a court order is ignored, you can apply to have it enforced under the Family Procedure Rules 2010. The court can then issue a range of orders designed to compel payment. Depending on what your ex-partner owes and their financial circumstances, this could include:

      • Attachment of Earnings Order: If your ex is employed, the court can order their employer to deduct payments directly from their salary and send them to you.
      • Charging Order: If your ex owns property, you may be able to secure the debt against it, ensuring that you receive payment when the property is sold.
      • Third Party Debt Order: If your ex has money held in a bank account, the court can order that funds be transferred directly to you to satisfy the debt.
      • Warrant of Control: In some cases, the court may instruct bailiffs to recover the money or seize goods to the value of what is owed.

      Each case is unique, so choosing the right enforcement option depends on the specific terms of your divorce financial settlement and your ex’s financial circumstances.

      What to Do if Your Ex Stops Paying the Mortgage

      Home Mortgage

      In some divorces, both you and your ex-partner remain jointly responsible for the mortgage until the property is sold or transferred. If your ex-partner stops paying their share, the mortgage lender will still hold both of you jointly liable. This can be particularly stressful, especially if you are still living in the property.

      If this occurs, both parties must communicate with the lender immediately to explain the situation. Some lenders may agree to short-term arrangements to help you avoid arrears or repossession, but these are not long-term solutions.

      If the mortgage payments were covered under your divorce settlement, your ex-partner’s refusal to contribute could constitute a breach of the court order. You can apply for enforcement to ensure that your ex-partner remains accountable for their agreed share.

      What If Your Ex Delays the Financial Settlement?

      Delaying tactics are common in divorce proceedings. Your ex-partner may refuse to provide financial disclosure, fail to sign documents, or delay payment transfers. While frustrating, there are precise legal mechanisms to address such behaviour.

      If your ex-partner is delaying the completion of a divorce financial settlement, your solicitor can issue a formal demand for compliance within a set timeframe. Should they continue to ignore their obligations, an application can be made to the court to enforce or vary the order. Where the parties have not yet agreed on the terms of the settlement, delays are likely to continue until a formal agreement is reached.

      It is important to note that until the court seals a financial order, any privately made agreements are not legally binding. Always ensure your financial settlement is formalised through the courts to prevent future disputes and guarantee enforceability.

      Applying for an Enforcement Order

      To enforce a divorce financial settlement, your solicitor will prepare an application setting out the terms of the original order and the amount outstanding. Enforcement applications are made under the Matrimonial Causes Act, which governs matrimonial matters such as divorce and related financial issues. You will also need to provide evidence that your ex-partner has failed to comply.

      Once the application is filed, the court will schedule a hearing to review the evidence. Your ex-partner will be notified and allowed to respond. The judge will then determine which enforcement measure is most appropriate.

      The court may also order your ex-partner to pay interest on overdue sums or cover your legal costs if they have acted unreasonably. In more serious cases, the court can impose a suspended committal order, which carries the risk of imprisonment if non-payment continues.

      At this stage, professional guidance from solicitors specialising in divorce financial settlements is essential. They will ensure your application is presented clearly, supported by evidence, and tailored to achieve the best possible outcome.

      When to Seek Legal Help

      Dealing with a non-compliant ex-partner can be emotionally draining and financially damaging. It is easy to feel overwhelmed, particularly if the payments you are owed are essential for your day-to-day living expenses.

      Can the Court Change a Financial Order?

      If your ex-partner genuinely cannot afford to meet the terms of the divorce settlement, they must apply to vary the order. The court will assess whether there has been a significant change in circumstances, for example, redundancy or illness, before deciding whether a variation is justified.

      However, until the court formally amends the order, your ex-partner remains legally bound by it. Simply refusing to pay without applying for a variation constitutes a breach.

      Suppose you suspect your ex-partner is using financial hardship as an excuse while still retaining assets or income. In that case, your solicitor can request full financial disclosure and present evidence to the court to challenge their claims.

      Protecting Your Financial Future

      Enforcing a divorce financial settlement is not only about recovering money; it is also about ensuring fairness and closure after a challenging period in your life. Ensuring settlement payments are made is crucial for maintaining financial stability post-divorce. Allowing your ex-partner to ignore court orders undermines that fairness and can cause unnecessary financial strain.

      At Edwards Family Law, we act decisively on behalf of clients whose ex-partners refuse to meet their obligations. Our team is known for its compassionate, results-driven approach. We work to secure the financial stability you are entitled to and ensure that your ex-partner remains accountable under the law.

      When your ex-partner fails to meet their divorce settlement payments, it is not just a breach of trust but also a breach of a legally binding court order. Whether the issue involves unpaid spousal maintenance, missed lump-sum payments, or failure to contribute to a joint mortgage, you have the right to seek enforcement through the courts.

      At Edwards Family Law, we combine extensive legal expertise with a sensitive understanding of the emotional and practical challenges involved in post-divorce disputes. As one of the leading family law firms in the UK, we are dedicated to achieving fair and enforceable outcomes for our clients.

      If your ex-partner is refusing to comply with your divorce financial settlement, contact Edwards Family Law today for expert legal support and swift enforcement action.

      FAQs about Divorce Settlement Payments

      1. What can I do if my ex refuses to make divorce settlement payments?

      If your ex-partner refuses to make their agreed divorce settlement payments, you can apply to the court to enforce the financial order. The court has several powers to compel payment, including attachment of earnings, charging orders, and third-party debt orders. It is advisable to seek guidance from experienced divorce financial settlement solicitors to determine the most effective course of action.

      2. Can I take my ex back to court for not paying the divorce settlement?

      If your ex-partner has breached the terms of a court-approved divorce financial settlement, you can return to court to enforce the order. The judge will assess the breach and may impose penalties or order immediate payment. Once the decree absolute is granted, the marriage is legally dissolved, and the financial orders become enforceable.

      3. What happens if my ex can’t afford to pay the financial settlement?

      If your ex-partner genuinely cannot afford to pay, they must apply to vary the financial order. The court will review whether their financial circumstances have changed significantly. Until the court formally amends the order, they remain legally obliged to make the payments.

      4. How long does it take to enforce a divorce financial settlement?

      The timescale depends on the complexity of the case and the enforcement method employed. Simple cases, such as attachment of earnings orders, can be resolved within a few months, while matters involving property or concealed assets may take longer. Your divorce solicitors in London can advise you on the expected timeframe based on your individual circumstances.

      5. Can I claim interest on late divorce settlement payments?

      Yes, in many cases, the court can order interest to be added to overdue divorce settlement payments, particularly if your ex-partner has wilfully ignored the order. Your solicitor will include this request when applying for enforcement.

      6. What if my ex stops paying the mortgage after the divorce?

      If the mortgage was included in your divorce financial settlement, your ex-partner’s failure to contribute may constitute a breach of the order. Contact your lender immediately to prevent arrears, and then seek advice from divorce financial settlement solicitors regarding enforcement options to recover any missed payments. Child maintenance is a separate matter that the court can address to ensure that your children’s financial needs are met.

      7. Should I use a solicitor to enforce a divorce settlement?

      Absolutely. Enforcing a divorce financial settlement can be complex and time-sensitive. Working with a specialist from a leading UK family law firm, such as Edwards Family Law, ensures the correct evidence and enforcement strategy are employed to achieve a swift and effective outcome.

    6. The Pre-nuptial agreement is, by now, a widely recognised tool. Its rising popularity can easily be attributed to multiple features in media, entertainment and celebrity life alike. Kim Kardashian, Jessica Simpson, Ali Wong and Catherine Zeta-Jones are only a few of the household names who have publicly admitted to (and discussed) signing a prenup.

      That is not to say prenups are only for the uber wealthy, or those in the public eye. Those marrying later in life, who have worked hard to build up capital, may want to consider a prenup. Equally, anyone who is getting married and bringing into the marriage assets or investments of value, may wish to protect the same against claim from a spouse.

      Ultimately, most agreements are carefully drafted and signed with the intention of being stored in a drawer and never touched again. However, some couples may well need and benefit from that agreement – and having the peace of mind of knowing exactly how finances will be split upon a divorce may prove invaluable.

      Are prenups legally binding?

      The first thing to keep in mind is that prenuptial agreements are not automatically considered legally binding in England and Wales. This is especially surprising to expats from countries like the US or Australia, where such agreements are generally considered enforceable.

      However, that does not mean that they are dismissed out of hand by the Court in this jurisdiction. In fact, in recent case law, Judges have expressed that prenups should be upheld and given strong consideration to as part of financial remedy proceedings. In 2010, the Supreme Court ruled that Courts should give effect to a pre-nuptial agreement that is: (i) freely entered into by each party; (ii) with a full appreciation of its implications; unless (iii) in the circumstances it would not be fair to hold the parties to their agreement.

      Crucially, for your prenup to be upheld, the above criteria must be met. These are outlined below and fully explained in the interest of clarity.

      “The agreement must be freely entered into by each party…”

      are pre nuptial agreements binding

      What this means is that the Court wants to be satisfied that each party signed the agreement because they wanted to, and not because they felt coerced or forced into doing so. The Court will be looking into whether there was any pressure by the spouse or their family to sign the agreement, or whether one party only signed an agreement due to fraud or misrepresentation.

      The Court is also likely to consider the timing of the agreement – the general rule is that prenups should be signed no earlier than six months before the wedding, and no later than 28 days before the wedding. This shows the Court that appropriate time was taken by the parties to negotiate and agree on the terms of the prenup, without rush.

      The textbook example is the bride (or groom) who, at a few days from the wedding, is presented a prenup and told in no uncertain terms that should they not return the signed agreement, the wedding will simply not go ahead. This scenario may seem extreme and obviously fictitious, but it perfectly illustrates circumstances in which a prenuptial agreement is very unlikely to be upheld by the Court.

      “…with a full appreciation of its implications…”

      In addition to the above, a Court would be unlikely to uphold a prenup if it found one (or both) of the parties did not have a full appreciation of what the consequences of the agreement would be. There are quite a few factors that go into understanding a prenup. For instance:

      1. Both parties should have the benefit of independent legal advice from a qualified solicitor who specializes in family law;

      2. Both parties should provide financial disclosure of all assets, investments, pension and income at the time of the agreement, including details of any inheritances likely to be received; and

      3. Both parties must be fit of mind and able to understand the agreement when the same is explained to them. If one party has a learning disability or has problems processing information of a legal nature, then special care should be taken to ensure they truly have understood the terms of the prenup.

      “…unless (iii) in the circumstances it would not be fair.”

      Most importantly, a prenup must be fair.

      Any prenup agreement that seeks to leave either party without the means to meet their reasonable financial needs will not be upheld by the Court. Accordingly, prenups need to be expertly drafted, in a way that ensures that the needs of any children are met and that neither party is left without appropriate resources to maintain a lifestyle similar to that enjoyed during the length of the marriage. This is especially true for longer marriages.

      To ensure fairness, there should be semi-regular reviews of the terms of the agreement to address changing circumstances (for example, it is common for agreements to have to be reviewed upon the birth of each child).

      Ultimately, it is not uncommon for the financially weaker party to be provided for in a way that is less generous than the Court’s own approach – but it must not be unfair.

      So, what happens if these criteria are not met?

      Prenup Agreement Solicitors

      If, for example, parties fail to renew an agreement after the birth of each child, or the agreement is signed only three weeks before the wedding, the prenup is not rendered immediately invalid. However, its strength and persuasiveness declines sharply. If the parties decide to divorce, and one of them is not convinced the agreement should be legally binding, then it will be the Court’s mandate to consider the agreement and decide whether it should be upheld having regard to all the circumstances in each matter.

      If you have signed a prenup you regret, and you and your spouse have decided to separate, do contact a solicitor as soon as possible. A solicitor will be able to review your prenup with a clinical eye and help you challenge the same.

      Should I get a prenup?

      Despite all the caveats, solicitors generally agree: prenups are still worth it. In circumstances where there are pre-marital assets which warrant such protection, then prenups can be a brilliant (if slightly unromantic) tool. As long as they are properly drafted, and signed in the right circumstances having considered the criteria laid out by the Supreme Court, then they can provide certainty and a robust framework to follow in case of relationship breakdown.

      As outlined above, for a prenup to be upheld both parties need to take independent legal advice in respect of its terms. At Edwards Family Law, we have a wealth of experience in relation to prenups. Whether you wish to enter into such an agreement, or you’re just considering your options, please do not hesitate to contact us. A member of our team will be happy to help.

    7. Divorce is widely recognised to be one of the top five most stressful life events, sitting just below the death of a spouse. On top of what is already an extremely painful moment in your family’s life, Court proceedings can feel insurmountably nerve-wracking.

      At Edwards Family Law, we aim to guide you through the process in the most streamlined and stress-free way possible, by finding and encouraging alternative methods of dispute resolution. This will hopefully keep you out of the Court room and reduce the anxiety of litigation.

      A tool widely used during financial proceedings to reach a faster settlement is to opt for a private FDR, instead of relying on the Court’s listings.

      What is an FDR?

      What is an FDR

      The FDR (or Financial Dispute Resolution) is the second main hearing within the wider scope of Financial Remedy Proceedings. The first hearing is called a First Appointment, and is generally an opportunity to set a timetable in place for the parties to exchange all relevant information and agree on what evidence must be produced to reach a final determination. After the First Appointment, parties will be engaged in the exercise of trying to agree on what is part of the matrimonial pot and how much each asset or liability is worth.

      Hopefully, agreement is reached on each point and the parties can then re-focus their efforts in using this information to negotiate a settlement. At the FDR, upon the review of the information produced, the parties obtain guidance on the likely outcome of a Final Hearing.

      This is used to negotiate a final settlement in an effort to avoid proceeding to Final Hearing. You may have heard the phrase “without prejudice”, when referring to the FDR. This means that anything that is discussed at the hearing (including offers made, arguments put forth by each party and concessions made by either party) cannot be repeated at the Final Hearing.

      In summary, this provides parties with a chance to try their case. Each party will make submissions as to what they should receive as a Final Order, and the judge will consider each in turn. The Judge will then give an indication. This is not, for clarity, a binding Court Order. This is simply the Judge’s opinion on how the case will end, if a settlement is not agreed.

      This gives the parties a very clear idea of the strengths and weaknesses in their cases – and provides them with a springboard from which to start their negotiations.

      What is a Private FDR?

      All that is explained above in relation to an FDR also applies to its private counterpart. The main difference between a Court FDR private FDR (or pFDR) is that the pFDR is held outside of the Court process.

      With a pFDR, the parties can choose their own judge (who will usually be a barrister or retired judge) and their own venue (which will usually be a barrister’s Chambers or a solicitor’s offices). Instead of stepping into a Court room for their allotted time slot, the parties will settle into their respective consultation rooms in the morning with their legal teams, and when ready they can go in to see the private judge to make their submissions. In addition to this, throughout the course of the day (both before and after the indication) the parties will be able to go through matters with their legal teams, and carry out negotiations until an agreement is reached.

      Advantages and disadvantages of a Private FDR

      1. The main advantage of the pFDR is that it is a brilliant time-saving tool. As Courts are often overwhelmed with application, and experiencing severe backlogs, as much as a year can pass between the First Appointment and Court FDR. This is an additional 12 months of costs: both financial and emotional. Many couples may wish to expedite the process, and seek a faster resolution to their matter. A pFDR can be arranged in a matter of days, as long as both parties’ legal teams are confident that all relevant information has been produced.

      2. It is understood that pFDRs are, in general, more thorough. Court Judges usually have multiple cases on their lists for a single day, which means you are unlikely to get more than one hour in front of them. This also means judges will only have limited reading time ahead of an FDR, while private judges will typically allocate a whole day to read into the matter. They are therefore more likely to take their time in examining and understanding the evidence provided by the parties, and adopt more of a forensic approach. Their indication will similarly be more detailed, focusing on each issue and the reason why a certain decision was reached. This is excellent for negotiations: a comprehensive indication can help narrow the issues in dispute.

      3. This also means that there is significantly reduced dead time on the day of the pFDR, as you will not have to wait to go into Court and risk being delayed. It is also worth considering that the pFDR judge will be available for the whole day, and will be able to offer input as necessary to resolve any query arising from their indication, or the parties’ negotiations.

      4. Private FDRs are significantly more comfortable than being in a busy Court building. Consultation rooms in Court buildings are extremely sought after, and it may be quite difficult to find a private place where you can sit down and freely have discussions with your team. Think of the physical comfort, too. FDRs are likely to take place over an entire day, and tiredness can easily set in and risk derailing any progress achieved. Private FDR venues offer more hospitable and inviting spaces, lunch will usually be served to you, and there will be no shortage of hot drinks. These little comforts can help keep you focused on the task at hand, and aid in negotiations.

      The key differences between Court and pFDRs are easily identifiable. Private FDRs are quicker, more efficient, more thorough and more comfortable. They are also more likely, in our experience as solicitors, to result in a settlement. Their main disadvantage is that they can be significantly more expensive than attending a Court FDR. This is because the private judge’s fees will need to be split between the parties, and these can be quite costly. It is important, however, to consider their cost within the wider context of financial proceedings.

      At Edwards Family Law, we tend to recommend pFDRs to all clients unless their circumstances are uniquely unsuited to them. Of course, in order for any FDR to be effective, the starting point is that parties must be open to negotiating a settlement.

      If you require help or advice with your upcoming FDR, please do not hesitate to get in touch.

    8. High-net-worth divorce settlements involve substantial assets, often valued in the millions, and require specialist knowledge and strategic planning. As solicitors who specialise in complex, high-value divorce cases, we regularly answer questions from entrepreneurs, business owners, ultra-high-net-worth individuals, and high-net-worth clients navigating this challenging process. Seeking expert advice is crucial when navigating high-net-worth divorce settlements to ensure the best possible outcome.

      This guide addresses the seven most common questions we receive about high-net-worth divorce settlements in England and Wales, providing clear, practical answers based on our experience handling cases involving assets ranging from £2 million to over £50 million.

      1. What Actually Qualifies as a High Net Worth Divorce Settlement?

      High net worth divorce settlements typically involve couples with combined liquid assets exceeding £1 million (excluding the family home). Ultra-high-net-worth settlements involve estates valued at £25–30 million or more. However, the actual complexity isn’t simply the quantum of wealth; it’s the diversity and intricacy of asset structures. In high-net-worth cases, dividing assets can be particularly challenging due to complex assets and the need for accurate valuation. A high net worth settlement might include:

      • International property portfolios spanning multiple jurisdictions
      • Privately owned businesses requiring forensic valuation
      • Complex pension arrangements, including substantial pension assets such as SIPPs and defined benefit schemes
      • Trust structures with potential nuptial elements
      • Offshore investments and accounts
      • Substantial investment portfolio, including private equity and hedge funds
      • Luxury assets such as art collections, classic cars and jewellery
      • Complex assets such as layered business interests and intricate investment vehicles
      • High-value assets, including rare collectables and significant financial holdings
      • Personal assets such as jewellery, art, and other valuable personal property
      • Business assets that require specialist knowledge for accurate valuation
      • Investment properties forming part of a diverse asset portfolio
      • Property assets, including both residential and commercial holdings

      The Financial Conduct Authority classifies individuals as high net worth if they earn significant income (over £300,000 annually) or possess financial wealth with assets valued above £3 million. These thresholds provide useful benchmarks, but every case is assessed on its own merits.

      2. How Are High Net Worth Divorce Settlements Actually Calculated?

      English divorce law doesn’t apply rigid formulae to high-net-worth settlements. Instead, courts apply three core principles: needs, sharing and compensation.

      Sharing: Matrimonial assets (those acquired during marriage through joint efforts) should generally be divided equally, regardless of legal ownership. Marriage is viewed as an equal partnership in which both financial and domestic contributions are of equal value.

      Needs: Courts assess what both parties reasonably need to maintain a standard of living similar to that enjoyed during marriage. In high-net-worth cases, “needs” are interpreted generously; someone accustomed to luxury holidays, private schools, and multiple homes has correspondingly higher reasonable needs than someone from a modest background.

      Compensation: Where one spouse sacrificed career advancement for the family, perhaps taking primary childcare responsibility or relocating for the other’s career, fair settlements include compensation for economic disadvantage.

      The matrimonial vs non-matrimonial distinction is crucial. Assets owned before marriage, inheritances and gifts from third parties may be treated as non-matrimonial property and excluded from equal division, particularly following the Supreme Court’s 2025 Standish v Standish decision, which strengthened protection for inherited wealth kept separate from marital finances. Disputes often arise over whether an asset is matrimonial or non-matrimonial property, and the classification can significantly affect the outcome of financial claims.

      Settlement structures vary and are shaped by financial claims and financial remedies:

      High net worth divorce settlements

      Example 1 – Business owner (18-year marriage): Husband owns a business valued at £8 million, which he had created and grown before the marriage, a marital home worth £2.5 million, and pensions totalling £1.8 million. Wife maintained the house and raised the children. Settlement: Wife received the marital home (£2.5 million), pension sharing order (£900,000), and a lump sum of £1.6 million which represented the growth in the business during the marriage and a sum for capitalised maintenance. Husband retained 100% of the company. Total division: approximately 42/58 split reflecting sharing of marital assets and needs and contributions whilst preserving the business. These outcomes result from financial remedies proceedings, in which the court considers all financial claims and determines the most appropriate way to achieve fairness.

      Example 2 – Dual high earners (12-year marriage): Combined assets of £6.4 million, including property portfolio (£4.2 million), investments (£1.6 million), pensions (£600,000). Both maintained careers throughout. Settlement: Equal division (50/50) with the property portfolio divided, pension sharing orders implemented, and investments allocated to achieve overall equality. Settlement agreements reached between parties can become legally binding once approved by the court, ensuring the enforceability of the agreed financial remedies.

      3. How Long Do High Net Worth Divorce Settlements Take?

      High-net-worth divorce settlements typically take longer than standard cases due to the complexity of asset valuation, disclosure requirements, and negotiation intricacies.

      Realistic timelines:

      • Amicable settlements through mediation: 6-12 months from initial instruction to final court order
      • Complex negotiations with business valuations: 9-24 months
      • Contested court proceedings to final hearing: 12-36+ months, potentially longer in exceptionally complex cases

      Key factors affecting duration include:

      • Disclosure complexity: International assets, offshore trusts and complex business structures require thorough investigation
      • Valuation disputes: Disagreements about business values, property appraisals or pension calculations extend timelines
      • Cooperation levels: Parties working collaboratively settle faster than those in high-conflict disputes
      • Jurisdictional issues: Multi-jurisdictional cases involving coordination with overseas lawyers add time
      • Complexity of financial proceedings: High net worth cases often involve intricate financial proceedings, where protecting business privacy and managing confidential information during financial disclosures can add to the duration

      The divorce itself can be finalised in a minimum of 26 weeks, but financial settlements invariably take longer in high-net-worth cases due to the complexity of assets.

      Our experience: The average high-net-worth settlement we handle concludes in 12 months from instruction to final order. 90% of our cases settle through alternative dispute resolution (mediation, private FDR, or arbitration) without contested court proceedings, significantly reducing timelines compared to litigation.

      4. Can Prenuptial Agreements Affect Settlement Outcomes?

      Prenuptial Agreements and Settlement Outcomes

      Yes, prenuptial agreements carry significant weight in high-net-worth divorce settlements, potentially protecting millions in pre-marital and family wealth.

      Since the Supreme Court’s landmark 2010 Radmacher v Granatino decision, prenuptial agreements are increasingly upheld when specific criteria are met:

      Requirements for enforceability:

      • Both parties received independent legal advice from separate solicitors
      • Full financial disclosure was provided before signing
      • The agreement was signed at least 28 days before the wedding (avoiding claims of pressure)
      • The deal makes fair provision, particularly regarding children’s needs
      • Both parties entered freely, understanding the implications

      When properly drafted, prenups are upheld in over 90% of cases. Courts retain discretion to depart from agreements deemed unfair, but well-structured prenups provide substantial protection.

      We recently advised the son of a billionaire whose parents wanted to ensure his future inheritance was protected in the event of divorce, but that when he and his wife had children, they would be looked after, including security concerns.

      What prenups can cover in high net worth settlements:

      • Ring-fencing business interests and professional practices
      • Protecting pre-marital property and investments
      • Defining the treatment of future inheritances
      • Specifying how marital assets will be divided
      • Addressing spousal maintenance calculations and duration

      A postnuptial agreement serves a similar function to a prenuptial agreement but is created after marriage. Like prenups, postnuptial agreements are legally binding documents that can protect assets and define property division in the event of divorce.

      Limitations: Prenups cannot override children’s needs or force outcomes courts deem fundamentally unfair. They work best when both parties have independent means and the agreement reflects genuine negotiation rather than one-sided imposition.

      5. What Happens to Businesses in High Net Worth Settlements?

      Business interests represent one of the most complex aspects of high-net-worth divorce settlements, requiring careful valuation and strategic structuring to preserve value whilst achieving fairness. When dealing with business interests and other complex assets in high-net-worth divorce settlements, it is crucial to seek expert advice from specialist divorce lawyers to ensure all legal and financial issues are adequately addressed.

      Business valuation methodologies:

      Earnings-based approach: Analyses sustainable profit levels and applies industry-appropriate multipliers. For a business generating £800,000 annual profit with a 6x multiplier, the valuation reaches £4.8 million.

      Asset-based approach: Examines net asset values, particularly relevant for property-rich or asset-heavy businesses. Assets are valued at fair market value rather than book value.

      Market comparison: Benchmarks against recent sales of similar businesses, adjusted for size, profitability and market conditions.

      Forensic accountants typically employ multiple methodologies, with the final valuation reflecting a weighted analysis. Personal goodwill (attributable to the individual’s skills and reputation) may be distinguished from enterprise goodwill (attributable to the business itself), affecting the division.

      Settlement options for business interests:

      Option 1 – Offsetting: The owning spouse retains 100% of the business whilst compensating the other spouse through alternative assets (property, pensions, lump sums). This preserves business continuity and operational stability.

      Example: Husband owns a business valued at £5.5 million. Wife receives the £2.8 million marital home, pension sharing order worth £1.1 million, and a lump sum of £1.3 million (total £5.2 million). Husband retains business and slightly more overall capital as he is retaining an asset that is not as “liquid”. Both parties receive approximately equal value whilst business operations continue undisrupted.

      Option 2 – Share transfer: Transferring minority shareholdings to the non-owning spouse. This approach raises complications around ongoing business involvement, voting rights and future exit strategies.

      Option 3 – Staged buy-out: The owning spouse buys out the other party’s interest over time, providing liquidity gradually rather than forcing immediate capital extraction that could damage the business.

      Option 4 – Business sale: Selling the business and dividing the proceeds. This approach clearly reduces ongoing value and is typically considered only when no other option achieves fairness or the business was already being primed for sale.

      In 89% of business owner cases we handle, the owning spouse retains the business through offsetting or buy-out arrangements, preserving business continuity whilst achieving fair overall settlement.

      6. How Is Spousal Maintenance Determined in High Net Worth Cases?

      Spousal maintenance in high-net-worth divorce settlements

      Spousal maintenance in high-net-worth divorce settlements requires a bespoke calculation that reflects the substantial incomes and assets involved.

      The courts apply significant flexibility in high net worth cases based on:

      • Reasonable needs reflecting the marital standard of living
      • Earning capacity of both parties and realistic prospects for financial independence
      • Marriage duration with longer marriages justifying more substantial provision
      • Contributions to the marriage, including domestic contributions and career sacrifices
      • Age and health affect the ability to achieve financial independence

      Maintenance structures:

      Periodical payments: Ongoing monthly or annual support, typically paid monthly. May be for a defined term (e.g., 5 years) or joint lives (continuing until remarriage, cohabitation or death).

      Capitalised lump sum: Converting ongoing obligations into a single payment, providing clean breaks and certainty. Particularly attractive when assets exist to fund capitalisation without forcing asset sales.

      Stepped orders: Maintenance reducing over time, enabling gradual adjustment. For example, £120,000 annually for 5 years, then £80,000 for a further 3 years, then ceasing.

      7. How Can I Protect My Wealth in a High Net Worth Divorce Settlement?

      Protecting wealth in high-net-worth divorce settlements requires early strategic planning, specialist advice, and an understanding of available protective mechanisms.

      Key protective strategies:

      1. Prenuptial or postnuptial agreements

      The single most effective protection. Well-drafted agreements ring-fence pre-marital assets, expected inheritances, business interests and family wealth. Following Radmacher, properly executed prenups are upheld in over 90% of cases. Prenuptial and postnuptial agreements are vital for those with substantial wealth, as they help secure the family’s future by providing legal clarity and protection for marital assets.

      When to consider: Before marriage (prenup) or during marriage when circumstances change, receiving an inheritance, starting a business, or reconciling after separation.

      1. Maintaining clear asset documentation

      Keep meticulous records distinguishing matrimonial from non-matrimonial assets:

      • Documents proving pre-marital ownership of property or investments
      • Inheritance documentation showing receipt and subsequent management
      • Trust deeds and beneficiary statements
      • Evidence that non-marital assets were kept separate from joint finances

      The Standish v Standish (2025) Supreme Court decision strengthened protection for documented non-matrimonial assets. In our post-Standish cases, we’ve protected an average of 78% of clearly-documented inherited wealth from equal division.

      1. Avoiding asset commingling

      Don’t: Use inheritance to purchase the family home, deposit inherited funds into joint accounts, or intermingle pre-marital investments with marital savings.

      Do: Maintain separate accounts for non-marital wealth, document all transactions, and keep inherited or pre-marital assets distinct from marital finances.

      Real example: We protected £3.2 million of inherited wealth received 8 years into a 15-year marriage. Through bank records and trust documentation proving the inheritance remained in a separate trust and was never used for family expenses, we achieved a settlement classifying 85% as non-matrimonial, protecting it from equal division. Had the inheritance been used to purchase the family home, full protection would have been almost impossible.

      1. Strategic business structuring

      Shareholders’ agreements can restrict share transfers during divorce, whilst prenuptial agreements can specify business valuation methodologies and define whether business growth during marriage is marital property.

      Trusts (when genuine and not solely for divorce protection) can provide asset protection, particularly family trusts established by third parties. However, courts examine whether trusts have “nuptial elements”—if they function as resources for the marriage, they may be accessible for settlement purposes.

      1. Early legal advice

      Seeking specialist advice immediately, even before definitely committing to divorce, provides critical advantages:

      • Jurisdiction planning: Filing in England vs alternative jurisdictions can produce settlements differing by millions
      • Asset protection: Preventing dissipation or disposal of assets
      • Strategic positioning: Understanding realistic outcomes before positions harden
      • Cost-benefit analysis: Evaluating whether fighting specific issues saves more than it costs
      1. Tax-efficient settlement structuring

      High net worth settlements involve substantial tax implications. Strategic structuring can save hundreds of thousands:

      • Capital Gains Tax: Transfers between spouses during marriage are not subject to CCGT at the time of transfer; timing asset divisions optimises CGT position
      • Inheritance Tax: Settlement structuring affects future IHT planning
      • Income Tax: in some jurisdictions spousal maintenance payment structures impact tax positions for both parties

      Case study: Advising on a High Net Worth farming case to ensure all tax implication of recent budget changes were taken into consideration and considering alternative structures

      Hidden Assets and Financial Disclosure: What You Need to Know

      Hidden Assets and Financial Disclosure

      In high-net-worth divorce cases, the risk of hidden assets is a significant concern that keeps many family lawyers (and their clients) awake at night. With substantial assets, business interests, and complex financial structures at play, there can be a real temptation for one party to conceal wealth in an attempt to reduce their financial obligations in the divorce settlement. However, full and frank financial disclosure is a fundamental requirement in all divorce proceedings, and I can tell you that the courts take a rigorous approach to any attempts at hiding assets – and rightly so.

      During a high-net-worth divorce, both parties are legally required to provide comprehensive details of their income, property, investments, business interests, trusts, and liabilities (essentially, everything financial they own or owe). This process can be exceptionally intricate when dealing with international holdings, layered company structures, or offshore accounts – it’s like trying to piece together a financial jigsaw puzzle where some pieces are deliberately hidden. To ensure a fair financial settlement, all assets must be identified and accurately valued.

      Expert legal advice is crucial in these situations. High net worth divorce lawyers/solicitors are skilled at scrutinising financial disclosure and identifying red flags that may indicate hidden assets (think of them as financial detectives). In many cases, forensic accountants are brought in to trace complex asset trails, analyse business accounts, and verify the accuracy of financial statements. Their expertise can uncover attempts at hiding assets, such as undervaluing business interests, transferring funds to third parties, or failing to disclose offshore investments – tactics that might seem clever but are ultimately shortsighted.

      Attempting to hide assets is not only unethical but also unlawful, and frankly, it’s a strategy that almost always backfires spectacularly. Suppose the court discovers that a party has failed to disclose assets (and they usually do). In that case, it can impose severe penalties, including costs orders, adverse inferences, or even setting aside a previously agreed divorce settlement. In extreme cases the court can commit someone to prison for non-disclosure. The court’s priority is to ensure that all substantial assets are accounted for so that the financial settlement reflects the true net worth of both parties – no smoke and mirrors allowed.

      For anyone involved in a high-net-worth divorce, working with experienced divorce lawyers and forensic accountants is, without doubt, the best way to ensure that all assets are disclosed and that the final divorce settlement is both fair and robust. It’s an investment that pays dividends (if you’ll forgive the financial pun) in terms of achieving a settlement that properly reflects the family’s true financial position.

      Child Maintenance and Support in High Net Worth Divorces

      Child maintenance and support in high net worth divorces are some of the most complex issues you’ll face – and rightly so, given that your children’s financial security and lifestyle are at stake. Unlike standard cases where the Child Maintenance Service (CMS) provides a straightforward formula (which, let’s be honest, can feel quite mechanical), high net worth divorces often involve incomes and assets that exceed entirely CMS thresholds. When this happens, the court steps in to determine what’s actually appropriate for your family’s circumstances.

      The goal here is something I see couples constantly wrestling with: ensuring your children continue to enjoy the standard of living they experienced during your marriage. This isn’t just about the basics (though those matter enormously). We’re talking about provision for private school fees, extracurricular activities, family holidays abroad, and those other significant expenses that, while they might seem luxurious to some, have become part of your children’s everyday life. The ongoing financial support you’ll need to consider covers everything from healthcare to accommodation, plus future educational needs that reflect the substantial resources available in your family situation.

      Tax Implications and Debt Allocation in High Net Worth Settlements

      Tax implications and debt allocation can often feel like navigating a minefield in high-net-worth divorce settlements, usually making the difference between a fair outcome and unexpected financial strain. The division of substantial assets such as property portfolios, business interests, and investment accounts can trigger significant tax liabilities that hit you when you’re least prepared, including capital gains tax (CGT) and inheritance tax that can take the wind out of your settlement sails.

      Understanding these tax implications is essential to avoid costly mistakes that could haunt you for years. For example, the timing of asset transfers between you and your spouse can dramatically affect your CGT liability. Transfers made during the tax year of separation may slip through exempt, while those made later could land you with substantial charges that take the sting out of what seemed like a generous settlement. Inheritance tax planning also becomes a crucial consideration, particularly when you’re hoping to preserve family wealth for future generations rather than watching it disappear into the tax authority’s coffers.

      Debt allocation is another aspect that can cut to the heart of high-net-worth divorce settlements if not handled appropriately. Large mortgages, business loans, or other liabilities can significantly impact the net value of your marital estate and completely reshape the assets available for division. High net worth divorce lawyers who understand these complexities work closely with tax advisors and financial planners to ensure that debts don’t become anchors dragging down your settlement and that the overall structure minimises those painful tax liabilities.

      Pension assets often emerge as the sleeping giants among the most substantial assets in your high-net-worth divorce. Pension sharing and pension offsetting require careful analysis to take the guesswork out of ensuring that you and your spouse receive a fair share of retirement wealth, while accounting for the tax treatment and future value that could boost or deflate these assets over time.

      By collaborating with tax professionals and financial experts who can cut through the complexity, you can structure your divorce settlement to protect your financial interests, minimise tax exposure that might otherwise catch you off guard, and ensure the long-term financial security you deserve after navigating such challenging circumstances.

      Divorce Proceedings and Court Considerations for High Net Worth Individuals

      If you’re going through a divorce and you’ve got substantial assets, you’ll quickly discover that your case is far more complex and demanding than standard divorces. The sheer scale and diversity of what you own — substantial assets, business interests, complex financial structures — mean that every stage of the legal process requires careful consideration (and, frankly, it can feel overwhelming).

      When your case reaches court, you’re looking at multiple hearings, expert evidence from forensic accountants or business valuers, and a detailed analysis of financial disclosure. I can’t stress enough how high the stakes are here—the outcome will have a profound impact on both you and your ex-partner’s financial futures. This is where experienced high-net-worth divorce lawyers become absolutely crucial. They’ll navigate these complexities for you, ensuring your interests are robustly represented and that all your relevant assets are appropriately considered in the final settlement.

      Working with a Divorce Lawyer Experienced in High Net Worth Cases

      Choosing a divorce lawyer with specialist experience in high net worth cases is, arguably, one of the most crucial decisions you can make when facing what can only be described as the labyrinth of a net worth divorce. High net worth divorce lawyers bring what I would describe as an invaluable depth of understanding to the unique challenges involved in dividing substantial assets, valuing business interests (which can be deceptively complex), and navigating the often bewildering financial structures that wealthy individuals tend to accumulate over time.

      These professionals provide what can only be termed as expert legal advice tailored specifically to your circumstances, ensuring that every aspect of your financial situation receives the careful consideration it deserves (and believe me, in my experience, there are always more aspects than initially meet the eye). They work closely with forensic accountants, tax advisors, and financial planners to uncover hidden assets (and there are frequently more of these than you might expect), assess the true value of business holdings, and structure settlements that genuinely protect your financial future rather than simply appearing to do so on paper.

      A specialist divorce lawyer will guide you through every stage of what can be a lengthy and emotionally draining divorce process, from the initial disclosure (which can feel overwhelming) to the final settlement, advocating tirelessly for your interests and ensuring that you receive what I would consider to be a genuinely fair outcome. Their experience in handling high net worth divorces means they are particularly adept at managing what can be incredibly tense negotiations, presenting complex financial evidence in a way that makes sense to judges, and, where it becomes necessary (though hopefully it won’t), representing clients effectively in court proceedings.

      If you are a high-net-worth individual contemplating divorce, seeking out a specialist divorce lawyer is, in my view, the essential first step towards protecting your interests and achieving what could be described as the best possible result under what are likely to be difficult circumstances.

      Conclusion: Strategic Planning Is Essential

      High-net-worth divorce settlements involve substantial assets, complex structures, and significant tax implications, requiring specialist expertise. Identifying and dividing valuable assets and complex assets, such as businesses, investments, and property, is a core challenge in these cases. The seven questions addressed in this guide represent the core concerns our clients face as they navigate this challenging process.

      Key takeaways:

      • Settlements are based on needs, sharing and compensation principles, not rigid formulae
      • Prenuptial agreements provide powerful protection when properly drafted
      • Business interests can typically be preserved through offsetting arrangements
      • Timelines average 12 months for mediated cases, longer for contested proceedings
      • Early strategic planning and specialist advice protect wealth and secure better outcomes

      At Edwards Family Law, we specialise in high-net-worth divorce settlements for entrepreneurs, business owners and ultra-high-net-worth individuals across London. Our approach combines legal excellence with commercial acumen, working alongside forensic accountants, tax advisers and wealth managers to structure settlements that protect your wealth whilst achieving fairness.

      If you’re considering divorce or have questions about high net worth divorce settlements, contact our team for confidential, specialist advice.

      About the Author

      Kelly Edwards is a specialist high net worth divorce solicitor at Edwards Family Law with 20 years of experience handling complex, high-value cases. Ranked in Chambers & Partners and Legal 500, she has represented business owners, City professionals, and ultra-high-net-worth individuals in settlements totalling over £1bn.

    9. Divorce in later life, often referred to as “grey divorce”, is on the rise across the UK. Couples in their 50s, 60s, and beyond face unique and complex financial challenges, especially regarding retirement planning. Among the pivotal considerations is the division of pension assets, which are frequently some of the most valuable assets in a marriage. 

      A fair division of pension assets is crucial for protecting each party’s financial future after divorce. This guide outlines the legal framework and financial strategies for managing pensions in later-life divorce, helping to ensure robust long-term security.

      Why Pensions Are Critical in Divorce

      Pensions Are Critical in Divorce

      Pensions often represent the most substantial asset in a marriage, sometimes outweighing the value of the family home. Overlooking pensions during divorce proceedings can lead to financial hardship, particularly for those who relied on their spouse’s retirement planning or took time out of the workforce, making it crucial to consider the partner’s pension when assessing retirement planning and division. A fair pension settlement is essential for achieving a balanced and sustainable financial outcome. It is essential to accurately identify and value all pensions involved in a divorce to ensure a fair division of assets.

      The Legal Framework for Pension Division

      Under Section 25 of the Matrimonial Causes Act 1973, UK courts consider all financial resources and circumstances when determining fair settlements. Key factors include:

      • Income, earnings potential, and property for each party
      • The parties’ standard of living during the marriage
      • Age and duration of the marriage or civil partnership
      • Each party’s contributions, both financial and non-financial
      • Anticipated future needs, especially in retirement

      Courts typically treat pensions as matrimonial assets. Even if a pension is in one partner’s name, it is generally subject to division to ensure both parties’ needs are met equitably. These legal considerations form a key part of the divorce process when dividing pension assets.

      Types of Pensions

      Grasping the different types of pension schemes is absolutely crucial when you’re navigating the choppy waters of divorce or dissolution – and trust me, each type can throw up its own unique challenges for your financial settlement. The pension landscape includes defined contribution schemes, defined benefit schemes (you’ll often hear these called final salary or career average pensions), personal pensions, workplace pensions, and state pensions – quite a mixed bag, really.

      Now, defined contribution schemes are essentially a bit of a gamble – they are based on what you’ve put in and how well your pension fund has performed in the markets, which means your eventual retirement income could be anything. Defined benefit schemes, particularly those golden final salary pensions, are a completely different beast altogether – they provide you with a guaranteed income in retirement based on your salary and years of service, making them incredibly valuable assets when it comes to pension sharing or pension offsetting negotiations. These are the ones that can really tip the scales in a settlement.

      Personal pensions are typically something you’ve sorted out yourself, especially if you’re self-employed or haven’t been enrolled in workplace pensions. Workplace pensions can be either defined benefit or defined contribution, and are provided by your employer as part of your employment package – though the quality and generosity of these can vary enormously from one employer to another.

      State pensions, including the basic state pension and the additional state pension, come courtesy of the government. While the basic state pension isn’t something you can share, the additional state pension may well be considered when you’re negotiating your financial settlement and it’s worth remembering this can add up to a significant sum over time. Recognising exactly what type of pension you’re dealing with is absolutely critical for determining the most appropriate method of division – whether you go down the route of pension sharing, pension offsetting, or pension attachment. Each approach has vastly different implications depending on the pension scheme involved, so understanding these distinctions is genuinely key to achieving a fair and sustainable outcome that works for both parties in the long run. In my experience, getting this wrong can cost you dearly, both financially and emotionally.

      Methods of Pension Division in Divorce

      Pension Division in Divorce

      Courts have three primary mechanisms for dividing pensions. The choice of method for dividing pensions can significantly impact the overall divorce settlement.

      Pension Sharing Order

      This is the most common method and involves splitting a pension pot at the time of divorce. A court-determined share (the pension credit) is transferred from one spouse’s pension to the other, allowing both individuals to manage their own retirement income independently. The pension credit can be moved into an existing pension plan or a new pension plan, depending on the recipient’s preference. Pension providers are required to process and execute a Pension Sharing Order within a legally mandated implementation period. This approach is especially relevant in long marriages or when there is a significant pension imbalance.

      Pension Offsetting

      Pension offsetting allows each party to retain their own pension. In exchange, the other spouse receives non-pension assets of equivalent value, such as a greater share of the family home or investment portfolio. Accurate valuation is crucial, especially with defined benefit or final salary pensions, which can have a higher true value than the stated amount. When valuing pensions for offsetting, it is important to consider income tax implications, particularly for higher-rate taxpayers, as pensions are taxed when payable.

      Pension Attachment (Earmarking)

      A pension attachment order (also known as a pension earmarking order) is where the court instructs one party’s pension provider to allocate a portion of future pension benefits, such as pension payments including lump sums and regular income, to the other party (the former spouse or civil partner) when the pension comes into payment. Pension earmarking is a method used in divorce settlements to direct these future benefits or lump sums to the other party, rather than splitting the pension immediately. However, this method is increasingly rare due to its limitations; for example, death benefits may be affected, if the pension-holder dies before retirement, the other party may lose entitlement to any earmarked benefits. Additionally, payments may cease if the beneficiary remarries.

      Pension Valuation and the Importance of Expert Advice

      Having up-to-date pension valuations and information is crucial to ensure fair and informed decisions during divorce proceedings. Valuing pensions, particularly defined benefit or public sector schemes, can be complex. The cash equivalent transfer value (CETV) issued by the pension scheme may not accurately reflect long-term value, and specialist actuarial input is often required. At Edwards Family Law, collaboration with pension actuaries and financial planners can support:

      • Identifying and valuing all the pensions, including overseas pension schemes
      • Accurate pension valuation, including assessment of protected payment entitlements where applicable
      • Scenario modelling for various division outcomes
      • Evaluation of tax implications
      • Planning sustainable retirement income for both spouses, considering how pension funds can be transferred to an existing pension or used to establish a new one

      Expert advice mitigates the risk of undervaluing pensions or accepting an imbalanced settlement. Consulting a financial adviser who specialises in pensions and divorce can provide valuable guidance and help avoid costly mistakes.

      Cash Equivalent and Lump Sum Payments

      When you’re navigating the complexities of dividing pensions during divorce or dissolution, there are two financial concepts that I would say are absolutely crucial to understand: the cash equivalent transfer value (CETV) and tax-free lump sum payments. The CETV, in my experience, represents what I consider to be the real cash value of your pension fund – it’s what we use to calculate exactly how much of that pension can be transferred to a new scheme or used in what we call pension offsetting against your other marital assets. This value becomes the cornerstone for determining what constitutes a fair pension share, and frankly, it’s essential for ensuring that both you and your former partner receive what you’re genuinely entitled to from those pension benefits.

      Now, here’s something that many people don’t fully appreciate – most private pension schemes will actually allow you to take a tax-free lump sum when you reach pension age, usually up to 25% of your pension fund. This tax-free cash can represent a hugely significant asset in your financial settlement, and it’s something we need to consider carefully, whether you’re planning to take it immediately or factor it into the overall division of your assets. What’s particularly important to understand is that pension attachment orders can also direct a portion of any future lump sum payments directly to your former spouse or civil partner – something that can have long-term implications for your financial planning.

      Given just how complex calculating the cash equivalent transfer can be, not to mention understanding the various tax implications of lump sum withdrawals, I cannot stress enough how essential it is to seek professional advice. In my view, an accurate assessment is absolutely vital to ensure that all your pension benefits – including those potential lump sums and the true transfer value – are properly considered alongside your other marital assets. This approach, I believe, is the only way to achieve what you’re really looking for: a fair and genuinely informed financial settlement that protects your future.

      Additional Financial Considerations in Later-Life Divorce

      Financial Considerations in Later-Life Divorce

      Divorce impacts not only pensions but all financial assets, requiring a comprehensive review to ensure a fair division. Later-life divorce impacts all areas of retirement and estate planning, such as:

      The Family Home

      Decisions must be made about selling, retaining, or downsizing the family property. If one spouse remains, equity release, offsetting, or buyout may form part of any financial settlement.

      Spousal Maintenance

      Courts may award spousal maintenance where one party has limited earning opportunities, focusing on fairness and practical needs in retirement. Achieving a clean break remains a priority, but it must be feasible given the parties’ circumstances.

      Investments, Savings, and Tax Planning

      Liquid assets such as cash, ISAs, and portfolios are divisible, but tax efficiency and accessibility should be considered. Divorce may affect both parties’ tax positions and pension contributions, making early financial advice imperative. As part of the financial settlement, pension benefits may be transferred to a new scheme, which can have tax and investment implications.

      Estate Planning

      Divorce necessitates updates to Wills, pension beneficiary nominations, and life insurance policies, as former spouses automatically lose certain beneficiary rights after divorce.

      Civil Partnership Considerations

      When you’re facing the breakdown of a civil partnership, you’ll find that many of the financial considerations mirror those you’d encounter in a divorce – and trust me, pension division can be one of the trickiest areas to navigate. Based on my experience, pension sharing orders, pension offsetting, and pension attachment orders are all very much on the table when it comes to splitting pension rights, and I can’t stress enough how important it is to get this right to protect both parties’ financial futures.

      Now, here’s where things can get a bit sticky – there may well be specific rules around pension rights that were built up before your civil partnership even began, and these can really throw a spanner in the works when it comes to how pension assets are treated in your financial settlement. In England and Wales, I’ve seen that most pension rights you’ve both acquired during the civil partnership are generally considered marital assets, which means they can be subject to a pension sharing order or other division methods – but the devil, as they say, is in the detail.

      You really cannot afford to go it alone here. I would strongly encourage you to seek professional advice to fully understand what you’re entitled to and what options are actually available for dividing those pension pots. From what I’ve observed, this approach ensures that your financial settlement is not just fair, but comprehensive and tailored to your unique circumstances – and frankly, safeguarding both of your pension savings and long-term financial security is too important to leave to chance.

      Common Mistakes to Avoid

      Some frequent errors in later-life divorce and pension cases include:

      • Disregarding smaller pensions or presuming them to be insignificant
      • Accepting CETVs without actuarial review
      • Failing to disclose all pensions, including overseas or dormant schemes
      • Overlooking state pension entitlements and tax consequences
      • Focusing on immediate assets at the expense of long-term pensions
      • Failing to seek professional advice can lead to unfair outcomes in pension division

      Financial Planning for a Secure Future

      Robust retirement and lifestyle security after divorce requires careful, strategic planning:

      • Engage specialist divorce financial planners early in the process
      • Conduct long-term retirement income projections
      • Consider annuities or drawdown options for income stability
      • Use pension sharing to equalise post-divorce retirement income
      • Approach equity release or asset sales carefully, with professional advice

      At Edwards Family Law, collaboration with trusted actuaries and wealth managers ensures comprehensive solutions tailored to each client’s future goals.

      Practical Steps in Managing Later-Life Divorce

      Adopt a proactive and organised approach:

      • Collect pension statements, CETVs, property valuations, and all financial documentation at the outset
      • Obtain legal advice before agreeing to any division or settlement
      • Consider mediation or collaborative processes to streamline negotiations
      • Ensure any financial agreement reached is made legally binding through a court-approved order
      • Give attention to emotional health and seek support services if needed
      • Focus on creating a lasting, stable financial structure

      How Edwards Family Law Can Support

      As a boutique family law practice, Edwards Family Law guides High-Net-Worth clients in navigating complex financial and pension settlements. Services include:

      • Expert advice on pension sharing orders and full financial disclosure
      • Collaboration with pension actuaries and financial planners
      • Structuring settlements to protect long-term independence
      • Assistance with applying for a financial order to formalise the division of assets, including pensions
      • Confidential, pragmatic support from experienced London solicitors

      Contact Edwards Family Law for discreet assistance with your financial planning and pension division during divorce.

      Frequently Asked Questions

      Are pensions always split in a divorce?

      Not always. While courts consider all assets, in long marriages, pension pots are typically divided to ensure fairness.

      Can pre-marital pension contributions be protected?

      It is possible to argue for the exclusion of pre-marital contributions, but the outcome depends on case details and court discretion.

      What is the difference between pension sharing and offsetting?

      Pension sharing allocates pension income directly to both spouses, while offsetting grants the other party alternative assets instead of a share of the pension.

      Are state pensions included?

      The basic State Pension is not shareable, but the Additional State Pension (formerly SERPS) and similar accrued entitlements may be considered in divorce settlements.

    10. Key Takeaways

      • A consent order is a legally binding court document that formalises financial agreements between divorcing parties
      • You need a consent order to prevent future financial claims and make your divorce settlement enforceable by law
      • The court approval process typically takes 4-10 weeks and costs £53 in court fees
      • Both parties must provide full financial disclosure, and the agreement must be deemed fair by a judge
      • Even couples with no assets should consider a clean break consent order to dismiss future claims

      When divorce proceedings begin, many couples focus solely on ending their marriage – but what happens to your financial future? Without proper legal documentation, your former spouse could potentially make financial claims against you years or even decades after your divorce is finalised. This is where a consent order becomes essential.

      Understanding consent orders is crucial for anyone going through divorce proceedings. This comprehensive guide will explain what a consent order is, why you need one, the different types available, and how to navigate the application process. Whether you’re dividing substantial financial assets or simply want to ensure a clean break, this legal document provides the protection and peace of mind you need to move forward with your life.

      What is a Consent Order?

      What is a Consent Order

      A consent order is a legally binding document sealed by the court that records financial agreements between divorcing parties. This legal document transforms private agreements into enforceable court orders, ensuring that both parties are legally bound to honor the terms they’ve agreed upon.

      The consent order covers the division of all financial assets, including property, pensions, savings accounts, investments, and any ongoing maintenance arrangements. It can also address the allocation of debts and specify whether either party will receive spousal support. Importantly, while child maintenance can be included in a consent order, it’s only legally binding for 12 months before the Child Maintenance Service may become involved.

      It’s essential to understand that divorce proceedings and financial arrangements are separate legal processes in family law. You can obtain your decree absolute (the final divorce decree) without having a financial order in place, but this leaves you vulnerable to future financial claims from your former spouse. The court process for financial matters operates independently of the divorce itself, which is why many couples seek independent legal advice to ensure both aspects are properly handled.

      A consent order differs significantly from informal agreements or private documents. While you and your former spouse might trust each other to honour verbal agreements or separation agreements, these arrangements are not legally binding or enforceable through the courts. Only a consent order approved by a judge carries the full weight of the law.

      Why Do You Need a Consent Order in Divorce?

      The primary reason you need a consent order is to prevent future financial claims. Without this legally binding document, either party can make financial claims against the other years or even decades after the divorce is finalised. This risk exists regardless of how amicable your divorce may be or whether you currently have significant assets.

      The famous Wyatt v Vince case demonstrates this risk perfectly. In this landmark case, a former wife successfully claimed financial provision from her ex-husband nearly two decades after their divorce, despite having agreed to a clean break at the time of separation. The lack of a proper financial order meant that financial ties between the parties had never been legally severed, allowing for this later claim.

      Without a consent order, your financial agreement remains vulnerable to changes in circumstances. If your former spouse experiences financial difficulties or if you become more successful financially, they could potentially make claims against your assets, property, or income. This uncertainty can persist indefinitely, affecting your ability to make financial decisions with confidence.

      A consent order provides legal protection and prevents future disputes by creating finality in your financial arrangements. Once the court approves your financial agreement, both parties are legally bound by its terms. If one party breaches the order, the other has immediate recourse through the courts for enforcement. This legal framework transforms uncertain private agreements into enforceable obligations.

      The document also provides clarity for third parties, such as mortgage lenders, pension providers, and financial institutions. When you need to prove your financial arrangements for future transactions, a sealed consent order serves as definitive legal proof of your agreements.

      Types of Consent Orders

      There are two main types of consent orders available to divorcing couples, each serving different circumstances and financial situations.

      Financial Consent Orders

      A comprehensive financial consent order addresses all aspects of your financial arrangements. This type of order can include property division, where the family home might be transferred to one party or sold with proceeds divided according to agreed percentages. It can also cover pension sharing arrangements, where one party’s pension benefits are shared with the other, and spousal maintenance provisions for ongoing financial support.

      Lump sum payments can be specified within financial consent orders, whether paid immediately or at future dates. The order might also address the division of savings, investments, business interests, and other financial assets. Importantly, it can allocate responsibility for existing debts and specify how these will be managed going forward.

      When drafting a financial consent order, it’s crucial to consider both immediate and future financial needs. The arrangement might include provisions for varying circumstances, such as changes in income or retirement. However, any significant modifications to the order typically require mutual agreement and re-application to the court.

      Clean Break Consent Orders

      A clean break consent order severs all financial ties between parties, meaning neither can make future claims against the other’s assets, income, or estate. This type of order is particularly appropriate when both parties have similar incomes, there are no dependent children requiring ongoing support, or when both parties mutually agree to complete financial independence.

      Clean break orders can be immediate, where all financial arrangements are settled upon the order being made, or deferred, where there might be fixed-term spousal maintenance that ends on a specified date. Even in cases where there are minimal financial assets to divide, a clean break consent order is often recommended to formally dismiss any potential future claims.

      The beauty of a clean break lies in its finality. Once approved, it prevents future financial claims, including potential claims against inheritance or life insurance benefits. This provides both parties with complete financial freedom to rebuild their lives without concern about future obligations to their former spouse.

      For couples with children, a clean break doesn’t affect child maintenance obligations, which continue regardless of the parents’ financial arrangements with each other. Child support remains a separate matter governed by different legal principles focused on the child’s best interests.

      When to Apply for a Consent Order

      Apply for a Consent Order

      Timing is crucial when applying for a consent order. You must have active divorce proceedings with a court case number before you can submit your application. The specific timing requirements have changed over the years, so it’s important to understand the current rules.

      For divorces filed before April 2022, you needed to wait until the decree nisi had been pronounced before applying for a consent order. The decree nisi was the first stage of the divorce decree, confirming that the court was satisfied that the marriage had broken down irretrievably.

      For divorces filed after April 2022, under the new no-fault divorce system, you must reach the conditional order stage before applying. This typically occurs 20 weeks after divorce proceedings start, as there’s a mandatory reflection period built into the new divorce process. The conditional order serves a similar function to the old decree nisi.

      However, it’s worth noting that consent orders can be applied for at any time after your divorce is finalised – there’s no deadline. Some couples prefer to resolve their financial arrangements before their decree absolute, while others address these matters afterward. The key consideration is that until you have a consent order in place, potential financial claims remain open.

      Many family law solicitors recommend addressing financial arrangements as early as possible in the divorce process. This approach allows couples to achieve certainty about their financial future and can reduce the emotional stress of prolonged financial uncertainty. Early resolution also tends to be more cost-effective than delaying financial discussions.

      How to Apply for a Consent Order

      The application process for a consent order was significantly modernized in April 2022 with the introduction of an online system. This digital approach has streamlined the process and reduced processing times considerably.

      To apply for a consent order, you’ll need to complete several key documents. The draft consent order itself must be precisely worded to capture all aspects of your financial agreement. This legal document forms the heart of your application and will become the binding order once approved by the court.

      You’ll also need to complete Form D81, the statement of information, which provides the court with essential details about both parties’ financial circumstances. This form requires comprehensive financial disclosure, including details of income, assets, debts, and living expenses.

      Additionally, you must submit Form A, the Notice of Application for a financial order, which formally notifies the court of your intention to seek a financial order. While the process can be completed without legal representation, most experts strongly recommend that both parties seek independent legal advice to ensure the draft consent order is properly drafted and that all potential future claims are appropriately dismissed.

      The online application system allows you to submit documents electronically and track the progress of your application. You’ll need to pay the court fee at the time of submission, and the system will generate acknowledgements and updates as your application progresses through the court process.

      How Long Does Court Approval Take?

      Consent Order Approval

      The court approval process typically takes between 4 and 10 weeks, though this can vary depending on several factors. The court’s workload in your local area can significantly impact processing times, with some courts experiencing higher volumes than others.

      The complexity of your proposed consent order also affects approval time. Straightforward clean break orders with simple asset division tend to be processed more quickly than complex arrangements involving multiple properties, business interests, or intricate pension sharing arrangements.

      Since the digitisation of the consent order process in April 2022, waiting times have generally improved. The electronic system allows for more efficient processing and reduces the administrative burden that previously slowed down applications. Regional variations still exist, but the overall trend has been toward faster processing.

      In most cases, no court hearing is required for consent order approval. The judge reviews the application and supporting documents without the parties needing to attend court. However, if the judge has concerns about the fairness of the proposed arrangement or requires clarification on any aspects, they may request additional information or, in rare cases, ask for a court hearing to discuss the terms.

      During the review process, the judge will assess whether the proposed financial arrangement is fair to both parties and meets the legal requirements for approval. This assessment considers factors such as the financial needs and resources of both parties, their ages, the length of the marriage, and contributions made during the relationship.

      Requirements for a Valid Consent Order

      For a consent order to be approved by the court, several mandatory requirements must be met. Full financial disclosure is perhaps the most critical requirement. Both parties must provide complete and honest information about their financial circumstances through Form D81 and supporting documentation.

      The importance of independent legal advice cannot be overstated. While not legally required, courts expect that both parties have had the opportunity to seek independent legal advice about the proposed arrangement. This requirement helps ensure that both parties understand the implications of the agreement and are entering into it freely.

      The court will assess the fairness of the proposed arrangement using the factors outlined in section 25 of the Matrimonial Causes Act 1973. These factors include the financial needs and resources of both parties, their ages, the length of the marriage, contributions made to the marriage (both financial and non-financial), and the standard of living enjoyed during the marriage.

      Judges have the discretionary power to reject orders they deem unfair or to request amendments before approval. The court’s primary concern is ensuring that the arrangement is reasonable and that neither party is being significantly disadvantaged. In cases involving children, the court will also consider whether the arrangement adequately provides for the children’s needs.

      If your proposed consent order doesn’t meet the court’s standards, the judge may request modifications or guide on what changes are needed for approval. This feedback process helps ensure that the final order meets legal requirements and provides appropriate protection for both parties.

      Costs Involved

      The court fee for a consent order application is £53, which must be paid when submitting your application. This relatively modest fee makes consent orders accessible to most divorcing couples and represents excellent value for the legal protection provided.

      Solicitor fees vary significantly based on the complexity of your case and the level of legal involvement required. Simple cases where couples have already reached an agreement might require only basic document drafting assistance, while complex financial arrangements involving multiple assets, businesses, or pension sharing may require extensive legal work.

      It’s important to budget for independent legal advice costs for both parties. Even if you work with the same solicitor firm to draft the documents, both parties should have separate legal representation to review the terms and ensure their interests are protected. This dual representation helps prevent future challenges to the order and ensures the court’s requirements are met.

      Compared to contested court proceedings, consent orders represent significant cost savings. Contested financial cases can take 12 months or longer to resolve and often involve substantial legal fees, court costs, and expert witness expenses. The collaborative approach of consent orders typically results in much lower overall costs while providing the same legal protection.

      Many solicitors offer fixed-fee services for straightforward consent order applications, providing cost certainty from the outset. This transparent pricing approach helps couples budget effectively for their legal costs and avoid unexpected expenses during the divorce process.

      What Happens After Approval?

      Once your consent order is approved, you’ll receive an email notification through the online system. The sealed consent order documents can then be downloaded from your online account, providing immediate access to your legally binding financial agreement.

      The sealed consent order becomes immediately enforceable, meaning both parties are legally bound by its terms. If one party breaches the order – such as failing to transfer property, make maintenance payments, or comply with other specified terms – the other party has direct recourse through the courts for enforcement.

      Enforcement mechanisms available include attachment of earnings orders for unpaid maintenance, charging orders against property, and in serious cases, committal proceedings for contempt of court. These enforcement tools ensure that consent orders have real teeth and that non-compliance has meaningful consequences.

      Consent orders remain valid indefinitely unless varied by a further court order. However, some terms within the order may be subject to future variation in exceptional circumstances. For example, spousal maintenance provisions might be reviewable if there are significant changes in circumstances, though the threshold for such variations is typically high.

      The finality provided by an approved consent order allows both parties to move forward with confidence in their financial arrangements. Banks, mortgage lenders, and other financial institutions will recognise the sealed order as definitive proof of your financial agreements, facilitating future financial transactions and planning.

      FAQ

      Can you get divorced without a consent order?

      Yes, you can complete your divorce proceedings without a consent order since divorce and financial arrangements are separate legal processes. However, this approach leaves financial claims open indefinitely. Without a consent order, either party can potentially make financial claims against the other years or decades after the divorce is finalized, regardless of informal agreements made at the time of separation.

      Can a consent order be changed after court approval?

      A consent order can only be amended if both parties agree to re-draft the agreement and resubmit it for court approval. In exceptional circumstances, such as non-disclosure of assets or fraud, a consent order might be set aside by the court. However, the threshold for challenging an approved consent order is high, and generally, the order provides finality to financial arrangements.

      Do I need a consent order if we have no financial assets?

      Yes, a clean break consent order is recommended even when couples have minimal or no assets. This type of order formally dismisses any future financial claims between parties, preventing potential claims if circumstances change in the future. The modest £53 court fee provides excellent value for this long-term financial protection.

      What happens if the judge rejects our consent order?

      If a judge considers the proposed arrangement unfair or legally inadequate, they may request amendments before approval or reject the order entirely. The judge will typically provide guidance on what changes are needed, such as adjusting financial provisions or improving disclosure. You can then revise the order according to the judge’s feedback and resubmit for approval.

      How long is a consent order valid for?

      A consent order remains valid indefinitely unless varied by a further court order. The legally binding document continues to govern the financial arrangements between the parties permanently. While some specific terms, like maintenance, may be subject to variation in exceptional circumstances, the core financial arrangements typically provide a permanent resolution to the parties’ financial relationship.

    11. Divorce is never an easy decision. Even when both partners agree that separating is the right step, it can still be an emotional and life-changing process. At Edwards Family Law, we understand that every marriage is unique – and so are the reasons it might come to an end.

      Since April 2022, the UK has had a no-fault divorce system. This means couples no longer have to prove one spouse did something “wrong” to obtain a divorce. But while you don’t need to give a legal reason anymore, couples still separate for deeply personal reasons. The reasons for divorce cited in divorce applications still provide valuable insight into why marriages end, and statistical data show which issues are most frequently reported.

      Understanding No-Fault Divorce

      Under the Divorce, Dissolution and Separation Act 2020, which came into effect in April 2022, you can now divorce by making a Statement of Irretrievable Breakdown. This simply means you confirm that your marriage has permanently broken down.

      Before this change, you had to rely on one of five grounds, also known as the five grounds for divorce, as the legal basis required to end your marriage. Each ground for divorce, such as adultery or unreasonable behaviour, had to be proven to support your case. The new process removes the need for blame, reduces conflict, and allows either one spouse or both together to apply. Under the old system, the cited ground or reason for divorce (for example, adultery or unreasonable behaviour) had to be specified in the application.

      The steps are:

      • Apply for divorce after at least 12 months of marriage.
      • Serve the application to your spouse (often by email).
      • Wait a 20-week reflection period before applying for a Conditional Order.
      • After a further 6 weeks, apply for the Final Order, which legally ends the marriage.
      • Even with this simpler process, deciding to divorce can be overwhelming. Below, we explore the most common reasons people make that decision.

      The Divorce Process

      The Divorce Process

      The divorce process in the UK has been transformed by the Divorce, Dissolution and Separation Act 2020, which introduced the no-fault divorce system. This new approach means that couples no longer need to assign blame or cite specific grounds for divorce, such as adultery or unreasonable behaviour. Instead, the process begins with a simple statement of irretrievable breakdown, confirming that the marriage has permanently broken down and cannot be repaired.

      Either one spouse or both together can make this declaration, and there is no need to provide evidence or justify the decision. This shift has made the divorce process more straightforward and less confrontational, helping divorcing parties to focus on moving forward rather than dwelling on past grievances. The new system is designed to reduce conflict, streamline the process, and allow couples to separate with greater dignity and respect.

      By removing the need to prove specific grounds for divorce, the law recognises that relationships can end for many reasons, and that the most important step is acknowledging when a marriage is irretrievably broken. This modern approach to divorce law aims to support couples through a difficult time with less stress and fewer obstacles.

      While no-fault divorce means you don’t have to prove these in court, they remain some of the most frequent issues that lead couples to separate in the UK.

      The Most Common Reasons People Choose to Divorce

      1. Infidelity

      Cheating is one of the most emotionally painful reasons for divorce. Discovering a betrayal often shatters trust beyond repair and can have a significant emotional impact on both partners, affecting the stability of the relationship and the divorce process.

      For some couples, counselling or open communication can help rebuild trust. For many others, the hurt and loss of respect make continuing the marriage impossible.

      1. Lack of Connection and Commitment

      A healthy marriage or relationship needs shared values, emotional closeness, and the willingness to work through challenges together, not just connection and commitment, but also shared interests and goals. Over time, couples may find their priorities have shifted.

      Different ideas about parenting, finances, or life goals can create distance between partners and lead to conflict. While the saying “opposites attract” is popular, lasting relationships often require more than just initial differences; shared values and commitment are key to enduring partnerships.

      This lack of commitment can show up as spending less time together, feeling like “roommates”, or one partner carrying the emotional load. Without mutual effort, the bond can weaken to the point where separation feels inevitable.

      1. Financial Problems and Debt

      Money isn’t just about numbers – it’s about values, priorities, and security. Disagreements about spending, saving, or debt can put strain on even the strongest relationships. Money issues, money problems, and money troubles are frequent sources of conflict in marriages.

      For example, one partner might take financial risks that cause stress, while the other prefers stability. In difficult economic times, these differences can feel sharper and harder to resolve. Financial difficulties can erode trust and threaten financial stability in a relationship. Financial incompatibility often becomes a major factor in the decision to part ways.
      Reaching a fair financial settlement during divorce proceedings is crucial to ensure both parties’ interests are protected.

      1. Poor Communication

      When communication breaks down, misunderstandings grow, resentment builds, and small disagreements can turn into recurring conflict. Communication problems are a major cause of relationship breakdown, often leading to emotional neglect and unresolved issues.

      Poor communication can mean constant arguments, avoiding difficult conversations, or not listening to each other’s needs. Constant arguing is a common result of poor communication and can be emotionally exhausting for both partners. Over time, couples may feel unheard or unvalued – and this emotional distance can be just as damaging as any practical problem.

      1. Growing Apart

      People change over the years. Interests, life goals, and personal values evolve – and sometimes partners grow in different directions. Sometimes, couples can no longer find common ground, making reconciliation difficult.

      This can be especially noticeable after big life changes, such as children leaving home, career shifts, or retirement. What once felt like a close partnership can start to feel more like two separate lives. For some couples, that gap can’t be bridged. In some cases, a continuous period of separation is required to establish grounds for divorce based on desertion.

      1. Abuse

      Abuse can take many forms – including domestic violence, domestic abuse, physical abuse, emotional abuse, and verbal abuse, as well as coercive control such as restricting access to money or isolating a partner from friends and family.

      Abuse is never acceptable. In such cases, the victim may need legal protection from the other party. Divorce can help victims regain control of their lives and ensure their safety. Legal protection, such as injunctions or occupation orders, may also be available.

      Child Arrangements

      Child Arrangements

      When children are involved, making child arrangements is one of the most important parts of the divorce process. The family court always puts the welfare and best interests of the child first, encouraging parents to reach agreements about where the child will live, how much time they will spend with each parent, and other key aspects of their upbringing.

      Ideally, parents can work together to agree on child arrangements without needing to go to court. However, if an agreement cannot be reached, the family court may step in to make decisions about residence, contact, and other issues affecting the child’s well-being. The court considers the child’s physical, emotional, and psychological needs above all else.

      Navigating child arrangements can be challenging, especially during an emotional time. Seeking professional advice from a family law solicitor can help you understand your rights and responsibilities, and ensure that the arrangements made are in the best interests of your children. With the right support, you can work towards a solution that provides stability and security for your family.

      Civil Partnership and Divorce

      Civil partnerships have provided same-sex couples in the UK with a legally recognised relationship since 2004, offering many of the same rights and responsibilities as marriage. Since the introduction of same-sex marriage in 2014, civil partnerships are less common.

      The divorce process for civil partnerships is now almost identical to that for marriages, thanks to the introduction of no-fault divorce. Couples in a civil partnership can end their relationship by making a statement of irretrievable breakdown, without needing to cite specific grounds or assign blame. This process is governed by the same laws and principles as marriage divorces, making it simpler and less adversarial for all involved.

      When to Seek Support

      Deciding to end a marriage is rarely about one single event – it’s often the result of many smaller issues building over time. Recognising patterns such as persistent unhappiness, loss of trust, or repeated conflict is important.

      You don’t have to wait until things reach a crisis point. Speaking to a specialist family law solicitor early can help you understand your options and protect your interests. Family law solicitors can advise on divorce cases and legal separation as alternatives to divorce, depending on your circumstances. Divorcing couples often benefit from early legal advice to ensure their interests are safeguarded throughout the process.

      If you’re considering divorce, contact Edwards Family Law today for confidential, expert advice. Our team can guide you through the no-fault divorce process, ensure your financial position is protected, and help make arrangements for children in a way that puts their well-being first.

      How Edwards Family Law Can Help

      At Edwards Family Law, we specialise in divorce and family matters. We provide:

      • Clear, practical advice tailored to your situation.
      • Support through every stage of the no-fault divorce process.
      • Expertise in financial settlements, property division, and arrangements for children.
      • A compassionate approach that prioritises your wellbeing and future.
      • Key points of our approach include guiding you through the divorce procedure, offering advice from a legal perspective, and ensuring you understand your options at every step.

      Whether your separation is amicable or more complex, we are here to help you move forward with confidence. Our team can guide you through the entire divorce procedure from a legal perspective, ensuring your interests are protected. We also advise on prenuptial agreements for those planning to marry.

      Contact Edwards Family Law

      If you are thinking about divorce, or if you have already decided it is the right choice for you, our experienced team is ready to support you.

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