From defending your belongings to selecting the best solicitor… on ‘divorce day’, learn the last word monetary information to separation by ELIZABETH ANDERSON

New year, new you? It might just be given the first working day after the festive period is known as ‘divorce day’, because solicitors see a surge in enquiries about separating from spouses.

Family lawyers say January is typically their busiest month of the year. John Roberts, a partner at Austin Lafferty Solicitors, says this is because couples spend more time together over the holiday period than normal and household tensions can run high. Some may see the New Year as a time for a fresh start.

‘The first working Monday of the year – the 6th January this year – tends to be referred to as Divorce Day with many unhappy couples looking to make a change to their domestic situation,’ says Mr Roberts.

‘Of course, the number of divorces isn’t actually higher in January, because the time it takes to get divorced will depend on the complexity of the case, the type of application, and the cooperation between spouses.’

About four in 10 marriages in the UK end in divorce, official statistics show, although in general divorce rates are slowing. 

Last year saw the fewest number of divorces take place in England and Wales for more than 30 years. 

The drop is thought to be partly because people marry once the relationship is well established later in life (the average is 32 for women, and 35 for men) and because of financial pressures as couples cannot afford to live in separate households.

If you’re thinking about divorce in England and Wales, here’s our guide to the main points of what you need to know.

How much will it cost?

Since the no-fault divorce laws were introduced in 2022 in England and Wales, the divorce process has become more streamlined and easier to manage yourself with little or no help from a solicitor.

It costs £593 to apply for a divorce and £53 to submit a financial order.

So, technically, the cost could be as low as around £1,000, although in reality you’ll spend more than this – especially if young children are involved and you have assets such as a house and savings.

Even in amicable cases where you want to take the DIY approach, you’ll likely want a solicitor to draft the order containing the settlement. Solicitors’ fees for assisting with the divorce process can range from £600 – £1,200, including VAT, plus the £593 court fee, so total costs would be around £2,000.

Costs in relation to splitting your finances on divorce are separate to this, and are likely to be the greatest expense. 

You’ll need to arrange how to split assets such as property, savings and pensions fairly, as well as discuss whether you need to sell property or whether there should be ongoing child maintenance payments.

Even if you agree on the division of finances directly between you both, you should still have it drafted into a legally binding agreement for approval by the court with these costs averaging approximately £4,000 to £5,000, says Joanna Farrands, head of family law at Moore Barlow.

Everyone’s aim should be for the divorce not to end up in court where barristers need to be involved. Here costs can rack up hundreds of thousands of pounds and, given there is a shortage of judges, cases can drag on for years. However, the case may have to go to court if an agreement cannot be reached or one half suspects the other of lying about their finances. Costs are likely to be over £20,000 to be represented by a solicitor or barrister in court.

How long will it take to divorce?

The minimum time it takes for a divorce to go through is six months.

If you apply for a divorce online, the application will be sent to the spouse you are separating from – or both parties if it is a joint application for divorce. You’ll also have to decide whether you wish to apply for a financial order.

Your spouse will then need to respond to the divorce application within seven days, acknowledging that they have received it and that they are the person named in the application.

There is then a 20-week period from the date the divorce application was issued before you can apply for the Conditional Order of Divorce (previously Decree Nisi). This is intended for couples to attempt to negotiate their financial settlement, says Claire Porter, a partner in the family law team at SAS Daniels Solicitors.

After 20 weeks, you can apply for your Conditional Order, which the court will then process, usually within a few weeks. Once you have your Conditional Order, you must wait a further six weeks and one day before applying for your Final Order of Divorce. This is normally granted within 24 to 48 hours of the final application.

‘The process can be slower depending on the need to use experts, such as pension on divorce experts, forensic accountants to value business interests or property valuers. Settlement may also take longer – perhaps years – if the parties are unable to agree terms between themselves or with assistance from solicitors,’ adds Porter.

Do I need a solicitor (and how much will they cost?)

Not necessarily for a divorce application, but you may want one for a financial settlement or to finalise child arrangements. Even where couples agree terms of settlement between themselves, you may want to instruct a family law solicitor to prepare a financial remedy order to set out what should happen to assets, income and pensions.

If your split is amicable, a financial adviser could be appointed to help you draw up a fair split of the finances – reducing the need for additional lawyer costs.

For a simple case, three sessions with a financial adviser may be required – initial disclosure, analysis and then a final review where cashflow models for each party are presented. Each individual will then walk away with a good assessment of what their financial future looks like.

If they both approve the financial split, the couple can then make the final application themselves, and could pay an additional fee to a solicitor to review and approve the Conditional Order of Divorce before filing. Pensions may be complex and require actuarial analysis, which might be a further £2,000 to complete. In complex cases where there are multiple properties, or alternative investments such as a classic car or private equity, costs may be £10,000 to £15,000.

Ben Glassman, a chartered financial planner at Evelyn Partners, says this is still cheaper than getting lawyers involved. He points to an example of a recent case he dealt with where the couple had multiple high-worth investments including classic cars and art. If the couple had gone down the two-lawyer route, they could have easily racked up legal fees of £500,000.

‘We can save people a lot of money on lawyer fees, but the profile of the client is important. Where there’s animosity or resentment, it’s just not going to work. That’s not what we’re there to do. We’re there to give independent guidance, but if you don’t trust what the other side is saying, you’re never going to reach a resolution,’ adds Glassman.

Is it cheaper if we use the same solicitor?

Recent changes make it possible for both parties to use the same solicitor in certain situations. If your joint aim is to reach an outcome together that meets your respective needs and the needs of your children, then this could be an appropriate option, says Fiona Turner, a family lawyer at Weightmans. 

It can be much more cost-effective, reduce unnecessary expenses, and help you to craft an outcome that makes you both happy.

Using the same solicitor is unlikely to be suitable if there is any form of abuse in the relationship, mental health or capacity concerns, or if there is a significant power imbalance between couples.

Turner says it is also not permitted if there is a risk of a conflict of interest, where each party needs their own legal representation to ensure fairness. ‘However, even in that situation, you can both agree to use a mediator or collaborative lawyer to resolve disputes, which can save money.’

Can I use a mediator – and how much do they charge?

Before going down the lawyer route, couples are encouraged to work together with a mediator to come to amicable decisions. A mediator has a legal background and the charges are lower than a lawyer. They aim to help you reach an agreement with children, property and other assets.

By law, if the case goes to court you need to have shown that you have tried mediation.

A mediator should certainly be prioritised in cases where you want to keep costs as low as possible. Hourly charges for using a mediator are between £150 and £400. The average length of time is six sessions, says mediation service Mediate UK.

Rebecca Cockcroft, a family law partner at Fladgate, says it is now increasingly common for parties to engage in something called a Private FDR.

This is where the parties agree to pay an experienced family solicitor or barrister to act as a judge for the day and give an early neutral evaluation on what would be likely to happen if the case went to court.

‘It isn’t binding on the parties, but they are incredibly successful. I would estimate around 80 per cent of cases settle at or shortly after such a hearing,’ says Cockcroft.

Arbitration, essentially a ‘private final hearing’, where an experienced family solicitor, barrister or former judge is paid to act as a judge, is also becoming increasingly popular as a speedier way to reach resolution. Arbitration is binding on the parties and is an attractive option, as it allows couples to set their own timetable and settle a case away from a congested court system.

Do I have to declare all assets?

Yes, full financial disclosure is essential during a divorce. Financial disclosure will generally include you giving details of any properties owned in sole and joint names, any business interests (including sole traders/partnerships and limited companies), savings, income and other assets such as cars and jewellery (depending on the value).

Mandeep Benning, a specialist in divorce law at Duncan Lewis Solicitors, says there are severe consequences for a failure to provide full disclosure of assets. Not only can it delay matters, increasing legal fees in the process, but you could also have to pay your ex’s legal costs (on top of your own) and in some more extreme cases, you could be imprisoned or have your assets confiscated.

‘The court also can “draw adverse inferences” and make orders based on what you might be hiding or choosing not to disclose. The court can also revisit the settlement years later if hidden assets surface. Honesty is not just the best policy – it is a legal requirement,’ she adds.

The starting point is that assets are split equally, 50/50, but this is not always the case – perhaps if one is a lower earner and has reduced their working hours to look after children.

‘There may also be consideration as to whether all the assets are matrimonial assets. For example, one party may have acquired a property prior to the marriage that has not been occupied by the parties during the marriage. It may be possible to argue that some assets acquired prior to the marriage should not be taken into account, but this will depend on the specific facts of the case,’ says Karen West, senior chartered legal executive at Family Law.

What should I do to prepare my finances ahead of filing for divorce?

Gather details of all your bank accounts, savings accounts, credit cards, loans, pensions and employment or other sources of income. You are likely to be asked to provide financial information that covers the past 12 month period, so focus on that first.

Vanessa Lloyd Platt, a leading divorce lawyer and founder of Lloyd Platt & Co, says don’t think about splurging money during divorce proceedings on big-ticket items such as a car, property or holiday to reduce the amount that goes to your ex.

‘Spending on these items may end up with the court considering that it should come out of your side of the equation. Holidays are a difficult matter.

‘If you are spending on the kind of holiday that you would normally take, then this may not be an issue. If, however, you have booked yourself an expensive cruise, then the court could take a dim view and consider this unnecessary and with a view to minimising the other party’s settlement,’ she says.

Joint accounts containing any notable funds can be frozen by speaking to the bank, adds Gavin Scott, family law partner at Freeths. This will stop money going in or out unless by agreement, although this may cause issues with direct debits and standing orders. ‘Take legal advice before drawing funds out of any joint accounts (or joint investments) to ensure what you do is correct and reasonable and to avoid potential criticism by the court at a later stage,’ he says.

Is it cheaper to use a small family solicitor or use a big law firm to get the best deal?

There is no right answer to this. Solicitors say the most important thing is the firm has the relevant experience and offers you a personal service that will meet your specific needs.

It may be helpful to make sure the firm has a team of lawyers, so that if your named lawyer is away on holiday or off sick, someone else can provide cover so there are no delays.

Many will offer a free initial call so you can get a feel for how they operate 

How can I ensure I get a fair result?

Think carefully about how you’ll manage financially going forward on your own. If you’ve been reliant on a spouse’s income, you’ll need to plan for how you’ll fund living costs in the long-term. You may be entitled to certain benefits or spousal maintenance. Use the Turn2Us benefits calculator (benefits-calculator.turn2us.org.uk) to see what benefits you could get.

Seek advice from a neutral professional such as a financial planner or solicitor, rather than relying on well-meaning friends and family.

Tom Francis, head of digital advice at Octopus Money, says it’s vital to think beyond the family home.

‘A common mistake we see time and time again is the non-working spouse prioritising the family home above everything else in a settlement. While understandable, this can lead to real difficulty later in life, if there is no pension or income obtained alongside it. We have seen instances of somebody being awarded the family home, but without financial means to maintain it, or meet their normal expenditure for the rest of their life.’

Make sure you take pensions into consideration as well. They can sometimes be the most valuable asset – at times worth even more than the family home – yet can be overlooked.

Just 16 per cent of couples split pensions in divorce which can often lead to women significantly missing out on income in retirement, according to pension firm Scottish Widows. Its research also found that simply not discussing pensions during a divorce could cost women up to £77,000 at retirement on average.

Vanessa Lloyd-Platt says that since Covid she has found there to be a rise in aggression, injunctions and bad behaviour such as business owners reducing their income to pay lower child maintenance.

She also finds people are fighting more over the children now because parents often want 50/50 custody so one doesn’t have to pay child maintenance to the other parent. ‘This is inappropriate in many cases if someone is working full-time. I’ve seen the most bizarre regimes being proposed that are just unworkable for children.’

Laura*, 49, from Manchester, knows how expensive the court route can turn out. She walked out of her marriage to a businessman 20 years her senior in 2009 after four years of marriage.

Laura says the marriage was abusive and left with nothing, taking her then three- and one-year-olds to stay with family. She started divorce proceedings with a solicitor the next day, but her husband contested the divorce. The process took 12 years and three attempts, with the divorce finalised in 2022.

Laura racked up £90,000 in solicitor and court fees over that time. She had to go bankrupt and later rely on parental support to pay the remaining costs. Laura, an artificial intelligence specialist, says she will never marry again.

‘He only agreed to the divorce the third and final time because he wanted to get remarried. We’re still going through a court case to agree on child maintenance. He has not seen the children in 15 years or paid a penny to them. I walked away with nothing and was happy with that – I just wanted to divorce him; I was not interested in his money,’ she says.

*Name changed