A report, titled Fair Shares, undertaken by the University of Bristol and funded by the Nuffield Foundation has challenged many commonly held myths and misconceptions surrounding divorce.
In summary, the research, which is the first nationally representative study to examine the financial arrangements of divorcing couples in England and Wales, has indicated:
- The median value of accumulative assets of divorcing couples – which includes property, pensions, and debts – amounts to just £135,000.
- 17% of divorcees surveyed had no assets at all. Following their divorce, 23% ended up with nothing or were in debt.
- The equal division of these assets is uncommon – 30% of those surveyed stated that they received half of the matrimonial assets.
- Roughly one-third of divorcing couples formally resolve their financial settlement through the legal system. Just 10% of couples end up in Court proceedings.
- The majority of those who have been through a divorce agree on matters, such as property, pensions, and ongoing financial support, outside of the current legal framework.
- Only 40% of those surveyed obtained legal advice, primarily due to cost. Over 10% didn’t seek any legal guidance or information during their divorce.
The report surveyed 2,415 divorcees who had legally separated up to five years previously and interviewed 53 people who had been through a recent divorce.
Lead author and Professor of Family Law at the University of Bristol, Emma Hitchings, said:
“The research highlights that the total value of assets most couples have is modest. This presents a totally different picture to the media portrayal of substantial divorce settlements of the very wealthy and gives an important reality check on what ‘everyday’ couples are experiencing on divorce.
“Overall, the report exposes the considerable financial vulnerability of women post-divorce. Although legal processes are largely fair, these are not being used, especially by those with least means but most need.”
The report highlights the need for improved awareness and understanding of the legal system and the individual rights of divorcing couples. It also addresses misunderstandings surrounding the cost of obtaining legal advice, which the report stated were relatively modest.
Further, the report said that one asset that was regularly misunderstood and overlooked in divorce proceedings was pensions with only 10% of divorcing persons with pensions having arrangements for pension sharing.
At Nelsons, we are regularly asked the same questions by those looking to commence or who are already engaged in divorce proceedings, or are about to get married. The responses we provide can often surprise them. Here are some of the common marriage and divorce myths that we hear.
Common marriage and divorce myths
If I break up with my partner, do I have to return the engagement ring?
If you break off an engagement or bring your marriage to an end, you may feel a moral obligation to return the ring to your partner. However, the law states that ‘the gift of an engagement ring shall be presumed to be an absolute gift’. The only way this could be challenged is by proving the ring was given under the condition that it should be returned or if it is, for example, the family heirloom of the person seeking its return.
Is a prenuptial agreement legally binding?
While prenuptial agreements are worth having to protect marital assets, they are not strictly legally binding in the UK, particularly if the marriage is long-term and when there are children or dependents involved.
Despite not being entrenched in law, prenuptial agreements are increasingly being relied on and upheld in divorce if the circumstances are right. Having an agreement in place can reduce acrimony and increase certainty following the breakdown of a marriage and if done properly, can be persuasive and will certainly be considered by the court in the event of a divorce.
Is there always a 50/50 split of assets in a divorce?
Courts in the UK will always start with the basis of a 50/50 split of the matrimonial assets. However, this is not the outcome in every case, as referenced above. Several factors can mean the Court will deviate if it is fair and reasonable to do so. These factors include:
- The length of the marriage;
- Children from the relationship;
- Benefits accrued e.g. pensions;
- If one person in the relationship stopped working to support the other person; or,
- If large amounts of money have been inherited or generated following the separation.
Is there such a thing as a quickie divorce?
Unsurprisingly, the most frequently asked question we receive is ‘How long will my divorce take?’. There is no hard and fast answer as it will always depend on a host of factors, from how busy the Courts are to how complex your financial matters are.
As a starting point, we often advise clients to expect a divorce to take an absolute minimum of six to 12 months.
Do I need a solicitor for a divorce?
While there is no legal requirement for you to appoint a solicitor for your divorce, it is strongly advised. People who attempt to conduct their divorces are often not aware of the issues it could present in the future.
While you may think that your relationship is totally severed, there are legal loopholes that could cause problems further down the line that would easily be identified by a legal professional. Therefore, to guarantee peace of mind, it’s best to approach an experienced team to ensure that your current and future finances are protected.
How Nelsons can help
Emma Davies is a Partner in our Family Law team. Emma specialises in divorce and financial settlements which involve complex issues and substantial assets. She also advises on pre and post nuptial agreements, cohabitation agreements and separation agreements along with private law Children Act disputes. Emma is a qualified collaborative practitioner.
For further information on the subjects discussed in this article, please contact a member of our expert Family Law team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online enquiry form.
A member of the team will be happy to discuss your circumstances in more detail and give you more information about the services that we can provide along with details of our hourly rates and fixed fee services.
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