It is safe to say that divorce has never been more straightforward since the introduction of the ‘no fault divorce’ legislation in the UK. Where online services and easy-fix solutions are readily available, the appeal for separating couples to divorce without legal assistance, has become the most practical and cost-effective option for some. What many would refer to as a ‘Do-it-Yourself’ (DIY) divorce. Whilst many are choosing to opt for a DIY divorce, below the surface it does carry risks, which can result in serious financial and emotional consequences for those couples who do not seek legal advice.
Government statistics showed that in 2024 there were 108,657 applications under the no-fault divorce law, in comparison to only 45,564 financial remedy applications being made the same year. The statistics show that there is still a significant number of divorcing couples who have yet to tackle the division of their finances.
Protect yourself with a financial Order
A financial order is a legally binding document sealed by the courts setting out the terms of a financial agreement reached between divorcing parties. The order will address the division of property, savings, pensions, and liabilities, as well as the issue of spousal maintenance. This can be done on an agreed basis, through the drafting of a consent order, or in the absence of an agreement, through one party initiating financial remedy proceedings.
Why are they important?
These documents become enforceable once the agreement is embodied in a court order, which is extremely important in the event where one-party defaults on the agreement. Furthermore, without a financial order in place, severing financial ties between you and your ex-spouse, you could be leaving yourself at risk of future financial claims made by the other. This is important even where parties may not have any assets, as it protects the parties against future claims from their ex-spouse, should they find themselves in a better financial position.
Learning from the case of Wyatt v Vince
The case of Wyatt v Vince is a prime example of the consequences when there is an absence of a financial consent order. The parties divorced in 1992, at a time where they had very little money. The couple did not obtain a financial order during the divorce, leaving their financial claims open. This became an issue for Mr Vince years later, as following the divorce he became a multi-millionaire through his green energy business. In 2011, two decades after their divorce was finalised, Ms Wyatt brought a financial claim against him. Despite a significant period having passed between the parties, Ms Wyatt was successful in the Supreme Court granting her claim to receive a payout of £300,000.
This landmark case highlights the vulnerabilities of couples failing to legally dismiss financial claims. It is an important reminder that even though couples may agree to financial arrangements at the time of separation, circumstances and feelings can change and therefore future claims remain open.
At Johnson Astills, we have a dedicated team of family law solicitors who provide expert advice on the financial remedy proceedings process and the implications of divorce without a financial remedy Order in place. Please call us at our office in Leicester on 0116 255 4855 or our office in Loughborough on 01509 610 312 and ask to speak to a member of the Family Team. Alternatively, you may prefer to email us at legal@johnsonastills.com or fill in our enquiry form.
