18 February 2025

Why early legal advice in divorce matters for your finances

By Rob Colwell, Director, Hayes and Storr

Divorce is never easy, and navigating the complex financial implications of a separation can be daunting, especially when you lack the necessary knowledge. A recent study, co-led by Professor Emma Hitchings from the University of Bristol, highlights a concerning trend: many people are making costly mistakes in their divorce settlements due to a lack of understanding of divorce law, particularly when it comes to dividing assets and property. These mistakes often result from individuals trying to handle their divorce without the benefit of professional legal advice—a practice known as “DIY divorces.”

A lack of understanding about financial divisions

The report, which surveyed 20,000 individuals across England and Wales, found widespread misconceptions about how assets should be divided. One of the most common misunderstandings is the belief that all assets are automatically split evenly in a divorce. In reality, the law does not require a 50/50 split in every case. Around 30% of respondents falsely assumed that this was the case.

Additionally, only 37% of participants were aware that the length of a marriage plays a significant role in determining how assets and debts should be divided. The longer the marriage, the more likely it is that assets will be shared equally. This lack of knowledge can have serious financial consequences, as many people may end up agreeing to settlements that do not reflect their true entitlements.

The risks of DIY divorces

With the reduction of legal aid in England and Wales, more couples are attempting to settle their divorce terms on their own, often without consulting a lawyer. While the law permits couples to agree on any financial split they wish, this process can be legally complex and difficult to navigate without professional guidance. In fact, relying on one’s own understanding of the law—particularly without proper legal advice—can lead to “unsatisfactory and unfair financial arrangements,” as noted by Ash Patel of the Nuffield Foundation.

Professor Hitchings warned that without adequate legal assistance, many individuals might come to poor settlements that do not adequately protect their financial future. This is especially problematic when one party has a significantly better understanding of the law than the other, which can lead to unfair outcomes.

The case for early legal advice

The findings from this study underscore the importance of seeking legal advice at the earliest stages of a divorce. Divorce law can be incredibly complex, and the financial consequences of a poorly negotiated settlement can last for years. Whether you are unsure about asset division, pensions, or debts, professional legal advice is vital to ensure you fully understand your rights and options.

A family lawyer can help you navigate the legal complexities, prevent costly mistakes, and advocate for a fair and equitable settlement. They can also ensure that any agreement made outside of court is legally binding and reflective of your true financial entitlements.
At Hayes + Storr, we strongly recommend that individuals seek expert legal advice as soon as they begin considering divorce. Early intervention can make all the difference in securing a financially stable future and achieving a fair divorce settlement. Don’t risk your financial security by going it alone – contact us today for a consultation to ensure you get the best possible outcome from your divorce.

Conclusion

As the study clearly shows, misconceptions and a lack of legal understanding can lead to poor financial outcomes in divorce. To avoid these pitfalls and ensure a fair division of assets, it’s essential to seek early legal advice. With the right support, you can navigate the divorce process confidently and make informed decisions that protect your financial well-being for the future. If you need any advice from our family law specialists and would like to arrange an appointment, please call 01328 863231 or email rob.colwell@hayes-storr.com.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published. Always seek our specific advice.