New academic research has highlighted the need for divorcing couples to use the legal system and their respective rights to claim what’s entitled to them.
According to a study from the University of Bristol, only about a third of divorcing couples formally finalise their finances through the legal system with a court order, with a much smaller fraction of couples (1 in 10) actually going to court.
The vast majority of divorcees sort out key arrangements, including housing, pensions and ongoing maintenance outside legal processes, with the lack of financial and legal knowledge, meaning women often come off worse, and pension values are often totally ignored.
Lindsey Canning, head of family law at Wake Smith, encourages couples to use solicitors’ skills and knowledge to help bring about a fairer deal.
“The research highlights how work needs to be done to improve people’s awareness and understanding of the legal process and couple’s respective rights, including what they’re entitled to, as well as overcoming misconceptions about cost”.
“Solicitors are here to be a source of information, advice, and support, but the research findings showed just 2 in 5 divorcees made use of lawyers during the divorce process.
“Many cited the fear of cost as a deterrent, opting to use other sources including Government websites, with more than 1 in 10 seeking no advice or information to help them with their divorce.
“It was, however, very encouraging to read in the research that legal costs are considered relatively modest. Where legal advice was used, nearly a quarter of divorcees had to find less than £1,000.”
Again, this report like others, exposes the considerable financial vulnerability of women post-divorce.
“Although legal processes are fair, these are not being used, especially by those with least means, but most need.”
The Fair Shares research by the University of Bristol contacted 2,400 divorcees, and showed the median total assets that divorcing couples own, including home, pensions, and considering any debts, was just £135,000 and equal division of this joint pot, was not the norm.
The research found:
- Almost a fifth of couples had no assets to divide and of those who did, only three in ten reported receiving around half of the net asset pool.
- Given the relatively modest average asset pool, a quarter of divorcees ended up with nothing or just debts.
- Most couples favoured a clean financial break and less than a quarter (22%) had a spousal maintenance arrangement, which stipulates ongoing support, usually in favour of the ex-wife, but nearly always for a fixed period.
- No findings suggest spousal maintenance is being used as a ‘meal ticket’ for life.
Lindsey added: “Yet again, pensions were poorly understood and an underutilised asset. Only 1 in 10 divorcees with a pension yet to be drawn, had made an agreement for pension sharing.
“More than a third of divorcees didn’t know the value of their own pension pot, let alone their spouse’s amount.
“Without all assets, particularly pensions, being considered on divorce, the future financial security of many women, who generally have smaller pension pots than men, is being put at risk.”
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