Upcoming Webinar – Divorce: Legal and Financial Clarity in Uncertain Times – 31 Oct 25 @ 12:00 – click here to book.
After a turbulent couple of years, it’s fair to say that life in 2025 hasn’t exactly become calmer. Interest rates, while now starting to ease slightly after two years of stubborn highs, have left their mark on mortgages and household budgets. The cost-of-living crisis still bites for many families, global conflicts continue to cast a shadow, and UK politics remains in a state of flux with a General Election looming.
Against this backdrop, let’s turn to something that, while deeply personal is also heavily shaped by wider financial pressures: Divorce.
Divorce is often described as akin to open-heart surgery without the anaesthetic. Emotionally devastating, yes, but also financially complex. And in the whirlwind of emotions, many people underestimate the financial implications, which can create long-term consequences.
How many people Divorce in the UK?
The divorce rate in the UK has hovered at around 42% for the past decade, but the introduction of no-fault divorce in 2022 has made the process more straightforward, leading to a short-term increase in applications.
- The most common age for divorce remains between 40–44.
- Around 60–62% of divorces are initiated by women, often because they take the first steps in resolving family or financial arrangements.
- Divorce rates tend to rise during periods of financial strain -unsurprising given the challenges of managing money pressures within a relationship.
At the same time, more people are marrying later (often in their 30s), which means they’re typically more financially established. Second marriages continue to grow in number and, with financial stability, are statistically more likely to last.
Key takeaway: Finances don’t just affect the divorce settlement – they can also influence the success or failure of a relationship.
Civil Partnerships – A Quick Recap
Civil partnerships provide the same legal rights and responsibilities as marriage. Ending one follows the same legal process as divorce and results in a court order dissolving the partnership.
How long will it take in 2025?
Even under no-fault rules, the process still takes a minimum of six months (including the mandatory reflection period). At the end, you receive a Final Order -the legal document that dissolves the marriage or civil partnership.
But here’s the crucial part: while the marriage may be legally over, the financial ties remain until a separate, legally binding financial settlement (a Consent Order) is agreed.
The Divorce Process
- Appoint a solicitor. Even if things are amicable, it’s wise to formalise agreements. Where children are involved, tensions can rise, and legal advice ensures clarity.
- Seek financial advice. Divorce isn’t just about dividing property—it involves pensions, investments, savings, businesses, and debts. Pensions, in particular, are often the largest overlooked asset and require specialist valuation.
- Finalise through the court. If you and your ex agree, you can apply for a Consent Order (or a Qualifying Agreement in Scotland). If not, the court may issue a Financial Order.
How much will a divorce cost in 2025?
The average divorce still costs between £14,000–£15,000, but this varies widely depending on complexity and whether disputes go to court.
Legal Aid remains limited (except in cases of domestic abuse, homelessness risk, or for mediation). Always ask your solicitor for a cost estimate at the start.
Pensions in Divorce – The Facts You Need to Know
Pensions are often the second-largest marital asset after property, yet they’re frequently overlooked. Here’s what matters in 2025:
Pension Rights on Separation
- If you separate without divorcing, you can’t share pensions formally, but you might still be entitled to benefits if your ex dies.
- Cohabiting couples (unmarried, not in a civil partnership) are not automatically entitled to pension rights, even after years together.
- In England, Wales, and Northern Ireland, all pensions (no matter when built up) are considered.
- In Scotland, only pensions accrued during the marriage/partnership are included.
Ways to Divide Pensions
- Pension Offsetting – One spouse keeps their pension, the other gets a greater share of another asset (e.g., the family home).
- Pension Sharing – A percentage of one pension is transferred to the other spouse’s pension plan.
- Pension Attachment (Earmarking) – A portion of pension benefits is paid to the ex-spouse when the pension is drawn (less common as it doesn’t allow a clean break).
The State Pension (post-2016) still cannot be shared on divorce.
The Financial Reality After Divorce
You have gone through the heartache, the discussions about the children, the splitting up of the family assets, the court procedures and you finally reach D DAY. But……..the pronouncement of the Decree Absolute does not mean that you have a financial clean break from your spouse. The Decree Absolute means your marriage has been legally dissolved, but this does not mean that you are no longer financially linked to your ex.
An agreement made without court approval is not legally binding unless any agreement has been approved by you may make an application to the court at any time in the future to resolve the financial agreement if you later decide that you are unhappy with the situation. And do not assume that it is always the ex husband who is in the driving seat, there are many wealthy women who have supported their husbands who could get caught in this trap at a later date.
Why Professional Financial Advice Matters
Even intelligent, financially literate professionals can make costly mistakes if they avoid advice. Consider these real-world scenarios:
- A woman ignored legal advice, prioritised an amicable split, and years later found herself still tied to a joint mortgage with her high-spending ex.
- A wealthy professional refused to divorce to avoid sharing assets, creating long-term complications and leaving his wife financially vulnerable.
- A high-earning accountant acted swiftly, secured her share, and cleanly moved on, showing the power of informed action.
What separates these outcomes? Independent financial and legal advice. ND LEGAL ADVICE and please be aware that it is not too late to rectify this even if you have been in one of these financial lockdowns for some considerable time.
Where to go to for Help
- Solicitors: Law Society – Find a Solicitor
- Financial Advisors: Independent advisers (such as Women’s Wealth) who specialise in pensions and divorce.
- Support organisations:
- Citizens Advice
- Gov.uk – Divorce and Civil Partnership
- National Domestic Abuse Helpline – 0808 2000 247 (24/7)
Final Word
Divorce is painful, emotional, and often overwhelming. But neglecting the financial side can compound the damage for years to come.
The best protection? Surround yourself with the right professional support, a solicitor and a financial adviser who can help you achieve clarity, fairness, and a future where you are truly free to move forward.
