Why More Divorcing Couples Are Fighting Over Finances in the UK

With the introduction of no-fault divorces in April 2022, divorce proceedings were made quicker and easier. However, financial disputes between separating spouses have been rising sharply, with 49,067 financial remedy applications being made nationwide in 2025, an increase of 8% on 2024 and a 15-year high. The number of financial remedy disposals (46,651) was similar to 2024 levels.

Economic pressures in the UK – including rising energy, food, fuel and property prices – are believed to be at the core of this increase in litigation, as people’s uncertainty about their financial future sets in and their willingness to compromise reduces. Read on to discover everything you need to know about financial disputes, including financial remedies, consent orders, why disputes are on the rise, and why specialist legal advice is critical in the early stages.  

What Is a Financial Remedy? 

A financial remedy is a legal settlement in the UK where the courts decide how to divide a couple’s assets after a separation. If spouses can’t agree between themselves, a financial remedy application can be made as part of the divorce process. A financial remedy order is legally binding and designed to achieve a fair division of finances.  

Financial remedy proceedings consider the following assets: 

• Money 
• Property 
• Businesses 
• Insurance 
• Pensions 
• Savings 
• Maintenance for spouses and children 

Why Are Financial Disputes Increasing? 

Cost-of-Living Crisis and Financial Anxiety 

The main reason for the increase in financial disputes is arguably the cost-of-living crisis and the resulting financial doubt. Rising inflation, mortgage rates and housing affordability cause concern about the future and make it harder to divide one household into two.  

These economic pressures can result in much harder negotiations, a lack of compromise and more contested proceedings, as individuals fight to secure their long-term financial security.  

No-Fault Divorce Did Not Remove Financial Conflict 

The introduction of no-fault divorces may have reduced and even removed blame, but financial issues are still emotionally charged: ending the marriage became easier; dividing assets did not. 

Divorce proceedings legally end a marriage, whereas financial remedy proceedings are the separate but parallel legal process of dividing assets, so financial disputes are still common. 

Pensions Becoming Central to Divorce Disputes 

Another reason why financial disputes are on the rise is the increased importance of pensions to divorce. Many people underestimate pension value and the impact of inflation, leading to shortfalls in savings and financial disputes. 

A pension sharing order legally divides pensions between spouses during divorce, ensuring each party receives a fair share of pension benefits as part of the settlement, but long marriages mean pensions can accrue for many years, resulting in disputes over who should receive what. 

With the ever-increasing retirement age, financial concerns are on the up. Defined benefit pension schemes – a guaranteed income for life, where the risk lies with the employer rather than the employee – are become less common, particularly in the private sector, and this is adding to people’s financial uncertainty.  

Complex Assets and Modern Finances 

Complex assets such as self-employment, inherited wealth and overseas properties are also major contributors to financial disputes. Modern family life often involves multiple properties, family businesses and blended families, making financial negotiations more difficult, particularly without specialist legal advice.  

Digital assets and cryptocurrency are legally treated as property, but cryptocurrencies can be easily hidden in private wallets, making them difficult to trace and leading to non-disclosure issues, and their fluctuating worth makes it more challenging to divide them fairly.  

Determining the value of shares in a private company can be difficult, and overseas investments and properties in different areas means tracing assets can be complex. Rising interest rates and inflation mean ‘even splits’ are more difficult to achieve, and high-value assets being harder to divide means one party could end up with cash and the other with non-liquid assets, unable to be sold without a loss in value. 

Domestic Abuse and Economic Control 

Economic abuse involves one spouse monitoring the other’s spending, forcing them to buy things or sign contracts, and making them lend or give away their money or property. Financial abuse can also involve assets being hidden from a spouse and them being left with no access to bank cards, cash or online banking.  

The courts are now recognising economic abuse as part of coercive control, considering it in divorce proceedings and accounting for its impact on financial settlements. Courts are now also considering the conduct of both parties, and will move away from the traditional 50/50 split in cases where there’s been any concealment or transfer of assets. 

Court Delays and Rising Legal Costs 

The UK Family Court in 2026 is facing a severe backlog, estimated at over 110,000 outstanding cases. No-fault divorces have a mandated wait time of 20 weeks, and combined with delays and the increase in cases involving children and finances, this backlog is not expected to decrease any time soon.  

Delays in family cases impact mortgages, property values, legal fees and businesses. Prolonged litigation can cause frustration and tension between those involved, as they face further and more expensive legal fees and significant wait times before finalising their dispute.  

Why Consent Orders Matter 

Although reaching a mutual financial agreement without legal help may seem appealing to divorcing couples, any informal agreement is risky, as it’s not legally binding and can be easily disputed. It also leaves any agreement completely open, meaning future claims can be made against the other party. 

A financial consent order – a legal document that confirms a mutual agreement – removes this uncertainty, ensuring that the division of assets becomes a closed matter and preventing any future claims. Consent orders are reviewed by a judge to ensure the division is fair, and protect against any asset changes, such as future inherited wealth or lottery wins. As they’re enforceable, they provide security and peace of mind for both parties. 

Specialist legal professionals are primed to explain your legal rights and to draft a consent order that’s legally watertight. Without the help of a solicitor, you leave yourself open to ambiguity and unfair future claims.  

Rise of Mediation and Alternative Dispute Resolution 

Mediation involves both parties sitting down with an impartial person, typically not a legal professional, in a non-formal setting to attempt to reach a mutual financial agreement. The mediator does not provide legal advice, but rather helps keep things amicable and helps both parties reach a resolution.  

Arbitration is a formal method of dispute resolution where a third party makes a binding decision on a mater without the parties having to go to court. The neutral third party formalises the decision by way of an ‘arbitration award’.  

Collaborative law is a process aimed at helping couples reach a mutual agreement respectfully and quickly and with the help of a multidisciplinary team, including specialist solicitors and sometimes family and financial specialists. The collaborative law process requires both parties to sign a ‘participation agreement’, preventing their solicitors from representing them if they go to court.  

Private financial dispute hearings (FDRs) involves the two parties paying a financial remedy specialist to act as a private judge. That person may be a solicitor, barrister or retired judge. The parties together choose the specialist, who then organises a convenient time for the hearing, which usually takes place in a solicitors’ offices or chambers.  

The courts encourage alternative dispute resolution wherever possible, as it frees up judges for other matters and helps reduce court backlogs. Non-litigation methods are quicker, simpler and typically more amicable than going to court. 

Final Thoughts 

Financial disputes between divorcing couples are on the increase due to economic and social pressures, leaving people battling for long-term financial security. No-fault divorce has reduced blame but not financial complexity, as owing to modern financial and family setups, financial remedies have become more intricate and difficult. 

Early instruction of a specialist divorce solicitor is becoming increasingly important for divorcing couples. While every situation is different, seeking legal advice early can help individuals understand their financial rights, reach an amicable and fair settlement, protect assets and future financial security, and ensure any agreement is binging and legally enforceable. 

Whether you’ve reached an agreement between yourselves or are struggling to compromise with your former spouse, seek specialist family law advice as early as possible to ensure a legally recognised settlement is achieved, giving you both peace of mind and future financial protection.