Can't Afford to Divorce? Protect Yourself While Separated

"Couples can't afford to get divorced." That was the verdict of Lisa Pepper of Osbornes Law, one of several family lawyers reacting this week to new Office for National Statistics divorce figures. Divorce numbers in England and Wales stayed flat in 2025, at just under 106,000, and lawyers say economic pressure is part of the reason. Vanessa Friend of Hodge Jones & Allen described couples delaying separation because of uncertainty about the economy, mortgage rates and school fees, and turning to separation agreements instead.

With inflation back above 3% and the Bank of England warning that interest rates may rise again, many couples find they've emotionally separated long before they can afford to formally divorce. If that's your situation, there's a lot you can do to protect yourself in the meantime.

What a Separation Agreement Is and What It Can Cover

A separation agreement is a written contract between spouses who have decided to live apart, or who are separating while still under one roof. It usually sets out who stays in the family home, who pays the mortgage and bills, how savings and debts are divided, and arrangements for children and child maintenance.

It can be a sensible stepping stone. It gives both of you certainty while you wait for the housing market to shift, for a fixed-rate mortgage deal to end, or simply until you're ready to divorce. Many couples later use the terms of their separation agreement as the basis of a financial consent order once they do divorce.

Is a Separation Agreement Legally Binding?

This is the crucial point. A separation agreement isn't automatically binding in the way a court order is. The family court keeps the power to decide what's fair when a couple eventually divorce.

However, the courts do attach significant weight to a properly made agreement. Following cases such as Edgar v Edgar and the Supreme Court's decision in Radmacher v Granatino, a judge is likely to hold parties to their agreement if:

• both spouses gave full and frank financial disclosure;
• each took independent legal advice;
• neither was put under pressure to sign; and
• the terms are fair and meet both parties' needs, including any children's.

A DIY agreement signed at the kitchen table without disclosure or advice may carry little weight later on. Getting it drafted properly is where the real protection lies.

Your Home, Your Will and Your Finances While You're Separated

Separation without divorce leaves some important legal ties in place, and it's worth tackling them early.

Joint mortgages. If you own your home jointly, you both remain liable for the whole mortgage, not just half, even if one of you has moved out. Missed payments will affect both credit files.

How you own the property. Many couples own their home as "joint tenants", meaning that if one dies, the other automatically inherits the whole property, regardless of any will. If you're separating, you may want to sever the joint tenancy by serving a notice, so you hold the property as "tenants in common" and your share can pass under your will.

Your will. Separation doesn't cancel or change a will. If you die before a divorce is finalised, your spouse could still inherit under your existing will or under the intestacy rules if you haven't made one. Updating your will, and your pension nominations, should be high on the list.

Future financial claims. Until a court makes a financial order, both spouses keep the right to make claims against each other. An inheritance, a pay rise or a business success after separation could still be drawn into a later settlement.

Keeping the Cost of Divorce Down When You're Ready

When the time comes, divorce doesn't have to be as expensive as many people fear. The court fee for a no-fault divorce application is fixed, and family mediation can resolve financial and child arrangements far more cheaply than contested court proceedings. Eligible separating parents may be able to get a £500 government mediation voucher, and a solid separation agreement can make the eventual financial settlement much quicker to finalise.

What Should You Do Next?

If you've separated, or are thinking about it, but aren't ready or able to divorce, you don't have to leave your finances and future in limbo. Our first contact team at QualitySolicitors can match you with an experienced family solicitor near you, who can explain your options, help you put a robust separation agreement in place, and make sure your home and your will reflect where you are now.