The start of a new year often brings introspection, resolutions, and, for some, decisive action regarding troubled relationships. The first working Monday of January, dubbed ‘Divorce Day,’ is popularly perceived as a peak time for divorce inquiries. While the term may capture the public imagination, legal professionals warn against placing undue significance on the date.
The concept of ‘Divorce Day’ may capture headlines, but experts agree that separation is a deeply personal and complex decision requiring careful planning and thoughtful advice.
By seeking early legal and financial guidance, considering non-adversarial resolution methods, and understanding the broader implications of divorce, separating couples can navigate this challenging time with greater clarity and less conflict.
Family lawyers from the Spearsverse provide insight into how to navigate the emotionally and financial challenges of divorce.
[Best family lawyers for high-net-worth clients in 2024]
‘Divorce Day’ – A media construct
Lois Rogers, partner at Ribet Myles Family Law, says we should not give too much credence to Divorce Day as it is ‘exaggerated by the media’.
‘It goes without saying, of course, that a divorce is a far more serious decision, which needs to be considered very carefully,’ she says. She stresses the need for careful consideration, adding, ‘Holidays and periods of time together as a family can heighten tensions and crystallise the conclusion that a marriage is no longer sustainable. Christmas also tends to bring in the pressure of wider family members and increased financial costs.’
Content from our partners
[See also: Spear’s Family Law Survey 2024: Leading lawyers reveal the trends shaping the industry]
Rogers advises clients to seek early advice, not as a call to action, but as a way to fully understand their legal and financial position. ‘If someone is having serious doubts about the longevity of their relationship, at any time, they should take advice at the earliest possible opportunity, to consider their options and fully understand their position, and the legal implications of divorce.
‘This does not mean ‘pressing the button’ as ‘Divorce Day’ suggests, but as a critical part of the process of reflecting on what is the right decision for them.’
Navigating financial complexities
The financial ramifications of divorce are often the most challenging and contentious aspects of separation. Ben Glassman, financial planning partner at Evelyn Partners, urges couples to address financial matters early. ‘Couples should not leave financial issues to the last minute… It’s worth getting a handle on it right from the start, preferably with the help of some good financial advice.’
Pensions, often the largest marital asset after property, are a key consideration. Glassman explains: ‘Pensions are an area that can either be overlooked or become a source of confusion and dispute at divorce, especially when one spouse has a much greater pension provision than the other.’ Proper valuation and understanding are crucial, as decisions made during settlements are difficult to amend later.
The family home is another complex issue. Elevated mortgage rates and high living costs can make decisions about retaining or selling the home more challenging. Glassman notes, ‘Keeping the home doesn’t always make financial sense when taken into context with other assets. A property one lives in doesn’t produce an income and parts of it can’t be sold to meet spending.’
Prateek Swaika, partner at Boies Schiller Flexner LLP: ‘Inevitably, divorce proceedings can become an incredibly emotional and stressful time for the parties involved. HNWIs could reduce this stress to a great extent by taking protective steps and entering into any further marriages in a financially sound manner, especially where there are likely to be substantial pre- and post-marital assets or children involved, such as via pre- or post-nuptial agreements. Although the English Courts are not strictly bound by these agreements, they are increasingly taken into consideration and can have a material impact on the eventual division of matrimonial assets.
[See also: The best divorce lawyers in London]
Holistic approaches to resolution
Natasha Grande, partner at Wilsons Solicitors, acknowledges that while ‘Divorce Day’ is a myth, New Year reflections can lead to a spike in inquiries. She highlights a shift toward non-adversarial solutions: ‘Solutions to family law issues are now more holistic and due to the delays in the court system, family lawyers are really trying to push settlement out of court. Clients are receptive to this, due to financial strains and a wish to try to settle to avoid hostilities.’
Alternative dispute resolution methods such as mediation, collaborative law, and arbitration are increasingly preferred. Rogers adds: ‘If someone does want to proceed with a divorce, there are many ways to resolve a case without ‘rushing off to court’ as Divorce Day suggests, such as through mediation, collaborative law, solicitor-led negotiations and roundtable meetings, and with early neutral evaluations outside the formal court process such as private FDRs and arbitration.
She continues: ‘The introduction of the no-fault divorce regime has helped to take the heat out of the initial decision, as people are no longer rushing to be the first to blame the other party and their ‘unreasonable behaviour’ in causing the marital breakdown. Applications can now also be made on a joint basis.’
Preparation as a key strategy
Kiran Beeharry, family partner at SA Law, highlights the importance of preparation. ‘There has been a growing trend in parties seeking initial advice on divorce and finances so they are better prepared when a decision is made to end a marriage/civil partnership.’
Understanding the financial implications of separation is vital, whether assets are vast or limited. Beeharry advises clients to be informed and prepared for the financial discussions that follow the decision to separate.
Steps to consider before and during divorce
Family lawyers often encourage a measured approach. Rogers recommends exploring alternatives such as marriage counseling or postnuptial agreements, which can provide clarity on financial matters while allowing couples to address other relationship issues. For those leaning toward separation, an initial period apart, supported by a formal or informal separation agreement, can offer clarity without rushing into divorce.
Glassman highlights the importance of updating legal documents post-divorce, such as wills and pension nominations, to reflect new circumstances. He also advises on navigating changes in tax laws, such as the recent extension of capital gains tax relief for separating couples, which provides more time for financial planning.
Grande underscores this nuance: ‘The experience of divorce varies by the individual, as it is about people’s lives with their private complexities.’
Spear’s list of top family lawyers is an indispensable guide for HNWs and UHNWs in search of legal advice in the UK and beyond.
- Best family law barristers for high-net-worth clients in 2024
- Best divorce consultancy and support service providers in 2024
- Best litigation funding providers in 2024
