No-fault divorce law and financial settlement advice – a guide

No-fault divorce law and financial settlement advice – a guide from Jordans Solicitors’ Family Law team.

Sadly, for many couples, the COVID-19 pandemic has been a major cause for the breakdown of many relationships. Consequently, there has been a significant increase in the volume of divorce applications across England and Wales. This article will consider the effect of the new no-fault divorce law and shift in financial settlement agreements.

The no-fault divorce legislation became the law on 06 April 2022 in England and Wales. Reports found that many couples had waited for the change in the law before proceeding to a divorce in hope of making the separation less acrimonious, particularly when there were children of the family concerned.

When a marriage reaches the end, it is a crucial part of the divorce process for couples to resolve their finances, and that they reach a settlement on how their assets should be divided.

During the separation, it is important to ensure that both parties to the marriage are able to meet their needs and once resolved, the financial aspect to the divorce is eventually transferred to a legally binding court order. 

How will the no-fault divorce law effect any financial settlements?

Without the requirement to no longer provide evidence as to why the marriage has broken down irretrievably, or what some may call the ‘blame game’, it is likely that the new law will have a positive impact on the financial aspects of a divorce and thus reducing animosity. 

The new procedure

Under the new divorce procedure, the law allows a 20-week ‘cooling off period’ between the initial divorce application and the conditional order (previously referred to as the Decree Nisi). It is hoped that the ‘cooling off period’ will allow time for the couples to resolve the finances of their marriage in hope that both parties will then be in a position to lodge a consent order recording the financial agreement they have reached with the court, once the conditional order is made. The new reform ensures that this process is not rushed through because one party to the proceedings has a desire to end the marriage as soon as possible.

Indeed, there will be circumstances where even after the conditional order is made, a financial agreement has not yet been reached. However, it is hoped that the extended ‘cooling off period’ will allow time for some clear headway to be made in addressing financial matters.

In the majority of cases, the reason for divorce has no holding on financial matters. Any increased animosity caused by the divorce was therefore only likely to be a burden to reaching an amicable financial resolution. The new no-fault divorce law is welcomed for the positive impact it will have on couples during separation and thus, allowing all to act in the best interests of both parties as well as any children to the marriage.