Divorce and the Self-Managed Financial Settlement (also known as the DIY Divorce)

I've observed a recurring trend among my divorce clientele recently: the self-managed financial settlement. The appeal is clear - why involve a solicitor when you and your spouse can amicably settle things yourselves? Think of the money you'll save! Good idea, right? Wrong, and here's why:

We all know that life is unpredictable. Pause for a moment and picture this scenario: you've completed the divorce process and you have a final order (that's the document from the court announcing you are now legally divorced).

You've refinanced your home to give your spouse their share of its value - essentially a "buy out". You've been super nice and shouldered the refinancing costs and have been diligently paying off the increased mortgage for several years.

You had an agreement:

You agreed all this in writing, but you never went to court to get the agreement sealed by a judge!

Suddenly, an unforeseen twist occurs. Your spouse falls ill and can't work. They consult a solicitor, who advises them that the arrangement you both reached is:

1. Not binding, because it was never sealed by the court, and
2. No longer sufficient to meet the needs of your ill, former spouse.

Meanwhile, your wonderful property that you've now spent money on improving has significantly increased in value. Your former spouse under advice from their lawyer is now insisting a valuation is undertaken of your property AND at its current market price and NOT the value it held when you initially agreed the split!

To make matters worse, your pension, which you have ploughed money into over the last few years and has appreciably grown, is also under scrutiny and must be considered in the financial settlement.

What a nightmare - and its going to be a costly lesson. All because you wanted to save a few thousand pounds by doing it yourself.

This predicament could have been avoided with a simple step:

By consulting a family solicitor at Britton and Time Solicitors you could have asked them to draft a Financial Remedy Consent Order (FRCO) at the time of your settlement. Then your lawyer would have filed the FRCO with the court, got it sealed by the judge and you would now have a binding agreement with which to protect your now wealthier position. Such an order would have legally cemented your agreement using the values at that time, and included a 'clean break clause' preventing future financial revisions.

My advice - which, if you are still reading, has been free - is don’t let this cautionary tale become your reality. It's wiser and more cost-effective in the long run to seek my advice and guidance, rather than facing potentially greater financial and emotional costs down the line.

You can meet me or one of my team if you don't actually like me - Theresa Wright - Jamilla Sabo - for just ￡90 + VAT (correct fee at the time of writing).

If you're in need of advice or have any concerns, feel free to start the process by reaching out to any of us here on LinkedIn - by calling 0203 0075500 - or by emailing [email protected]. Remember, a stitch in time saves nine, especially in legal matters.

Want to keep reading? Here's some more on why "Do it yourself" (DIY) divorces can be particularly challenging in England due to specific legal nuances and complexities.

1. Complex Legal System: English family law can be complex to anyone who does not work with it day-in-day-out. Without legal training and experience, it's easy to misunderstand the processes and what's required of you under the legal framework. I usually see errors in the forms that clients have filled out or in procedures they thought they were following correctly, causing delays or issues in the financial remedy process.
2. Financial Settlement Issues: In England, reaching a fair financial settlement is a part of the divorce process that relates to money and assets. Without legal advice, you might not fully understand your financial rights or how to divide assets like property, pensions, and savings appropriately. This can result in unfair settlements as in the case above, and a settlement that is unenforceable.
3. Child Arrangements: If there are children involved, determining custody, visitation, and support arrangements can be complicated. DIY divorces may not adequately address these issues, potentially leading to arguments, fallout and arrangements that aren't in the children's best interests. A family solicitor will be able to advise you on the options and the law.
4. Risk of Future Disputes: Like the scenario above, which is just one example, a DIY divorce might miss important details or legal protections that a solicitor would typically include. This can lead to future disputes, which normally end up being far more costly and stressful than if a solicitor had been involved from the start.
5. Stress and Emotional Challenges: Divorce is emotionally challenging, and managing the legal process on your own can add to the stress. A good solicitor will not only provide legal assistance but also help manage the process, allowing you to focus on your emotional well-being.
6. Court Requirements: The English court system has specific requirements for filing for divorce and financial remedy proceedings, and failure to meet these can lead to a rejection of your application and a cost order against you. Solicitors ensure that all the necessary criteria are met.
7. No Legal Advice: DIY divorce kits or online services cannot provide tailored legal advice. Yes they are cheap and assume that "one size will fit all" but in reality each divorce case is unique, and, without personalised advice, you might not achieve the most favourable outcome.

For all these reasons, while a DIY divorce might seem like a cost-effective option initially, it can lead to complications, financial losses, and additional stress in the long run. It's advisable to seek at least some legal advice, even if it's just for specific parts of the divorce process.