[DRAFT] Family Briefing: 18 January 2024

Spotlight Commentary

Navigating Economic Turmoil: The Impact on Relationships and Divorce Rates

Predicting how the economy will evolve over the coming year is never an easy task, so predicting how it will impact upon divorce and relationship breakdown is even harder. Nonetheless, changes in the UK and global economy can have a significant impact upon the decisions of divorcing couples. Financial stresses alone can lead to increasing divorce rates, with the economic difficulties caused by the Covid-19 pandemic and the rising cost of living leading to a growing number of couples deciding to divorce.

Once couples have commenced proceedings, it is important to remain vigilant to changes in the economy. In the past year, increasing interest rates and the rising cost of living meant that the financial position of a party at the start of proceedings could be very different to their position when settlements are reached and the assets of the parties are divided. Family homes and pensions can be worth a lot less, meaning what once seemed to be a fair agreement no longer meets the needs of both parties. It therefore remains crucial to be aware of current economic trends and possible fluctuations in the near future to both ensure the value of marital assets are as accurate as possible and to protect divorcing parties from any unpleasant surprises upon receipt of their share of the assets.

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New year, new family law? Possibly.

The Law Commission’s assessment of the law governing finances on marital breakdown has garnered attention since it’s launch in 2023, and the first scoping paper is due for publication in September of this year. With existing law being governed by statute that’s over 50 years old, there’s potential for significant change to divorce law in the not-too-distant future.

There is also potential for reform in the area of pre and post nuptial agreements, with the Law Commission also considering if their recommendations for qualifying nuptial agreements should be re-examined, alongside continued calls for co-habitation reform to protect unmarried couples. There’ll be more updates in these areas over the coming months, but for now, it looks like the Law Commission is going to have a busy year.

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In The News

Law Society shares thoughts on ‘Divorce Day’ (Today’s family lawyer)

Almost half of family courts to allow reporting in England and Wales (BBC)

Family court transparency pilot rolled out to more courts (The Law Society Gazette)

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Features and Commentary

Law Society shares thoughts on ‘Divorce Day’ (Today’s family lawyer)

Almost half of family courts to allow reporting in England and Wales (BBC)

Family court transparency pilot rolled out to more courts (The Law Society Gazette)

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Industry Announcements

Law Society shares thoughts on ‘Divorce Day’ (Today’s family lawyer)

Almost half of family courts to allow reporting in England and Wales (BBC)

Family court transparency pilot rolled out to more courts (The Law Society Gazette)

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Resources

Law Society shares thoughts on ‘Divorce Day’ (Today’s family lawyer)

Almost half of family courts to allow reporting in England and Wales (BBC)

Family court transparency pilot rolled out to more courts (The Law Society Gazette)

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Legal Updates

Law Society shares thoughts on ‘Divorce Day’ (Today’s family lawyer)

Almost half of family courts to allow reporting in England and Wales (BBC)

Family court transparency pilot rolled out to more courts (The Law Society Gazette)