Economic Pressures Drive Surge in Disputes Over Divorce Settlements
Created: 25 July 2025
Increased living costs combined with economic uncertainties have contributed to rising disputes concerning financial settlements during divorce proceedings. With less assurance about financial futures, disagreements over dividing assets have spiralled to a new level.
Despite divorce rates decreasing over recent years, financial disputes ancillary to divorce proceedings have steadily increased. Industry experts suggest this trend is associated with rising concerns about post-divorce finances and the complicated nature of modern divorce.
Recent studies show a considerable rise in contested financial remedy orders in the family courts, with over 10,000 cases recorded, equating to over a 60% increase from the previous year. This marks the highest number of contested financial settlements since 2008. The rise has been linked to economic challenges, including reductions in property and asset values and other general financial instabilities.
An emerging area of concern relating to these disputes is the enforcement of final court orders. As financial pressures rise, more individuals are failing to comply with settlement terms. In many cases, individuals cannot afford new housing or qualify for a mortgage on their own after separation, making compliance particularly challenging.
Under The Law in England and Wales, financial settlements are reached taking into account all of the factors under Section 25 of the Matrimonial Causes Act 1973, often referred to as the “s25 factors”, which encourages a shared balance in long-term marriages. The Court is looking to achieve fairness and ensure that each parties’ needs are met.
Financial Proceedings are increasingly being approached with the same mindset as corporate litigation, in a calculated and cautious manner. As financial concerns escalate, more couples are considering past financial decisions and relying on prenuptial agreements or exploring post-divorce litigation in order to attempt to protect their interests.
Industry professionals suggest taking a cautious approach focused on proportionality, seeking legal advice as soon as possible, and implementing alternative dispute resolution methods to avoid unnecessary conflict and, of course, the costs of lengthy proceedings.
With ongoing economic challenges driving further contested financial settlements, legal professionals are highlighting the necessity for clarity, to seek early guidance and prioritise a commercially focused strategy that enables couples to manage separation more effectively.
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