Recommendations for the Reform of Financial Remedies Law: A 2025 Outlook

Financial Remedies Law governs who gets what property/money/pensions & other assets, when a couple Divorces . Some people believe that the process could be made more fair, transparent, and effective. Recently, Resolution ( a key family law organization), responded to a set of recommendations for reforming Financial Remedies Law, that had come from the Law Commission https://resolution.org.uk/news/resolution-responds-to-financial-remedies-on-divorce-scoping-report/

How could any of the changes being discussed, affect anyone you know who might be going through Divorce?

Key Recommendations by Resolution

Many people have suggested simplifying of the Financial Remedies process. This could mean streamlining the rules surrounding the division of assets, focusing on transparency and try to reduce the adversarial nature of disputes.

Resolution want more emphasis on Collaborative Law, Mediations, & other Non-Court Dispute Resolution (NCDR) , as opposed to fighting it out in a lengthy court process; see https://resolution.org.uk/looking-for-help/splitting-up/your-process-options-for-divorce-and-dissolution/

Resolution proposes that the Financial Remedies Court strives for fairness, and avoids potential inequalities based on outdated notions of gender roles or financial capacity.

Resolution suggest greater protection for non & lower-earning spouses, especially those who have sacrificed their careers or financial independence to support the family. They want more clarity over how any ongoing maintenance should be approached, particularly after long marriages.

What Could Be Better for Divorce Clients

Reform could offers several benefits to Divorce clients. Simplification of the process could lead to faster results, thus reducing the emotional toll and financial burden that you can get with prolonged Court battles. Greater focus on NCDR (e.g. Collaborative Law) could foster more amicable settlements, helping to preserve relationships (which matters where the couple has children), and reducing the post-traumatic stress that a high-conflict Divorce can cause

A more standardized Financial Remedies (assessment) process, could lead to more predictable outcomes; currently, clients know that the result of their Financial Remedies case is uncertain. Arguably, neither spouse should be favoured over the other, if the Judges have less discretion over the decisions they make.

What Could Be Worse for Divorce Clients

Some aspects of the proposed reforms could have unintended negative consequences for divorce clients. A shift towards NCDR might lead to an overemphasis on settlement over justice; e.g. Clients faced with an uncooperative spouse might feel pressure to take a deal that does not really meet their needs.

A more formulaic approach could undermine the nuances of individual cases. Fixed outcomes would come at the cost of flexibility, particularly in complex cases (e.g. where assets are hard to value or divide). A formulaic outcome might not meet the family’s needs or their unique situation.

Increased protection for non or lower-earning spouses could inadvertently create dependency on spousal support, perhaps discouraging self-sufficiency, and leading to less independence. Ongoing ties between spouses can create added stress compared to a ‘clean break.’

Conclusion

All calls to reform Financial remedies Law highlight the challenges faced by Divorce clients. While the current proposals could bring greater clarity & efficiency, they could also bring about more unjust outcomes. Any reform would have to strike a delicate balance between simplifying the current processes, and maintaining the flexibility necessary to ensure that all parties are treated equitably, especially in cases where there are complex needs (or their own unique facts).