A topic which dominated much of the news cycle towards the end of 2022 and which continues to do so as we head into 2023 is the cost of living crisis. Inflation is at its highest level in over 40 years, with food prices and energy bills also soaring. As a result, many people are trying to find ways that they can save money and this can also be seen in family law proceedings.
As the cost of living crisis deepens, separating couples are increasingly opting for the “DIY divorce” route in order to avoid what they perceive as unnecessary legal fees. As the name suggests, a DIY divorce takes place when, instead of instructing solicitors, the couple choose to complete the divorce process and reach a financial agreement between themselves.
The rise of DIY divorce has also been fueled by the welcome introduction of no-fault divorce in April 2022. Within the new regime, couples are now no longer required to blame one another for the breakdown of the marriage, meaning separation and divorce can, in many cases, remain more amicable. This, together with the use of an online portal, has made the process of divorcing easier for those who wish to proceed without instructing a solicitor.
However, the cheaper option is not always the best option. There are a number of pitfalls that parties representing themselves can fall into, which can often lead to more legal fees being incurred in the long run.
One of the biggest pitfalls arises out of the misconception that divorce proceedings bring an end to financial ties between married couples. This is not the case. Without either a Consent Order or a final court order detailing financial settlement, parties remain financially tied to one other, despite no longer being married. This is true even in circumstances where there are no matrimonial finances.
It is therefore essential that this issue is properly addressed as part of any divorce proceedings and there are a number of ways to reach an amicable agreement as to the division of matrimonial assets, whether this be via round table discussions or through the instruction of a Solicitor.
One very useful means of resolving such matters is Mediation. Mediation is an invaluable, voluntary, process in which parties can discussed financial settlement with the assistance of an independent third party. Within this setting parties can often reach agreements which are bespoke to their own individual circumstances and family dynamic, and which otherwise may not have been achieved. Whilst there is a cost to attending Mediation, Legal Aid also remains available in certain circumstances, making this an affordable option for many parties.
Following the conclusion of Mediation, it is imperative that parties seek legal advice from a qualified professional to ensure that any agreement reached is then embodied in a legally binding court order. As negotiations will already have taken place by that point, the solicitor’s work is significantly reduced, resulting in a significant cost-saving to the parties. This route is perfect for couples wishing to curb their legal costs whilst also having the peace of mind that they have been properly advised prior to formalising the agreement reached.
For any further advice or assistance regarding separation, divorce, financial matters or Mediation, please do not hesitate to contact our Family Team on (0191) 384 2441.
