Finances on divorce – long overdue reform?

A scoping paper published on 17 December 2024 highlights that the Matrimonial Causes Act 1973, which oversees financial settlements in divorce, lacks a clear and cohesive structure, leading to uncertainty and inconsistency. This makes it difficult for individuals to understand how their financial arrangements will be decided. The law's wide-ranging discretion also makes it potentially incompatible with the rule of law.

The Law Commission was tasked with assessing whether the 1973 Act delivers fair and consistent outcomes for separating couples. In response, it assessed it was not. Professor Nick Hopkins, the commissioner in charge of family law, emphasised that divorce and separation are already stressful experiences, and the law should provide clear guidance on how finances will be divided. He stated that the current law, which has not been updated for 50 years, does not offer a cohesive or predictable framework for fair outcomes.

Although the government must respond to the Commission's findings within six months and provide a full response within a year, it may take until 2026 for any substantial reforms to be implemented.

https://lawcom.gov.uk/law-commission-publishes-scoping-report-on-financial-remedies-on-divorce/