What really happens to your money when you divorce? A new study has the answers, and the findings are eye-opening.
Funded by the Nuffield Foundation, this large-scale research surveyed over 2,400 divorcees and conducted in-depth interviews with a further 53 participants to uncover how financial arrangements are made in divorce.
It’s the most comprehensive study of its kind in England and Wales, and its findings are clear: far too many people go through divorce without financial clarity, legal protection, or a full understanding of their entitlements.
If you’re separating, or thinking about it, here’s what you need to know to avoid the most common and costly mistakes.
The Financial Landscape of Divorce
Divorce isn’t only emotionally complex, it’s financially consequential. And for most, the stakes are far higher than they realise. Divorce doesn’t just split a couple, it disrupts their entire wealth trajectory.
In fact, it’s the single most damaging event to hit family finances outside of death. And while remarriage can soften the blow, especially for men, many women never fully recover financially. So the effects can last a lifetime.
Each year, approximately 100,000 couples in England and Wales legally divorce. In 2022, that number fell to around 80,000; the lowest recorded since 1971. Notably, the average length of marriages ending in divorce is now approximately 12.9 years, the longest recorded since official records began.
The majority of divorces involve modest assets, not millionaire portfolios. The figures reveal:
- 63% of couples had less than £500,000 in total assets
- 17% had no assets to divide
- 34% of homes had equity under £100,000
- 28% were renting, primarily in the private sector
These are the foundations people rely on to rebuild their financial lives. A poor settlement (or no settlement at all) can derail that completely.
Financial Blind Spots That Can Cost You
One of the most troubling findings is how little many people understand about their finances:
- 37% didn’t know the value of their own pension
- 23% weren’t sure of their pension scheme type
- 38% had no insight into their ex-partner’s finances
- 10% didn’t know the equity in their own home
- 12% sought no legal or financial advice during the divorce process
Without full financial awareness, it’s almost impossible to negotiate a fair division of assets.
Most Leave Without a Court Order
A formal financial order is the only way to legally finalise and protect a divorce settlement. Yet only 1 in 3 divorcees had one in place. That means two-thirds are walking away without any formal clarity — leaving the door open for future claims.
While 52% sorted finances themselves, and 42% avoided legal help due to cost, those who did seek professional advice secured significantly better outcomes. Women in particular were more likely to achieve pension sharing or financial support when legal professionals were involved.
Equal Isn’t the Norm — or Always Fair
The idea that divorce leads to an even 50/50 split is more myth than reality:
- Only 28% received approximately half of the total asset pool
- Men without children often walked away with more
- Women with dependent children were more likely to receive over 50% — but not always
- Pensions were frequently neglected, despite often being the most valuable asset
These findings underline the importance of tailored arrangements based on individual need, not assumptions of equality.
What Do People Actually Walk Away With?
The numbers speak volumes:
- 50% of divorcees left with less than £50,000
- 23% left with nothing or debt
- 21% received under £25,000
- Only 9% walked away with over £500,000
These outcomes reflect a critical need for structured financial planning and early legal guidance.
The Family Home and the Pension Gap
- 46% of homes were transferred to one party
- 29% were sold
- 60% of women received half or more of the home’s equity (vs 49% of men)
- Only 11% of divorcing couples with pensions arranged pension sharing
- Debts were split by legal liability — often disadvantaging the lower earne
Pensions in particular were widely overlooked; despite often being more valuable than property.
Frank Arndt, Founder and Senior Partner of Paradigm Family Law says:
“Several factors are influencing recent divorce statistics. The introduction of new divorce laws; including mandatory waiting periods and the shift to no-fault divorce has reshaped the legal process.
Meanwhile, broader economic pressures such as the pandemic, rising living costs, and the latest U.S. tariffs are contributing to a changing landscape. Financial stress remains a well-documented strain on relationships, and the added burden of higher household expenses may intensify tensions within families.”
Your finances matter; our new partnership can help.
Say Hello to Whatwouldajudgesay.com
At Paradigm Family Law, we’ve always believed that clarity around finances is the cornerstone of any successful divorce process.
Whether you’re just starting to consider separation or already part-way through, understanding your financial position early on is crucial; not just for peace of mind, but to avoid unnecessary delays, stress, and cost.
One of the most common, and complex, questions we are asked is: how will our assets be divided? It’s a vital issue, and often the most emotionally charged part of any divorce. Yet with the right approach, it can be addressed clearly and constructively.
That’s why we’re proud to partner with Whatwouldajudgesay.com, a specialist service that offers separating couples a judge’s view on how their assets would likely be divided; based on real financial disclosure and grounded in current legal principles. It’s confidential, efficient, and entirely out of court.
This isn’t about replacing legal advice; it’s about empowering clients with expert insight at the right stage of the process. By knowing what a judge might say early on, couples can make informed decisions and move forward with confidence; often saving time, money, and unnecessary conflict.
Speak to a Specialist
Paradigm Family Law, have a team of experienced and highly recommended family lawyers, we work on a fixed-fee basis because we believe certainty is key. Our partnership with WhatWouldAJudgeSay.com aligns perfectly with that principle—bringing transparency and structure to one of life’s most difficult transitions.
If you’re considering divorce or separation and want to better understand your financial position, speak to us—and explore whether an early judicial view could help you navigate the road ahead with clarity.
If you would like more details on this or want to discuss your family law matter, please do not hesitate to contact Frank or Evelyn. Paradigm Family Law offers a free initial consultation with a top-rated family lawyer and our fixed fee solutions cover financial or children proceedings from start to finish. You can call us on 01904 217225 or email us at [email protected].