The hidden risks of DIY divorce
No-fault divorce and online divorce services have made it easier than ever to end a marriage. However, while a DIY divorce may seem like a cost-effective option, it can create significant financial risks if important issues are overlooked.
One of the most common misconceptions is that divorce automatically resolves financial matters. It does not.
Do online divorce services deal with financial settlements?
Many online divorce services focus on obtaining the Final Order that legally ends a marriage. What they often do not do is resolve the financial relationship between spouses.
This means that even after a divorce has been finalised, financial claims may still exist unless they have been formally addressed through a legally binding financial order.
For many people, a DIY divorce appears to be a cheaper alternative to working with experienced divorce solicitors. However, failing to deal with finances properly at the same time can create uncertainty and potentially costly problems later on.
Are verbal divorce agreements legally binding?
Many separating couples reach their own agreement about finances, including the family home, savings, pensions, or future financial claims.
While these agreements may work well in principle, they’re not usually legally binding simply because both parties agree to them. Without a court-approved financial order, either party may still be able to bring financial claims in the future, even years after the divorce has been completed.
That is why disputes can sometimes arise long after couples believed everything had been settled.
What can go wrong in a DIY divorce?
Common mistakes include:
- Overlooking pension assets
- Failing to consider future financial needs
- Undervaluing business interests or other assets
- Assuming an informal agreement provides legal protection
These issues are often only discovered after important decisions have been made. By that stage, correcting them can be expensive and, in some circumstances, impossible.
What initially appears to be a saving can lead to greater financial and legal costs.
Why legal advice can save money during divorce
Seeking legal advice doesn’t necessarily make a divorce more complicated or confrontational. In many cases, it helps provide clarity and certainty from the outset.
Family law solicitors can help ensure:
- Financial arrangements are properly documented
- Potential risks are identified early
- Agreements are legally binding
- Future claims are addressed wherever possible
Taking advice early can help avoid misunderstandings, reduce the likelihood of future costly disputes, and provide reassurance that important issues haven’t been overlooked.
Our Family Law team regularly advises clients on financial settlements, consent orders, and the wider issues that can arise during divorce. Whether you are just beginning the process or have already reached an informal agreement, we can help ensure everything is properly addressed. Speak to our Family Law team on 024 7663 2121 or email info@bandhattonbutton.com.