Why are financial settlements contested in a divorce?

Posted on September 19, 2025

Your financial future after a divorce is always important, especially in times of economic uncertainty. While divorce rates may be falling, the number of contested financial settlements is increasing, making clear and practical advice more valuable than ever.

A financial settlement or order in divorce is the agreement (or court order) that sets out how a couple will divide their financial resources upon the end of their marriage, and is a crucial part of the divorce process because it covers:

Property: The family home and any other properties.
Savings and investments: Bank accounts, ISAs, shares, etc.
Pensions: The sharing or offsetting of pension entitlements, often the most unknown yet lucrative part of family finances.
Income and maintenance: Spousal maintenance in regular payments from one party to the other or child maintenance, as agreed or set by the Child Maintenance Service.

Whilst couples may try to agree terms themselves, it is always helpful to speak to specially trained family law solicitors to ensure the agreement is fair. If agreement can’t be reached, a judge can impose a financial settlement after assessing the couple’s financial needs, the length of the marriage, the ages and earning capacity of both parties, the needs of any children and the contributions of both parties (both financial and non-financial), to name but a few of the factors.

“A financial order provides clarity going forward and a finality to the whole process,” said Solicitor & Head of Family Law, Emma Kendall.

“It is also important as it protects both parties and prevents future financial claims, even years later; it is in effect a full stop to any joint financial arrangements.”

Contested financial settlements

Financial settlements are contested in divorce for a range of reasons, especially when significant assets, complex circumstances, or emotional dynamics are involved. Research has pointed to an increase perhaps over contested valuations and complex family finances, but also an innate need for fairness, or sometimes, if a divorce gets bitter and angry, then money can become a conflict flashpoint.

Rising living costs and economic uncertainty have undoubtedly led to more conflict as couples question each other over their financial future and what it looks like when they split. Divorces later in life tend to involve accumulated wealth - pensions, properties, and investments - making financial settlements more significant with individuals more informed about their rights and less inclined to accept unfair outcomes.

The 10,300 financial remedy orders contested in the family courts in 2024 represented a 66% increase on 2023, which is the highest number contested in a long time.

“We are seeing an increase in the number of parties in disagreement over how much certain assets are worth and how they should be divided,” said Emma.

“Disagreement about ongoing support, especially when one party sacrificed a career, can lead to contested outcomes, as can child-related financial disputes. In addition, what one person considers fair, the other may perceive as unfair, especially in high-net-worth cases where one party has amassed most of the wealth, and we will work towards the best possible outcome for our clients,” she added.

At Pearson, our divorce solicitors are here to represent you in all aspects of your divorce and have experience in contested financial settlements.

Changes in divorce rates

One reason divorce rates appear to be declining is that some couples choose to remain legally married while living separate lives, often for financial or practical reasons. At the same time, younger generations are delaying marriage or skipping it altogether, while cohabitation has become increasingly common.

“Arguments about money, married or unmarried are nothing new, but good advice from a professional solicitor will go some way to offering you protection going forward, we always strive for a realistic outcome for our clients, one that is sustainable, reasonable and we like to think we make sure our client gets a final and fair settlement,” added Emma.

Even if you have informally agreed to a financial settlement, only a court-approved financial order makes it legally binding. Without it, one party can later make new claims, sometimes many years after the divorce, so good advice is not just a formality — it’s essential for security, finality, and clarity.

How can we help?

For more information on your finances during divorce proceedings, contact our divorce and family law solicitors on 0161 785 3500 or enquiries@pearsonlegal.co.uk

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.