Reforming financial remedies after fifty years

The statute governing financial remedies on divorce and dissolution has barely changed in over 50 years. The Law Commission’s scoping report published in December 2024 offers the most coherent roadmap in a generation for bringing clarity, consistency and understanding to a system too often criticised as opaque, expensive and unpredictable. It does not discard judicial discretion, nor does it import a rigid continental‑style matrimonial property regime. 

Instead, it proposes a principled framework that preserves flexibility while giving separating families clearer expectations and better tools to reach settlement without ruinous litigation. The question now is whether the Government will grasp the opportunity to legislate or allow the report to languish. 

What the Law Commission concluded

At the heart of the report is a call for a clearer statutory purpose. The current scheme, anchored in section 25 of the Matrimonial Causes Act 1973 and developed through case law - arguably in tension with the Rule of Law’s preference for clear, accessible legislation - leaves ordinary families navigating a range of factors without a lodestar.

The Commission’s central insight is that financial remedies should be guided by transparent objectives: meeting needs, sharing the fruits of the marriage, and compensating for relationship‑generated disadvantage. It recommends recasting the statute to articulate those objectives expressly, aligning the legislation with the case law that already operates in practice.

The report advances a series of practical reforms consistent with that framework. 

First, it would codify key principles that have emerged judicially, distinguishing matrimonial from non‑matrimonial property - a live and very current issue following Standish v Standish [2024] EWCA Civ 567 - confirming the strong but not inflexible pull of equal sharing for matrimonial assets, and emphasising needs as the primary driver in most cases outside the “big money” sphere. 

Secondly, it proposes tightening the law on maintenance by encouraging earlier clean breaks where fair, setting clearer parameters for term and variation, and promoting self‑sufficiency without creating hardship. 

Thirdly, it recognises the systemic blind spot on pensions. The recommendations strengthen the valuation and division of pension wealth, promote consistent use of expert evidence, and ensure that pension sharing is treated as integral to fairness rather than an afterthought. 

Fourthly, the report modernises nuptial agreements by giving statutory force to qualifying agreements subject to robust safeguards: independent advice, full disclosure and protection against manifest unfairness.

Finally, it promotes procedural efficiency - better disclosure, triage and digital processes - so that proportionate, early resolution becomes the norm rather than the exception.

Taken together, these conclusions respect judicial discretion while setting clearer default positions, improving predictability and reducing the scope for tactical litigation. The report has catalysed a vigorous and overdue debate across the family justice community. It is a welcome push in the right direction and has achieved what good law reform should: it has surfaced areas of consensus, exposed points requiring careful drafting, and focused minds on implementation rather than abstract principle. But now the Government must take action.

What has been done?

Under the Protocol between the Government and the Law Commission, the responsible minister should provide an interim response within six months and a final response within 12 months. 

The report and the issues arising from it have been raised in Parliament on several occasions since publication, but it appears that the Government has committed to nothing beyond “considering” the report. 

The three most recent Law Commission reports in the area of family law, published in 2007, 2014 and 2016, have all sat in a desk drawer at the Ministry of Justice without action. There is a real risk that this latest report will meet the same fate.

What next?

Financial remedy law has long sought to balance flexibility with fairness. The Commission’s report does not abandon that tradition; it refines it. 

By clarifying objectives, codifying core principles and modernising the process, it would lower the temperature, narrow the issues and make early settlement more achievable for the vast majority of litigants. For the courts, it means focus and efficiency. For policymakers, it promises a system that is more comprehensible to the public whose lives it shapes. 

The direction is right. The profession is ready. It now falls to Government to legislate with clarity, resource implementation properly, and evaluate rigorously so that the reformed scheme delivers on its promise: principled discretion, predictable outcomes and, above all, justice that can be understood outside the courtroom.

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