Contested financial settlements have risen 66%: How a financial expert can help

Asking a court to decide upon a fair financial settlement and division of assets is time-consuming, costly, and stressful for your clients. If you can arrive at a financial settlement that is uncontested by both parties, that will likely be a smoother process.

Working with me means that, together, ww could reduce the risk of a contested financial settlement. Using cashflow modelling to explore a range of options, translating the finances from the page to reality, and structuring a clean break agreement, I can work towards a solution that is agreeable to all.

Equally, you will be able to develop stronger, more defensible proposals that are less vulnerable to challenge, and you could face far fewer post-settlement complaints.

Rising numbers of contested divorce settlements make financial clarity more important than ever

According to IFA Magazine (12 June 2025), the number of contested divorce settlements reached their highest level in 15 years in 2025, up by 66% from the previous year.

Rising costs, increasing fears about the global economy, declining asset values, and growing financial insecurity can all contribute to contested settlements. This is a trend which is only likely to continue, as the international financial landscape continues to impact on domestic and personal finances.

I can support your clients throughout the divorce financial settlement process, making sure the proposed settlement is fair and will work on a practical basis over the long term.

Full financial disclosure

Full and frank financial disclosure is an essential part of the application. However, if your clients have complex financial arrangements, this can become an administrative headache.

I can help your clients identify and understand the true value of their assets for transparent disclosure.

For example, if they have £500,000 in Cash ISA savings, this will function differently from a £500,000 pension pot, as 75% of the pension will be liable for your client’s marginal rate of Income Tax when they start to withdraw it, and pensions are subject to market fluctuations.

The Cash Equivalent Transfer Value (CETV) of a pension can also be misleading, as it could be worth much more at retirement.

Assessing and including the accurate figures of the “real world” value of assets can make it much easier to devise a confident proposal.

Cashflow modelling

Using my Visualise Your Future process, along with sophisticated software, I can explore a range of potential scenarios to “test” how a settlement would work in real life.

I can do this in advance of your client’s financial submission, so you can offer evidence-based proposals which are harder for the other party to challenge.

For example, cashflow modelling can help to project how maintenance payments would work over time, factoring in inflation to show how purchasing power could be reduced. It can also show what income levels could look like once maintenance payments end.

Additionally, I can work with a proposed settlement from the other party, helping to identify potential gaps and shortfalls so you can go back to them with a data-driven set of amendments.

Tax efficiencies

Getting a clean break order is often a goal, but this can be tricky if there are tax complications. Under the “no gain no loss” window, your client will have up to three years post-separation to transfer assets without triggering Capital Gains Tax (CGT). Once their settlement is finalised, this window becomes indefinite.

I can identify which assets would be appropriate for transfer and when this would need to be completed. A contested order will see the clock ticking on the window, so it is in both parties’ best interests to agree the settlement quickly so that CGT relief applies regardless.

There is also the issue of tax-free wrappers, such as ISAs. These can’t simply be transferred between ex-spouses without losing their tax-free status. Careful analysis could help us establish if any offsetting could be appropriate instead, for example, where one party keeps an ISA while the other retains a larger share of another asset.

Making sure the financial proposal is watertight can be in both parties’ interests. It can give you a clear, defensible structure backed by legislation and evidence, reducing the risk of any unexpected post-divorce tax bills for your client.

Get in touch

If you’d like to find out more about how I can help your divorcing female clients avoid a contested settlement, please get in touch by email at lottie@truefinancialdesign.co.uk or call 03300 889138.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Taxation and Cashflow modelling are not regulated by the Financial Conduct Authority.

Approved by 2Plan wealth management on: 15/06/2026