Financial settlements in divorce: 5 common causes of delays and how to avoid them

Reaching a financial settlement before going to court could help you finalise your divorce more quickly. Discover five causes of delays and how to avoid them.

Every now and then, a celebrity divorce hits the headlines. Most recently, Sky News (18 January 2025) reported that green energy entrepreneur Dale Vince had finally reached a financial settlement with his former wife for £40 million.

While this might sound like a generous amount, Vince said it was £12 million less than he had originally offered his ex-wife, due to years of disputes and delays that cost around £6 million in court fees.

This case provides a valuable lesson for anyone going through a divorce – delaying settlements could increase legal costs, stress, and uncertainty for both parties. In contrast, reaching a financial settlement before going to court could significantly reduce the length and cost of your divorce.

Read on to discover five of the most common causes of delays in reaching a financial settlement and learn how you could avoid them to keep your divorce running smoothly and efficiently.

1. Financial pressures

Recent research by Legal & General (January 2025) found that 280,000 divorces in the UK have been delayed in the past five years due to financial pressures including:

• Income concerns (13%)
• Rising living expenses (12%)
• The cost of getting divorced (12%).

The study also found that many individuals face greater financial challenges following their divorce, including increased living expenses and debt. What’s more, 45% of divorcees see their incomes fall by 30%, which equates to £9,229 a year.

So, it’s perhaps unsurprising that some couples feel unable to reach a financial settlement that both parties feel satisfied with.

2. Strategic delays

Some spouses may deliberately delay a settlement for strategic reasons.

For example, if your ex-spouse or civil partner believes you may be due to receive an inheritance or a large pay rise, they may think that delaying an agreement could increase their share of the marital assets.

Your ex-partner might also delay discussions so they have more time to conceal valuable assets that they do not want included in the settlement.

Alternatively, one party may delay proceedings as a negotiation tactic – adding pressure could lead you to accept less favourable terms due to fatigue and a desire to move on as soon as possible.

3. Complex finances

Certain assets, such as cash in joint savings accounts, personal belongings, and vehicles, may be relatively straightforward to divide during a divorce.

However, some couples – especially those with a high net worth – may hold more complex assets such as:

• Trusts
• Significant pension pots
• Businesses or shares in businesses
• Overseas properties and investments
• Unique and high-value items that require expert valuation.

Determining the value of such assets, deciding how these should be split, and navigating the tax implications of doing so, could be time-consuming and contribute to delays.

Read more: How working with a financial expert could help your high net worth clients navigate divorce

4.  Lack of financial disclosure

If either you, or your ex-spouse or civil partner, fail to provide full and frank financial disclosure, this could delay your financial settlement.

One of the major points of contention in Dale Vince’s divorce was his distribution of matrimonial assets – in the form of political donations – without his wife’s knowledge.

This lack of transparency led to years of legal challenges and court costs, which not only delayed the final settlement but also reduced the amount Ms Vince ultimately received.

Even if you’re not seeking a multi-million-pound settlement, failing to provide detailed and accurate financial information along with relevant supporting documents from the outset could draw out negotiations and potentially lead to disputes and an unfair outcome.

5.  External factors

Of course, certain events and circumstances may arise that fall outside your control.

For example, if the courts are experiencing backlogs or administrative delays, this might make it harder for you and your ex-spouse or civil partner to finalise your financial settlement as quickly as you’d like.

Likewise, periods of market volatility could affect the valuation of shared assets, making it challenging to reach an agreement.

Additionally, as mentioned above, factors such as the cost of living crisis might lead you to delay your divorce until the economic climate improves.

How to keep financial negotiations on track

While it may seem like there are many factors that might derail your financial settlement following a divorce, there are steps you could take to reduce the risk of delays.

Start negotiations as early as possible

Whatever your circumstances are, reaching a financial settlement that both you and your ex-spouse or civil partner are happy with could take longer than you expect. This may be especially true if you have been together a long time, share complex assets, or your separation was acrimonious.

So, be proactive early on by:

• Gathering all relevant financial documentation, such as property deeds and bank statements
• Fostering open communication with your ex-spouse or civil partner, or their legal representative
• Ensuring full financial disclosure from the outset.

It’s also important to address delays as soon as they arise. Voicing your concerns and exploring options for overcoming any barriers to progress could keep things moving forwards.

Consider mediation

If you’re unsure about how to begin financial negotiations with your ex-partner, or you reach a stalemate, it might be worth considering using mediation services.

A professional mediator can facilitate discussions and help you and your ex-spouse or civil partner reach a mutually agreeable settlement.

Mediation may be more cost-effective and efficient than taking your case to court.

You can find a local mediator through the Family Mediation Council if you feel this might be beneficial.

Work with a financial expert

The Legal & General (January 2025) research found that despite a high number of UK adults stating that they delayed their divorce due to financial pressures, only 7% sought financial advice.

Yet a financial planner can provide valuable support during (and after) your negotiations, including:

• Arranging expert valuation of complex assets
• Assisting you in gathering and organising the information required for financial disclosure
• Implementing Pension Sharing Orders to ensure that pension wealth is split fairly
• Using cashflow modelling to show you how different settlement proposals could affect your long-term financial plans
• Helping you to plan for your financial future following divorce.

Get in touch

If you’re concerned about the financial implications of getting divorced and would like support reaching a fair settlement as efficiently as possible, I can help.

To find out more, please get in touch by email at lottie@truefinancialdesign.co.uk or call 03300889138.

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.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate cashflow planning, tax planning, or trusts.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.