Citywealth Quick Insight Series on Divorce Trends – Kate Stovold, The International Family Law Group
This week’s Quick Insight Series on Divorce Trends is dedicated to Kate Stovold, Partner and Mediator at The International Family Law Group.
Have you encountered cases where informal agreements between spouses (about property, parenting, or finances) became problematic in divorce?
Maintaining ownership of decisions, whether in relation to finances or child arrangements, is important for clients, and something I actively encourage. Spouses and/or parents are far more likely to adhere to plans if they were involved in shaping them.
In some scenarios therefore, informal agreements can be helpful and facilitate positive discussion and swift resolution.
However, informal agreements can also be problematic, for example if entered into without the benefit of any legal advice, or without a full appreciation of the relevant facts and disclosure. Time (and money) must be spent sensitively unpicking these agreements or reworking them so that the outcome, whether financial or in relation to child arrangements, is fair and workable. Clients do not want to find themselves embroiled in litigation about whether or not an agreement is binding and if they should be held to its terms.
I would strongly advise clients not to enter into any agreement intended as a nuptial agreement without taking advice. Similarly, on divorce or separation, clients should take advice from a specialist financial remedies solicitor before committing to a settlement that might not be fair nor meet their needs.
The key message is to take advice, and to do so early on to ensure your client’s position is protected.
How often do you see assets held in someone else’s name (e.g., a relative) that actually belong to one of the spouses?
This is not uncommon, particularly within the matrix of a multi-generational family or in cases where one spouse intentionally manipulates an underhand advantage.
When dealing with assets on divorce, it falls to the lawyer, working with the client, to correctly identify the family wealth, whether held in property, business assets, pensions, savings and investments, cryptocurrency or otherwise.
It is also important to distinguish between the legal and beneficial ownership of the relevant assets.
It may be that one party has passed or intends to pass assets to a friend or family member in the hope of thwarting their spouse’s claim. In this instance, the Court has power to prevent a party from taking action that will diminish the assets of the family that would otherwise be available for sharing or, if steps have already been taken, to set aside that transaction.
What complications arise when one spouse has received or expects to receive a large inheritance or gift?
Inheritance and gifts can give rise to arguments about the ringfencing of ‘non-matrimonial property’.
When compiling the financial landscape on divorce, family lawyers must distinguish between matrimonial property (often described as “the fruits of the marriage”) and non-matrimonial property, that which has been generated externally to the marriage.
As a general rule of thumb, the starting point on divorce is for matrimonial property to be shared equally. If the parties’ needs are met (most notably with an eye to housing and meeting income needs now and on retirement), equal sharing shall be the end of the story. In some cases, the parties’ financial needs merit further review of the 50:50 starting position.
The Supreme Court has recently confirmed that non-matrimonial property is exempt from the sharing principle. The benefitting spouse will therefore argue that the monies should be ringfenced. Legal arguments can however follow including analysis of factors such as when the monies were received, how the funds were treated on receipt (e.g. have they been kept separate or have they been treated as shared) and whether those funds, inherited or otherwise, are required to meet needs.
What impact does a history of domestic abuse—physical, emotional, financial, or coercive control—have on the legal process, even if it wasn’t reported?
Divorce is universally regarded as one of the most stressful life events. This is the case even if the parties are amicable and agree a way forward to resolution of their financial claims.
Navigating a divorce against a backdrop of domestic abuse requires a sensitive pair of hands and there are a number of issues to consider. For example:
- Can the client read emails sent to you by their spouse? If that is potentially triggering, what measures can you introduce to shield your client?
- Can the client safely and comfortably attend Court with their spouse? If not, do you need to consider special measures?
- Will the history of domestic abuse, particularly if manifesting as coercive control, impact on the client’s ability to understand and engage with the family finances? How can you help them?
- Will fear of their spouse and his/her reactions impact on your client’s decision making and ability to engage in negotiations? How can you offset that?
All clients are different. Each needs a bespoke and tailored approach, to include considering whether other professionals should work alongside you e.g. Counsellor or Divorce Coach.
How might a new relationship or plans to live with a new partner influence the outcome of a divorce case?
Financial settlements on divorce follow an intense and (it is often said) invasive disclosure process. However, the lawyer needs to know what’s in the “pot” before turning to the client’s all-important question: What will I end up with at the end of the day?
New relationships, where the parties are already living together, must be disclosed, alongside a brief summary of the new partner’s finances.
There are a number of financial implications, including but not limited to:
- Reduced financial needs. If you cohabit, your new partner’s financial resources (capital and income) will be a relevant consideration when assessing your financial needs.
- Living with a partner may impact on spousal maintenance, in particular the right for the paying party to seek a review of or end to the payments.
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Citywealth Weekly: 22nd October 2025
IFLG is delighted to announce the appointment of Kate Stovold
Quick Insight Series: Kate Stovold, International Family Law Group
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