With January now well out of the way, we’ve been looking to the year ahead here at Harrogate Family Law.
When it comes to change and its potential impact, 2024 was a pretty significant year for family law. It placed a number of things on the family law horizon that we’ll all need to consider as we move forward in the best interests of our clients.
Here are some of our key observations.
Is it time for a financial remedies update?
The law governing financial remedies on divorce cases is now over 50 years old. For some time now, there have been calls for change, with many commentators believing these laws are outdated and not reflective of modern-day society.
The proposed changes involve (in a nutshell) reducing the level of judicial discretion when it comes to the division of assets and introducing a more straightforward framework that will minimise uncertainty and promote fairness and consistency in decision-making.
Sounds great, right? Well, on the face of it, yes. However, others disagree with the proposed changes – commenting that many people (particularly women who have sacrificed careers and incomes to raise children) won’t stand to gain much from reform. Key voices (that of Baroness Hale, to name just one) believe that to ensure any changes are fair, we first need to take much wider action on ongoing gender equality issues.
The Autumn budget
Political changes are always going to impact society. The Labour Party’s recent Autumn budget was no exception.
Capital Gains Tax will increase from 10% and 20% to 10% and 24% respectively. This will no doubt have an impact on divorcing couples who are trying to split assets where CGT is relevant.
The addition of VAT to private school fees is also something we expect to see the impact on couples. Where children attend private school, their fees should always be part of negotiations in a divorce or separation. It’s worth noting that should this VAT mean you can no longer meet the financial settlement requirements, a judge may rule that your child be pulled from private education.
If you’re currently concerned about this, please don’t hesitate to get in touch for advice.
Transparency in family court
After a round of pilot courtrooms, journalists and legal bloggers will now be able to request ‘Transparency Orders’, giving them access to case documents and the ability to speak to families. Previously, what could be reported on was very limited, and this move is intended to ensure more transparency within family courts.
The new rules came into play at the end of January and will continue to be rolled out gradually – beginning with public law proceedings and then moving into private family law matters.
Economic uncertainty
While money problems can often be the cause of many divorces and separations, it can also be the thing that keeps people together, even when they don’t want to be anymore.
The cost of living crisis and ongoing economic uncertainty could be a contributing factor to the UK’s falling divorce rates.
Some couples’ financial situation away from the relationship could leave them incredibly vulnerable. It’s often just too expensive to go it alone, and there’s understandable fear of leaving with nothing.
The genuine concern here, of course, is for those people trapped in an abusive relationship. It remains to be seen how many people will stay in unsafe and unhappy situations for fear of having no financial security and no means to seek the legal advice and support that they need.
If you’ve read any of this and have questions, we’re here to help. You can contact us anytime for a no-obligation consultation. When so many things feel uncertain, you can trust that Harrogate Family Law will be by your side.
