The Hidden Costs of Handling Your Own Separation

As we continue to navigate the cost of living crisis, many of us are looking for ways to cut expenses. But when it comes to separation or divorce, is saving money in the short term worth the potential long-term financial risk?

More separating couples are choosing to handle their own divorces without seeking legal advice. At first glance, this may seem like a sensible cost-saving measure. Transitioning from a single household with two incomes to two separate households can feel financially overwhelming, making budgeting a necessity. However, what is the true cost of skipping legal input from a specialist family lawyer?

Financial Fairness in Separation

In Scotland, the Family Law (Scotland) Act 1985 sets out the principles governing the division of assets during separation, with the goal of achieving fairness. Just as no two financial situations are the same, no two separations are identical. Differences in each individual’s income, assets, and outgoings mean that fairness must be assessed on a case-by-case basis.

There are two approaches:

• Full financial disclosure – where both parties exchange financial information, often through solicitors, to establish the total net value of matrimonial property available for fair division.
• Proceeding without full disclosure – where an agreement is made without confirming the full extent of assets, which can potentially result in an unfair division of property.

The Risk of Overlooking Assets

Couples who handle their separation without legal support may not have full financial disclosure. This means they may unknowingly divide their assets unfairly, simply because they lack a complete picture of what exists.

Why Legal Advice Matters

Consider a common family dynamic: one partner is the primary earner, while the other focuses on raising children and managing the home. The stay-at-home partner may have little or no independent income and may be financially dependent on their spouse and in some cases have no idea what assets there actually are. Without legal advice, they could leave the marriage with little to no financial security, while the main earner retains the lion’s share of savings, pensions, and other financial interests.

The Family Law (Scotland) Act 1985 recognises that couples take on different roles in a marriage. It ensures that what is built up during the marriage – regardless of whose name an asset is in – is treated as matrimonial property, is shared fairly and acknowledges that financial contributions and non-financial contributions (such as childcare and homemaking) are equally valuable in a marriage.

Without legal advice, couples risk unknowingly reaching agreements that do not reflect this fairness, potentially leaving one party at a serious financial disadvantage.

The Importance of Seeking Legal advice

Handling a financial separation without legal advice increases the risk that one party loses out financially, often to the benefit of the other. For this reason, recommend that individuals consult a solicitor at least once at the outset of their separation. A single legal consultation can:

• Provide clarity on what is and isn’t matrimonial property.
• Help identify missing financial information that should be disclosed.
• Outline options fair division tailored to the couple’s specific circumstances.

There are multiple ways to divide matrimonial property, and a solicitor can help explore those options to ensure a balanced and fair outcome for both parties.

If you’re facing separation and need guidance, we’re here to help. Contact us today to discuss your options.

Find out more about our Family Law services here.

The information and opinions contained in this blog are for information only.  They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice.  Before acting on any information contained in this blog, please seek solicitor’s advice from Gilson Gray.