Former wives losing out in unfair divorce money split

WOMEN are being urged to mind the divorce gap because they typically see their income drop twice as much as men after they separate.

Females generally see their household income fall by 41 per cent while their former husbands suffer only a 21 per cent drop, according to new research from Legal & General Retail.

Women also usually have less pension with an average pot of just £23,000 at the point of divorce, compared to £60,000 for men.

Yet many waive rights to a share of their partner’s pension as part of a divorce, potentially triggering financial problems.

Katharine Photiou, managing director of workplace savings at Legal & General Retail, said women need to include pensions in their divorce discussions, as so many do not, and she suggested taking advice to ensure a fair division of wealth. Following the introduction of no-fault divorces in April 2022, many couples now try to save money by arranging an online “DIY divorce” via government portal Gov.uk for a fee of just £593.

Jackie Meredith, head of the family department at law firm ORJ, welcomed the streamlined process but warned that ending your marriage may only be the start.

“Without getting a financial settlement approved by the court, couples are leaving themselves wide open to an ex-spouse making a claim years down the line,” she said.

Without a formal settlement, couples may remain financially linked. “I’ve had people wanting to resolve their finances five, 10 and even 15 years after the divorce.

“This is only going to happen more often,” she added.