The cost of cutting corners: five dangers of DIY divorce

Online divorce services are becoming increasingly common, but many separating spouses are unaware of the pitfalls of failing to seek individual advice from regulated, qualified lawyers. At Maguire Family Law, we’ve recently seen a flurry of clients come to us after failing to reach a resolution through these services, ultimately leading to a longer, more expensive process.

For some couples, the idea of divorce can seem simple, especially if there are no children involved and it’s a mutual decision to separate. In these circumstances, it is understandable why parties would want a streamlined, cost-effective route forward. However, in reality, complexities often arise and by cutting corners, people can put themselves in a financially vulnerable position and could even risk missing out on receiving assets they are entitled to.

Here, our senior associate, Jennifer Hudec, outlines the dangers associated with the DIY divorce and why it’s not the only way to achieve an amicable resolution.

What starts amicably might not end that way

Where there has been a mutual decision to divorce and it is a straightforward separation, online divorce organisations may be a suitable solution. However, despite best intentions, separation can lead to heated disputes when it comes to asset division or child arrangements. In these cases, parties need to be fully aware of what their personal rights are and what is in their own best interest. In order to assure comprehensive, personal legal advice and to guarantee that someone is advocating for their individual needs, traditional legal representation is required.

Getting divorced with the help of a family lawyer doesn’t mean it won’t or can’t be amicable. Being supported by a legal team does not automatically mean that parties find themselves in court and many cases settle voluntarily and cooperatively. For some couples who want to jointly reach decisions with more flexibility and a faster, less adversarial process, mediation and other forms of non-court dispute resolution can be the ideal route to reaching agreements.

Unequal power leads to unequal outcomes

Not all DIY divorces arise from a mutual decision to keep costs down and speed up the process. In some cases, one spouse might encourage the other to avoid independent legal advice for reasons that are not in their partner’s interests, for example, because they know they are entitled to more than they are aware of. This pressure to engage with the legal process without the support of a personal legal team is a common theme in relationships where there has been abuse, particularly coercive control.

When both spouses instruct someone to assist them jointly, as is the case with online DIY divorce offerings, individuals cannot guarantee that they are getting personalised advice that focuses on what is in their best interest. Without clear evidence and court intervention, agreements reached can be difficult to challenge and can have drawn-out repercussions.

Divorce specialists are not covered for advocacy

Online divorce services usually use divorce specialists who can only offer legal guidance and are not always fully qualified or regulated. This means that if you can’t reach a resolution with your spouse and your case needs to go to court, these specialists may not be able to represent you in court as an advocate, as they have been instructed on a joint basis. As such, you could end up spending time and money going through the process, only to need to instruct a lawyer to represent you anyway.

Pensions: the most overlooked asset

A DIY divorce may not automatically address pensions, yet these are often one of the most valuable assets after, or even over, the family home. In relationships where the parties have unequal pensions, perhaps where one spouse does not have a pension or they have a limited pension because they sacrificed a career to raise the family, not getting an independent, objective view of their rights can mean that the financially weaker party could miss out on their fair share of the other party’s pension. This could mean the difference between a comfortable retirement and struggling to make ends meet.

Non-disclosure of financial assets

Pensions aren’t the only asset that you could forgo. If stocks, shares and cryptocurrency are not voluntarily disclosed, parties may need assistance tracing and valuing these assets to ensure they receive what they’re entitled to. Additionally, inaccurate business valuations, failure to disclose business interests appropriately, or a lack of advice around entitlement to the capital value of a company, could lead a party to waive claims that they were not aware they had over potentially very valuable assets.

Protecting your financial future

Whilst utilising online divorce services, or doing it yourself, may seem the cheapest and quickest route to separation, cutting corners can lead to costly mistakes and protracted proceedings.

Even if you’re unable to afford legal advice for the full duration of the divorce, targeted advice at key stages is strongly recommended. For example, an initial meeting to understand your rights, reviewing a proposed financial settlement or drafting the consent order. This limited input is invariably cheaper than trying to fix mistakes when a DIY divorce goes wrong.

At Maguire Family Law, we offer a fixed-fee initial consultation. Taking into account all of the details that are personal to your case, we can provide an overview and a road map that will help you to understand the process, your options and the potential outcomes.

If you’re thinking about a separation and want expert advice from our team of qualified, regulated family lawyers, get in touch today.