Family law never stands still, and 2025 has been no exception. Our annual round up of what has been going on in the family law space is here.
Welcome
Senior Partner Julian Hawkhead, based in our Leeds office
As 2025 draws to a close, it is a timely moment to reflect on the key family law developments of the past year – not only the headline cases, but what they reveal about how family law in England and Wales is evolving, and where it may be heading next.
This has been a year clarification rather than wholesale reform, specifically in the application of the 1973 Matrimonial Causes Act to modern family life. The Supreme Court’s decision in Standish v Standish is representative of this approach, as my colleagues will explore below. At the same time, it highlights a broader challenge: judges are increasingly required to interpret legislation drafted over fifty years ago in circumstances far removed from those originally envisaged.
Alongside this judicial refinement, momentum for reform is building. The Law Commission has identified unpredictability and complexity within the current financial remedies system. The Government has confirmed that further consideration of financial remedy reform, alongside long-promised reform to cohabitation law, remains on the agenda. This is particularly significant given the continued rise in cohabitation, and the mistaken belief that they acquire “common law” financial rights through living together.
The articles in this year’s review sit within this wider context, exploring issues families consider well before separation, such as prenuptial agreements and financial planning, as well as developments arising at moments of change, including international divorce, artificial intelligence in family proceedings, and the treatment of pets on separation.
Finally, 2025 has been a significant year for Stowe Family Law. Our continued growth, including expansion and partnerships beyond England and Wales, reflects rising demand for specialist advice. As the firm evolves, our focus remains unchanged: helping families navigate change with clarity, confidence and compassion.
Prenuptial agreements in the UK
Partner Shivi Rajput, divorce and family solicitor in our London office
We have seen a steady rise in clients asking for prenuptial and postnuptial agreements. Several factors explain why: couples often choose to get married later, once they have established their careers and accumulated greater individual wealth. Cross-border families, growing public acceptance and recent case law has further increased confidence amongst clients in properly drafted agreements.
Read more about the growing importance of prenuptial agreements.
The Supreme Court’s judgment in Standish v Standish (2 July 2025) is one of the most important legal developments of the year. The court clarified the scope of the “sharing principle” under section 25 of the Matrimonial Causes Act 1973 and drew a firmer distinction between matrimonial and non-matrimonial property, upholding limits on sharing assets that had been kept or structured outside the marriage for tax and family-planning reasons. The judgment strengthens the message that careful financial planning before marriage and clear intentions about asset ownership during the marriage matter.
The landmark case of Radmacher v Granatino (2010) already gives weight to nuptial agreements that are freely entered into with full disclosure and independent legal advice. Together, Radmacher and Standish demonstrate that the courts of England and Wales are more willing to respect autonomous planning, provided that the agreements are fair and transparent.
Policy reform is also on the table: the Law Commission’s recent work on financial remedies has proposed options that could change how prenups are treated in statute; a move that would further normalise their use and give them binding status.
What should couples do? If you want a robust agreement, get early, bespoke advice; ensure full financial disclosure; obtain independent legal advice for both parties; and record reasons so the document reflects informed, fair choices. Prenups are not a shortcut to certainty, and are currently not binding, but after Standish they are a more reliable tool than ever to ring-fence family/ pre-marital wealth.
What is considered a matrimonial asset, and how is an asset ‘matrimonialised’?
Partner Joanna Newton, divorce and family solicitor in our Bristol office
As my colleague Shivi has noted, one of the pivotal cases in family law in 2025 has been Standish v Standish (2 July 2025). This case has established in case law the concept of ‘matrimonialisation’ – i.e. how a non-matrimonial asset becomes a matrimonial one.
Non-matrimonial assets are usually those assets that are pre-marital assets. These are assets that have been built up by one person before the marriage, for example property or savings. They may also be assets that have been acquired by one party during the marriage, e.g., inheritance or gifts. In contrast, matrimonial assets are those that are the product of the couple’s joint endeavour throughout their marriage. This includes assets like the family home and joint bank accounts.
The Standish case involved Mr and Mrs Standish battling over a specific transfer of money, c. £80m from the husband’s sole name into the wife’s. The intention of the transfer was for the money to be held in trusts for the couple’s shared children. However, at the time of divorce, Mrs Standish still retained the money in her sole name.
Mrs Standish argued that the assets were matrimonial, despite being pre-matrimonial wealth from her husband’s sole endeavour. She contended that by virtue of the transfer, the assets had become matrimonialised. The Supreme Court rejected her claim, judging that the assets were non-matrimonial property and should not be governed by the ‘sharing principle’ (i.e. the equal division of matrimonial assets on divorce).
However, in the judgment, the Supreme Court ruled that non-matrimonial assets could be ‘matrimonialised’ and would be subject to division on divorce if they had become mingled. This will be judged on a case by case basis, but going forward, family lawyers have a clearer idea of what counts as matrimonial. This means clients can get more accurate advice on how a court may judge their financial settlement and the splitting of assets.
Is London still the divorce capital of the world?
Partner Siobhan Vegh, family lawyer and divorce solicitor in our Wimbledon office
London has, for many years, been considered the ‘divorce capital’ of the world. The turning point was the case of White v White in 2000 where the seminal decision made introduced the equality of breadwinners vs homemakers in divorce financial settlements. As a result, couples from various jurisdictions now choose to pursue their divorce, or application for financial relief after a divorce has been granted abroad.
The key reasons people choose England and Wales for their divorce are:
- Financial considerations: there is no discrimination towards the homemaker – contributions to the family and home are treated on equal footing with financial contributions.
- Requirement for disclosure: in many countries, full financial disclosure is voluntary. However, in England and Wales, parties must each provide full and frank financial disclosure before negotiations can begin.
- Relative weight of nuptial agreements: prenuptial and postnuptial agreements are not automatically legally binding – their relevance depends on a number of criteria and neither party can be unfairly financially impacted by the agreement.
This year, the Court of Appeal heard the case of Mrs Potanina, ex-wife of Russian oligarch Vladimir Potanin. Mrs Potanina had applied for permission to apply for financial relief under Part III of the Matrimonial and Family Proceedings Act 1984, on the basis of an unfair financial settlement in Russia. The role of the Court was to judge whether Mrs Potanina’s connection to this jurisdiction was sufficient to allow her to pursue her application.
The Court of Appeal granted Mrs Potanina leave to apply for financial relief in England, ruling that her connection to this jurisdiction was sufficient.
This awakened the discussion around divorce tourism, and revived London’s position as the divorce capital. In recent years, there have been serious competitors to this position, especially with more modernised systems developing in countries like the UAE. Yet, the financial benefits of the English divorce courts offer enduring attraction, particularly to the financially weaker spouse.
Using AI in divorce proceedings
Team Leader Partner Filomena Sterkaj, expert family lawyer in our Cambridge office
2025 has seen an unprecedented shift in the way we use Artificial Intelligence in our day-to-day lives. AI tools and platforms are now our go-to for answers to questions, creating images, drafting documents and emails and so much more.
In the past 12 months, family law clients have used AI more than ever before to support with the divorce and separation process. In some instances, platforms such as ChatGPT can be helpful, such as for creating schedules, and finding nearby support networks for emotional and practical help. However, family lawyers are frequently noticing that legal documents, witness statements and emails to the other party have been prepared by AI. This is usually where clients have tried to cut costs and save time.
In some cases, clients have even asked AI tools for legal advice. In the latter part of the year, Chat GPT announced that the tool would no longer provide legal, medical or financial advice. This is a sensible step, but perhaps not far enough.
AI platforms have several concerns which means using them to support with legal processes can be risky. The tendency to “hallucinate”, i.e. make things up, can mean clients include false law or imaginary cases in witness statements. Even without the ‘advice’ part of the tool, the impact of hallucinations and out-of-date information can be huge.
Family law matters are incredibly personal, and each case is different. AI does not understand the nuances of your individual family situation, and can often offer clunky solutions based on its integrated patterns, rather than appropriately empathetic guidance. Family lawyers will commonly tell clients that divorce is not a science, but an art. There are grey areas. As smart as AI may be, it does not replace the skills, expertise and experience of a family lawyer when dealing with such personal circumstances within cases.
This year has been truly transformative in the world of AI and the speed at which it is pervading all corners of life is astounding. However, when it comes to family law, the best option is always to consult a professional family lawyer. A solicitor will guide you with the right advice based on knowledge of legal nuances and your personal family circumstances.
Download our guide to using AI in divorce proceedings.
How are pets treated in divorce proceedings?
Team Leader Partner Gabrielle Read-Thomas, family solicitor in our Altrincham office
The treatment of pets in divorce proceedings has come under increased scrutiny in 2025. The Working Group on Pets on Divorce and Separation has been petitioning the Government for a change in procedure.
Britain is a pet-loving nation. Our pets, whether dogs, cats, rabbits, or reptiles (and more besides), are important parts of our families. So when families break apart, the pet is involved too and arrangements will likely need to be made for their future. Will the pet live with one person or the other, or will there be a shared care agreement? What happens if the separating couple can’t reach an agreement?
Currently, the law only recognises pets as chattel, rather than sentient beings. This means that any dispute over ownership or future arrangements will need to be submitted as part of a financial settlement negotiation, as it will often concern legal ownership and ongoing finances. Judges in the family courts also have no obligation to consider the welfare of the pet in such disputes. They have a checklist to refer to that includes who paid for the pet, and who financially maintained it during the marriage, and who has capacity to continue care after separation.
However, many legal professionals as well as divorcing and separating ‘pawrents’ believe that the pet’s welfare should be considered in proceedings, not only their legal and financial position. One case that was reported in 2025, Fi v Do [2024] EWFC 384, highlighted how some judges are considering the wellbeing of the pet. In this case, the family dog was found to know her home to be with the Wife, who also was the primary carer of the children. The children’s welfare was also considered, with the judge noting the negative impact taking the dog away from them would have.
This has not yet seen a real turning point in the law, but it is hoped this is the beginning of a move towards truly seeing pets as feeling beings, and important parts of family life.
Do pensions get split in divorce? 25th anniversary of Pension Sharing Orders
Senior Associate Judit Kerese, family lawyer in our Cheltenham office
When couples divorce, they often concentrate on dividing obvious assets such as the family home, joint accounts, and savings. Yet pensions, which are often the second largest asset in a marriage, are frequently overlooked. Despite common misconceptions, pensions are usually considered matrimonial property and can be shared within a financial settlement.
December 2025 marked 25 years since Pension Sharing Orders (PSOs) were introduced. Although not an anniversary that’s widely celebrated, this milestone is significant in family law. The first PSO, issued on 1 December 2000, transformed how pensions could be divided. Before their introduction, pensions were mainly dealt with through Pension Offsetting, where one spouse received a greater share of another asset instead of a portion of the pension itself. PSOs changed this by allowing a percentage of one party’s pension to be transferred directly into the other party’s name, ensuring both spouses retained some financial security in retirement whilst still achieving a clean break.
Despite their importance, pensions remain the most neglected asset in divorce, especially among women. Immediate concerns, such as securing housing and meeting day-to-day needs, often take precedence. Pensions tend to be out of sight, out of mind. This is reflected in recent figures showing that only about 12% of financial consent orders include a Pension Sharing Order. The true proportion may be even lower, as many separating couples never formalise their financial arrangements, leaving pensions entirely unaddressed.
Failing to consider pensions can lead to significant long-term vulnerability, particularly for women, who typically retire with smaller pension pots than men. Divorce is often a critical point at which future financial stability can be strengthened or undermined. Ensuring that pensions are properly assessed and, where appropriate, shared can make a substantial difference to each spouse’s quality of life later on.
The 25th anniversary of Pension Sharing Orders serves as a timely reminder for both family lawyers and divorcing couples to prioritise pension assets. While the milestone may not appear noteworthy at first glance, it underscores the continuing need to recognise pensions as a key element of fair and secure financial settlements.
A final word
This year has reinforced familiar tensions in family law: the balance between certainty and discretion, autonomy and fairness, legal structure and human reality. The courts have continued to provide guidance within the existing framework, but there is also a growing recognition that reform is overdue.
Family law touches people at some of the most important and emotionally challenging moments of their lives. Our aim is always to explain the law clearly, apply it thoughtfully, and support families with empathy and care.
On behalf of everyone at Stowe Family Law, thank you for reading and for your continued trust and support. We wish you a very happy Christmas and send our very best wishes for the year ahead.
Useful Links
Prenuptial agreement mistakes and how to avoid them
Pensions in divorce: why they matter and how to protect yours
Using AI in your legal case – a guide
