The wealthy are opting out of English courts for private divorce

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The wealthy tend to choose private healthcare and education, but now private divorce is also an option.

Because of the long delays in waiting for court decisions and the unwanted publicity once they get them, couples in England are turning to private mediation to help them settle the details of their divorce, say lawyers – in cases of who, in the hundreds of millions. of pounds at stake.

This process, which takes place in a private setting and is more organized than a court, is usually presided over by a senior lawyer or a retired judge. The result is binding.

“It’s increasing dramatically because the court system is completely overwhelmed,” said lawyer Rebecca Cockcroft, a partner at Fladgate.

There were 130 financial settlement disputes for divorce in the year to mid-December 2024 versus 89 in all of 2023, according to the Institute of Family Law Arbitrators. Barrister James Roberts KC, chairman of the Family Law Bar Association, predicts that this figure, which currently accounts for only 1% of contested divorces, will continue to increase due to changes to court rules in April 2024 which means that the parties must try to reach a resolution. out of court first.

London has earned the reputation of being the “divorce capital of the world”. Sheikh Mohammed bin Rashid al-Maktoum, the ruler of Dubai, has reached a £550mn settlement with Princess Haya bint Al-Hussain at the High Court in 2021, while high-profile divorces such as Prince Charles and Diana, Princess of Wales, are they were heavily covered. they are the media and have gained great popularity for their lawyers.

The advantages of going private are available to all who can pay but are particularly attractive to the wealthy: speed, privacy and referee selection.

Private lawyers have long complained about the chaotic nature of the court system. Although the number of days judges sit in the family division of the High Court, where high-profile divorce cases are heard, has not changed since 2011, the time allocated to resolving high-income disputes has decreased, lawyers the law says.

“If you are submitting a financial request, then four months is a good time. . . for your first meeting,” Cockcroft said, then “several months” for the settlement hearing and “many more” for the final hearing.

Divorce through the courts can take two to two years but when negotiated it can only be six months, says lawyer Alexis Campbell KC, joint head of chambers 29 Bedford Row.

As well as the obvious emotional benefits of a speedy resolution, it can work out cheap: even if you need to pay a judge, as well as your own lawyers, Campbell estimates that a court divorce can cost £100,000-£100,000. simple. 2 min. By speeding up the process, arbitration reduces the chances of legal letters, extended disputes and expensive property values.

The huge impact of judicial openness means that disputes about finances and relationships in family courts are now more readily available to the media and the public – the kind of attention that wealthy families may choose to avoid.

“Ninety-nine percent of my clients wouldn’t want to think that anyone would come and hear what’s going on in my divorce,” said lawyer Jane Keir, a partner at Kingsley Napley. “(Arbitration) is confidential and no one can enter unless invited.”

Although the choice of arbitrator should be agreed upon by both parties, poor spouses may be afraid that their spouse has chosen someone they like. The take-up of the dispute has been slower than some expected, according to Keir, perhaps in part because it lacks the sophistication of the court system. It’s also an unusual choice.

Campbell, who works as a judge and a judge, says there is less work pressure on the latter than the former: the judge would only know the evening before where their cases were, so he may find it difficult to function fully. , but as a judge “they took care of me completely . . . It is an incredibly optimized system. ”

The government is promoting forms of “out-of-court dispute resolution” such as arbitration to reduce pressure on the court system.

The UK Ministry of Justice said the government wanted to encourage deregulation “to help people and businesses avoid the time, cost and stress of court battles”.