Financial Remedies Reform Explained

Last reviewed: 21st July 2026

Article summary

✓  The Law Commission concluded in December 2024 that the law lacks the certainty and accessibility that couples need when negotiating a divorce financial settlement.

✓  The government’s preferred model, called codification-plus, would set today’s case law principles into statute while making targeted changes in areas like nuptial agreements.

✓  If you want financial certainty now, a pre-nuptial or post-nuptial agreement, drafted properly, already carries significant weight under existing law.

✓  Non-court dispute resolution remains the fastest route to a settlement for you right now, whatever reforms eventually follow.

 

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Introduction

The rules governing divorce financial settlements are currently well understood, however the Matrimonial Causes Act 1973 has not been substantively rewritten in over fifty years. Marriage and families have changed a great deal over this time. That’s why, on 5^th June 2026 the government launched a consultation, A Fairer End to Relationships. If the proposals are passed into law, it would signify the biggest change to divorce finance law in England and Wales in decades.

At the centre of the proposals is a ‘codification-plus’ model, which would put settled case-law principles, such as sharing and needs, into statute for the first time, while keeping a degree of judicial discretion within a clearer framework. The consultation also asks whether legally binding ‘qualifying nuptial agreements’ should be introduced, giving couples more certainty over how their finances would be divided if they later divorced, provided safeguards such as full financial disclosure and independent legal advice are met.

None of the above impact your position if you are going through a divorce today. The consultation closes on 14^th August 2026, and any reform will still need further policy development and a new Act of Parliament before it becomes law, so it will not affect cases already before the courts.

Why is the current law considered uncertain?

The current law gives judges very wide discretion under section 25 of the Matrimonial Causes Act 1973, and neither ‘financial needs’ nor ‘matrimonial property’ is defined anywhere in the statute itself. Two judges can reach different outcomes on similar facts, making it hard for you to predict your own case.

The

What is the Law Commission’s position?

The Law Commission concluded in its December 2024 scoping report that the law around divorce financial settlements requires reform but left the choice of model to government rather than making a specific recommendation itself. It set out four broad possible approaches, from a straightforward restatement of existing case law to a wholly new default matrimonial property regime. These ranged from:

      ✓  Codification – which restates current case law with minimal change.

      ✓  Codification-plus – which restates the law but makes targeted reforms in areas like nuptial agreements.

      ✓  Guided judicial discretion.

      ✓  A default regime – resembling frameworks used elsewhere in Europe.

The government has since chosen codification-plus as its preferred model, confirming its June 2026 consultation document would bring ‘settled case law principles, such as those of needs and sharing, into statutory form,’ according to the official consultation document.

What is proposed for nuptial agreements

The consultation proposes introducing binding qualifying nuptial agreements, which would let you and your partner make financial arrangements in advance that a court must uphold, subject to specific safeguards. This would go further than the current law, where nuptial agreements carry significant weight but are never fully binding on the court.

Under the current law, the Supreme Court held in Radmacher v Granatino [2010] UKSC 42, at paragraph 75, that:

“The court should give effect to a nuptial agreement that is freely entered into by each party with a full appreciation of its implications unless in the circumstances prevailing it would not be fair to hold the parties to their agreement.”

For you, that means a well-drafted agreement already carries real weight today, even though the court remains, in the Supreme Court’s words, ‘the arbiter of the financial arrangements between the parties.’ The government’s proposed qualifying nuptial agreements would remove much of that residual discretion in qualifying cases, provided you both entered into the agreement freely and with full disclosure.

What should you do right now

You should proceed with your financial settlement exactly as the current law requires, since no part of the consultation changes the rules that apply to your case today. If you want more certainty over your own arrangements, a properly drafted nuptial agreement already gives you that protection under existing law, without waiting for legislation that remains years away.

If you are considering marriage or are already married and want to protect specific assets, ask us about a pre-nuptial or post-nuptial agreement drafted to meet the Radmacher safeguards: entered into freely, with independent legal advice for both of you, and with full financial disclosure. If you are already separating, resolving your finances now under the current, well-established framework remains the right approach.

Talk to Purcell Solicitors

If you want to understand how the proposed reforms might affect your situation, or want a nuptial agreement drafted to the current legal safeguards, we can talk you through your options. Our family law team advises on financial settlements and nuptial agreements across Milton Keynes and the Thames Valley. You can reach us through our contact page or by phoning +44 (0) 1908 693000.

Last reviewed: 27th July 2026

Please note this article does not constitute legal advice.