The Divorce Settlements Devastating Women in the UK

For many women in the UK, divorce doesn’t just mean the end of a marriage—it signals the start of an uphill battle for financial survival.

Despite progress in gender equality and reforms in family law, a growing body of evidence reveals that women are still emerging from divorce significantly worse off than men. Legal and General’s latest research shows wives experience an average 50% drop in household income after divorce, while their ex-husbands see a smaller decline of just 30%.

But behind those numbers are the real lives being reshaped by what some are calling a “ludicrous” and outdated divorce system. Three women shared their stories with Sky News’ Money blog, shedding light on a system that often undervalues caregiving, penalizes financial dependence, and leaves many women feeling manipulated and abandoned.

Isobel’s Story: “Why is that not taken into account?”

Isobel*, 44, from Berkshire, walked away from her career to raise two daughters full-time—a decision encouraged by her then-husband. Today, six years after their divorce, she earns just a quarter of his six-figure income, despite working nearly full-time as a nurse and caring for their children six out of seven days.

Her financial nosedive started when she took redundancy during maternity leave in 2008. For nine years, she worked sporadically in part-time roles—none of which lasted long because, she says, her husband struggled with sharing home responsibilities.

By the time they divorced in 2019, her salary was £17,000. His was more than triple that.

The divorce settlement, though legally “even,” felt anything but fair. She received a car, £55,000 from the family home’s equity, and one buy-to-let flat. He kept a second flat and the remaining equity. Legal fees drained £20,000 from her share, and post-separation debt ate through the rest. Her current salary as a nurse is £25,000—his is well over £100,000.

“Why on earth would it be a 50-50 split when my earning capability is a quarter of what he earns?” she asked. “I’ve had six years out of work. I’m never going to get a job that pays £100,000. That’s ludicrous.”

The Numbers Don’t Lie

Isobel is far from alone.

Legal and General found that 14% of divorced women had to cut working hours to manage caring duties post-separation—double the number of men (7%) in the same position. Lorna Shah, Managing Director of Retail Retirement at L&G, says the imbalance stems from traditional gender roles that persist long after the marriage ends.

“Women still pick up the majority of caring responsibilities—not just for children, but also for aging parents,” Shah explained. “We see married women prioritizing the family unit at the expense of their own financial security.”

This often sets up an imbalance that becomes glaringly apparent at the point of divorce.

Professor Emma Hitchings from the University of Bristol echoes that concern. Her 2023 study Fair Shares on Divorce found 28% of divorced women were earning under £1,000 a month, compared to only 10% of men.

The Forgotten Asset: Pensions

Among the most overlooked areas in divorce settlements is pensions—often one of the most valuable long-term financial assets.

Despite this, many women waive their rights to their spouse’s pension. Hitchings’ research found that a significant number of women had little understanding of pension entitlements, or simply didn’t prioritize them in the emotional fog of divorce.

Legal and General’s data backs this up: 28% of women gave up claims to their partner’s pension compared to 17% of men. That decision can have devastating consequences down the line, especially when combined with a reduced earning history and fewer years contributing to their own pension pots.

“Women often see pensions as not theirs to claim,” said Shah. “But if you’ve had shared finances during the marriage, and sacrificed your own earning potential, then you’ve absolutely contributed to building that pension.”

Grace’s Story: A Deposit or a Decent Settlement?

Grace*, 48, from the Midlands, is in the middle of her divorce—and facing impossible choices.

Her husband has offered her a £70,000 payout in exchange for waiving any claims to his pension or future earnings. With nowhere to live, she feels she has no option but to accept so she can put down a deposit on a new home.

“I’m devastated,” she admitted. “All I ever worked for was just to have a solid home and a family.”

Before marrying, Grace owned a £160,000 home in Greater London. She gave up a £26,000 job and invested £30,000 into renovating the Midlands property they moved into. She also took on full-time work while managing the household and caring for her stepchildren.

Financial control remained in her husband’s hands. It wasn’t until divorce proceedings began that she discovered he’d withheld information about multiple pay rises—his salary had jumped from £50,000 to £80,000 without her knowing.

“I feel incredibly ripped off. Hopeless, even,” she said. “He controlled everything, and I trusted him. Now I’m trying to make financial decisions while completely emotionally wrecked.”

Knowledge is Power—But It’s Often Missing

Lack of financial literacy during divorce is a common theme. Professor Hitchings points to the 2015 cut in legal aid for private family matters in England and Wales as a turning point. Without access to affordable legal advice, many divorcees go into proceedings uninformed.

Only 11% of divorcing couples with pensions yet to be drawn had secured a court-ordered pension sharing arrangement by 2023. More than a third didn’t know the value of their own pension, let alone their partner’s. Around 10% didn’t even know their home’s equity.

Karen’s Story: Fighting for What’s Hers

Karen Stainton, 55, used her background in finance to protect her future.

After a painful divorce ten years ago, she negotiated a lump-sum settlement that kept her pension intact. She offered her ex-husband £135,000 from the house sale, on the condition that he waived any rights to her retirement fund.

“And why should he get any of my pension, after not giving me a penny in child support?” she asked.

Karen worked seven days a week across three jobs to care for her three children. It was a grueling chapter—but a decade later, her pension is valued at £450,000, far more than the lump sum she gave up.

“I was running on adrenaline,” she said. “It wasn’t good. But I knew I had to protect my future somehow.”

Time for Legal Reform

Many experts now agree: the law is outdated.

The Matrimonial Causes Act of 1973, which underpins much of the UK’s current divorce law, is over 50 years old. In December 2024, the Law Commission published a scoping report on whether reforms are needed—especially around financial settlements and pensions.

The government has six months to respond. Campaigners hope it will lead to a full investigation and proposals for change.

“The law gives couples too much leeway,” said Professor Hitchings. “We need a more structured approach that ensures all assets and future prospects—especially pensions—are properly considered.”

The Ministry of Justice has acknowledged the report, saying: “The government is carefully considering the findings and will provide a response in due course.”

Advice for Divorcees: Don’t Go In Blind

So what can people do?

“Gather information early,” advised Lorna Shah. “Understand your rights, get financial advice if you can, and think long-term.”

Legal and General offers a free financial health check tool online for those navigating separation. But even with resources available, the emotional toll of divorce can cloud judgment.

“Divorce is heartbreaking,” said Shah. “But it’s also a legal and financial event. You need to step back from the emotion and make decisions that protect you, both now and in the future.”

Conclusion: A System in Urgent Need of Change

The stories of Isobel, Grace, and Karen illustrate a glaring truth: while marriage may be a shared venture, the aftermath of divorce still plays out on uneven ground.

Too often, women sacrifice careers, financial independence, and retirement security for the sake of family—only to be left behind when the partnership ends.

Until the legal system catches up with the realities of modern life and caregiving, too many women will continue to emerge from divorce not just hurt, but devastated.

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