Family law in focus: key trends from 2024 and predictions for 2025

As we move into 2025, we reflect on the hot topics in family law over the last 12 months and consider the key issues on the horizon for the year ahead. 

2024 in review

Greater transparency

For many years, journalists were heavily restricted in what they could report from Family Court hearings and as a result their attendance was rare. Following calls for more open justice and a review by the Transparency Implementation Group, new pilot schemes were introduced for both children and financial cases with the aim of increasing transparency. The pilot schemes were expanded in 2024, and their roll-out will continue in 2025. They reverse the presumption against publication and permit anonymised reporting of the details of cases, but the starting point for reporting remains the preservation of anonymity and confidentiality. 

See you in court – or not?

Important changes were introduced in early 2024, placing a renewed emphasis on settling cases out of court. There is a significant backlog of cases in the Family Court system and these changes are intended to reduce the number of disputes being referred to judges. Parties must make a serious effort to resolve their differences outside of court, otherwise they risk costs penalties. 

Increased reporting of Family Court cases in the media is undoubtedly another factor which pushes parties towards settling cases out of court, particularly high-profile and high-net worth individuals for whom privacy is key. There is a growing trend for parties concerned about press access to Family Court proceedings to include an arbitration clause in their pre- or post-nuptial agreement, which provides that the parties will resolve any future dispute through arbitration, a process entirely cloaked in confidentiality.

London: international divorce capital

In recent years, and particularly since Brexit, there has been a dramatic rise in the number of divorce “jurisdiction battles”, where parties litigate about where a divorce should take place. Financial awards on divorce can vary dramatically from country to country, and one spouse may stand to benefit significantly from the divorce taking place in England. This year has seen this trend continue, with many wealthy international couples litigating about where divorce and financial proceedings should take place, requiring the English court to decide whether it is the most “convenient” forum for the dispute.

In addition, following the eagerly awaited judgment from the Supreme Court in Potanin v Potanina, England continues to provide those who have divorced abroad with the opportunity to make an application for financial provision here, providing they have sufficient connections with this country.

Nuptial agreements

We continue to see increasing numbers of couples entering into nuptial agreements. Nuptial agreements are given significant weight in financial proceedings on divorce, providing they were freely entered, the parties fully understood the implications, and it would not be unfair to hold the parties to the terms of their agreement. They are an essential wealth protection tool for high-net worth individuals and families.

Spotlight on private equity

London maintains its status as a global hub for private equity. Consequently, more and more high-value divorce cases have featured Private Equity interests. International couples who have relocated to London for work in the private equity sector may find themselves divorcing in the English Family Court, and they can end up financially bound together for several years whilst they wait for the investment funds to reach their exit stage. 

Difficult market conditions in 2024 have led to an increase in “continuation funds” where, rather than being sold at the end of the original fund’s lifecycle, the underlying investments are rolled over into a newly established continuation fund. This emerging practice has resulted in many divorced couples being financially bound together for even longer than anticipated and additional rounds of litigation where a dispute arises.

Predictions for 2025

One to watch: Standish v Standish

This hotly anticipated case will be heard by the Supreme Court on 30 April 2025. The case centres around the transfer by Mr Standish of approximately £77m of assets, all of which had been built up by him before the marriage, to Mrs Standish. This was done as part of a tax planning exercise with the intention that Mrs Standish would eventually settle the transferred assets into a trust for their children; however, that was never done. The Supreme Court will need to grapple with the circumstances in which assets become “matrimonialised” and the extent, if any, to which Mrs Standish should share in the £77m. We expect the Supreme Court judgment in the second half of 2025.

50 year old statute – time for reform?

The Law Commission published a report in December 2024 setting out the various reform options for the law governing finances on divorce. The statute which governs this area is more than 50 years old and some commentators argue that it is no longer fit for purpose. We do not expect to see any reforms enacted in 2025, but the Law Commission’s report may start the ball rolling, and this will be an important topic of debate in 2025.

Living together and the “common law marriage” trap

Cohabiting couples are the fastest growing family type in the UK with around 3.6m couples living together outside of marriage or civil partnership. Many cohabitants are unaware that “common law marriage” is a myth and in fact they have scant legal protections. The Labour Party committed to giving cohabitants greater rights and protections ahead of the 2024 General Election; however, the Government has not taken any steps or elaborated on its plans since coming to power. This area of law is ripe for reform and many commentators hope that 2025 will be the year that Parliament finally confronts this problematic area.

Domestic abuse – a fairer way?

Historically, conduct has only been taken into account in financial proceedings on divorce in extreme circumstances. However, growing awareness of the long-term financial and emotional impact of domestic abuse has prompted calls for reform. Some commentators argue that domestic abuse, including coercive control, should be more explicitly recognised in financial awards on divorce to ensure fair outcomes for domestic abuse survivors. Resolution published a report on Domestic Abuse in Financial Remedy Proceedings in October 2024, taking a clear view that the current approach leads to unfair outcomes for victim survivors.

Judges have cautioned against expanding the role of conduct, however, warning that the court system does have not the resources to deal with the influx of litigation that would result. We expect that this issue will continue to be debated in 2025, reflecting broader efforts to align the family justice system with modern understandings of domestic abuse.

Surrogacy law

More and more people are choosing surrogacy as a pathway to parenthood – the number of children born through surrogacy has increased almost fourfold in the last decade according to the Law Commission’s 2023 report, which recommended reforming the current law. With a busy legislative schedule, it remains to be seen whether Parliament will enact any of the recommended reforms in 2025; however, the surge in surrogacy is set to continue.

AI generated evidence – not fake news

The rise of AI is presenting new challenges for legal practitioners and judges. Increasingly sophisticated tools allow parties to generate deepfake audio clips, photographs and messages, and there is a risk of such material being included in court proceedings as evidence. It is only a matter of time before there is a reported case in the Family Court involving AI-generated evidence. There are a range of technology products which can help detect fake evidence and the Family Court would also have power to appoint a Digital Forensics Expert to report on the authenticity of evidence. We will be watching closely for judicial guidance on this topic in 2025.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, January 2025