Steady Market Growth Forecast with ADR Becoming More Important
The tenth edition of an annual report which provides a review of the market looking at the legislative background, recent market developments and drivers, market structure, market size and trends with historical volume and value data, the key players and future market developments with forecasts to 2027.
Key Highlights
- In 2023, the annual value of the family law market increased by 5.4% to pass £2bn for the first time. After an increase in divorces filed in 2022 following the launch of no-fault divorces in Spring 2022, divorces filed decreased in 2023 but market growth was driven by advice for high net worth individuals, complex cases especially Children Act cases, and increased demand for advice on financial issues after a divorce. Increases in the latter cases are a follow-on from the increase in divorces in 2022.
- There are still major issues around court backlogs and these are likely to increase pressures to turn to alternative dispute resolution (ADR). Mandatory mediation has been dropped but judges can now order court proceedings to be stayed so that ADR can be turned to.
- Some of the larger consumer law firms and a few specialist family law brands are taking a greater share of the market through M&A and office network expansion. At the top end of the market are some large international law firms working on legal issues for high net worth individuals and cross border matters and this part of the market continues to show healthy growth.
- Divorce petitions filed in 2023 were down by 7.5%. Again, 2022 was a unique year given the arrival of no-fault divorce but the general trend over the last decade has been for a fall in petitions filed. By 2023, 95% of all divorce petitions were filed digitally.
- Most other categories of family law cases witnessed declines in cases started in 2023. The main exception was financial remedy cases where cases started increased by 13.2%.
- Between 2023 and 2027, the market value compound annual growth rate (CAGR) is forecast at 4.5%.
- The next two years are likely to see more ADR which in turn will require new training for many legal advisers used to an adversarial approach. Other areas where demand is expected to increase include pre-nuptial agreements, one lawyer one couple services, and advice post-divorce and financial settlements such as co-parenting advice, counselling, and wellbeing services. After years of debate there should also be some positive movements on improved legal rights for co-habitating couples.
Table of Contents
Companies Mentioned
- Amicable
- Family Law Group
- Family Law Partners
- Hall Brown Family Law
- Irwin Mitchell
- Rayden Solicitors
- Simpson Millar
- Slater & Gordon
- Stowe Family Law
- The Divorce Surgery
- Vardags
Methodology
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