It’s been nearly two years since no-fault divorce legislation came into effect in England and Wales. Despite the legislation aiming to streamline proceedings for divorcing couples, according to the Law Society the average time for divorce increased to around 38 weeks post-reform, with a significant backlog of custody and family law cases tying up the courts. So, what further family law reforms are on the table, and how will any future changes impact firms working in Family and Private law?

Upcoming Government Family Law Reforms

Following on from no-fault divorce legislation, the government’s primary concern in family law reforms has continued to be with creating processes that reduce conflict in cases – such as improving access to early legal advice, providing vouchers for mediation, co-parenting classes and improving safeguards for victims of domestic violence – with the aim of supporting the wellbeing of children in separating families.

Following the outcome of the Private Family Law Early Resolution Consultation published in January a number of pilot schemes in England and Wales are being extended in advance of a national rollout with the hope that many cases will be resolved before reaching court. There is also an extension of an ongoing pilot scheme allowing journalists to report on family court proceedings designed to increase transparency in the family court system.

What Isn’t Included in the Plans?

Welcome though these changes are, there is still unfinished business when it comes to family law reforms, particularly legislation surrounding financial settlements in divorce cases and the legality of pre and post-nuptial agreements. Not to mention the legal protections afforded for cohabiting couples in the event of relationship breakdown.

Because there is little transparency around these issues, many clients approach legal separation with trepidation. The Law Commission is currently reviewing the laws around financial settlements however many feel that this process is too slow, and that any proposed changes will not go far enough. There have been calls from both Labour and Conservative MPs for the government to speed up reforms around financial settlements, albeit from different perspectives.

Baroness Deech has repeatedly pressed for pre and post-nuptial agreements to be made legal stating that ‘enacting pre-nuptial agreements into law would save cost, make mediation easier and significantly free up the courts.’

On the other side, Shadow Attorney General and MP, Emily Thornberry announced at last year’s Labour Party Conference that her party was committed to cohabitation reform to strengthen the protections available to those living together, particularly those couples where one partner earns significantly more than the other.

The Consequences of Further Family Law Reform for Firms

With the Law Commission currently reviewing the current legislation around financial settlements and the distinct possibility of a Labour government in the near future, it’s possible that we’re going to see continued family law reforms. But what could this mean for law firms, your Private and Family legal teams, and your recruitment strategy?

Putting tougher limits around the splitting of marital assets and reducing the extent to which outcomes are dependent on the discretion of judges could lead to a reduction in the number of large international divorce cases we have seen in the English courts. This may free up the time and resources of the family court system as could the stronger emphasis on mediation, as fewer cases reach court. Those that do make it to court will be easier to litigate and far less drawn out, resulting in lower legal costs for clients but greater competition for high-value cases from legal firms.

For Family and Private Law firms we could see:

• A greater emphasis on providing pre-divorce legal advice and mediation services.
• Smaller teams but with greater skill specialisation (eg. financial expertise, mediation techniques, child welfare etc.)
• A need to widen the soft and non-legal skills available in your team to include media relations, conflict resolution, communication, and empathy.
• Increased provision of training and development around domestic violence, child safeguarding and financial abuse.
• A need to widen the soft and non-legal skills available in your team to include media relations, conflict resolution, communication, and empathy.
• Increased provision of training and development around domestic violence, child safeguarding and financial abuse.
• A need to tap into wider perspectives through Diversity and Inclusion initiatives.

All of which might need you to rethink your talent attraction and retention strategies and target key skills to better support your long-term growth.

Clayton Legal has over 20 years’ experience helping clients attract and retain legal talent across practice areas that include Property, Personal Injury, Family, Criminal, and Costs law as well as Legal IT and Civil and Commercial Litigation.

If you are building your legal team, we can help. Call us on 01772 259 121 or email us here.

The paths of residential and commercial property transactions in the UK are at a moment of divergence. While residential transactions are declining, commercial property transactions seem stable, even on the rise. Yet property lawyers are reporting shrinking caseloads, with some firms handling 25% fewer cases in 2023. Improving the conveyancing process, particularly through the implementation of digital conveyancing could create a better, faster conveyancing market that encourages buyers and sellers to take the plunge.

The Current State of Real Estate in the UK

Figures from HMRC show that December 2023 saw the fourth consecutive month-on-month drop in the number of residential transactions, marking a 20% decline from December the previous year. Yet at the same time, commercial property transactions are increasing, albeit slowly.

Many commentators are predicting a smoother, less fractious property market in 2024 that won’t be marked by the mini boom and bust cycles we’ve seen since 2020. However, what’s stopping the market from taking off is the continued sluggishness of property transactions. The average time for conveyancing on a residential property is around 22 weeks and for commercial property can be slower  – a long way from the ideal transaction time of 8-12 weeks.

These long conveyancing times are a major contributor to the national fall through rate on property purchases of 34%.

Is Digital Conveyancing the Solution?

Property transactions, far more than property prices, are a great indicator of the health of the market. Making property transactions faster and easier has the potential to encourage both sellers and buyers and creating a more stable property market in the long-term. So, how can we achieve better and faster conveyancing and a system that works for both buyers and sellers?

One oft cited solution is digital conveyancing. Digital conveyancing involves implementing electronic transactions for the transfer of legal documents and funds and making land search details such as tenure, title, and lease length accessible instantly. Digitalisation would:

• Make the current conveyancing system more streamlined and transparent
• Go a long way to achieving faster conveyancing times
• Reduce the likelihood of error and the need for extensive checks and land searches
• Make the system more accessible and make long-distance transactions easier

Countries such as Norway have achieved great success with digital conveyancing systems, in some cases reducing transaction times to a matter of days. However, making such a system possible in England could prove more difficult. Bringing conveyancing solicitors, the land registry and real estate agents into alignment would require robust data security measures, compliance regulation and technology implementation. It is also likely to be costly.

It seems unlikely that the government will agree to the high-level conveyancing rule changes that would make wholesale digitalisation of the system possible. Meaning that without industry-wide desire for reform the technology is likely to be implemented patchily, with some sectors such as commercial real estate more reluctant to embrace change.

Another possible solution is providing buyers with more upfront information regarding property, in the form of a return to home information packs (HIPs), Scotland’s home reports or even Buying and Selling Property Information (BASPI) questionnaires. Transaction times when HIPs were introduced were around 12 weeks and Scotland has seen a 60% reduction in fall throughs since adopting home reports. And, consumers are happy to pay for this information, with 65% willing to pay £300 for information that would speed up their transaction times.

What Should You Be Doing to Prepare for Digital Conveyancing?

As we’ve heard recently, a stable market means many conveyancing firms are looking to drive recruitment. But how can you make sure your latest recruitment drive considers the future of conveyancing?

1. Attracting the right talent:
   Your hiring strategy should be focused on building and maintaining a talent pipeline that sustains your business long term. Focus on developing a strong, online employer brand that appeals to candidates, improving the candidate experience to make applying for roles smooth and seamless, and creating job descriptions that reflect the attributes and skills you need.
2. Hiring for digital skills:
   Speaking of skills, when evaluating candidates be sure to consider their digital skills and abilities alongside their other competencies. Digital literacy will be increasingly important for the legal profession with or without the digitalisation of conveyancing. Skills-based hiring can also be used to pinpoint other key competencies like communication which are key in creating better and faster conveyancing.
3. Retaining critical knowledge:
   Embracing the future of conveyancing will be impossible if business critical knowledge is lost. Improving employee retention not only keeps that knowledge in-house but allows you to pass that on to new employees though mentorship and professional development schemes.

Clayton Legal has over 20 years’ experience helping clients attract and retain legal talent across practice areas that include Property, Personal Injury, Family, Criminal, and Costs law as well as Legal IT and Civil and Commercial Litigation.

If you are building your legal team, we can help. Call us on 01772 259 121 or email us here.