The family law market in the UK experienced stronger growth than anticipated in 2024, reaching a total value approaching £2.2 billion, according to the latest research published in the UK Family Law Market Trends Report 2025 by IRN Legal Reports. The market grew by 5.4% last year, surpassing earlier predictions of 4.5% growth, with the annual growth rate projected to continue at around 5% through to 2028.

Despite the overall market expansion, the number of law firms engaged in family law work saw a slight decline. In 2025, the total number of firms decreased by 55, down to 4,709, part of an ongoing downward trend that has seen a reduction of approximately 400 firms over the past four years. One factor influencing this reduction is the rise of mostly unregulated online divorce services, which gained popularity during the Covid-19 pandemic but have since plateaued. IRN Legal Reports notes that these online divorce platforms, which offered convenience and cost savings, held a market share that increased from 9% in 2022 to around 11% in 2023 but remained static at roughly 10-11% in 2024. The halt in growth is partly attributed to traditional law firms responding by providing digital divorce services at relatively low fixed fees.

The report also highlights evolving practices within family law, such as the growing use of a ‘one lawyer, one couple’ approach for no-fault divorces. While this trend could potentially reduce overall market revenue, many couples continue to require legal advice regarding financial assets and arrangements for their children, supporting sustained demand.

Financial remedy cases, which deal with how assets are divided post-separation, have increased, with case starts rising by 3.9% to over 45,000 in 2024 compared to the previous year’s 2.8% increase. The number of cases disposed also grew by 16% to nearly 46,800.

The report predicts a shift toward more holistic service offerings by family law providers. This includes integrating divorce coaching, counselling, therapy, wellbeing support, and financial advice alongside traditional legal services. Additionally, advancements in artificial intelligence (AI) are expected to become more widespread in family law practices. AI tools are already being utilised for tasks such as court submissions and risk assessments in children’s cases, and their use is anticipated to grow, necessitating more guidance and training for those working within the judiciary and family law sectors.

Since January, extended open reporting provisions in family courts across England and Wales have created a presumption in favour of transparency orders, thereby allowing greater journalistic reporting on family law cases. IRN Legal Reports suggests this increased openness might drive more couples towards alternative dispute resolution (ADR) methods to avoid publicity. Changes introduced to the Family Procedure Rules last year now empower judges to pause proceedings to permit time for ADR efforts.

Supporting this trend, the Ministry of Justice has extended its mediation voucher scheme, which offers families up to £500 to assist with mediation costs for child arrangement disputes. Provisional data from April to December 2024 show a substantial 40% increase in the number of family mediation starts compared to the same period in the previous year.

However, the report also flags a potential rise in litigation triggered by concerns over breaches of confidentiality, as parties may seek court intervention if they believe sensitive information has been made public.

The Legal Futures is reporting these developments, highlighting significant shifts in service delivery, technological adoption, and regulatory changes that are shaping the UK family law market.

Source: Noah Wire Services