Can I Claim Compensation for Lost Earnings in a Divorce?

Mark Freedman

Can I claim compensation for lost earnings in a divorce?

Giving up a career to raise children or support a family can have long-term financial consequences. Many people going through divorce worry that their earning capacity and pension prospects will never recover, particularly after years spent out of the workplace.

At Osbornes Law, our specialist family law solicitors regularly advise clients who have made significant career sacrifices during marriage and want to understand whether those sacrifices can be reflected in a financial settlement.

This guide explains when compensation for lost earnings may be considered, why these claims are difficult to pursue, and how the court approaches career sacrifice in divorce. It also explains how we can help you assess whether it is realistic to claim.

Video: compensation for lost earnings after divorce

In this short video, our divorce solicitors discuss compensation claims in divorce, why they are challenging to argue, and the type of evidence required to assess whether a claim has realistic prospects of success.

What does “compensation” mean in divorce?

In most divorces, the court concentrates on meeting financial needs and dividing assets fairly. Although compensation can be considered, it is rarely awarded and only applies in very specific circumstances.

Compensation is intended to address a specific type of unfairness. It looks at whether one spouse has suffered a clear financial disadvantage as a result of decisions made during the marriage, such as giving up a promising career to care for children or support the other spouse’s professional success.

It is important to be clear from the outset that compensation is not routinely awarded. Most financial settlements focus on meeting needs and dividing assets fairly. Compensation is reserved for unusual cases and requires strong supporting evidence.

Career sacrifice and lost earning capacity

Career sacrifice is a reality for many families. One partner may reduce their hours, step away from work, or abandon career progression altogether in order to look after children or manage family life.

Over time, this can result in:

• A permanent loss of earning potential
• Missed promotions or professional opportunities
• Reduced pension contributions
• Difficulty returning to senior or specialist roles

These concerns are entirely understandable. However, the court will not compensate for every difference in income or career outcome. The key question is whether the loss can be clearly linked to the marriage and whether it goes beyond what is already addressed by meeting future financial needs.

Why compensation claims are difficult to argue

Claims based on lost earnings are among the most complex arguments in divorce proceedings.

Courts approach them with caution because:

• Future career progression is uncertain
• Earnings depend on many factors unrelated to marriage
• Financial needs may already be met through other orders
• The court must avoid speculation or duplication

Even where a spouse has clearly given up a career, that alone is not enough. The evidence must show a real and measurable disadvantage that would not otherwise be addressed by a fair financial settlement.

What evidence would be needed?

Any compensation claim must be supported by clear and persuasive evidence. This may include:

• A strong career history before taking time out
• Evidence of likely progression, such as promotion pathways or professional status
• Comparable earnings within the same profession
• Pension evidence showing long-term impact
• Documentary or expert evidence where appropriate

Evidence gathering can be time-consuming and costly, which is why it is important to assess early on whether a claim is realistic and proportionate.

Proportionality, costs, and managing expectations

Not every case where a career has been sacrificed should involve a compensation claim.

At Osbornes Law, we focus on giving practical, balanced advice. That means:

• Being honest about prospects of success
• Weighing likely outcomes against legal costs
• Avoiding high-risk arguments with limited benefit
• Protecting clients from unnecessary expense

We will only recommend pursuing compensation where there is a clear legal basis and where doing so is likely to add real value to the overall settlement.

How Osbornes Law can help

Our experienced family law solicitors provide clear and strategic advice tailored to your circumstances. We can help you by:

• Assessing whether compensation is relevant in your case
• Advising on the strength and proportionality of any evidence
• Incorporating career sacrifice into wider financial negotiations
• Focusing on a fair and sustainable outcome

Our priority is to secure the best possible financial settlement while managing risk and cost sensibly.

Video transcript: compensation for lost earnings in divorce

Note: This transcript is provided for accessibility and ease of reference.

Hi, I’m Lisa.

Hi, I’m Yel. We’re here today to talk about a topic that’s close to many of our clients’ hearts, which is compensation.

Absolutely. We often have clients — and they tend to be wives, although I don’t want to generalise — who say: “I’ve had four children” or “I’ve had three children”. “I gave up a stellar career in the City, and now it’s very difficult for me to resume that career path after being a homemaker and bringing up the children. Can I benefit from that? Can I get some compensation for that in the award?”

It’s something we’re asked a lot. The reason we wanted to talk about it today is because it is difficult to argue, isn’t it?

It is very difficult to argue. That’s not to say we wouldn’t invite a client to provide the evidential support. If they can show they were on track for whatever it was, depending on their career —

A stellar career — legal, accountancy, tax adviser — whatever it may be. We will evaluate that evidence and discuss whether it is something that should, and could, be done. We also need to be proportionate in relation to fees.

We do. And it’s understandable, because a wife may say: “My income and my pension contributions will never get back to what they could have been,” and to what my husband’s are and will be going forwards.

Exactly. In effect, they do lose a career because they’ve had to take substantial time off. We will help with that, and we will only advise taking steps if we think it has good prospects of success.

Yes — because it’s also about proportionality and costs, and being careful not to run arguments you might lose.

Yes, with a huge price tag.

Speak to a specialist divorce solicitor

Compensation for lost earnings can be considered in limited circumstances, but it is one of the most difficult aspects of divorce finance to pursue successfully. Clear advice at an early stage can help you avoid unnecessary cost and uncertainty.