LONDON (FN) — When Princess Diana and Prince Charles finalized their divorce in 1996, it marked not only the end of a royal marriage but also the most expensive royal divorce in history — a settlement that reflected the global spotlight, political sensitivity, and symbolic weight of the British monarchy.
The agreement awarded Diana a lump sum of 17 million pounds, approximately 22.5 million dollars at the time, along with an annual allowance to maintain her residence at Kensington Palace. The payout was designed to be final, avoiding ongoing alimony and minimizing future entanglements between the former couple.
The divorce followed years of public tension and media scrutiny. Diana’s growing popularity and her candid public appearances intensified pressure on the royal family to resolve the situation swiftly and with dignity.
Royal aides and legal experts say the size of the settlement was influenced by several factors: Diana’s global stature, her role as the mother of the future king, and the monarchy’s desire to avoid a prolonged and damaging legal battle.
“She was not just a royal spouse — she was a global figure,” said royal historian Sarah Gristwood. “The settlement had to reflect her stature and the need for a clean break.”
Diana lost the title “Her Royal Highness” as part of the agreement, but retained the title “Princess of Wales.” The decision sparked public debate, with many Britons viewing it as a slight against a woman who had become a beloved humanitarian icon.
The financial terms also ensured Diana’s independence. Without the HRH title, she no longer had access to royal funds or official duties, making the lump sum essential for her security, staff, and philanthropic work.
Though other royal divorces have occurred — including Prince Andrew’s 1996 split from Sarah Ferguson — none have approached the scale or symbolism of Charles and Diana’s. The divorce reshaped public perceptions of the monarchy and set a precedent for how royal separations are handled.
The settlement also reflected the monarchy’s desire to shield itself from further scandal. By offering a generous payout, the royal family hoped to avoid future disclosures or legal disputes that could damage its reputation.
In the decades since, the settlement remains a benchmark in royal history — not just for its cost, but for its cultural and constitutional implications. Diana’s legacy, both in life and in her departure from royal life, continues to shape the institution she once called home.
